N.C. Superior Court: Carolina Home Solutions, Inc. v. Crystal Coast Home Solutions - Out-of-State Attorneys cannot Ghostwrite Pleadings

Summary: Charles Loncon, an attorney licensed to practice in Georgia, but not North Carolina, filed a Notice of Appearance to represent Carolina Home Solutions ("CHS"), a corporation, and Charles Boudreau, an individual. The Superior Court initially allowed Loncon to appear at a scheduling conference, but admonished him that he would have to obtain pro hac vice admission going forward and that CHS, as a corporation, could not represent itself pro se. Loncon failed to associate a North Carolina licensed counsel and CHS filed joint pleadings with Boudreau, which the Superior Court had "serious concerns" were "ghostwritten" by London. Finding that while a licensed North Carolina attorney can draft pleadings on behalf of a pro se individual, See North Carolina State Bar, RPC 114 (July 12, 1991); 2008 Formal Ethics Opinion 3, "[s]uch is not the case, however, for an out-of-state attorney unless the attorney complies with the requirements of [N.C.G.S. ﾧ]84-4.1." Holding otherwise would allow out-of-state attorneys to circumvent the pro hac vice requirements. Accordingly, the Superior Court held that Loncon may have engaged in the unauthorized practice of law and referred the matter to both the North Carolina and Georgia State Bars. Commentary: While, pursuant to Bankruptcy Rule 3001(b), a corporate creditor or its authorized agent can file a proof of claim without an attorney, the same concerns start to arise when out-of-state attorneys file Proofs of Claim in bankruptcy cases, particularly when their mortgage servicer clients seek reimbursement for legal services. (Which could be an admission of practicing law in North Carolina without a license.) For a copy of the opinion, please see: Carolina Home Solutions, Inc. v. Crystal Coast Home Solutions - Out-of-State Attorneys cannot Ghostwrite Pleadings