Paralegal Ethics: Are You Really Being Ethical?

Sarah, a white woman with short auburn hair, wears a black shirt with white flowers.By Sarah L. White

Every paralegal knows the four main ethical guidelines that govern our profession. They have been drilled into us with every paralegal class and continuing education seminar over the course of our careers. Most of us probably could recite them verbatim in our sleep, but just so we are clear, paralegals must not do any of the following:

1. Establish attorney-client relationships;

2. Represent a client in court;

3. Negotiate settlements; or

4. Give legal advice.

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Mark Your Calendars for This Year’s Giving Tuesday

Sarah, a white woman with long golden brown hair, wears a peach blouse and navy suit.By Sarah Clark

The Young Lawyers Division (YLD) and the North Carolina Bar Foundation (NCBF) are teaming up for the second year in a row to make November 29 a #GivingTuesday to remember!

For this year, the YLD is raising money to fund the NCBF’s civic education and pro bono programs. By donating on November 29, you will be entered into a raffle for a chance to win one of our many exciting prizes! Prize drawings will be held throughout the day among donors who have made their contribution to the #GivingTuesday campaign, and your opportunity to win increases as your gift amount increases.

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Important Rule Changes for the Rules Review Commission And Update on Rules Checklist

Bain, a white man with white hair, wears a white shirt and black suit.By W. Bain Jones Jr.

At the November 17, 2022, meeting of the Rules Review Commission, it was announced that at the December 15, 2022, meeting, the Commission will review proposed changes to its rules concerning extension of time and other rules concerning the filling and review of rules. Though not presented at this meeting, the proposed changes have now been published on the Rules Review Commission website. The proposed changes will be reviewed and voted on at the December 15, 2022, meeting. Section members are encouraged to review the changes, file any comments with the Commission and be at the December 15, 2022, meeting. Read more

NCBA Bankruptcy Section 2022 Lifetime Achievement Award Presented to Richard Sparkman

By the NCBA Bankruptcy Section

On November 11, 2022, during the 45th Annual Bankruptcy Institute in Greensboro, North Carolina, the NCBA Bankruptcy Section presented Richard Sparkman with the 2022 Lifetime Achievement Award.

Andrew W.J. Tarr, the Bankruptcy Section Awards Committee Chair, delivered the below remarks during the awards presentation:

It is an honor to be with you today to share the good news with you of the selection of the 2022 Lifetime Achievement Committee’s Award recipient. I want to thank our committee members for their thoughtful consideration of all the nominees. Read more

Recap of New(er) to In House Counsel Program

Alex Gwynn is a Black woman with black hair and brown eyes. She is wearing a red and white shirt, black glasses, and dark jacket.Clara CottrellBy Sheila Spence, Alexandria Gwynn, and Clara Cottrell

The New(er) to In House Counsel Program was held on Oct. 27 at the Bar Center. The purpose of the program was to provide firsthand experiences on what it’s like to work in house and to help those who are transitioning to in house within the first seven years of practice. Clara Cottrell opened the session with a warm welcome and opening remarks. Corporate Counsel Section Chair, Tammy Nicholson, spoke on the benefits of joining the section and upcoming events. Sheila Spence introduced the Knowledge Resource Committee and showed the participants how to access the available resources under the NCBA Community Page. Read more

If You Can’t Find a Path to Follow, Make It

Collins, a person with short brown hair and glasses, wears a pale blue shirt and navy blue jacket.Drew, a white man with brown hair and a beard, wears a white shirt, plaid tie, and black suit.By Collins Saint and Drew Culler

We met on the first day of orientation in law school at Wake Forest when we were welcomed into Professor Garland’s 1B Legal Analysis, Writing, and Research (LAWR) course with talks of ducks and rabbits and the mysterious duck-rabbit. From there, we quickly became involved in OUTLaw, Wake’s LGBTQ+ law student group. By our 3L year, we were co-presidents and excited to continue working together as practitioners. We researched as best we could LGBTQ+ legal professional organizations and found a whopping zero options for us. That would not do. Read more

Dear July Bar Examinee

Sarah, a white woman with dark brown hair, wears a white shirt and black jacket.By Sarah Spangenburg 

Dear July Bar Examinee,

You’re in the sweet spot . . . kind of. Law school graduation is quickly approaching, and the bar exam is still eight months away. Before you get too comfy though, we suggest you get started on the North Carolina Bar Application.

This application, which opened November 2, is unlike any you’ve completed before, and once you complete it, you may feel that the person reviewing your application will know you better than your own mother.

Fear not: the Bar Exam Committee of the North Carolina Bar Association Young Lawyers Division is here to help you with this process! Read more

Transforming Transformative Use: A Synopsis of Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith

KimberMarie, a white woman with brown hair, wears a white shirt and green jacket and is smiling.By KimberMarie Faircloth

On October 12, 2022, the Supreme Court heard oral arguments for The Andy Warhol Foundation for the Visual Arts, Inc.(AWF) vs. Lynn Goldsmith, et al.[1] The main issue revolves around “transformative” use under the Copyright Act[2] and how transformative the work must be to be protected by the doctrine of Fair Use and not infringe another’s copyright.[3] In 1994, the Supreme Court considered a case regarding transformative use, Campbell v. Acuff-Rose Music, Inc., in which the Court held that 2 Live Crew’s parody on Roy Orbison’s song, “Oh, Pretty Woman,” was protected under fair use and that the lower court erred in finding otherwise because they solely looked at the commercial nature without weighing the other fair use factors.[4] The Court also defined “transformative” as “add[ing] something new, with a further purpose or different character, altering the first with [a] new expression, meaning, or message.”[5] The more a work transforms the original, the less the other fair use factors will weigh in the analysis because transforming a work emphasizes “the heart of the fair use doctrine’s guarantee of breathing space within the confines of copyright.”[6] Transformative use also came up in 2020 with Google LLC v. Oracle America, Inc., where the Court found Google’s use of a portion of code from the Sun Java API, a computer program using Java programming language, to be “new” and “transformative” enough to constitute fair use.[7] Read more

Transferee Liability Under Section 6901

John, a white man with brown hair and blue eyes, wears a blue jacket, white shirt, and blue tie. By John G. Hodnette

In general, operating a business through an entity can provide limited liability in the event the entity is insolvent or goes out of business. Limited liability applies even to business taxes owed by an entity such as a C corporation. Some taxpayers have attempted to take advantage of that by causing a corporation to transfer to its shareholders assets that should be used to pay taxes. Such shareholders liquidate the corporation and ignore IRS attempts to collect. Absent Section 6901, the IRS might have no ability to collect the corporate taxes from the owners of the corporation.  However, Section 6901 imposes transferee liability on the owners of the business who received such assets. Read more

Pro Bono Committee Update

By Sean, a white man with brown hair, wears glasses, a pale blue shirt and navy suit.Sean Vitrano 

Greetings and happy autumn from the Pro Bono Committee of the Dispute Resolution Section!

Our team has been busy organizing for another successful bar year, and we invite you to participate.

The Pro Bono Committee works to identify projects and programs that provide members of the Dispute Resolution Section meaningful opportunities to use their skills and training to serve the public; support the creation of new pro bono DR opportunities and programs; and encourage section members to engage in pro bono service.

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