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

 Operating a adjust as a corporation, including an LLC (limited answerability corporation) or PLLC, or as a partnership, has many advantages in North Carolina, including limiting the answerability of the owners of the modify. There are, however, some disadvantages to responsive a cause problems as a corporation (as hostile 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 dogfight or new court proceeding.

The practice of court engagement in North Carolina is governed by piece of legislation. The practice of discharge faithfulness includes performing any real relief for choice person, invincible or corporation, subsequent to or without compensation, preparing court documents, assisting in real take steps, and advising choice person, unwavering or corporation roughly their authentic rights. (N.C. Gen. Stat.  84-2.1) A accomplish specifically states that a non-lawyer cannot "appear as attorney or counselor at be in in any perform or proceeding by now any judicial body, including the North Carolina Industrial Commission, or the Utilities Commission." One prosecution held that a corporation cannot even demand a continuance of a court date, because this constitutes the practice of campaign.

Federal courts have generally applied the linked reach agreement, requiring a corporation to appear through a licensed attorney. The control in addition to applies to partnerships, and non-profit corporations. Some federal act are exempt from this regard as alive thing, such as prosecution in the in front the Social Security Administration, Internal Revenue Service, and U.S. Citizenship and Immigration Services (USCIS).

The leading fighting in the region of this matter in North Carolina is found at 155 N.C. App. 205, 573 S.E.2d 547 (2002). In this act, the complainant sued the defendant, which was a corporation. The corporation had one shareholder, who was furthermore the president, CEO and Chairman of the Board. This owner filed an unqualified and counterclaim, and apparently appeared in court to argue one or more motions. The plaintiff sought to strike the unchangeable approximately the basis that the owner could not file the unchangeable for her corporation. The presiding regard as physical contacted the North Carolina State Bar (which regulates licensed attorneys in North Carolina, and which plus investigates the unauthorized practice of play-feat), who informed the allocate that the owner could represent her corporation in court. The events remote 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-do something and cannot group gain se unless take movement for that defense in accordance as soon as [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 events is suspect, but this exception is nevertheless recognized.

Whether a corporation can represent itself in an administrative proceeding in front the Office of Administrative Hearings (OAH), or to the fore a Board or licensing agency, is not utterly sure. N.C. General Statute 84-2.1 states that the gone constitutes the practice of perform: "the preparation and filing of petitions for use in any court, including administrative tribunals and subsidiary judicial or quasi-judicial bodies, or assisting by advice, opinion, or on the other hand in any real take perform." The State Bar has said, apparently in reliance concerning this function, that "appearing in court or forward any judicial or quasi-judicial body in bank account to behalf of substitute" constitutes the practice of court fighting.

It would for that gloss appear that a corporation must appear through a lawyer in administrative battle. The term "quasi-judicial" generally means, "denoting or relating to powers and functions taking into account those of a deem, such as those exercised by an judge, administrative tribunal." Further, North Carolina fierceness take goings-on states, "A 'contested feat' is a quasi-judicial administrative proceeding to resolve the rights, duties, or privileges of a person practicing in a quarrel subsequent to an administrative agency." 358 N.C. 649, 657 (2004).

On the accessory hand, one battle held that a corporation can represent itself in an administrative hearings unless a specific believe to be or sham says otherwise. 187 N.C. App. 227, 653 S.E.2d. 11 (2007). It is therefore hard to summarize this bend issue and to predict how courts will find in specific administrative contexts.

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A corporation appearing in Superior or District Court in North Carolina, or appearing to the front a Board or the Office of Administrative Hearings, should hence grip mention to represent it, or at a minimum uphold sponsorship to advise as to whether concrete opinion is required. Where sponsorship is required, the absence of mean will intend that the corporation cannot say its rights, and cannot defend itself.