The holidays and new year can be a time of heightened emotions and contrasting circumstances. Joy and plenty abound alongside anxiety and need. Throughout December and January, the NCBA YLD Pro Bono Committee and the North Carolina Bar Foundation will strive to satisfy one of these needs through the Clear the Queue initiative.
NC Free Legal Answers offers a no-cost avenue for those seeking legal answers but who face limitations in their options to seek advice from traditional legal sources. The program allows qualifying users to submit their questions to an online forum where pro bono attorneys answer their inquiries. Whereas many pro bono opportunities require both the client and attorney to meet at a specific location at a specific time, NC Free Legal Answers conveniently allows those seeking assistance and the attorneys answering questions to do so from anywhere at any time. All that’s needed is an internet connection.
The tax benefit rule was originally established by case law but later codified as Section 111. It provides a taxpayer is not permitted to retain the tax benefit of a deduction when later events demonstrate she is not entitled to it. The rule prevents taxpayers from receiving the benefit of a deduction in one year, but upon an unexpected change of circumstances in a later year, receiving a recovery of items that were deducted as a loss in the prior year (and without treating that recovery as income).
An example of the rule is where a taxpayer takes a deduction for a bad debt in year one under Section 166(a). Without the tax benefit rule, the repayment of the bad debt in year two (which would be a nontaxable return of capital) is not a taxable event. Thus, the taxpayer would have had the benefit of the deduction while also receiving the benefit of the recovery of nontaxable cash. To prevent that double benefit, the tax benefit rule requires the taxpayer to recognize income from the receipt of the unexpected payment in year two to offset the tax benefit of the deduction in year one.
The Business Law Section of the North Carolina Bar Association was active this past year in proposing certain changes to the North Carolina Business Corporation Act and the North Carolina Charitable Solicitation Statute. Below is a summary of the amendments that were adopted this year.
Legislative Update – North Carolina Business Corporation Act
Recent Amendments to the North Carolina Business Corporation Act
The North Carolina General Assembly recently passed Senate Bill 477 (the “Act”), which was subsequently signed into law by Governor Roy Cooper on September 29, 2023. The Act provided substantive amendments to the North Carolina Business Corporation Act (the “NCBCA”) that became effective on October 1, 2023.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Businesshttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngBusiness2023-12-13 09:29:402023-12-13 09:29:40NCBA Business Law Section 2023 Legislative Update
By Mark Stewart, RRC CEI, and Jeffrey Martin, RRC, RRO, CEI, REWO, CDT
Mark Stewart
Jeffrey Martin
The construction industry has currently been running at a breakneck pace. This pace, combined with the advent of a pandemic, which brought us material shortages and delays, and a workforce shortage, put contractors in a tough spot to bring quality-built projects in on time and under budget. When the delays began, it forced contractors and designers to look for alternative material options that were more readily available. These new alternative materials, without intense scrutiny of their application, could affect the performance of the building envelope.
For example, in the case of wood-framed multi-family construction, the availability of polyisocyanurate (iso) rigid roof insulation was delayed due to shortages of raw materials. Iso was then replaced with a coverboard, and alternate insulation, such as fiberglass batt insulation, was used below the roof deck. This moved the dew point above the insulation, and thus, the interior moisture condensates on the underside of the membrane. The moisture then was at the deck level and began to saturate the wood deck. Over a short period of time, the deck fails prematurely and the increased levels of moisture in the attic space create the perfect environment for biological growth . . . mold. This is just one example of many instances of where the building envelope was compromised.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Constructionhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngConstruction2023-12-04 12:07:092023-12-04 12:07:09The Building Envelope: A Perspective
1. The most important case you have is the one sitting in front of you, because that client is there for that moment, trusting that you are going to invest yourself in his or her case.
2. Your greatest source of referrals is your fellow lawyers. Value your relationship with other members of the bar.
3. It is always easier and quicker to ask one of your senior partners a question and have them answer your concern than to spend two hours trying to look up an answer. It saves the partner and you time and money—and lessens frustration for both of you as well! Remember that older lawyers were once younger lawyers, and they actually don’t mind answering questions, because they have been there before you!
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00NCBA YLDhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngNCBA YLD2023-12-01 13:36:372023-12-01 13:36:37Ten Key Points to Remember Throughout Your Career
The Pro Bono Committee of the Dispute Resolution Section is one of the most active committees in the section. Its work includes:
• The Pro Bono Partners (“PBP”) Initiative: A project that identifies organizations with ready-made, quality opportunities for section members to provide pro bono dispute resolution services.
• The List: A curated list of organizations that often need volunteers with dispute resolution skills. Unlike the more structured opportunities identified in the PBP Initiative, potential opportunities identified on The List occur on a more ad hoc basis and provide a wider range of experience.
Senior Lawyers have several options for pro bono work in North Carolina. Share your knowledge and experience while serving your community in one of the opportunities listed below.
Pro Bono Go
North Carolina’s civil justice community has launched Pro Bono Go, a statewide platform for legal professionals seeking pro bono service that makes a meaningful difference in the lives of North Carolinians in need.
Pro Bono Go allows a Senior Lawyer to visit one website to find pro bono opportunities from the state’s leading civil justice organizations. You can search and filter opportunities by keyword, location, practice area, type, and sponsor organization. This is a great site to find a pro bono opportunity that will work for you!
The legal profession is in the midst of an occupational health crisis — particularly with regard to mental health. In 2016, the American Bar Association founded the National Task Force on Lawyer Well-Being, which subsequently published a report that utilized research from a study of mental health and substance use disorders among lawyers. This report summarized study findings that revealed “approximately 28 percent, 19 percent, and 23 percent [of lawyers] are struggling with some level of depression, anxiety, and stress, respectively.” Additionally, “suicide, social alienation, work addiction, sleep deprivation, job dissatisfaction, a ‘diversity crisis,’ complaints of work-life conflict, incivility, a narrowing of values so that profit predominates, and negative public perception” were reported. Psychosocial hazards associated with practicing law are negatively impacting lawyer well-being, and Animal Assisted Interventions (“AAIs”) can help.
In October, former section chairs David Robinson and David Garrett visited with the Daini Bar Association in Tokyo, Japan, hand-delivering a five-year Memorandum of Understanding between the North Carolina Bar Association and the Daini Bar. This partnership arose from our attorney exchange program visit to Tokyo and has continued ever since. The preamble to the MOU recites the reasons for our continued cooperation:
Recognizing the increasing interdependence of the international community and the global economy, and the challenges we face as organizations of the law profession to establish and deepen the mutual knowledge and understanding of our professions and professional organizations;
Recognizing the importance of developing a mutually beneficial relationship based on friendship and cooperation through exchanges between members of both our professional organizations and the exchange of information and materials; and
Desiring to strengthen the friendship and cooperation between us as organizations of the law profession through interactive communication.
For more information regarding our partnership with the Daini Bar Association or to become involved in our joint programs in the future, email David Robinson.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00International Practicehttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngInternational Practice2023-11-21 16:03:442023-11-21 16:08:01Friendship Agreement with Tokyo Daini Bar Association
Jonathan Hall is now a partner with the firm. Hall will lead litigation teams to help companies resolve high-profile, complex commercial litigation. He has supervised more than 100 bench and jury trials in North and South Carolina, Virginia, and across the U.S. He focuses his practice on complex commercial matters and products liability cases. From 2018-19, he served as the chair of the Trial Techniques & Technology Specialized Litigation Group with the Defense Research Institute – Products Liability Section. Since 2017, he has served on the North Carolina Supreme Court Historical Society Board of Trustees. He has significant experience leading trial teams in high-exposure cases. He received his J.D. from Wake Forest University School of Law and his B.A. from the University of North Carolina at Chapel Hill.
Poyner Spruill LLP Announces New Attorney
Michele Livingstone has joined the firm. Her practice is focused on civil and commercial litigation matters. She represents businesses and professionals in state and federal courts, and she has represented governmental entities in litigation in state, federal and appellate courts. She is the recipient of the North Carolina Bar Association Young Lawyers Division’s 2022 Charles F. Blanchard Young Lawyer of the Year Award. Livingstone serves with the NCBA Young Lawyers Division as the 2023-24 Administrative Division Director. She received her J.D. from Wake Forest University School of Law and her bachelor’s degree in political science and economics from Santa Clara University.
Smith Anderson Welcomes New Attorney
Gerald Koinis has joined the regulatory and public policy practice group. He focuses his practice on municipal law, land use and real estate, health care and corporate law. He assists health care providers, businesses, governmental entities and non-profits on issues related to corporate governance, health care regulations, human resources, and more. He also advises clients in the sales and acquisitions of businesses. He holds a J.D. from the Catholic University of America Columbus School of Law and a B.A. in economics and political science from the University of North Carolina at Chapel Hill.
Clear the Queue
Young Lawyers DivisionThe holidays and new year can be a time of heightened emotions and contrasting circumstances. Joy and plenty abound alongside anxiety and need. Throughout December and January, the NCBA YLD Pro Bono Committee and the North Carolina Bar Foundation will strive to satisfy one of these needs through the Clear the Queue initiative.
NC Free Legal Answers offers a no-cost avenue for those seeking legal answers but who face limitations in their options to seek advice from traditional legal sources. The program allows qualifying users to submit their questions to an online forum where pro bono attorneys answer their inquiries. Whereas many pro bono opportunities require both the client and attorney to meet at a specific location at a specific time, NC Free Legal Answers conveniently allows those seeking assistance and the attorneys answering questions to do so from anywhere at any time. All that’s needed is an internet connection.
Read more
Tax Benefit Rule
Tax SectionThe tax benefit rule was originally established by case law but later codified as Section 111. It provides a taxpayer is not permitted to retain the tax benefit of a deduction when later events demonstrate she is not entitled to it. The rule prevents taxpayers from receiving the benefit of a deduction in one year, but upon an unexpected change of circumstances in a later year, receiving a recovery of items that were deducted as a loss in the prior year (and without treating that recovery as income).
An example of the rule is where a taxpayer takes a deduction for a bad debt in year one under Section 166(a). Without the tax benefit rule, the repayment of the bad debt in year two (which would be a nontaxable return of capital) is not a taxable event. Thus, the taxpayer would have had the benefit of the deduction while also receiving the benefit of the recovery of nontaxable cash. To prevent that double benefit, the tax benefit rule requires the taxpayer to recognize income from the receipt of the unexpected payment in year two to offset the tax benefit of the deduction in year one.
Read more
NCBA Business Law Section 2023 Legislative Update
Business LawThe Business Law Section of the North Carolina Bar Association was active this past year in proposing certain changes to the North Carolina Business Corporation Act and the North Carolina Charitable Solicitation Statute. Below is a summary of the amendments that were adopted this year.
Legislative Update – North Carolina Business Corporation Act
Recent Amendments to the North Carolina Business Corporation Act
By Heyward Armstrong, Justin Truesdale and Nicholas Zanzot
The North Carolina General Assembly recently passed Senate Bill 477 (the “Act”), which was subsequently signed into law by Governor Roy Cooper on September 29, 2023. The Act provided substantive amendments to the North Carolina Business Corporation Act (the “NCBCA”) that became effective on October 1, 2023.
Read more
The Building Envelope: A Perspective
Construction Law SectionBy Mark Stewart, RRC CEI, and Jeffrey Martin, RRC, RRO, CEI, REWO, CDT
Mark Stewart
Jeffrey Martin
The construction industry has currently been running at a breakneck pace. This pace, combined with the advent of a pandemic, which brought us material shortages and delays, and a workforce shortage, put contractors in a tough spot to bring quality-built projects in on time and under budget. When the delays began, it forced contractors and designers to look for alternative material options that were more readily available. These new alternative materials, without intense scrutiny of their application, could affect the performance of the building envelope.
For example, in the case of wood-framed multi-family construction, the availability of polyisocyanurate (iso) rigid roof insulation was delayed due to shortages of raw materials. Iso was then replaced with a coverboard, and alternate insulation, such as fiberglass batt insulation, was used below the roof deck. This moved the dew point above the insulation, and thus, the interior moisture condensates on the underside of the membrane. The moisture then was at the deck level and began to saturate the wood deck. Over a short period of time, the deck fails prematurely and the increased levels of moisture in the attic space create the perfect environment for biological growth . . . mold. This is just one example of many instances of where the building envelope was compromised.
Read more
Ten Key Points to Remember Throughout Your Career
Young Lawyers Division1. The most important case you have is the one sitting in front of you, because that client is there for that moment, trusting that you are going to invest yourself in his or her case.
2. Your greatest source of referrals is your fellow lawyers. Value your relationship with other members of the bar.
3. It is always easier and quicker to ask one of your senior partners a question and have them answer your concern than to spend two hours trying to look up an answer. It saves the partner and you time and money—and lessens frustration for both of you as well! Remember that older lawyers were once younger lawyers, and they actually don’t mind answering questions, because they have been there before you!
Read more
Pro Bono Committee Update
Dispute Resolution SectionThe Pro Bono Committee of the Dispute Resolution Section is one of the most active committees in the section. Its work includes:
• The Pro Bono Partners (“PBP”) Initiative: A project that identifies organizations with ready-made, quality opportunities for section members to provide pro bono dispute resolution services.
• The List: A curated list of organizations that often need volunteers with dispute resolution skills. Unlike the more structured opportunities identified in the PBP Initiative, potential opportunities identified on The List occur on a more ad hoc basis and provide a wider range of experience.
Read more
Pro Bono Made Easy!
Senior Lawyers DivisionSenior Lawyers have several options for pro bono work in North Carolina. Share your knowledge and experience while serving your community in one of the opportunities listed below.
Pro Bono Go
North Carolina’s civil justice community has launched Pro Bono Go, a statewide platform for legal professionals seeking pro bono service that makes a meaningful difference in the lives of North Carolinians in need.
Created by the North Carolina Pro Bono Resource Center (NCPBRC) in partnership with Charlotte Center for Legal Advocacy, Legal Aid of North Carolina, and Pisgah Legal Services, Pro Bono Go is a new online clearinghouse of pro bono opportunities provided by the state’s leading civil legal aid and public-interest legal organizations.
Pro Bono Go allows a Senior Lawyer to visit one website to find pro bono opportunities from the state’s leading civil justice organizations. You can search and filter opportunities by keyword, location, practice area, type, and sponsor organization. This is a great site to find a pro bono opportunity that will work for you!
Read more
Supporting Lawyer Well-being with Animal Assisted Interventions
Young Lawyers DivisionThe legal profession is in the midst of an occupational health crisis — particularly with regard to mental health. In 2016, the American Bar Association founded the National Task Force on Lawyer Well-Being, which subsequently published a report that utilized research from a study of mental health and substance use disorders among lawyers. This report summarized study findings that revealed “approximately 28 percent, 19 percent, and 23 percent [of lawyers] are struggling with some level of depression, anxiety, and stress, respectively.” Additionally, “suicide, social alienation, work addiction, sleep deprivation, job dissatisfaction, a ‘diversity crisis,’ complaints of work-life conflict, incivility, a narrowing of values so that profit predominates, and negative public perception” were reported. Psychosocial hazards associated with practicing law are negatively impacting lawyer well-being, and Animal Assisted Interventions (“AAIs”) can help.
Read more
Friendship Agreement with Tokyo Daini Bar Association
International Law & Practice, International PracticeIn October, former section chairs David Robinson and David Garrett visited with the Daini Bar Association in Tokyo, Japan, hand-delivering a five-year Memorandum of Understanding between the North Carolina Bar Association and the Daini Bar. This partnership arose from our attorney exchange program visit to Tokyo and has continued ever since. The preamble to the MOU recites the reasons for our continued cooperation:
For more information regarding our partnership with the Daini Bar Association or to become involved in our joint programs in the future, email David Robinson.
Checking In: November 21, 2023
Checking InCompiled by Jessica Junqueira
New Partner Joins Phelps
Poyner Spruill LLP Announces New Attorney
Smith Anderson Welcomes New Attorney