Looking Beyond Lawyers to Close the Access to Justice Gap

Alicia, a woman with black hair and brown eyes, wears a black tank top and is smiling.S.M. Kernodle-Hodges, a Black woman with brown hair and brown eyes, wears a blue button-down shirt.By Alicia Mitchell-Mercer and S.M. Kernodle-Hodges

“If one wishes to know how justice is administered, one does not question the policemen, the judges, or the protected members of the middle class. One goes to the unprotected— those, precisely, who need the law’s protection most! — and listens to their testimony. ~James Baldwin, “No Name on the Street”

The Justice Gap

Civil access to justice is high stakes. It is a prerequisite for meeting fundamental human needs. Without access to justice, individuals are incapable of contesting injustice or holding decision-makers accountable. Access routinely determines whether basic human needs for food, clothing, and shelter will be met, and it can mean everything for a person in crisis. Sadly, when individuals realize they need legal help, they also realize they cannot afford a lawyer. More often than not, they are also ineligible for assistance from legal aid. The difference between the civil legal needs of lower-income Americans and the resources available to meet those needs is what we refer to as the “Access to Justice Gap.” Read more

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Taxation of Noncompete Agreements

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

Purchasers of a successful business have the reasonable concern that the prior owners will use their expertise to open a new business across the street that immediately competes with the one they just purchased. Noncompete agreements are key to ensuring that does not happen. How is the consideration paid for the noncompetition agreement treated under the tax law for both the seller and the purchaser?

A seller may expect, particularly in a stock sale, the cash allocated to a noncompetition covenant will be taxed as long-term capital gain, like the proceeds from the sale of stock. However, payments received for a noncompetition agreement are actually taxed as ordinary income. Therefore, the seller will want to allocate as little as possible to the noncompete and instead maximize the allocation to the stock (in the case of a stock sale) or to goodwill (in the case of an asset sale). In both cases, that allocation will generally result in long-term capital gain, which is taxed at lower rates than ordinary income. Read more

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The Cup of Coffee That Helped My Career

Lauren, a white woman with long brown hair, wears a black turtleneck.By Lauren Jones

I didn’t know anyone when I moved from Illinois to North Carolina for law school. As if being a 1L isn’t terrifying enough, the old adage I kept hearing, that “It’s not what you know, but who you know,” made the prospect of networking feel intimidating and mysterious. However, through NCBA’s Grab-A-Coffee Program, I found that an informal meeting turned into a summer internship, three wonderful mentors, and a free pizza (or three).

I first signed up for the Grab-A-Coffee program after receiving an email from my school’s Office of Career and Student Development because the program connected students directly to a lawyer in their field of interest. When Sarah Roane and I first connected, I knew we would get along. Even via email, she came across as warm, brilliant, and excited to help. During our first meeting, she asked me what practice area I was interested in. I told her that I was keeping an open mind and was excited to intern with any practice area. Sarah mentioned that she had a connection to a worker’s comp/personal injury firm in Greensboro and asked if I would be interested in potentially interning there. She told me to bring my resume to that week’s social event, and I did. Within five minutes of meeting James, he told me that they’d try to make something work out. Read more

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Attend the 45th Annual Bankruptcy Institute!

George, a white man with dark grey hair, wears a white shirt, purple tie, and black jacket.By George F. Sanderson III

As chair of this year’s planning committee, I invite you to attend the 45th Annual Bankruptcy Institute. The ABI is returning in person for the first time in three years! We will be at the Grandover Resort in Greensboro on November 11 and 12.

Our return to our traditional live format allows us to expand our CLE offerings. We will have breakout sessions specific to business and consumer bankruptcy and panels exploring recent developments in small-business bankruptcies, state-court receiverships, and bankruptcy-related litigation. We will also have programs on the hemp and cannabis industry in North Carolina, ethical issues related to privileges in bankruptcy, and technology tips and tricks for the busy practitioner.

We will provide lunch on November 11, during which a panel of bankruptcy judges from across the state will provide remarks.

A complete agenda is available. We would love to see everyone in Greensboro, but the program will be available via live webcast if you can’t join us in person.

Early Bird Registration ends on October 21. Don’t wait. Register today!

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Suicide and the Legal Profession

Ed, a white man with brown hair and a beard, wears a white shirt and grey jacket.By Ed Ergenzinger

Earlier this year, a survey of lawyers and staffers hailing mostly from Biglaw revealed that 19% of respondents contemplated suicide at some point in their professional careers. These results, coupled with the shocking death by suicide of attorney and former Miss USA Cheslie Kryst, contributed to a growing groundswell of attention and interest in mental health issues within the legal profession.

Suicide is the 12th leading cause of death in the U.S., yet it’s still a topic that many people are uncomfortable talking about. The stigma surrounding mental health and suicide can make it difficult for those who are struggling to reach out for help. And even when someone does seek help, there’s often not enough available.

A man in a black suit and glasses stand with his hand on his head leaning against a wall.

Photo by Andrea Piacquadio from Pexels.

We need to do better at breaking the silence around suicide and mental health. By starting the conversation, we can eliminate the stigma and help those who are struggling get the support they need. Read more

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Utilization Committee Update – Regulatory Reform Affecting Paralegals in North Carolina and Beyond

By The Utilization Committee

North Carolina Regulatory Reform Update

It has been two years since the State Bar’s Subcommittee to Study Regulatory Change had its first meeting on June 4, 2020, to study various types of regulatory reform (e.g., limited licensing, court navigators, regulatory sandbox).

Highlights:

  • On June 3, 2021, the Bar’s Subcommittee Studying Regulatory Change voted to recommend that the Bar create a separate ad hoc committee to lay out a plan for limited licensing.
  • On July 15, 2021, the Executive Committee approved an ad hoc committee to develop a limited licensing plan. However, no action was taken on that vote. After that date, the Regulatory Subcommittee continued its work of exploring a regulatory sandbox and other initiatives.
  • On January 7, 2022, Chairman Mark Henriques completed the Subcommittee’s final report on its work over the past 18 months. He presented this report to the Issues Committee on January 19, 2022, with continued discussion on April 20, 2022, and July 20, 2022. The report includes the following recommendations:
    1. Pursue a Limited License for Nonlawyers/Paraprofessionals
    2. Pursue a Regulatory Sandbox
    3. Recommend a Court Navigator’s Program to the Administrative Office of the Courts
    4. Refrain from Pursuing Alternative Admission to the Bar at this Time
    5. Explore Necessary Changes to Permit Alternative Business Structures and Fee Sharing with Nonlawyers
    6. Explore the Possible Liberalization of the Unauthorized Practice of Law Statutes

Read the report to learn more. Read more

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Preparing for Disaster: How Young Lawyers Can Ready Themselves and Their Clients

Taylor, a woman with black hair, wears a pink blouse and black jacket.

Taylor Dewberry

Shameka, a Black woman with black hair, wears a white shirt and black jacket.

Shameka Rolla

By Taylor Dewberry and Shameka Rolla

A natural disaster doesn’t end when the wind dies down or the flooding subsides. For the individuals, families, and communities affected, the disaster can drag on for months, even years.

Issues of inequity and unequal access to information/resources are further exacerbated by such disasters and often result in unequal access to disaster relief for several communities, including individuals with disabilities and racially and ethnically diverse communities. Read more

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The Pursuit of Truth

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

The pursuit of truth is the cornerstone of law. At North Carolina’s inception and when the present Constitution was enacted in the 1800s, this guiding precedent was in the forefront of our leaders’ actions. It is reflected in the Declaration of Rights where it is stated:

Sec. 18.  Court shall be open.

All courts shall be open; every person for an injury done him in his lands, goods, person, or reputation shall have remedy by due course of law; and right and justice shall be administered without favor, denial, or delay.

Sec. 19. Law of the land; equal protection of the laws. Read more

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45th Annual Bankruptcy Institute: Registration Is Now Live!

NCBA Members,

Registration for the 45th Annual Bankruptcy Institute is now live! Click here to view the agenda, speakers, and registration information.

This year’s Bankruptcy Institute will be held on November 11 and 12, 2022, at the Grandover Resort in Greensboro. A live webcast will be available for participants who may not be able to attend in person. The agenda for this year’s Institute includes sessions on Subchapter V issues, North Carolina’s hemp and cannabis laws, a discussion of home equity issues in consumer cases, and much more.

Participants may earn up to 9.25 hours in approved North Carolina MCLE credit, including one hour each of ethics and technology training. Early registration ends on October 21, 2022. The NCBA Bankruptcy Section hopes to see you this November!

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Beyond Court-Ordered Mediation: Should the Dispute Resolution Section Create A Task Force to Evaluate Future Dispute Resolution Needs of North Carolinians?

Jim, a white man with white hair, wears a white shirt and black jacket.By Jim Cooley

The NCBA Dispute Resolution Section (DR Section) started as a committee of the NCBA which imagined a future, first, of court-ordered arbitration for small claims matters and, later, of court-ordered mediation of civil cases throughout the State’s Superior Court Division. Over time, the Committee successfully developed and implemented programs for the court-ordered mediation of most civil disputes in the Superior Courts and many family law disputes in the District Courts. But the world of dispute resolution is being transformed before our eyes, as Colin Rule reminded the participants in the 2021 Conflict Resolution Day program sponsored by DRC. Read more

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