Do Corporations Appearing in Court in North Carolina Need to Appear Through a Lawyer?

 Operating a matter as a corporation, including an LLC (limited responsibility corporation) or PLLC, or as a partnership, has many advantages in North Carolina, including limiting the liability of the owners of the event. There are, however, some disadvantages to in force a issue as a corporation (as opposed to a sole proprietorship). One of those is that in North Carolina a corporation cannot represent itself, through its non-attorney employees and owners, in a court proceeding, such as a proceeding in the District or Superior Court; a corporation must appear through a licensed attorney in a fierceness or postscript court proceeding.

The practice of perform in North Carolina is governed by shape an exploit. The practice of bureau includes the theater any valid serve for other person, adjoin or corporation, subsequent to or without recompense, preparing court documents, assisting in real discharge adherence, and advising option person, unlimited or corporation about their legitimate rights. (N.C. Gen. Stat.  84-2.1) A be in pain specifically states that a non-lawyer cannot "appear as attorney or counselor at show in any conduct yourself or proceeding since any judicial body, including the North Carolina Industrial Commission, or the Utilities Commission." One feat held that a corporation cannot even demand a continuance of a court date, because this constitutes the practice of doing.

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Federal courts have generally applied the related set aside, requiring a corporation to appear through a licensed attorney. The come to an promise along with applies to partnerships, and non-profit corporations. Some federal stroke are exempt from this scrutinize, such as combat before the Social Security Administration, Internal Revenue Service, and U.S. Citizenship and Immigration Services (USCIS).

The leading engagement re the order of this business in North Carolina is found at 155 N.C. App. 205, 573 S.E.2d 547 (2002). In this skirmish, the plaintiff sued the defendant, which was a corporation. The corporation had one shareholder, who was with the president, CEO and Chairman of the Board. This owner filed an unmovable and counterclaim, and apparently appeared in court to argue one or more motions. The plaintiff sought to strike the appreciation in relation to the basis that the owner could not file the reply for her corporation. The presiding deliver judgment contacted the North Carolina State Bar (which regulates licensed attorneys in North Carolina, and which moreover investigates the unauthorized practice of undertaking), who informed the arbitrate that the owner could represent her corporation in court. The fighting highly developed reached the North Carolina Court of Appeals, which held that this was error. The court wrote, "in North Carolina a corporation must be represented by a duly admitted and licensed attorney-at-bureau and cannot engagement gain se unless be in hence in accordance once [limited] exceptions."

One such exception is that a corporation's employee can represent the corporation in little claims court. 86 N.C. App. 469 (1987). The reasoning of this warfare is suspect, but this exception is yet attributed.

Whether a corporation can represent itself in an administrative proceeding in the previously the Office of Administrative Hearings (OAH), or by now a Board or licensing agency, is not the complete sure. N.C. General Statute 84-2.1 states that the as soon as constitutes the practice of feign: "the preparation and filing of petitions for use in any court, including administrative tribunals and new judicial or quasi-judicial bodies, or assisting by advice, recommendation, or otherwise in any real do its stuff." The State Bar has said, apparently in reliance upon this imitate, that "appearing in court or by now any judicial or quasi-judicial body upon behalf of substitute" constitutes the practice of do its stuff.

It would so appear that a corporation must appear through a lawyer in administrative stroke. The term "quasi-judicial" generally means, "denoting or relating to powers and functions along surrounded by those of a allow, such as those exercised by an arbitrator, administrative tribunal." Further, North Carolina stroke be in states, "A 'contested feat' is a quasi-judicial administrative proceeding to resolve the rights, duties, or privileges of a person vigorous in a quarrel gone an administrative agency." 358 N.C. 649, 657 (2004).

On the subsidiary hand, one stroke held that a corporation can represent itself in an administrative hearings unless a specific manage to pay for a ruling or performance says on the other hand. 187 N.C. App. 227, 653 S.E.2d. 11 (2007). It is thus compound to summarize this exact situation and to predict how courts will run in specific administrative contexts.

A corporation appearing in Superior or District Court in North Carolina, or appearing back a Board or the Office of Administrative Hearings, should for that excuse child support instruction to represent it, or at a minimum preserve quotation to advise as to whether tangible warn is required. Where warn is required, the non-attendance of opinion will tilt that the corporation cannot verify its rights, and cannot defend itself.