The North Carolina Bar released Proposed 2019 Formal Ethics Opinion 3 in January, addressing questions relating to intimate relationships between opposing counsel. The question presented is whether it is permissible for a prosecutor and a criminal defense attorney to engage in a romantic relationship while serving as opposing counsel in multiple cases, and whether the attorneys are obligated to disclose this relationship. Due to concerns regarding actual or potential conflicts of interest, the Bar opines that it is permissible only under certain limited circumstances. The North Carolina Rules of Professional Conduct North Carolina attorneys are governed by the North Carolina Rules of Professional Conduct. As a basis for the proposed…
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Breach of Trustees’ Fiduciary Duty – Part 2: Duty of Loyalty & Duty of Impartiality
As we’ve mentioned in part 1 of this series, trustees are fiduciaries and, as such, trustees owe a variety of fiduciary duties to multiple parties. These obligations include both the duty of loyalty and duty of impartiality, which we will discuss this week. To prove a trustee breached of one of these duties, one must show three things: (1) the existence of a fiduciary relationship; (2) the breach of a fiduciary duty; and (3) damages proximately caused by the breach of the duty.[1] It is important to keep in mind that the express terms of the trust can modify…
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Rule 11 Sanctions and Incompetency Proceedings
In Re Cranor began as a straightforward incompetency proceeding, but devolved into a Rule 11 battle between two North Carolina attorneys.[1] The proceeding centered on a woman named Carole Cranor. Because of her early onset dementia, Carole had difficulty preparing meals for herself, suffered dehydration, and sustained a fall due to her diminished mental capacity. As such, she hired a friend and attorney, Harriet Hopkins, to help her choose a long-term care facility and get her affairs in order. Despite a falling out over their mother’s estate some years back, Frank, Carole’s brother, intervened when he realized Ms. Hopkins drafted a durable power of attorney (“DPOA”)…
