north carolina general practice deskbook · north carolina general practice deskbook third edition...

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North Carolina General Practice Deskbook Third Edition (2004)

Volume I

Table of Contents

Preface .......................................................................................................................................................... iPublisher’s Remarks ................................................................................................................................... iiiAuthors/Editors Biographical Information ..................................................................................................v

Chapter I: Adoptionby Jane Thompson

I. IN GENERAL 1II. EQUITABLE ADOPTION ..............................................................................................................1III. GENERAL PROVISIONS UNDER ARTICLE 1 ...........................................................................2IV. ADOPTION PROCEDURES UNDER ARTICLE 2 .......................................................................3 A. Residency and Venue Requirements ....................................................................................3 B. Who May Petition ................................................................................................................4 C. Timing of the Adoption Petition ..........................................................................................5 D. Content of the Adoption Petition and Required Supplemental Documents .........................5 E. Notice of the Filing of the Petition ......................................................................................6 F. Report to the Court ...............................................................................................................7 G. Disposition or Hearing for Adoption Decree .......................................................................9 H. Dismissal of the Petition ....................................................................................................10 1. Appeals and Motions to Set Aside an Adoption ....................................................11V. ADOPTION OF MINORS BY ADULTS WHO ARE NOT THEIR STEPPARENTS UNDER ARTICLE 3 .....................................................................................................................11 A. Preplacement Assessments .................................................................................................12 B. Background Information Statements .................................................................................14 C. Consents and Relinquishments ..........................................................................................14 1. Relinquishments .....................................................................................................14 2. Consents .................................................................................................................15 3. Procedures and Timing ..........................................................................................15 4. Revocation .............................................................................................................16 5. Challenges to the Validity of Consents and Relinquishments ................................18 6. Prebirth Determination of a Father’s Right to Consent .........................................19 D. Persons Whose Consent to Adoption Is Required .............................................................20 E. Persons Whose Consent to Adoption Is Not Required ......................................................22 F. Consents Where Parents Are Mentally Incompetent .........................................................23VI. ADOPTIONS OF MINORS BY STEPPARENTS UNDER ARTICLE 4 .....................................24VII. ADULT ADOPTIONS UNDER ARTICLE 5 ................................................................................25VIII. ADOPTIONS BY A FORMER PARENT UNDER ARTICLE 6 ..................................................27XIV. CONFIDENTIALITY PROVISIONS OF ARTICLE 9 .................................................................27X. PROHIBITED PRACTICES AND PAYMENTS UNDER ARTICLE 10 .....................................30FORM 1 DSS-1800: Petition for Adoption of a Minor Child (Not Stepparent) ...............................35FORM 2 DSS-5162: Petition for Adoption of a Minor Child (Stepparent) ......................................39FORM 3 DSS-5163: Petition for Adult Adoption .............................................................................43FORM 4 DSS-1809: Affidavit of Parentage ......................................................................................45FORM 5 ICPC 100A: Interstate Compact on the Placement of Children Request ...........................47

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FORM 6 DSS-1808: Report on Proposed Adoption .........................................................................49FORM 7 DSS-5191: Affidavit ...........................................................................................................61FORM 8 DSS-1814: Decree of Adoption .........................................................................................63FORM 9 DSS-1815: Report to Vital Records ...................................................................................65FORM 10 DSS-5219: Certificate of Delivery of Preplacement Assessment ......................................69FORM 11 DSS-5102: Non-Identifying Background Information ......................................................71FORM 12 DSS-5103: Adoption Health History, Part I .......................................................................75FORM 13 DSS-1802: Consent to Adoption by Parent, Guardian Ad Litem, or Guardian .................81FORM 14 DSS-1804: Relinquishment of Minor for Adoption by Parent or Guardian ......................85FORM 15 DSS-1801: Agency’s Consent to Adoption ........................................................................89FORM 16 DSS-5118: Denial of Paternity ..........................................................................................93FORM 17 DSS-5168: Revocation of Child’s Consent to Adoption ....................................................95FORM 18 DSS-5169: Consent of Child for Adoption (Stepparent Adoption) ...................................97FORM 19 DSS-5189: Consent to Adoption by Parent Who is Spouse of Stepparent ........................99FORM 20 DSS-5190: Consent to Adoption by Parent Who is Not the Stepparent’s Spouse ...........103FORM 21 DSS-5164: Consent to Adoption by Adult Adoptee ........................................................107FORM 22 DSS-5165: Consent to Adult Adoption by Spouse of Petitioner .....................................109FORM 23 DSS-5166: Decree of Adult Adoption .............................................................................111FORM 24 DSS-5167: Report to Vital Records for Adult Adoption ..................................................113FORM 25 DSS-1803: Consent of Child for Adoption ......................................................................115FORM 26 DSS-1805: Revocation of Relinquishment for Adoption by Parent or Guardian ............117FORM 27 DSS-1806: Revocation of Consent to Adoption by Parent, Guardian Ad Litem, or Guardian ......................................................................................................................121FORM 28 DSS-1807: Order for Report on Proposed Adoption .......................................................123FORM 29 DSS-1811: Medical Examination ....................................................................................125FORM 30 DSS-1816: Dismissal of Adoption ...................................................................................127FORM 31 DSS-5218: Consent to Release of Identifying Information .............................................129FORM 32 Adoption Checklist for Clerks .........................................................................................133DSS forms appear courtesy of NC Division of Social Services.

Chapter II: Business Lawby Jason L. Barron, Thomas H. Cook, Jr., Janet D. Hutchinson,

Kimberly W. Silver, and Jason P. Walton

I. ORGANIZING A PARTNETSHIP ..............................................................................................149 A. General Partnership ..........................................................................................................149 Sample Partnership Agreement ........................................................................................151 B. Registered Limited Liability Partnership .........................................................................159 C. Limited Partnership (including LLLPs) ...........................................................................161II. ASSUMED NAME CERTIFICATES ..........................................................................................162III. ORGANIZING A FOR-PROFIT CORPORATION ....................................................................163 A. Dissolution .......................................................................................................................167 B. Shareholders’ Agreements ...............................................................................................168 Sample Shareholders Agreement .....................................................................................171IV. ORGANIZING A NONPROFIT CORPORATION ....................................................................183 A. Dissolution .......................................................................................................................184V. ORGANIZING A LIMITED LIABILITY COMPANY ..............................................................186 Sample Operating Agreement (Member Managed LLC) ............................................................189For other Business Corporation Forms, please visit http://www.secretary.state.nc.us/Corporations/.

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Chapter III: Estate Administrationby Louise A. Maultsby and Jill L. Peters

INTRODUCTION ...................................................................................................................................209I. PREPARATION FOR INSTITUTION OF PROCEEDINGS .....................................................209 A. Notification of the Social Security Administration ..........................................................209 B. Checking Accounts ..........................................................................................................210 C. Preparation for First Conference ......................................................................................210 1. Wills and Codicil(s) .............................................................................................211 2. The Location of Lockboxes Held by the Decedent Individually or Jointly with Another .............................................................................................212 3. Identification of Probate Estate ............................................................................216 4. Information Regarding Family and Beneficiaries of the Estate ...........................216 5. Anticipated Debts of and Claims against the Estate whether Secured or Unsecured ..........................................................................................217 6. Scope of and Billing for Services by the Attorney ..............................................217II. ESTATE ADMINISTRATION PROCEEDINGS N.C.G.S. CHAPTER 28A .............................217 A. Real Property Only Asset of Intestate Decedent ..............................................................217 1. Sale of Property to Pay Debts, Expenses and Taxes ............................................218 2. Sale within Two Years ..........................................................................................218 B. Real Property: Testate Decedent ......................................................................................219 C. Estate’s Cash Assets Not Exceeding $5,000.00 ...............................................................219 1. Satisfaction of Debt Owed ...................................................................................219 2. Disbursement of Funds ........................................................................................220 3. Notice to Creditors ...............................................................................................220 D. Administration by Affidavit .............................................................................................220 1. Collection of Property by Affidavit ......................................................................220 2. Filing Affidavit .....................................................................................................221 3. Effect of Affidavit ................................................................................................221 4. Disbursements ......................................................................................................221 5. Final Affidavit ......................................................................................................222 6. Payment of Claims ...............................................................................................222 7. Necessity of Formal Administration ....................................................................222 8. Amount which May Be Collected by Affidavit when Affiant is Surviving Spouse and Sole Heir ..........................................................................223 E. Year’s Allowance Exceeding Personal Property Assets, Less Liens and Encumbrances Thereon ....................................................................................................223 1. Spouse’s Allowance .............................................................................................223 2. Children’s Allowance ...........................................................................................223 3. Value of Personal Property ...................................................................................224 F. Transfer of Motor Vehicle ................................................................................................225 G. Summary Administration Proceeding ..............................................................................226 H. Formal Administration Proceedings ................................................................................226 1. Qualification .........................................................................................................226 2. Notice to Creditors ...............................................................................................233 3. Claims against the Estate .....................................................................................234 4. Powers of Fiduciary and Post-Mortem Elections and Actions ............................238 5. 90-Day Inventory .................................................................................................241 6. Taxes-Estate and Inheritance, Generation-Skipping, Income, Intangible and Gift ................................................................................................................242 7. Fees ......................................................................................................................250

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Final or Annual Account ......................................................................................251FORM A Application for Probate of A Lost or Destroyed Will ......................................................255FORM B Application for Administration by Clerk (Not to Exceed $5,000) (AOC-E-432) ....................................................................................................................257FORM C Affidvit for Collection of Personal Property of Decedent (AOC-E-203) ........................259FORM D Affidavit of Collection, Disbursement and Distribution (AOC-E-204) ...........................261FORM E Application and Assignment Year’s Allowance (AOC-E-100) ........................................263FORM F Affidavit of Authority to Assign Title (MVR-317) ..........................................................265FORM G Application for Letters of Administration (AOC-E-202) .................................................267FORM G-1 Application for Probate and Letters (AOC-E-201) ..........................................................269FORM H Oath (AOC-E-400) ...........................................................................................................271FORM I Certificate of Probate (AOC-E-304) ................................................................................273FORM J Order Authorizing Issuance of Letters (AOC-E-402) ......................................................275FORM K Letters (AOC-E-403) .......................................................................................................277FORM L Notice to Beneficiary (AOC-E-405) ................................................................................279FORM M Application for Employer Identification Number (IRS Form SS-4) ...............................281FORM N Bond (AOC-E-401) ..........................................................................................................283FORM O Waiver of Personal Representative’s Bond (AOC-E-404) ...............................................285FORM P Appointment of Resident Process Agent (AOC-E-500) ..................................................287FORM Q Renunciation of Right to Qualify for Letters Testamentary or Letters of Administration (AOC-E-200) ..........................................................................................289FORM R Affidavit of Subscribing Witness or Probate of Will/Codicil to Will (AOC-E-300) ....................................................................................................................291FORM S Affidavit for Probate of Holographic Will (AOC-E-302) ................................................293FORM T Request for Taxpayer Identification Number and Certification (IRS Form W-9) ............295FORM U Notice of (Executor/rix or Administrator/rix) to Creditors and Debtors .........................299FORM V Affidavit of Notice to Creditors (AOC-E-307) ................................................................301FORM W Inventory for Decedent’s Estate (AOC-E-505) ................................................................303FORM X IRS Form 706 - please obtain a most current version from your local IRS Office or online at www.irs.gov/formspubs/ .............................................................305FORM Y North Carolina Estate Tax Return (A-101) ......................................................................307FORM Z Estate Tax Certification (AOC-E-212) .............................................................................309FORM AA Statement of Person Claiming Refund Due a Deceased Taxpayer (IRS Form 1310) ..............................................................................................................311FORM BB Statement under Regulation 1.642(g)-1 Waiver of Rights to Estate Tax Deductions .......................................................................................................................313FORM CC Account Annual/Final (AOC-E-506) ...............................................................................315FORM DD Receipt, Release and Refunding Agreement ....................................................................317FORM EE Estate Information Checklist ............................................................................................319FORM FF Time Table for Formal Administration Proceedings ........................................................321FORM GG Estate Bill of Costs (AOC-A-83) .....................................................................................323FORM HH North Carolina Estate Procedure Pamphlet (by AOC) .....................................................325FORM II Petition for Payment of Counsel Fee ...............................................................................341FORM JJ Petition for Payment of Personal Representative’s Commissions ...................................343AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

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Chapter IV: Incompetencyby R. Michael Allen

STATUTORY REFERENCES .................................................................................................................345I. WHO MAY BE ADJUDICATED INCOMPETENT? .................................................................347II. JURISDICTION AND VENUE ...................................................................................................347III. PETITION ....................................................................................................................................348IV. NOTICE OF HEARING ..............................................................................................................349V. RIGHTS OF RESPONDENT ......................................................................................................350VI. DUTIES OF GUARDIAN AD LITEM .......................................................................................351VII. MULTIDISCIPLINARY EVALUATION ....................................................................................352VIII. INTERIM GUARDIANSHIP ......................................................................................................352IX. HEARING AND ORDER ............................................................................................................354X. APPEAL ......................................................................................................................................356XI. RESTORATION TO COMPETENCY ........................................................................................356XII. LIMITED GUARDIANSHIP ......................................................................................................357FORM 1 Petition for Adjucation of Incompetence and Application for Appointment of Guardian (AOC-SP-200) ..................................................................................................359FORM 2 Notice of Hearing on Incompetence and Order Appointing Guardian Ad Litem (AOC-SP-201) ..................................................................................................................361FORM 3 Automatic Involuntary Commitment of Defendant Found Not Guilty by Reason of Insanity (AOC-SP-910M) ...............................................................................363FORM 4 Order on Motion for Appointment of Interim Guardian (AOC-SP-900M) .....................365FORM 5 Order on Petition for Adjucation of Incompetence (AOC-SP-202) .................................367FORM 6 Order on Application for Appointment of Guardian - Under review by AOC .................369FORM 7 Non-Capital Criminal Case Trial Level Fee Application Order for Payment Judgment against Indigent (AOC-CR-225) .....................................................................371AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

Chapter V: Intellectual Property Lawby Steven J. Hultquist

I. INTRODUCTION .......................................................................................................................373II. PATENTS .....................................................................................................................................373III. UTILITY PATENT PROTECTION .............................................................................................373IV. DESIGN PATENT PROTECTION ..............................................................................................382V. WRITTEN RECORDS OF INVENTION ...................................................................................383FORM 1 Invention Record Document ............................................................................................385VI. COMMERCIAL EXPLOITATION OF INVENTION RIGHTS .................................................389FORM 2 Confidential Disclosure and Restricted Use Agreement ..................................................393VII. ENFORCEMENT OF PATENT RIGHTS ...................................................................................395VIII. TRADE SECRETS AND EMPLOYMENT RELATIONSHIPS .................................................398IX. COPYRIGHT ...............................................................................................................................400X. TRADEMARKS ..........................................................................................................................404FORM 3 Form TX ...........................................................................................................................411FORM 4 Form SE ...........................................................................................................................415FORM 5 Form PA ...........................................................................................................................419FORM 6 Form VA ...........................................................................................................................423FORM 7 Form SR ...........................................................................................................................427FORM 8 Form RE ...........................................................................................................................431FORM 9 Form CA ..........................................................................................................................435

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FORM 10 Adjunct Form GR/CP ......................................................................................................439

Chapter VI: North Carolina Landlord/Tenant Law Overviewby William D. Rowe

I. BRINGING THE SUMMARY EJECTMENT ACTION ............................................................443 A. Small Claims Action, N.C.G.S. § 7A-210 et seq. ............................................................443 B. Landlord-tenant Statutes, Chapter 42 of N.C. Gen. Stats. ...............................................443 C. Service of Process, N.C.G.S. § 42-29 ..............................................................................443II. GROUNDS FOR TERMINATION OF TENANCY (EVICTION) .............................................443 A. Nonpayment of Rent, N.C.G.S. § 42-3 ............................................................................443 B. Holdover (N.C.G.S. §§ 42-14 & 42-26) .........................................................................445 C. Breach of Lease (N.C.G.S. § 42-26) ...............................................................................446 D. “Expedited Eviction of Drug Traffickers and Other Criminals.” (N.C.G.S. § 42-59, et seq., Article 7 of Chapter 42). ......................................................449III. AFFIRMATIVE ACTIONS OR COUNTERCLAIMS BY TENANTS ......................................452 A. Breach of G. S. § 42-42 Obligations by Landlord ...........................................................452 B. Wrongful Eviction ...........................................................................................................457 C. Relief Available If Eviction Later Reversed ....................................................................458 D. Tenant Security Deposit Act (N.C.G.S. § 42-50 et seq.) ................................................458 E. Personal Injuries .............................................................................................................. 459IV. RETALIATORY EVICTION (N.C.G.S. § 42-37-1) ...................................................................461 A. Applies to Evictions Filed Substantially in Response to Tenant’s Good-faith Attempt to Secure Repairs or Other Rights Within Twelve Months Prior to Filing. .....................461 B. Landlord May Prevail If Tenant Has Failed to Pay Rent or Otherwise Breached the Lease ..........................................................................................................................461 C. Cases ................................................................................................................................461V. EXECUTIONS IN EJECTMENT CASES ..................................................................................461 A. Stay Is Obtained by Posting a Rent Bond Pursuant to N.C.G.S. § 42-34. .......................461 B. Dispossessed Tenants Who Win on Appeal May Recover Damages under N.C.G.S. §§ 42-35 and 42-36. .........................................................................................462 C. Landlords Cannot Execute on Judgments for Possession Which Are More than 30 Days Old (N.C.G.S. § 42-36.1A) ................................................................................462 D. Disposition of Tenants’ Personal Property .......................................................................463VI. OTHER CLAIMS AND DEFENSES ..........................................................................................464 A. Real Party in Interest/Necessary Party .............................................................................464 B. Failure to State a Claim on Which Relief Can Be Granted (Rule 12(b)(6)) Arises in Two Common Ways ..........................................................................................464 C. Unfair and Deceptive Trade Practices ..............................................................................465 D. Discrimination on the Basis of Race, Color, Creed, National Origin, Sex, Handicap and Familial Status (42 U.S.C. § 3601 et seq. and N.C.G.S. § 41A) ..............466 E. Condominium Conversions (N.C.G.S. § 47A, Article 2) ...............................................467 F. Excessive Late Fees (N.C.G.S. § 42-46) .........................................................................468VII. APPEAL FOR TRIAL DE NOVO IN DISTRICT COURT ........................................................468 A. Appeals from Small Claims Court to District Court ........................................................468 B. Right to Jury Trial on Appeal ...........................................................................................468 C. Where Magistrate Does Not Announce and Sign Judgment in Open Court at Conclusion of Trial ..........................................................................................................468 D. In Trial De Novo ..............................................................................................................468 E. Expedited Trials upon Demand by Either Party ..............................................................469

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F. Staying Execution of Summary Ejectment Judgments under N.C.G.S. § 42-34(b) et seq. ...............................................................................................................................469VIII. PUBLIC AND SUBSIDIZED HOUSING ...................................................................................469 A. Resource Materials Regarding Federal Housing Law: ....................................................470 B. Special Defense for Subsidized Housing Tenants in Conventional Public Housing or Receiving Section 8 Rental Assistance ........................................................................470IX. VACATION RENTALS ...............................................................................................................473 A. Vacation Rental ................................................................................................................473 B. Expedited Evictions .........................................................................................................473 C. Penalties for Abuse ..........................................................................................................474X. INTERVIEW NOTES FOR LANDLORD/TENANT CASES ....................................................474 A. Two Questions to Keep In Mind: .....................................................................................474 B. Minimum Topics to Be Discussed ...................................................................................474 C. Client Goals .....................................................................................................................476 D. Answering The Unasked Questions .................................................................................476FORM 1 Petition to Sue/Appeal as an Indigent (AOC-G-106) ......................................................479FORM 2 Complaint in Summary Ejectment (AOC-CVM-201) .....................................................481FORM 3 Magistrate Summons (AOC-CVM-100) ..........................................................................483FORM 4 Bond to Stay Execution on Appeal of Summary Ejectment Judgment (AOC-CVM-304) .............................................................................................................485FORM 5 Notice of Appeal to District Court (AOC-CVM-303) .....................................................487FORM 6 Judgment in Action for Summary Ejectment (AOC-CVM-401) .....................................489AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

Chapter VII: Like-Kind Exchangesby Amy A. Wells

REFERENCES ........................................................................................................................................491OTHER SOURCES .................................................................................................................................491INTRODUCTION ...................................................................................................................................493I. SECTION 1031 REQUIREMENTS ............................................................................................494 A. Qualifying Exchange Property .........................................................................................494 B. Like-Kind Requirement ...................................................................................................495 1. Fractional Interests in Real Property ....................................................................496 2. Leaseholds and Life Estates .................................................................................497 3. Personal Property .................................................................................................497 4. Multi-Asset Exchanges ........................................................................................499 5. Property to be Built ..............................................................................................499 C. Exchange of Property .......................................................................................................500 1. Interdependence ...................................................................................................500 2. Same Taxpayer Requirement ...............................................................................501 3. Actual or Constructive Receipt ............................................................................501 4. Substance over Form ............................................................................................503 D. Related Person Exchanges ...............................................................................................503 1. Related Persons Defined ......................................................................................504 2. Exceptions ............................................................................................................505II. MULTI-PERSON EXCHANGES ...............................................................................................506 A. Direct Trilateral Exchange ...............................................................................................506 B. Indirect Trilateral Exchange .............................................................................................507 1. Drafting to Show Intent ......................................................................................508III. DEFERRED EXCHANGES ........................................................................................................508

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A. Identification ....................................................................................................................509 B. Multiple Property Identification .......................................................................................510 C. Exchange Period ..............................................................................................................511 D. Safe Harbors .....................................................................................................................512 1. Security or Guarantee Arrangements ...................................................................512 2. Qualified Escrow Accounts and Trusts ................................................................513 3. Qualified Intermediaries .......................................................................................513 4. Interest and Growth Factors .................................................................................514 E. Disqualified Persons .........................................................................................................515IV. REVERSE EXCHANGES ...........................................................................................................516V. GAIN COMPUTATION AND RECOGNITION ........................................................................518 A. Boot ..................................................................................................................................518 B. Basis .................................................................................................................................519 C. Netting ..............................................................................................................................519 D. Multi-Asset Exchange Rules ............................................................................................521 E. Recognized Gain ..............................................................................................................522FORM 1 Like-Kind Exchange Agreement .....................................................................................523FORM 2 Attorney Letter .................................................................................................................531FORM 3 Agreement to Exchange Real Estate ................................................................................533FORM 4 Tax-Free Exchange Language ..........................................................................................537FORM 5 Assignment of Real Estate Purchase and Sale Agreement ..............................................537FORM 6 Notice of Assignment of Real Estate Purchase and Sale Agreement ...............................541FORM 7 New Property Identification Form ..................................................................................543FORM 8 Deed of Exchange ...........................................................................................................545FORM 9 Agreement for Substitution .............................................................................................547FORM 10 Language for Replacement Property Contract ................................................................549

Chapter VIII: Medicaid Eligibilityby Randolph A. Redpath

FEDERAL STATUTES AND REGULATIONS .....................................................................................551STATE STATUTES AND REGULATIONS ............................................................................................551OTHER REFERENCES ..........................................................................................................................551I. PROGRAM ADMINISTRATION ...............................................................................................553II. ELIGIBILITY GROUPS AND PROGRAM REQUIREMENTS ...............................................553 1. Categorically Needy ........................................................................................................553 2. Medically Needy .............................................................................................................555 3. Income Limits for Medically Needy ................................................................................557 4. Resource Limits for Medically Needy .............................................................................557 5. Non-Countable Resources - Adult Programs ..................................................................558 6. Non-Countable Resources - Family Programs ...............................................................561 7. M-QB Program ................................................................................................................563III. MEDICAID AND LONG TERM NURSING CARE ................................................................563 1. Institutionalized Spouse ..................................................................................................563 2. Non-Countable Resources ..............................................................................................564 3. Determination of Institutionalized Spouse’s Eligibility for Medicaid - Five Step Process .........................................................................................................564 4. Resource Assessment ......................................................................................................566 5. Community Spouse Resource Allowance and Fair Hearing ...........................................566 6. Community Spouse’s Resources Not Counted ...............................................................567 7. Protection of Income for Community Spouse ................................................................567

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8. Transfer of Assets Law (42 U.S.C. § 1396p) ..................................................................567IV. OTHER ELIGIBILITY ISSUES .................................................................................................570 1. Trusts ...............................................................................................................................570 2. Incompetent Medicaid Applicants ..................................................................................575 3. Estate Recovery Program ................................................................................................575V. MEDICAID APPLICATION PROCESS .....................................................................................576 1. Right to Apply .................................................................................................................576 2. Explanation of Programs .................................................................................................576 3. Discouragement and Failure to Take Medicaid Applications .........................................576 4. Medicaid Application Processing Time Standards and Effective Date of Assistance ....577VI. APPEAL RIGHTS .......................................................................................................................578 1. A Medicaid State Plan must... .........................................................................................578 2. N.C.G.S. § 108A-79 ........................................................................................................578

Chapter IX: Partitionsby Max F. Ferree

STATUTORY REFERENCES .................................................................................................................581DISCUSSION ..........................................................................................................................................583FORM 1 Petition .............................................................................................................................585FORM 2 Notice of Hearing .............................................................................................................587FORM 3 Order of Sale ....................................................................................................................589FORM 4 Notice of Sale ...................................................................................................................593FORM 5 Report of Sale ..................................................................................................................595FORM 6 Affidavit ...........................................................................................................................597FORM 7 Affidavit of Publication ....................................................................................................599FORM 8 Notice to Commissioners .................................................................................................601FORM 9 Oath of Commissioners ....................................................................................................603FORM 10 Report of Commissioners ................................................................................................605FORM 11 Decree ..............................................................................................................................607FORM 12 Motion for Confirmation of Sale ......................................................................................609FORM 13 Order of Confirmation of Sale .........................................................................................613FORM 14 Assignment of Bid ...........................................................................................................617FORM 15 Commissioner’s Deed ......................................................................................................619FORM 16 Final Report .....................................................................................................................621

Chapter X: Personal Injury Claimsby Lawrence D. McMahon, Jr.

INTRODUCTION ...................................................................................................................................623I. INITIAL INTERVIEW ................................................................................................................623 A. Information Releases .......................................................................................................623 B. Important Subjects ...........................................................................................................623 C. Analysis of Plaintiff’s Insurance ......................................................................................624 D. Fee Agreement .................................................................................................................625II. ANALYSIS OF CLAIM ..............................................................................................................626 A. Has the Statute of Limitations Run on the Claim? ..........................................................626 1. Statutes of Repose ................................................................................................627 2. Tolling Rules ........................................................................................................627 B. Can the Plaintiff’s Claim Be Proven? ..............................................................................628 1. Automobile Negligence Claim ............................................................................628

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2. Assault and Battery ..............................................................................................629 3. Intentional Infliction of Emotional Distrees ........................................................630 4. Premisses Liability or “Slip and Fall” Claims .....................................................631 C. Review of Defenses .........................................................................................................632III. INVESTIGATION OF THE CLAIM ..........................................................................................632 A. Obtain Plaintiff’s Medical Bills .......................................................................................633 B. Obtain Plaintiff’s Medical Records .................................................................................633 C. Review the Medical Records ...........................................................................................633 D. Obtain an Opinion Letter from the Principal Physician ...................................................633 E. Respond to Dunning Letters Sent to Your Client .............................................................634 F. Obtain Documentation of the Plaintiff’s Lost Income .....................................................634 G. Obtain Public Records .....................................................................................................634 H. Interview the Witnesses ...................................................................................................634 I. Advise the Prospective Opponent of Your Representation of the Plaintiff ......................635 J. Find a Pocket, Preferably a Deep One .............................................................................635IV. PRESENTATION OF THE CLAIM/DEMAND PACKAGE ......................................................635 A. Settlement Brochure .........................................................................................................635 B. Settlement Negotiation with the Defendant or His Insurance Company .........................636 1. Pre-Existing Medical Conditions .........................................................................636 2. Mitigation of Damages ........................................................................................637 3. Scars and Disfigurement ......................................................................................637 4. Probabilities and Possibilities ..............................................................................638 5. Different Wage Loss Claims ................................................................................638 6. Permanent Injury and Future Pain and Suffering .................................................639 7. Subsequent Injuries ..............................................................................................639 8. Injuries Resulting from Medical Treatment .........................................................639 9. Evaluating Your Client’s Claim ............................................................................640V. FILING AN ACTION FOR PERSONAL INJURY .....................................................................640 A. Motor Vehicle Negligence Complaint ..............................................................................641 B. Premises Liability or Slip and Fall Complaint .................................................................641 C. Assault and Battery Complaint ........................................................................................641 D. Consortium Claim Complaint ..........................................................................................641 E. Wrongful Death Complaint ..............................................................................................642 F. Complaint Asserting a Minor’s Claim .............................................................................643VI. INSURANCE CONCERNS ........................................................................................................644 A. Notices Required for Uninsured and Underinsured Motorist Claims ..............................644 B. Insurance Settlements ......................................................................................................645VII. DISCOVERY AND LITIGATION ISSUES ................................................................................646 A. Insurance Coverage Discovery Requests .........................................................................646 B. Expert Witness Discovery ................................................................................................646 C. Request for Entry upon Land for Inspection and Other Purposes ...................................647 D. Standard Discovery Requests ...........................................................................................647 E. Videotape Deposition .......................................................................................................647 F. Hospital Records Affidavits .............................................................................................648 G. Proof of Medical Expenses ..............................................................................................648 H. Investigators and Videotapes ............................................................................................648 I. Offers of Judgment ..........................................................................................................649VIII. SETTLEMENTS AND DISTRIBUTION OF PROCEEDS ........................................................649 A. Subrogation and Lien Claims ...........................................................................................650 1. Worker’s Compensation Subrogation Claims ......................................................650

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2. Medicaid and Medicare Subrogation ...................................................................651 B. Settlement of a Minor’s Claim .........................................................................................653 C. Payment of Medical Creditors .........................................................................................654FORM 1 Personal Injury Intake Sheet ............................................................................................655FORM 2 Exclusive Authorization for Release of Medical Information .........................................665FORM 3 Release of Employment and Personal Information .........................................................667FORM 4 Declarations Pages - Automobile and Homeowners’ Insurance ......................................669FORM 5 Employment Contract ......................................................................................................671FORM 6 Request for Medical Bills ................................................................................................673FORM 7 Request for Medical Reports ...........................................................................................675FORM 8 Request for Opinion Letter ..............................................................................................677FORM 9 Response to Medical Creditor’s Letter ............................................................................679FORM 10 Lost Income Form ............................................................................................................681FORM 11 Settlement Brochure .........................................................................................................683FORM 12 Motor Vehicle Negligence Complaint ..............................................................................685FORM 13 Premises Liability Complaint ..........................................................................................691FORM 14 Assault and Battery Complaint ........................................................................................695FORM 15 Consortium Claim Complaint ..........................................................................................697FORM 16 Wrongful Death Action Complaint ..................................................................................701FORM 17(A) Application for Letters of Administration (AOC-E-202) .................................................705FORM 17(B) Oath (AOC-E-400) ...........................................................................................................707FORM 17(C) Order Authorizing Issuance of Letters (AOC-E-402) .....................................................709FORM 17(D) Letters (AOC-E-403) .......................................................................................................711FORM 17(E) Inventory for Decedent’s Estate (AOC-E-505) ................................................................713FORM 18(A) Petition Appointing Guardian Ad Litem ..........................................................................715FORM 18(B) Order Appointing Guardian Ad Litem .............................................................................717FORM 19 Complaint Asserting Minor’s Claim ................................................................................719FORM 20 Notice to Uninsured Motorist Carrier ..............................................................................723FORM 21 Insurance Coverage Interrogatories .................................................................................725FORM 22 Expert Witness Interrogatory ...........................................................................................727FORM 23 Request for Entry Upon Land ..........................................................................................729FORM 24 Standard Discovery Requests ...........................................................................................731FORM 25 Notice of Videotaped Deposition .....................................................................................735FORM 26 Sample Affidavit ..............................................................................................................737FORM 27 Settlement Statement .......................................................................................................739FORM 28 IOLTA Form .....................................................................................................................741FORM 29 Minor Settlement Petition and Order ...............................................................................743FORM 30(A) Receipt and Agreement (AOC-E-901M) .........................................................................747FORM 30(B) Application for Appointment of Guardian for a Minor (AOC-E-208) ............................749FORM 31 Petition for Order of Disbursement of Proceeds from Settlement ...................................751AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

Chapter XI: Planning the Simple Estateby Carol A. Schwab

STATUTORY REFERENCES .................................................................................................................757REGULATIONS ......................................................................................................................................761CASE REFERENCES .............................................................................................................................762OTHER REFERENCES ..........................................................................................................................762INTRODUCTION ...................................................................................................................................765 A. Checklist for the Simple Estate Plan ................................................................................765

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B. Gathering Information .....................................................................................................765I. DURABLE POWER OF ATTORNEY ........................................................................................766 A. Required Statement ..........................................................................................................767 B. When Is a Durable Power of Attorney Effective? ............................................................767 C. Test for Determining When a Contingent Power of Attorney Is Effective ......................768 D. Successors ........................................................................................................................770 E. Powers ..............................................................................................................................770 1. Powers Enumerated in N.C.G.S. § 32-27 ............................................................770 2. Power to Make Gifts ............................................................................................771 3. Recommendation of Guardian .............................................................................774 4. Health Care Powers ..............................................................................................774 5. Access to Safe Deposit Boxes ..............................................................................776 6. Tax Powers ...........................................................................................................777 7. Other Powers ........................................................................................................778 F. Inventories and Accountings ............................................................................................778 G. Commissions ....................................................................................................................779 H. Execution .........................................................................................................................779 I. Registration ......................................................................................................................779 J. Revocation .......................................................................................................................780 K. Alternatives ......................................................................................................................781 L. Checklist for Durable Power of Attorney ........................................................................781II. HEALTH CARE POWER OF ATTORNEY ...............................................................................783 A. Principal ...........................................................................................................................784 B. Health Care Agent ............................................................................................................784 C. Successor Health Care Agents .........................................................................................784 D. Designating a Doctor .......................................................................................................785 E. Extent of Authority ..........................................................................................................788 1. Guidelines. ...........................................................................................................788 2. Limitations on the Agent’s Authority ...................................................................789 F. Optional Provisions ..........................................................................................................790 1. After-death Choices .............................................................................................790 2. Guardianship Provision ........................................................................................792 3. Living Will Provision ...........................................................................................793 G. Attestation ........................................................................................................................794 H. Witnesses .........................................................................................................................794 I. Revocation .......................................................................................................................795 J. On-line Central Registry ..................................................................................................796 K. Checklist for Health Care Power of Attorney ..................................................................796III. THE LIVING WILL ....................................................................................................................797 A. Making Appropriate Choices ...........................................................................................799 B. Proper Execution ..............................................................................................................802 C. Witnesses .........................................................................................................................802 D. Amending the Statutory Form .........................................................................................804 E. Pre-Oct. 1, 1991 Living Wills ..........................................................................................806 F. “Reverse Living Wills” ....................................................................................................807 G. On-line Central Registry. .................................................................................................807 H. Checklist for a Properly Executed Living Will. ...............................................................807IV. ADVANCE INSTRUCTION FOR MENTAL HEALTH TREATMENT ....................................808 A. Execution. ........................................................................................................................809 B. Effectiveness; Revocation. ...............................................................................................810

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C. Duty of Physician. ............................................................................................................810 D. Use with General Power of Attorney and Health Care Power of Attorney. .....................811 E. Scope of the Health Care Agent’s Power. ........................................................................812 F. Limitations on the Health Care Agent’s Power. ...............................................................812 G. Nomination of Guardian. .................................................................................................814 H. On-line Central Registry. .................................................................................................814 I. Checklist for an Advance Instruction for Mental Health Treatment. ...............................814V. COMPLICATIONS OF THE “SIMPLE” WILL .........................................................................815 A. Minor Children .................................................................................................................816 1. Recommend Guardian .........................................................................................816 2. Property Management for a Minor Child .............................................................817 3. Beneficiary Designations .....................................................................................820 B. After-born and After-adopted Children ............................................................................820 C. Alternate Beneficiaries .....................................................................................................823 1. Lapse ....................................................................................................................823 2. Name an Alternate Beneficiary ............................................................................823 3. Provide for the Beneficiary’s Issue ......................................................................824 D. Bequests or Devises of Property ......................................................................................827 1. Tax Considerations ...............................................................................................828 2. Drafting Considerations .......................................................................................830 E. Executor/Trustee ..............................................................................................................831 F. Death Tax Apportionment Clause ....................................................................................833 1. Omission of Death Tax Apportionment Clause ...................................................834 2. Apportioning Death Taxes in the Will .................................................................836 G. Survivorship Clause .........................................................................................................839 1. Statutory Presumption ..........................................................................................839 2. Presumption of Survivorship ...............................................................................840 3. Requirement of Survivorship for Limited Time ..................................................842 H. Execution .........................................................................................................................843 1. Self-proved Will ...................................................................................................843 2. Witnesses .............................................................................................................843 I. Checklist for a Will ..........................................................................................................844VI. STORING ESTATE PLANNING DOCUMENTS ......................................................................848 A. Depository for Wills .........................................................................................................848 B. Safe Deposit Boxes ..........................................................................................................849 C. On-line Central Registry for Advance Directives. ...........................................................849 D. Other Choices ...................................................................................................................852 1. Fireproof Strong Box or Other Container ............................................................852 2. Attorney’s Office ..................................................................................................852 D. Copies ..............................................................................................................................852Table One “I Don’t Need a Will Because . . . “ .................................................................................853Table Two When a Simple Estate Plan Is Not Enough ......................................................................855FORM 1 Durable Power of Attorney Work Sheet ...........................................................................859FORM 2 Health Care Power of Attorney Work Sheet ....................................................................865FORM 3 Health Care Power of Attorney ........................................................................................869FORM 4 Statutory Form Health Care Power of Attorney ...............................................................875FORM 5 Medical Directive .............................................................................................................883FORM 6 Medical Guidelines ..........................................................................................................887FORM 7 The Living Will Work Sheet ............................................................................................891FORM 8 Declaration of a Desire for a Natural Death ....................................................................893

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FORM 9 Advance Instruction for Mental Health Treatment ..........................................................895FORM 10 Client Information Form ..................................................................................................901

Chapter XII: Social Security Disabilityby James W. Partin

STATUTORY REFERENCES .................................................................................................................909CASE REFERENCES .............................................................................................................................909SOCIAL SECURITY PUBLICATIONS .................................................................................................909OTHER REFERENCES ..........................................................................................................................910I. SCOPE OF THIS TRANSCRIPT ................................................................................................913II. OVERVIEW .................................................................................................................................913III. DEFINITION OF DISABILITY .................................................................................................913IV SEQUENTIAL EVALUATION PROCESS .................................................................................914V. REPRESENTING A CLIENT .....................................................................................................915VI. STAGES OF ADJUDICATION ...................................................................................................916VII. PRACTICE POINTERS ..............................................................................................................918 A. Initial Interview ................................................................................................................918 B. Preparing for Your Hearing ..............................................................................................918VIII. RECENT CHANGES ..................................................................................................................920IX. CURRENT TRENDS ..................................................................................................................921FORM 1 Social Security Administration Form CMS-1696-U4, Appointment of Representative ..923FORM 2 Medical Release Authorization ........................................................................................925FORM 3 Social Security Attorney Fee Agreement .........................................................................927FORM 4 Engagement Letter ...........................................................................................................929FORM 5 Request for Review of Hearing/Decision/Order (HA-520-U5) .......................................931FORM 6 Appeals Council Argument ..............................................................................................941FORM 7 Complaint .........................................................................................................................943FORM 8 Social Security Interview Form .......................................................................................945FORM 9 Request for Medical Information to a Doctor ..................................................................947FORM 10 Request for Medical Information to a Hospital ...............................................................949FORM 11 General Format of Questions for Hearing .......................................................................951

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Volume II

Table of Contents


Chapter I: Administrative Lawby Charles D. Case

STATUTORY REFERENCES .....................................................................................................................1OTHER REFERENCES ..............................................................................................................................2I. THE ADMINISTRATIVE PROCEDURE ACT ............................................................................21 A. History of the APA .............................................................................................................22 1. Scope of the APA and its Exemptions ...................................................................23II CHALLENGES TO AGENCY DECISIONS ................................................................................24 A. Administrative Hearings Under Article 3 of the APA ........................................................24 1. Settlement ..............................................................................................................24 2. Article 3 Contested Case Proceedings ...................................................................25 3. Article 3A Contested Case Proceedings ................................................................38 4. Specific Administrative Proceedings with Unique Procedures ..............................39 B. Declaratory Rulings ...........................................................................................................41 C. Rule-making Petitions ........................................................................................................42 D. Judicial Review of Agency Decisions ................................................................................42 1. Superior Court Review ...........................................................................................42 2. Appellate Review ...................................................................................................47III. RULE-MAKING BY STATE AGENCIES ....................................................................................48 A. Definition of a Rule ............................................................................................................48 B. Temporary Rules ................................................................................................................52 1. Requirements to Adopt a Temporary Rule .............................................................52 2. Review by the Codifier of Rules ............................................................................53 3. Publication .............................................................................................................54 4. Effective Date of a Temporary Rule ......................................................................54 5. Expiration Date of a Temporary Rule ....................................................................54 6. Court Review of Temporary Rules .........................................................................55 C. Requirements for Adopting a Permanent Rule ..................................................................56 1. Notice of Rule-making Proceedings ......................................................................57 2. Text after Notice of Rule-making Proceedings ......................................................57 3. Mailing List ............................................................................................................58 4. Hearing ...................................................................................................................59 5. Comments ..............................................................................................................60 6. Response Document ...............................................................................................60 7. Rule-making Record ..............................................................................................61 8. Adoption of the Rule ..............................................................................................61 9. Review by the Rules Review Commission ............................................................62 10. Effective Date of the Rule ......................................................................................64 D. Rule-making Agenda .........................................................................................................65 E. Rule-making Coordinator ..................................................................................................65

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F. Review of Rules by the Joint Legislative Administrative Procedure Oversight Committee .........................................................................................................66 G. Repeal of Provisions Previously Allowing Judicial Declaratory Judgment .......................68 H. Rule Affecting Local Governments ...................................................................................68 1. Governor’s Preliminary Review of Rules ..............................................................71 2. Fiscal Notes ............................................................................................................71 3. Scope of Governor’s Review .................................................................................72 4. Minimizing the Effects of Rules on Local Budgets ...............................................72 5. Role of the Office of State Budget and Management ............................................73IV. PUBLIC RECORDS ACT .............................................................................................................74V. OPEN MEETINGS LAW ..............................................................................................................76VI. WRITS OF CERTIORARI AND ZONING APPEALS ................................................................78

Chapter II: Alternative Dispute ResolutionRevised for 3rd Edition by M. Greg Crumpler

STATUTORY REFERENCES ...................................................................................................................81OTHER REFERENCES ............................................................................................................................81I. ARBITRATION .............................................................................................................................83 A. Private Binding Arbitration ................................................................................................83 1. Definition ...............................................................................................................83 2. Agreements to Arbitrate .........................................................................................83 3. Statutory Exclusions ..............................................................................................84 4. Drafting Arbitration Agreements ...........................................................................84 5. Initiating Arbitration ..............................................................................................89 6. Proceedings to Compel or Stay Arbitration ...........................................................90 7. Appointment of Arbitrator(s) .................................................................................91 8. The Hearing ...........................................................................................................91 9. Form of Award .......................................................................................................92 10. Time of Award ........................................................................................................92 11. Change of Award by Arbitrators ............................................................................92 12. Vacating an Award .................................................................................................93 13. Modification or Correction of Award by the Court ................................................93 14. Judgment or Decree on Award ...............................................................................93 15. Appeals ..................................................................................................................93 B. Court-Ordered Non-Binding Arbitration ...........................................................................94II. MEDIATION ................................................................................................................................95 A. Private Mediation ...............................................................................................................95 1. Definition ...............................................................................................................95 2. Agreements to Mediate ..........................................................................................96 3. Sample Mediation Provisions ................................................................................96 4. Initiating Mediation ...............................................................................................97 5. Phases of the Mediation Process ............................................................................97 B. Court-Ordered Mediation .................................................................................................100FORM 1 Demand for Arbitration ....................................................................................................103FORM 2 Submission to Dispute Resolution ...................................................................................105FORM 3 Motion to Compel Arbitration .........................................................................................107FORM 4 Motion to Stay Arbitration ...............................................................................................109FORM 5 Motion to Confirm Arbitration Award .............................................................................111FORM 6 Motion to Vacate Arbitration Award ................................................................................113FORM 7 Request for Mediation ......................................................................................................115

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Chapter III: Construction Lawby Karen E. Carey and Kenneth R. Michael

STATUTORY REFERENCES .................................................................................................................117OTHER REFERENCES ..........................................................................................................................118I. LICENSING ................................................................................................................................119 A. Design Professionals ........................................................................................................119 1. Architecture ..........................................................................................................119 2. Engineering .........................................................................................................119 3. Landscape Architecture ........................................................................................120 B. General Contractor ...........................................................................................................120 C. Other Contractors .............................................................................................................121II. SPECIAL DESIGN-BUILD ISSUES ..........................................................................................122III. PUBLIC CONTRACTING ..........................................................................................................122IV. CONTRACTING CONSIDERATIONS ......................................................................................123 A. Warranties ........................................................................................................................123 1. Common Law Warranties ....................................................................................123 2. UCC Warranties ...................................................................................................124 B. Indemnification ................................................................................................................124 C. Damages ...........................................................................................................................124 D. Limitations of Actions .....................................................................................................125 E. Prompt Payment Statutes .................................................................................................126 F. No Damages for Delay Clauses .......................................................................................127 G. Consumer Protection Laws Applicable to Design and Construction Contracts .............127 H. American Institute of Architects (AIA) Standard Form Contract ...................................128V. THEORIES OF LIABILITY .......................................................................................................130 A.. Breach of Contract ...........................................................................................................130 B. Breach of Warranty ..........................................................................................................130 C. Negligence ......................................................................................................................130 D. Unfair and Deceptive Trade Practices ..............................................................................131VI. CONSTRUCTION LIENS ..........................................................................................................132 A. Contractor’s Lien Against Owner’s Real Property ...........................................................132 B. Subcontractors’ and Suppliers’ Liens ...............................................................................133 C. Lien Waivers ....................................................................................................................134 D. Lender Issues ...................................................................................................................134 E. Attorneys’ Fee ..................................................................................................................135VII. PERFORMANCE AND PAYMENT BONDS ............................................................................135 A. Performance Bonds ..........................................................................................................135 B. Payment Bonds ................................................................................................................136VIII. INSURANCE ..............................................................................................................................136IX. ENVIRONMENTAL ISSUES .....................................................................................................138X. ARBITRATION AND MEDIATION ..........................................................................................139 A. Arbitration ........................................................................................................................139 B. Mediation .........................................................................................................................141 C. Dispute Resolution on Public Projects .............................................................................141FORM 1 Affidavit and Partial Waiver of Lien ................................................................................143FORM 2 Affidavit and Waiver of Lien ............................................................................................145

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Chapter IV: Motor Vehicles - Defending Traffic Casesby Marcus E. Hill

I. GENERAL CONSIDERATIONS ................................................................................................147 A. Initial Client Interview .....................................................................................................147 1. Make an Appointment ..........................................................................................147 2. Initial Interview ....................................................................................................148 3. Set a Fee ...............................................................................................................149 4. Know Yourself ......................................................................................................149 5. Never Lie ..............................................................................................................150 B. Driving Records ...............................................................................................................150II. DRIVER’S LICENSE AND INSURANCE POINTS; LICENSE REVOCATIONS ..................151 A. Driver’s License Points ....................................................................................................151 B. Other Revocations ............................................................................................................151 C. Driving While License Revoked ......................................................................................152 D. Indefinite Suspensions .....................................................................................................152 E. Moving Violations During Periods of Suspension ...........................................................153 F. Insurance Points ...............................................................................................................154III. DRIVING WHILE IMPAIRED ...................................................................................................154 A. North Carolina General Statutes ......................................................................................154 B. The Elements of Driving While Impaired ........................................................................156 C. DWI Punishment ..............................................................................................................159 D. Limited Driving Privileges ...............................................................................................164 E. Your Client’s Constitutional Rights .................................................................................166 1. Reasonable Suspicion to Make a Traffic Stop .....................................................166 2. Probable Cause to Arrest ......................................................................................167 3. Fifth and Sixth Amendment Rights .....................................................................171 F. The Intoxilyzer 5000 ........................................................................................................171 1. Should Your Client Refuse? .................................................................................172 2. Rights of Person Requested to Submit to Chemical Analysis .............................173 G. DWI Checkpoints ..........................................................................................................176 H. The Trial of DWI Cases ...................................................................................................177IV. CONCLUSION ............................................................................................................................179FORM 1 Waiver of Appearance ......................................................................................................183FORM 2 PIN Check .......................................................................................................................185FORM 3 DMV Record Request & PPA1 ........................................................................................187FORM 4 Fee Agreement .................................................................................................................189FORM 5 DMV Points Chart ...........................................................................................................191FORM 6 N.C.G.S. §§ 20-16 through 20-17 ....................................................................................193FORM 7 Limited Driving Privilege-Speeding (Out-of-County/Out-of-State or Federal Convctions)(AOC-CR-306) ................................................................................207FORM 8 (Part 1) Petition for Limited Driving Privilege Pretrial Revocation (AOC-CVR-9) ..................................................................................................................209 (Part 2) Limited Driving Privilege Pretrial Revocation (AOC-CVR-10) .........................211FORM 9 (Part 1) Limited Driving Privilege Impaired Driving or Open Container (AOC-CR-312) .................................................................................................................213 (Part 2) Interlock Limited Driving Privilege Impaired Driving (AOC-CR-340) .............215FORM 10 Impaired Driving Determination of Sentencing Factors (AOC-CR-311) ........................217FORM 11 Limited Driving Privilege for DWI (Out-of-State or Federal Convictions) (AOC-CR-352) .................................................................................................................219FORM 12 Monitech Interlock Brochure* .........................................................................................221

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FORM 13 State of North Carolina Office of Administrative Hearings-Cover Page .........................225FORM 14 Intoxilyzer Rights Form ...................................................................................................227* reprinted with permission of the Monitech, Inc.AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

Chapter V: Federal Civil Practice by Kiran H. Mehta, Jason L. Barron, and Sara W. Higgins

CASE REFERENCES .............................................................................................................................229I. PITFALLS IN THE FEDERAL RULES FOR STATE PRACTITIONERS ................................231 A. Introduction ......................................................................................................................231 B. Filing the Complaint ........................................................................................................231 1. Who Effectuates Service ......................................................................................231 2. Waiver of Service .................................................................................................232 3. Time Limits for Service .......................................................................................232 4. Presiding Judge ....................................................................................................233 C. Parties and Pleadings .......................................................................................................234 1. Stating Claims for Relief .....................................................................................234 2. Capacity to Sue ....................................................................................................235 3. Pleading Medical Malpractice in North Carolina: N.C. R. Civ. P. 9(j) ................235 4. Death or Incompetency of a Party ........................................................................237 5. Answer and Reply ................................................................................................238 6. Removal to Federal Court: 28 U.S.C. § 1446 ......................................................239 7. Answers in Removal Actions: Fed. R. Civ. P. 81 (c) ...........................................240 8. Third-Party Practice .............................................................................................240 9. Amended Pleadings .............................................................................................240 10. Computation of Time ...........................................................................................242 11. Enlargement of Time ............................................................................................243 D. Pre-trial Procedure ...........................................................................................................244 1. Pre-trial Conference and Initial Scheduling Order ..............................................244 2. Rule 12 Motions ...................................................................................................245 3. Injunctions ............................................................................................................247 E. Discovery .........................................................................................................................248 1. Discovery Scope and Limits ................................................................................248 2. Sequence and Timing of Discovery .....................................................................250 3. Medical Malpractice Discovery ...........................................................................251 4. Depositions ..........................................................................................................251 5. Interrogatories ......................................................................................................255 6. Production of Documents and Things and Entry upon Land for Inspection .......256 7. Request for Admissions .......................................................................................256 8. Discovery Sanctions .............................................................................................257 9. Subpoenas ............................................................................................................257 10. Summary Judgment Considerations ....................................................................261 F. Trial Considerations .........................................................................................................262 1. Number of Jurors .................................................................................................262 2. Demand for Jury Trial in a Removed Action: Fed. R. Civ. P. 81(c) ...................262 3. United States Magistrate Judges ..........................................................................262 4. Voluntary Dismissal .............................................................................................264 5. Involuntary Dismissal ..........................................................................................266 6. Judgment as a Matter of Law, Directed Verdict and J.N.O.V. .............................266 7. Jury Instructions ...................................................................................................267

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8. Findings by the Court ..........................................................................................268 9. Offer of Judgment ................................................................................................270 G. Judgments and Post-Trial Motions ..................................................................................271 1. Costs for Prevailing Party ....................................................................................271 2. Default Judgments ...............................................................................................271 3. Entry of Judgment ................................................................................................272 4. Confession of Judgment .......................................................................................273 5. Motion for New Trial ...........................................................................................273 6. Execution .............................................................................................................273 H. Notice of Appeal ..............................................................................................................274II. GENERAL PROCEDURES UNDER LOCAL PRACTICE OF THE THREE NORTH CAROLINA DISTRICTS .................................................................................274 A. Western District ...............................................................................................................275 1. Geographic Jurisdiction and Organization ...........................................................275 2. Judicial Officers ...................................................................................................276 3. Filing ....................................................................................................................278 4. Assignment of Judges ..........................................................................................278 5. Pre-trial Procedures ..............................................................................................278 6. Trial ......................................................................................................................280 B. Middle District .................................................................................................................280 1. Geographic Jurisdiction and Organization ...........................................................280 2. Judicial Officers ...................................................................................................280 3. Where to File ........................................................................................................282 4. Assignment of Judges ..........................................................................................283 5. Pre-trial Procedures ..............................................................................................283 6. Trial ......................................................................................................................287 C. Eastern District .................................................................................................................287 1. Geographic Jurisdiction and Organization ...........................................................287 2. Judicial Officers ...................................................................................................288 3. Where to File ........................................................................................................290 4. Assignment of Judges ..........................................................................................290 5. Pre-trial Procedures ..............................................................................................290 6. Trial ......................................................................................................................294FORM 1 Civil Cover Sheet .............................................................................................................295

Chapter VI: Federal Criminal Practiceby John Stuart Bruce

STATUTORY REFERENCES .................................................................................................................297OTHER REFERENCES ..........................................................................................................................297I. INTRODUCTION .......................................................................................................................299II. JURISDICTION ..........................................................................................................................299 A. Classification of Offenses ...............................................................................................299 B. District Judge or Magistrate Judge ..................................................................................300III. THE CHARGING OF A FEDERAL CRIMINAL OFFENSE ....................................................301IV. RELEASE OR DETENTION ......................................................................................................302V. SPEEDY TRIAL .........................................................................................................................306VI. PRETRIAL PROCEDURE ..........................................................................................................307 A. Initial Appearance ............................................................................................................307 B. Preliminary Hearing .........................................................................................................308

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C. Arraignment .....................................................................................................................308 D. Discovery .........................................................................................................................309 1. Disclosure of Evidence by the Government ........................................................309 2. Disclosure by the Defense ...................................................................................312 E. Investigation .....................................................................................................................313 F. Motion Practice ................................................................................................................314VII. TRIAL ..........................................................................................................................................314VIII. GUILTY PLEAS ..........................................................................................................................316IX. SENTENCING ........................................................................................................................... 318X. APPEAL ..................................................................................................................................... 321FORM l Consent to Proceed-Petty Offense .................................................................................. 323FORM 2 Waiver of Indictment ....................................................................................................... 325FORM 3 Criminal Complaint ........................................................................................................327FORM 4 Indictment ........................................................................................................................329FORM 5 Appearance Bond ............................................................................................................331FORM 6 Agreement to Forfeit Property .........................................................................................333FORM 7 Order Setting Conditions of Release ...............................................................................335FORM 8 Order of Temporary Detention Pending Hearing Pursuant to Bail Reform Act .............337FORM 9 Order of Temporary Detention to Permit Revocation of Conditional Release, Deportation or Exclusion ...................................................................................339FORM 10 Order of Detention Pending Trial ....................................................................................341FORM 11 Financial Affidavit ...........................................................................................................343FORM 12 Appointment of and Authority to Pay Court Appointed Counsel ...................................345FORM 13 Appearance ......................................................................................................................347FORM 14 Waiver of Preliminary Examination or Hearing ..............................................................349FORM 15 Request for Discovery ......................................................................................................351FORM 16 Authorization and Voucher for Expert and Other Services .............................................355FORM 17 Agreement Between Attorney and Expert, Including Investigator ..................................357FORM 18 Waiver of Jury Trial and Special Findings ......................................................................359FORM 19 Special Verdict Form ........................................................................................................361FORM 20 Plea Agreement (EDNC) ..................................................................................................363FORM 21 Judgment in a Criminal Case (Offenses Committed On or After November 1, 1987) ..........................................................................................................371FORM 22 Notice of Appeal of Final Judgment ................................................................................395FORM 23 Notice of Appeal of Interlocutory Order ..........................................................................397

Chapter VII: Labor and Employment Lawby Robert E. Sheahan

I. EMPLOYMENT DISCRIMINATION ........................................................................................399 A. Title VII of the Civil Rights Act of 1964 .........................................................................399 Purpose/Administration ...................................................................................................399 Coverage ..........................................................................................................................399 Examples of Proscribed Actions ......................................................................................400 Basic Parts of a Claim ......................................................................................................401 Defenses ...........................................................................................................................401 B. American With Disabilities Act .......................................................................................403 Purpose .............................................................................................................................403 Coverage ..........................................................................................................................403 Disabled Individuals ........................................................................................................403 Covered Impairments .......................................................................................................404

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Other Definitions ..............................................................................................................406 Making a Reasonable Accommodation ...........................................................................408 Refusing to Accept an Accommodation ...........................................................................408 Undue Hardship ...............................................................................................................409 C. Age Discrimination in Employment Act ..........................................................................410 Purpose .............................................................................................................................410 Covered Employers ..........................................................................................................410 Covered Employees .........................................................................................................410 Employers Cannot ............................................................................................................411 Employment Agencies Cannot .........................................................................................411 Labor Organizations Cannot ............................................................................................411 Employers, Agencies, and Organizations Cannot ............................................................412 D. North Carolina Anti-Discrimination Statutes ...................................................................412 North Carolina Equal Employment Practices Act ...........................................................412 Discrimination of the Basis of Lawful Use of a Lawful Product .....................................412 North Carolina Genetic Testing and Genetic Information Act ........................................413 Governor’s Council on Employment of the Handicapped Act ........................................413 North Carolina Handicapped Persons Protection Act ......................................................413II. WAGE AND HOUR LAWS ........................................................................................................419 The Federal Regulations ..............................................................................................................419 State Regulations .........................................................................................................................421 Overtime ......................................................................................................................................423 Compensable Hours .....................................................................................................................423III. OCCUPATIONAL SAFETY AND HEALTH ACT .....................................................................424 Rights and Duties of Employers ..................................................................................................425 Citations ......................................................................................................................................426 Review of Citations ......................................................................................................................426 Civil Penalties ..............................................................................................................................427 Criminal Penalties ........................................................................................................................427IV. TERMINATION OF EMPLOYEES - TORT ACTIONS .............................................................427 At Will Employment ....................................................................................................................427 Definite Period/Wrongful Discharge ...........................................................................................428 Permanent Employment ...............................................................................................................429 Public Policy/Wrongful Discharge ..............................................................................................429 Wrongful Discharge in Conjunction with Title VII and ADEA ..................................................430 Bad Faith ......................................................................................................................................430 Retaliatory Discharge ...................................................................................................................430 Employer Safeguards ...................................................................................................................431V. EMPLOYEE BENEFITS .............................................................................................................433 A. Unemployment Compensation .........................................................................................433 B. Family and Medical Leave Act ........................................................................................436 C. Parental Leave ..................................................................................................................439VI. WORKERS’ COMPENSATION LAW .......................................................................................439 Coverage ......................................................................................................................................440 Significance ..................................................................................................................................440 Penalty for Failure to Insure ........................................................................................................441 No Compensation if the Injury Results from ...............................................................................441 Exceptions ....................................................................................................................................441 Minors and Mentally Incompetent Employees ............................................................................442 Settlements ...................................................................................................................................443

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Accident Procedure ......................................................................................................................443 Retaliatory Discharge ...................................................................................................................443 Exception to Retaliatory Discharge .............................................................................................444 Notice to Employer of Accident ..................................................................................................444 Notice to Industrial Commission .................................................................................................444 Amount of Compensation ............................................................................................................444 Due Dates of Compensation ........................................................................................................444 Accident Statute of Limitations ...................................................................................................444 Occupational Disease Statute of Limitations ...............................................................................445VII. TORT ACTIONS .........................................................................................................................445 A. Interference with Contract ...............................................................................................445 B. Negligence .......................................................................................................................446 Injuries to Employees ......................................................................................................446 Standard of Care ..............................................................................................................446 Other Duties .....................................................................................................................447 Medical Aid ......................................................................................................................447 Assumption of the Risk ....................................................................................................447 Negligent Hiring ..............................................................................................................447 Contributory Negligence ..................................................................................................448 Injuries to Third Parties: Negligence of Employees ........................................................448 Other Premises .................................................................................................................448 Not Enough Assistance ....................................................................................................449 Violations of Safety Rules ...............................................................................................449 Rescue of Employer’s Property .......................................................................................449 Nuisance ...........................................................................................................................449VIII. RIGHT TO WORK ......................................................................................................................450 Statutory Provisions .....................................................................................................................450 Strikes and Picketing ....................................................................................................................450 Illegal Agreements .......................................................................................................................450IX. COVENANTS NOT TO COMPETE ...........................................................................................451X. EMPLOYMENT REFERENCES ................................................................................................451XI. MISCELLANEOUS PROVISIONS ............................................................................................452 Definition of an “Employee” - Defined by North Carolina Courts ..............................................452 Distinction between Employee and Independent Contractor .......................................................452 Contexts in which Distinction Matters ........................................................................................452

Chapter VIII: State Criminal Procedureby Stanley F. Hammer

INTRODUCTION ...................................................................................................................................455I. ATTORNEY ENTRY .................................................................................................................455II. JURISDICTION AND VENUE ..................................................................................................456 A. District Court ..................................................................................................................456 B. Superior Court .................................................................................................................456III. CRIMINAL PROCESS ...............................................................................................................458IV. ARREST OF DEFENDANT AND INITIAL APPEARANCE ...................................................458V. DETENTION AND BAIL ..........................................................................................................460VI. FIRST APPEARANCE BEFORE DISTRICT COURT JUDGE ...............................................461VII. THE GRAND JURY AND INDICTMENT ...............................................................................462VIII. PRE-TRIAL MATTERS .............................................................................................................464

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A. Discovery ........................................................................................................................464 B. Arraignment ....................................................................................................................467 C. Motions - Generally ........................................................................................................467 D. Motion to Suppress .........................................................................................................469 E. Notice of Insanity Defense ..............................................................................................470 F. Determination of Capacity to Proceed ............................................................................470IX. LAW ENFORCEMENT INVESTIGATIVE PROCEDURES ...................................................471 A. Search and Seizure Statutes ............................................................................................471 1. Consent Searches .................................................................................................471 2. Warrantless Searches ............................................................................................472 3. Search Pursuant to Warrant ..................................................................................473 4. Pen Registers ........................................................................................................474 5. Nontestimonial Identification Procedures ............................................................474 6. Electronic Surveillance ........................................................................................475X. SECURING ATTENDANCE OF DEFENDANTS AND WITNESSES .....................................475 A. Defendants ......................................................................................................................475 B. Other Witnesses ..............................................................................................................477 C. Depositions ......................................................................................................................477XI. PLEAS .........................................................................................................................................477 A. Generally .........................................................................................................................477 B. Guilty Pleas .....................................................................................................................478XII. TRIALS ........................................................................................................................................4791. District Court ...............................................................................................................................4792. Superior Court ..............................................................................................................................479 A. Calendar and Dockets .....................................................................................................480 B. Jury Selection ..................................................................................................................480 C. Order of Presentation and Rebuttal Evidence ................................................................481 D. Witnesses ........................................................................................................................481 E. Juror Notes ......................................................................................................................482 F. Views by Jury ..................................................................................................................482 G. Mistrials ..........................................................................................................................482 H. Motion for Dismissal ......................................................................................................483 I. Jury Instruction ...............................................................................................................483 J. Jury Argument .................................................................................................................484 K. Verdicts ...........................................................................................................................484XIII. SENTENCING ...........................................................................................................................484 A. Felony Sentencing ...........................................................................................................484 B. Misdemeanor Sentencing ................................................................................................487XIV. POST TRIAL MOTIONS AND APPEALS ...............................................................................487 A. Motions for Appropriate Relief .......................................................................................487 B. Appeals ...........................................................................................................................488 1. Appeals from District Court to Superior Court ....................................................488 2. Appeals to Appellate Division .............................................................................488

Chapter IX: Unemployment Compensationby Kevin V. Parsons

STATUTORY REFERENCES AND WEB SITE RESOURCES ............................................................493I RECENT DEVELOPMENTS .....................................................................................................495II. ELIGIBILITY FOR BENEFITS AND DISQUALIFICATION ..................................................496 A. Eligibility .........................................................................................................................496

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B. Complete Disqualification ...............................................................................................496 1. Misconduct ...........................................................................................................496 2. Voluntary Quit ......................................................................................................497 3. Miscellaneous Disqualifications ..........................................................................498 C. Partial Disqualification .....................................................................................................499 1. Substantial Fault ...................................................................................................499 2. Relocation of Spouse ...........................................................................................499III. PROCEDURES ............................................................................................................................499INDEX TO ATTACHMENTS .................................................................................................................502ADDITIONAL REGULATIONS, FORMS, AND PAMPHLETS AVAILABLE FROM ESC ...............503FORM 1 Procedures for Appealing an Adjudicator’s Determination (Form NCUI 568) ...............505FORM 2 Procedures for Appealing Decisions by the Appeals Referee and the Commission (Form NCUI 569) .................................................................................511FORM 3 Sample Appeal from Determination ................................................................................517FORM 4 Sample Notice of Appeal to Commission ........................................................................519FORM 5 Sample Petition for Review by Superior Court ...............................................................521

Chapter X: Workers’ Compensationby H. Clifton Hester

STATUTORY REFERENCES .................................................................................................................523OTHER REFERENCES ..........................................................................................................................523INTRODUCTION ...................................................................................................................................525I. FIRST MEETING WITH CLIENT A. FORM 1 Initial Interview ........................................................................................531 B. FORM 2 Employment Contract ..............................................................................535 C FORM 3 Notice of Accident to Employer (I.C. Form 18) ......................................537II. REPRESENTATIVE LETTERS A. FORM 4 North Carolina Industrial Commission ....................................................539 B. FORM 4(1) Entry of Appearance ................................................................................541 C. FORM 5 Letter to Insurance Carrier .......................................................................543 D. FORM 6 Letter to Employer ...................................................................................545 E. FORM 7 Doctor’s Letter .........................................................................................547 F. SAMPLE 1 Acknowledgment by Industrial Commission of Representation and Receipt of I.C. Form 18 ...........................................................................549III. AGREEMENTS/DISAGREEMENTS CONCERNING PAYMENT OF COMPENSATION A. SAMPLE 2 Statement of Days Worked and Earnings (I.C. Form 22) ........................551 B. SAMPLE 3 Agreement for Compensation for Disability (I.C. Form 21) ...................553 C. SAMPLE 4 Employer’s Admission of Employee’s Right to Compensation (I.C. Form 60) ..........................................................................................555 D. SAMPLE 5 Denial of Workers’ Compensation Claim (I.C. Form 61) ........................557 E. SAMPLE 6 Notice to Employee of Payment of Compensation Without Prejudice to Later Deny the Claim (I.C. Form 63) ..................................................559 F. SAMPLE 7 Supplemental Agreement as to Payment (I.C. Form 26) .........................561 G. SAMPLE 8 Notice of Termination of Compensation (I.C. Form 28T) ......................563 H. SAMPLE 9 Employee’s Request that Compensation be Reinstated (I.C. Form 28U) .......................................................................................565 I. SAMPLE 10 Notice of Reinstatement or Modification of Compensation (I.C. Form 62) ..........................................................................................567 J. SAMPLE 11 Employee’s Application for Future Medical Compensation (I.C. Form 18M) .......................................................................................569

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K. SAMPLE 12 Application to Terminate or Suspend Payment (I.C. Form 24) ...............571 L. FORM 8 Employee’s Response to Application to Stop Payment ...........................573 M. FORM 9 Attached Statement of Employee Response to Form 24 .........................575 N. SAMPLE 13 Administrative Decision and Order .........................................................577 O. FORM 10 Application for Lump Sum Award (I.C. Form 31) ...................................579IV. HEARINGS A. FORM 11 Request that Claim Be Assigned for Hearing (I.C. Form 33) ..................581 B. SAMPLE 14 Acknowledgment by Industrial Commission of Receipt of Request for Hearing .................................................................................583 C. SAMPLE 15 Response to Request for Hearing (I.C. Form 33R) ..................................585 D. FORM 12 Pre-Trial Order .........................................................................................587 E. Employee’s Contentions 1. FORM 13(1) Proposed Opinion & Award- Repetitive Motion ..........................591 2. FORM 13(2) Employee’s Contentions - Repetitive Motion ..............................597 3. FORM 13(3) Brief on Contentions-Accidental Injury - Creditability Issues ....................................................................601 F. FORM 14 Opinion and Award - Injury by Accident .................................................609V. APPEALS A. FORM 15 Notice of Appeal ......................................................................................613 B. FORM 16 Application for Review (I.C. Form 44) ....................................................615 C. FORM 17 Employee’s Brief .....................................................................................617VI. MEDIATION A. FORM 18 Petition for Order Referring Case to Mediated Settlement Conference (I.C. Form MSC2) ....................................................................................627 B. SAMPLE 16 Order for Mediated Settlement Conference (I.C. Form MSC3) ..............629 C. SAMPLE 17 Designation of Mediator (I.C. Form MSC4) ...........................................631 D. SAMPLE 18 Report of Mediator (I.C. Form MSC5) ....................................................633VII. SETTLEMENT A. SAMPLE 19 Compromise Settlement Agreement and Release (containing SS offset language and list of medical bills required by Rule 502) ..............635 B. FORM 19 Attorney’s Fee Letter ..............................................................................641 C. SAMPLE 20 Order Approving Compromise Settlement Agreement ............................643 D. FORM 20 Notification of Settlement to Medical Provider .......................................645VIII. MISCELLANEOUS MOTIONS A. FORM 21 Motion to Withdraw Representation ........................................................647 B. SAMPLE 21 Order Allowing Withdrawal .....................................................................649 C. FORM 22 Motion for Prompt Payment of Compensation ........................................651 D. FORM 23 Motion for Release of Employment Security Commission Records ....................................................................................................655 E. SAMPLE 22 Order Allowing Release of Employment Security Commission Records ...............................................................................657

Chapter XI: Wrongful Dischargeby Robert E. Sheahan

WRONGFUL DISCHARGE: THE EROSION OF EMPLOYMENT-AT-WILL ....................................659

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Volume III

Table of Contents


Chapter I: Americans with Disabilities Act - Title Iby Robert E. Sheahan

REFERENCES ............................................................................................................................................1I. BACKGROUND ..............................................................................................................................3II. AN OVERVIEW OF THE ACT ......................................................................................................4 A. Title I: Employment .............................................................................................................4 B. Title II: Public Entities and Transportation ..........................................................................5 C. Title III: Places of Public Accommodation and Commercial Facilities ...............................5 D. Title IV: Telecommunications ..............................................................................................6 E. Title V: Miscellaneous Provisions ........................................................................................7III. THE EMPLOYMENT RELATIONSHIP/TITLE I .........................................................................7 A. “Physical or Mental Impairment” ........................................................................................8 B. “Substantially Limits” and “Major Life Activities” .............................................................9 1. “Major Life Activities” ............................................................................................9 2. “Substantially Limits” ............................................................................................10 3. Work as a Major Life Activity ...............................................................................11 C. “Record of Impairment” ....................................................................................................12 D. “Perception of Impairment” ...............................................................................................13 E. “Qualified Individuals” ......................................................................................................13 1. “Essential Job Functions” ......................................................................................14 2. “Job Descriptions” .................................................................................................15 F. “Reasonable Accommodation” ..........................................................................................16 1. Job Restructuring ...................................................................................................17 2. The Process of a Reasonable Accommodation ......................................................19 G. Prohibition Against Discrimination ...................................................................................20 1. Limitation or Segregation ......................................................................................20 2. Qualification Standards, Tests, or Other Criteria ...................................................21 3. Contracts ................................................................................................................21 4. Medical Examinations and Inquiries .....................................................................21 5. Failure to Make Reasonable Accommodation .......................................................22 H. Employer Defenses ............................................................................................................24 1. “Job-related” and “Consistent with Business Necessity” ......................................25 2. Direct Threat ..........................................................................................................25 3. Religious Organizations .........................................................................................26 4. Food Handlers ........................................................................................................26 5. Poor Job Performance ............................................................................................26 I. Alcohol and Drugs .............................................................................................................27 1. Alcoholism .............................................................................................................27 2. Drug Addiction .......................................................................................................28

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J. Posting of Notices and Enforcement ..................................................................................29 K. Insurance ............................................................................................................................30 L. Applicable North Carolina Law .........................................................................................30

Chapter II: Americans with Disabilities Act - Title IIIby Robert E. Sheahan

REFERENCES ..........................................................................................................................................33I. OVERVIEW OF TITLE III ............................................................................................................35II. DEFINITIONS ...............................................................................................................................35 A. Disability ............................................................................................................................35 B. Place of Public Accommodation ........................................................................................35 C. Commercial Facilities ........................................................................................................36 D. Readily Achievable ............................................................................................................37III. CHECKLIST FOR COMPLIANCE WITH TITLE III .................................................................38 A. Places of Public Accommodation ......................................................................................38 1. Denial of Opportunity ............................................................................................38 2. Inequality of Goods and Services ..........................................................................38 3. Difference in Goods and Services ..........................................................................38 4. Integration ..............................................................................................................38 5. Preferences of Others .............................................................................................39 6. Neutral Criteria ......................................................................................................39 7. Requirements or Burdens .......................................................................................39 8. Surcharge ...............................................................................................................39 9. Choice of Opportunities .........................................................................................39 10. Association .............................................................................................................40 11. Reasonable Modification .......................................................................................40 12. Auxiliary Communication Aids and Services ........................................................40 13. Barrier Removal .....................................................................................................40 14. Maintenance ...........................................................................................................42 15. Landlord and Tenant ..............................................................................................42 16. Exemptions ............................................................................................................43 B. Commercial Facilities ........................................................................................................43 1. ADA Accessibility Guidelines ...............................................................................43 2. Alterations ..............................................................................................................44IV. EXAMINATIONS AND COURSES .............................................................................................46V. TITLE III ENFORCEMENT .........................................................................................................46VI. NORTH CAROLINA LEGISLATION REGARDING HANDICAPPED/DISABLED INDIVIDUALS ..............................................................................................................................47

Chapter III: Insurance Primer for Bodily Injury Claimsby Jerome P. Trehy, Jr.

STATUTORY REFERENCES ...................................................................................................................49OTHER REFERENCES ............................................................................................................................49I. INTRODUCTION .........................................................................................................................53II. INSURANCE .................................................................................................................................53 A. Standardized Policy Forms ................................................................................................53 B. Basic Trends of Insurance Law ..........................................................................................56 1. Insurance Is Not Always Available ........................................................................56

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2. Implied Covenant of Good Faith and Fair Dealing ................................................57 3. Two Distinct Duties for Liability Insurers .............................................................58 4. Bodily Injury Distinguished from Personal Injury ................................................58 5. Punitive Damages Are Covered Unless Excluded .................................................59 C. Rules of Construction for Insurance Policies .....................................................................60 1. Construction Is for the Court .................................................................................60 2. Consider Context, Relevant Legislation and Policy Terms ....................................60 3. Independent Construction of Separate Policies .....................................................60 4. Policy Provisions Are Read in Harmony ...............................................................61 5. Non-technical Terms Are Given Their Ordinary Meaning ....................................61 6. Ambiguities Are Construed Against the Insurer ....................................................61 7. Expansive Construction for Coverage; Narrow Construction for Exclusion .........62 8. G.S. § 20-279.21 Supersedes Policy Terms ...........................................................63III. AUTOMOBILE INSURANCE .....................................................................................................64 A. Overview ............................................................................................................................64 B. Components of Standard Personal Automobile Liability Policy .......................................65 1. Declaration and Named Insureds ...........................................................................65 2. Definitions ..............................................................................................................66 3. Main Policy Components .......................................................................................68 4. Standard Provisions ...............................................................................................70 C. G.S. § 20-279.21, “Motor Vehicle Liability Policy Defined” ............................................77 1. “Owner” and “Operator” Policies ..........................................................................78 2. Mandatory Minimum Coverage: Personal and Commercial Vehicles ...................79 3. “Lawful Possession” and “Reasonable Belief of Permission” ..............................81IV. UNINSURED AND UNDERINSURED MOTORIST COVERAGE ...........................................82 A. Introduction to UM and UIM insurance ............................................................................82 B. UM/UIM Insuring Agreement ...........................................................................................85 C. UM/UIM Vehicles ..............................................................................................................86 D. UM/UIM Insureds ..............................................................................................................90 1. “Class I” and “Class II” Insureds ...........................................................................90 2. Class II - Occupying or Using a Covered Auto .....................................................92 3. Covered Autos ........................................................................................................93 E. Significant Exclusions for UM/UIM Coverage .................................................................94 1. Exclusion by Definition .........................................................................................94 2. Special Policy Exclusions ......................................................................................96 F. UM and UIM Coverage ...................................................................................................101 1. “Stacking” of UM/UIM Coverage ......................................................................101 2. Determining Available UIM Coverage ................................................................108 G. Multiple Tortfeasors and UIM Coverage .........................................................................113 H. Duties and Obligations of UM/UIM Claimants and UM/UIM Insurers ..........................115 1. Implied Covenant of Good Faith and Fair Dealing ..............................................115 2. Protection of UM/UIM Insurer’s Right of Subrogation and Right to Approve Settlement ..............................................................................................116 3. Settling with the Uninsured or Underinsured Motorist while Preserving the UM/UIM Claim ..............................................................................................118 I. UM/UIM Selection or Rejection ......................................................................................127 J. Hit and Run, No Identifiable Driver .................................................................................128 K. Workers’ Compensation and UM/UIM Coverage ............................................................130 L. Statutes of Limitations and UM/UIM Litigation .............................................................132 M. Med Pay and UM/UIM Coverage ....................................................................................134

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V. PROCEDURES FOR HANDLING MOTOR VEHICLE CASES ..............................................135 A. Finding Insurance and Assets ...........................................................................................135 1. Potential Sources of Liability and UM/UIM Insurance .......................................135 2. Medical Payments Coverage ................................................................................139 3. Determining Coverage and Assets .......................................................................140 4. Emergencies .........................................................................................................142 B. Dealing with Insurers .......................................................................................................143 1. Liability Insurers ..................................................................................................143 2. UM/UIM Insurers ................................................................................................144VI. CONCLUSION ............................................................................................................................150FORM 1 Checklist for Personal Injury ...........................................................................................151FORM 2 Underinsured Motorist Claim ..........................................................................................155FORM 3 Information Exchange Form ............................................................................................157FORM 4 NCDMV Request for Motor Vehicle Information ...........................................................159FORM 5 Underinsured Motorist Limited Release and Covenant Not to Execute ..........................161

Chapter IV: Domestic Lawby James W. Lea, III

INTRODUCTION ...................................................................................................................................165DOMESTIC VIOLENCE ........................................................................................................................165I. INTRODUCTION .......................................................................................................................165II. A CLOSER LOOK AT CHAPTER 50B ......................................................................................166 A. Definition of Domestic Violence ......................................................................................166 B. Bringing the Action ..........................................................................................................167 1. Residence Requirement and Filing of the Civil Action .......................................167 2. Emergency Relief Where Motion Does Not Result in Ex Parte Relief ...............167 3. Ex Parte Orders ....................................................................................................168 4. Available Remedies ..............................................................................................169 5. Enforcement .........................................................................................................170 6. Victim Emergency Assistance ..............................................................................170III. PROCEDURE AND COURT DOCUMENTS ............................................................................171 A. Time is of the Essence .....................................................................................................171 B. The Complaint .................................................................................................................171 C. Motion for Emergency Relief ..........................................................................................172 D. The Ex Parte Order ..........................................................................................................172 E. The Initial Visit to Court ..................................................................................................172IV. THE HEARING ...........................................................................................................................173 A. The Expedited Evidentiary Hearing .................................................................................173 B. Fuller Hearing of the Case ...............................................................................................174 C. The Defendant’s Perspective ............................................................................................174CHILD CUSTODY AND VISITATION ..................................................................................................175I. INTRODUCTION .......................................................................................................................175II. STATUTORY BASIS ...................................................................................................................175 A. Custody ............................................................................................................................175 1. Welfare of the Child .............................................................................................176 2. The Parent’s Right to Custody .............................................................................176 3. Wishes of the Child ..............................................................................................178 4. The Trial Court’s Discretion ................................................................................178 B. Visitation ..........................................................................................................................179 1. Visitation Generally .............................................................................................179

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2. Relationship of Custody to Child Support ...........................................................179 3. Third Party Visitation ...........................................................................................180 C. Multiple Claims ...............................................................................................................180III. SEPARATION AGREEMENTS VERSUS COURT ORDERS ...................................................181 A. In General .........................................................................................................................181 B. Modification of Orders .....................................................................................................181IV. COURT ACTION ........................................................................................................................183 A. Initial Considerations .......................................................................................................183 1. Proof .....................................................................................................................183 2. Psychological Evaluation .....................................................................................183 B. Temporary Orders ............................................................................................................184 C. Right to a Hearing and Notice .........................................................................................184 D. Jurisdiction of the Court Continues .................................................................................184 E. Enforcement of Orders .....................................................................................................185 F. Attorney’s Fees ................................................................................................................185V. UNIFORM CHILD CUSTODY JURISDICTION ACT AND PARENTAL KIDNAPPING PREVENTION ACT ..........................................................................................185CHILD SUPPORT ...................................................................................................................................187I. STATUTORY BASIS ...................................................................................................................187II. CONTRACT OR COURT ORDER .............................................................................................188III. CHILD SUPPORT ALLOCATION .............................................................................................189 A. Statewide Guidelines .......................................................................................................189 B. Deviation under the Guidelines .......................................................................................190 C. Preparing the Worksheet ..................................................................................................190 D. Tax Consequences and Interaction with Alimony Law ....................................................192IV. CHILD SUPPORT ACTIONS .....................................................................................................193 A. Procedure .........................................................................................................................193 B. The Child Support Hearing ..............................................................................................193 C. Modification of Child Support .........................................................................................196 D. Attorney’s Fees ................................................................................................................198 E. The Child Support Order .................................................................................................199V. OTHER AVENUES FOR THOSE SEEKING CHILD SUPPORT .............................................200 A. Remedies in Criminal Law ..............................................................................................200 B. Remedies under Title IV-D ..............................................................................................200 C. Interstate Enforcement: Uniform Interstate Family Support Act (UIFSA) .....................201 D. Forfeiture of Licensing Privileges ....................................................................................204ALIMONY ...............................................................................................................................................204I. PROCEDURE ..............................................................................................................................204 A. Alimony with or without Divorce ....................................................................................204 B. Jury Trial ..........................................................................................................................205 C. Claim Must be Pending at Time of Divorce ....................................................................205 D. Necessary Allegations under Prior Law: Absence of Provocation ...................................206 E. Necessary Allegations: Dependency ................................................................................206 F. Necessary Allegations: Postseparation Support ...............................................................207 G. Special Procedure for Postseparation Support .................................................................208II ALIMONY FACTORS ................................................................................................................209 A. Factors under Section 50-16.3A ......................................................................................209 B. Fault Considerations ........................................................................................................211 1. Illicit Sexual Behavior (“ISB”) ............................................................................212 2. Abandonment .......................................................................................................213

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3. Malicious Turning Out of Doors ..........................................................................214 4. Indignities ............................................................................................................214 5. Reckless Spending ...............................................................................................215III. DEFENSES ..................................................................................................................................215 A. Statutory Provisions .........................................................................................................215 B. Common Law ...................................................................................................................216 C. Evidentiary Privileges ......................................................................................................217IV. MODIFICATION OR TERMINATION ......................................................................................218V. AVAILABLE RELIEF .................................................................................................................219 A. Types of Awards ...............................................................................................................219 B. Award of Attorney’s Fees .................................................................................................219 C. Recoupment of Temporary Alimony ................................................................................220VI. ENFORCEMENT REMEDIES ...................................................................................................220VII. TAX CONSIDERATIONS ..........................................................................................................222EQUITABLE DISTRIBUTION ...............................................................................................................223I. JURISDICTION AND PROCEDURE ........................................................................................223II. INTERIM INJUNCTIVE RELIEF ..............................................................................................224III. DEFENSES AND BARS TO EQUITABLE DISTRIBUTION ...................................................224 A. Divorce .............................................................................................................................224 B. Written Property Settlement ............................................................................................225 C. Death ................................................................................................................................226 D. Preemption .......................................................................................................................226IV. ED PRINCIPLES IN NORTH CAROLINA ................................................................................227 A. Identification and Classification .......................................................................................228 1. The Concept of Acquisition .................................................................................231 2. Dual Classification ...............................................................................................231 B. Valuation ..........................................................................................................................232 C. Distribution ......................................................................................................................232ABSOLUTE DIVORCE ..........................................................................................................................233I. GROUNDS ..................................................................................................................................233II. REQUIREMENTS UNDER N.C.G.S. § 50-6 .............................................................................234 A. Residency .........................................................................................................................234 B. Separation ........................................................................................................................236 C. Intent ................................................................................................................................238III. PROCEDURE ..............................................................................................................................238 A. Content of Complaint .......................................................................................................239 B. Verification .......................................................................................................................239 C. Filing/Service ...................................................................................................................239 D. Trial ..................................................................................................................................241 E. Miscellaneous ..................................................................................................................243IV. INTERACTION WITH OTHER STATUTES .............................................................................244 A. Alimony ...........................................................................................................................244 B. Equitable Distribution ......................................................................................................245 C. COBRA ............................................................................................................................246ANNULMENT ........................................................................................................................................247I. DEFINITION ...............................................................................................................................247II. GROUNDS ..................................................................................................................................247III. PROCEDURE ..............................................................................................................................249IV. EFFECT OF ANNULMENT .......................................................................................................249 A. Children ............................................................................................................................250

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B. Alimony ...........................................................................................................................250 C. Property Rights ................................................................................................................250 D. Compensation for Services ..............................................................................................251DIVORCE FROM BED AND BOARD ..................................................................................................251I. PROCEDURE ..............................................................................................................................251II. GROUNDS AND PROOF AT TRIAL .........................................................................................252III. DEFENSES ..................................................................................................................................253IV. REMEDIES AND EFFECTS OF DIVORCE FROM BED AND BOARD ................................253FORM 1 Instructions for Domestic Violence Forms (AOC-CV-303) .............................................255FORM 2 Complaint and Motion for Domestic Violence Protective Order (AOC-CV-303) .................................................................................................................257FORM 3 Ex Parte Domestic Violence Protective Order and Notice to Parties (AOC-CV-304) .................................................................................................................261FORM 4 Notice of Hearing on Domestic Violence Protective Order (AOC-CV-305) ...................265FORM 5 Domestic Violence Protective Order and Notice to Parties (AOC-CV-306) ....................267FORM 6 Identifying Information about Defendant Domestic Violence Action (AOC-CV-312) .................................................................................................................271FORM 7 Motion for Order to Show Cause Domestic Violence Protective Order (AOC-CV-307) .................................................................................................................273FORM 8 Order to Appear and Show Cause for Failure to Comply with Domestic Violence Protective Order (AOC-CV-308) ......................................................................275FORM 9 Contempt Order Domestic Violence Protective Order (AOC-CV-309) ...........................277FORM 10 Civil Summons (AOC-CV-100) ......................................................................................279FORM 11 Affidavit as to Status of Minor Child (AOC-CV-609) .....................................................281FORM 12 Full Domestic Complaint .................................................................................................283FORM 13 Worksheet A Child Support Obligation – Primary Custody (AOC-CV-627) ..................289FORM 14 Worksheet B Child Support Obligation – Joint or Shared Custody (AOC-CV-628) .................................................................................................................291FORM 15 Worksheet C Child Support Obligation – Split Custody (AOC-CV-629) ........................293FORM 16 Complaint for Absolute Divorce ......................................................................................295FORM 17 Verification .......................................................................................................................297FORM 18 Acceptance and Waiver ....................................................................................................299FORM 19 Motion for Summary Judgment .......................................................................................301FORM 20 Notice of Hearing .............................................................................................................303FORM 21 Certificate of Service ........................................................................................................305FORM 22 Divorce Judgment (Absolute Divorce) ............................................................................307FORM 23 Complaint for Annulment ................................................................................................309FORM 24 Judgment of Annulment ...................................................................................................313AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

Chapter V: Environmental Lawby Mark E. Fogel

STATE STATUTORY/REGULATORY REFERENCES .........................................................................315FEDERAL STATUTORY/REGULATORY REFERENCES ..................................................................315REFERENCES ........................................................................................................................................316INTRODUCTION ...................................................................................................................................319I. REAL PROPERTY TRANSACTIONS ......................................................................................320 A. Introduction ......................................................................................................................320 B. Residential Property Transactions ...................................................................................321 C. Industrial/Commercial Real Property Transactions .........................................................323

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1 Introduction ..........................................................................................................323 2 The Purchase and Sale Agreement (or Asset Purchase Agreement) ....................324 3 Liability and Due Diligence .................................................................................3274 Environmental Insurance .............................................................................................................330 5 Leasing of Commercial and Industrial Property ..................................................331 6 Brownfields Agreements ......................................................................................332II. REPRESENTATION OF BUSINESS CLIENTS GENERALLY- ENVIRONMENTAL CONSIDERATIONS ...................................................................................................................333 A. Introduction ......................................................................................................................333 B. Reporting/Releases ..........................................................................................................334 C. Annual Reporting Under EPCRA ....................................................................................336 D. Environmental Inspections ...............................................................................................337 E. Waste Management ..........................................................................................................338 F. Permits .............................................................................................................................340 G. Environmental Insurance .................................................................................................340 H. SEC Reporting .................................................................................................................341 I. Environmental Tax Issues ................................................................................................343 J. Bankruptcy Issues ............................................................................................................344III. ENVIRONMENTAL LITIGATION ............................................................................................345 A. Introduction ......................................................................................................................345 B. Representation of Plaintiffs ..............................................................................................346 C. Representation of Defendants in Environmental Litigation ............................................349IV. REPRESENTATION OF SECURED LENDERS AND FIDUCIARIES ....................................352V. CONCLUSION ............................................................................................................................353ATTACHMENT 1 DENR Regional Offices with Telephone Numbers .............................................355ATTACHMENT 2 Typical Environmental Indemnification Clauses .................................................357ATTACHMENT 3 NCBA Contract for Environmental Consultant Services* ...................................359* reprinted with permission of the Environmental Law Section of the North Carolina Bar Association.

Chapter VI: Immigration and Nationality Lawby Jonathan David Guze and Hans Christian Linnartz

STATUTORY REFERENCES .................................................................................................................367INTRODUCTION ...................................................................................................................................369I. OVERVIEW OF IMMIGRATION AND NATIONALITY LAW ...............................................371 A. Temporary Admission to the United States .....................................................................371 1. Nonimmigrant Classifications ..............................................................................371 2. Entering the United States as a Nonimmigrant ....................................................371 3. Extending and Changing Nonimmigrant Status ..................................................372 B. Permanent Residence .......................................................................................................373 1. Avenues to Permanent Residence ........................................................................373 2. Entering the United States as a Lawful Permanent Resident ...............................375 3. Adjustment of Status ............................................................................................376 C. Citizenship and Naturalization .........................................................................................377 1. Avenues to Citizenship .........................................................................................377 2. Naturalization .......................................................................................................377 D. Admissibility and Removal ..............................................................................................378 1. Admissibility ........................................................................................................378 2. Deportability ........................................................................................................379 3. Removal ...............................................................................................................379II. DETERMINING IMMIGRATION STATUS ..............................................................................380

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A. Categories of Immigration Status ....................................................................................380 1. U.S. Citizens ........................................................................................................380 2. Lawful Permanent Resident .................................................................................381 3. Legal Nonimmigrant ............................................................................................381 4. Those Present in the U.S. Illegally .......................................................................382 B. Gathering Information from the Client ............................................................................382 C. Scope of Inquiry ...............................................................................................................383III. POTENTIAL IMMIGRATION-RELATED ISSUES ..................................................................384 A. Criminal Acts ...................................................................................................................384 1. Crimes of Moral Turpitude ..................................................................................385 2. Drug Offenses ......................................................................................................385 3. Domestic Violence ...............................................................................................385 4. Aggravated Folonies ............................................................................................385 B. Domestic Cases ................................................................................................................386 C. Workers Compensation ....................................................................................................388 D. Personal Injury .................................................................................................................388 1. Standing ...............................................................................................................388 2. Damages ...............................................................................................................389 E. Employment Law .............................................................................................................390 1. Discrimination ......................................................................................................390 2. Limited Remedies for Illegal Workers .................................................................391 3. RICO for Illegal Employers .................................................................................391 4. The Uneasy Position of the Uncertain Employer ................................................392 F. Litigation Issues: Discovery, Evidence and Threats ........................................................393 1. Discovery .............................................................................................................393 2. Evidence ...............................................................................................................395IV. SOURCES OF ADDITIONAL INFORMATION AND HELP ...................................................397 A. The Bureau of Citizenship and Immigration Services .....................................................397 B. American Immigration Lawyers Association ..................................................................397 C. Treatises ...........................................................................................................................397 D. Additional Web Based Information .................................................................................398 E. Finding Immigration Lawyers .........................................................................................399FORM 1 Immigration Status Questionnaire ...................................................................................401FORM 2 SSA “No Match” Letters: Top Ten Tips for Employers* .................................................403*reprinted with permission of the National Employment Law Project.

Chapter VII: Juvenile Proceedings - Abuse and NeglectUpdated by Janet Mason

I. INTRODUCTION .......................................................................................................................405II. INITIATION OF PROCEEDINGS ..............................................................................................406III. THE PETITION AND SUMMONS ............................................................................................408IV. NONSECURE CUSTODY HEARING .......................................................................................408V. ADJUDICATORY HEARING ....................................................................................................412VI. DISPOSITIONAL HEARING .....................................................................................................413VII. CONSENT ORDERS ..................................................................................................................416VIII. REVIEW HEARINGS .................................................................................................................417IX. APPEALS ....................................................................................................................................418X. TERMINATION OF PARENTAL RIGHTS PROCEEDINGS ...................................................418XI. TERMINATION: PARENT’S RIGHT TO COUNSEL ...............................................................421

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XII. TERMINATION: ADJUDICATION ...........................................................................................421XIII. TERMINATION: DISPOSITION ................................................................................................422XIV. TERMINATION: APPEALS .......................................................................................................423XV. SUBJECT MATTER JURISDICTION IN JUVENILE CASES .................................................423FORM 1 Oder to Appoint or Release Guardian Ad Litem and Attorney Advocate (AOC-J-207) ....................................................................................................................425FORM 2 Juvenile Petition (AOC-J-130) .........................................................................................427FORM 3 Juvenile Summons & Notice of Hearing (Abuse/Neglect/Dependency) (AOC-J-142) ....................................................................................................................429FORM 4 Notice of Hearing in Juvenile Proceeding (AOC-J-141) .................................................431FORM 5 Nonsecure Custody Pre-hearing Conference Checklist and Worksheet (GAL Form) .....433FORM 6 Nonsecure Custody Hearing Checklist (GAL Form) .......................................................435FORM 7 Motion for Review (AOC-J-140) .....................................................................................437FORM 8 Order for Nonsecure Custody (Abuse/Neglect/Dependency)(AOC-J-150) .....................439FORM 9 Order on Need for Continued Nonsecure Custody (Abuse/Neglect/ Dependency)(AOC-J-151) ...............................................................................................441FORM 10 Juvenile Adjudication Order (Abuse/Neglect/Dependency) (AOC-J-153) ......................443FORM 11 Juvenile Disposition Order (Abuse/Neglect/Dependency)(AOC-J-154) .........................445FORM 12 Permanency Planning Order (GAL Form) .......................................................................447FORM 13 Summons in Proceeding for Termination of Parental Rights (AOC-J-208) ....................453FORM 14 Petition for Termination of Parental Rights (GAL Form) ................................................455FORM 15 Possible Exhibits to Petition for Termination of Parental Rights (GAL Form) ...............459FORM 16 Publication Order (GAL Form) .......................................................................................461FORM 17 Publication Notice (GAL Form) ......................................................................................465FORM 18 Publication Notice (Version 2) (GAL Form) ...................................................................467FORM 19 Affidavit of Service of Process by Publication (GAL Form) ...........................................469FORM 20 Master Checklist for Termination of Parental Rights (GAL Form) .................................471FORM 21 Termination of Parental Rights Worksheet for GAL Attorneys (GAL Form) .................473FORM 22 Juvenile Order (AOC-J-209) ............................................................................................481FORM 23 Appellate Entries in Abuse/Neglect/Dependency or Termination of Parental Rights Proceedings (AOC-J-160) ......................................................................483GAL forms appear courtesy of the Guardian ad Litem Services Division of the N.C. Administrative Office of the Courts.AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

Chapter VIII: Juvenile Proceedings - DelinquencyUpdated by Janet Mason

I. PURPOSE OF JUVENILE COURT ............................................................................................485II. JURISDICTION ..........................................................................................................................486III. INTAKE .......................................................................................................................................488IV. PETITION, SUMMONS, FIRST APPEARANCE .....................................................................490V. TEMPORARY CUSTODY; SECURE AND NONSECURE CUSTODY; CUSTODY HEARINGS .................................................................................................................................492VI. JUVENILE’S RIGHTS ................................................................................................................494VII. LAW-ENFORCEMENT PROCEDURES ...................................................................................495 A. In-Custody Interrogation ..................................................................................................495 B. Nontestimonial Identification Procedures ........................................................................496 C. Fingerprints and Photographs ..........................................................................................497VIII. PROBABLE CAUSE AND TRANSFER TO SUPERIOR COURT ...........................................498IX. DISCOVERY ..............................................................................................................................502

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X. HEARING PROCEDURES .........................................................................................................504 A. Amendments to Petitions .................................................................................................504 B. Incapacity to Proceed .......................................................................................................504 C. Adjudicatory Hearing .......................................................................................................504 D. Continuances ....................................................................................................................505 E. Admissions .......................................................................................................................505 F. Rules of Evidence ............................................................................................................506 G. Standard of Proof .............................................................................................................506 H. Recording Proceedings ....................................................................................................506 I. Adjudication .....................................................................................................................506 J. Effect of Adjudication ......................................................................................................507 K. Predisposition Investigation and Report ..........................................................................507 L. Dispositional Hearing ......................................................................................................508XI. DISPOSITIONS ...........................................................................................................................508 A. Purposes ...........................................................................................................................508 B. Evaluation and Treatment ................................................................................................509 C. Dispositional Alternatives ................................................................................................509 D. Offense Classifications .....................................................................................................510 E. Delinquency History Level ..............................................................................................510 F. Disposition Chart .............................................................................................................511 G. Disposition at Each Level ................................................................................................512 H. Commitments ...................................................................................................................513 I. Authority over the Parent, Guardian, or Custodian .........................................................515XII. MODIFICATION, ENFORCEMENT, AND APPEAL OF ORDERS ........................................516 A. Authority to Modify or Vacate .........................................................................................517 B. Modification for Lack of Suitable Services .....................................................................517 C. Probation Review .............................................................................................................517 D. Post-release Supervision Review .....................................................................................518 E. Hearing on Extended Commitment .................................................................................518 F. Contempt Against Parent, Guardian, Custodian ..............................................................519 G. Appeals ............................................................................................................................519 H. Disposition Pending Appeals or After Appeal .................................................................519XIII. CONCLUSION ............................................................................................................................520FORM 1 Application for Nontestimonial Identification Order (Juvenile Suspect) (AOC-J-204) ....................................................................................................................521FORM 2 Nontestimonial Identification Order (Juvenile Suspect)(AOC-J-205) .............................523FORM 3 Notice of Hearing in Juvenile Proceeding (Undisciplined/Delinquent) (AOC-J-240) ....................................................................................................................525FORM 4 Motion for Review (Undisciplined/Delinquent)(AOC-J-241) .........................................527FORM 5 Juvenile Petition (Delinquent)(AOC-J-310) ...................................................................529FORM 6 Juvenile Summons and Notice of Hearing (AOC-J-340) ................................................531FORM 7 Juvenile First Appearance (AOC-J-342) .........................................................................533FORM 8 Juvenile Order Probable Cause Hearing (AOC-J-343) ....................................................535FORM 9 Motion and Order to Show Cause (Parent, Guardian or Custodian of Undisciplined/Delinquent Juvenile)(AOC-J-344) ...........................................................537FORM 10 Order in Contempt Proceeding (Parent, Guardian or Custodian of Disciplined/Delinquent Juvenile)(AOC-J-345) ...............................................................539FORM 11 Transcript of Admission by Juvenile (AOC-J-410) ........................................................541FORM 12 Order for Secure Custody (Undisciplined/Delinquent)(AOC-J-440) .............................543FORM 13 Order for Nonsecure Custody (Undisciplined/Delinquent)(AOC-J-441) .......................545

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FORM 14 Juvenile Order Transfer Hearing (AOC-J-442) ...............................................................547FORM 15 Juvenile Adjudication Order (Delinquent)(AOC-J-460) .................................................549FORM 16 Juvenile Level 1 and Level 2 Disposition Order (Delinquent)(AOC-J-461) ..................551FORM 17 Juvenile Disposition and Commitment Order (AOC-J-462) ..........................................553FORM 18 Supplemental Order to Parent, Guardian or Custodian of Undisciplined or Delinquent Juvenile (AOC-J-463) ...................................................................................555FORM 19 Supplemental Order Conditions of Probation (Delinquent)(AOC-J-464) ......................557FORM 20 Order to Terminate Supervision (Undisciplined/Delinquent)(AOC-J-465) ....................559FORM 21 Order and Notice That Juvenile Not Be Licensed to Operate Motor Vehicle (AOC-J-466/DL-53J) .......................................................................................................561FORM 22 Appellate Entries in Delinquency Proceeding (AOC-J-470) ..........................................563AOC forms reprinted with permission of the N.C. Administrative Office of the Courts.

Chapter IX: New Motor Vehicle Warranties Act “Lemon Law”by Raymond W. Postlethwait, Jr.

I. INTRODUCTION .......................................................................................................................565II. NORTH CAROLINA “LEMON LAW” ......................................................................................565 A. Vehicles Covered under the Lemon Law .........................................................................565 B. Qualifications (Presumptions) for a Lemon .....................................................................565 C. Disqualifications (Affirmative Defenses) for a Lemon ....................................................566 D. Prequalifications, or Who Must Be Notified ....................................................................566 E. Remedies Available (Choice of Consumer) .....................................................................567III. OTHER REFERENCES FOR THE NC “LEMON LAW” ..........................................................568 A. North Carolina Pattern Jury Instructions .........................................................................568 B. UCC and Magnuson Moss Federal Warranty Act ............................................................570 1. N.C.G.S. Chapter 25, Article 2, Sales ..................................................................570 2. Mugnuson Moss Warranty - Federal Trade Commission Improvement Act of 1975, Title 1, 15 U.S.C. §§ 2301 to 2312 .................................................571IV. TRUTH IN LENDING ALERT ...................................................................................................572WEB SITES .............................................................................................................................................572FORM 1 Lemon Law Refund Form Pursuant to N.C.G.S. 20-351 Et. Seq. ...................................573FORM 2 Lemon Law Refund Form Pursuant to Magnuson-Moss Federal Warranty Act (No Usage Fee, Finance Charges Reimbursed) .........................................575FORM 3 Lemon Law Refund Form Pursuant to Magnuson-Moss Federal Warranty Act (Usage Fee, All Payments Reimbursed) ....................................................577FORM 4 Lemon Law Refund Form for Leased Vehicle Pursuant to N.C.G.S. 20-351.3(b) .......................................................................................................579FORM 5 Consumer’s Notice of Final Opportunity to Repair .........................................................581FORM 6 Attorney’s Notice of 15-Day Last Change to Fix ............................................................583FORM 7 Attorney’s 10-Day Last Change to Resolve and Notice of Suit Letter ............................585FORM 8 Complaint Against Manufacturer and Dealer (TIL) ........................................................589FORM 9 First Set of Interrogatories to Defendant Manufacturer ..................................................599FORM 10 First Request for Production of Documents and Things ..................................................605FORM 11 First Set of Interrogatories to Defendant Dealer ..............................................................611FORM 12 First Request for Production of Documents and Things ..................................................617

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Chapter X: Purchase and Sale of Residential Real Propertyby Darren S. Cranfill

STATUTORY REFERENCES .................................................................................................................623OTHER REFERENCES ..........................................................................................................................623I. TITLE EXAMINATION CHECKLIST .......................................................................................625II. BASICS OF CLOSING A RESIDENTIAL REAL PROPERTY LOAN ....................................625III. POTENTIAL TRAPS FOR THE UNWARY ...............................................................................627IV. TIPS AND HINTS .......................................................................................................................628V. THE USA PATRIOT ACT AND EXECUTIVE ORDER 13224 .................................................629

Group 1 - N.C. Bar Forms© FORM 1 NCBA Form I-P Opinion on Title ...............................................................631 FORM 2 NCBA Form 1-F Final Title Opinion ...........................................................633 FORM 3 NCBA Form 2 Offer to Purchase and Contract ........................................635 FORM 4 NCBA Form 2-A-2 Contingent Sale Addendum .............................................639 FORM 5 NCBA Form 2-A-3 New Construction Addendum ..........................................641 FORM 6 NCBA Form 2-A-4 FHA/VA Financing Addendum ........................................643 FORM 7 NCBA Form 2-A-5 Seller Financing Addendum .............................................645 FORM 8 NCBA Form 2-A-6 Loan Assumption Addendum ...........................................647 FORM 9 NCBA Form 2-A-7 Buyer Possession Before Closing Agreement ..................649 FORM 10 NCBA Form 2-A-8 Seller Possession After Closing Agreement .....................651 FORM 11 NCBA Form 2-A-9 Lead Based Paint Addendum ...........................................653 FORM 12 NCBA Form 2-A-10 Radon Inspection Addendum ...........................................655 FORM 13 NCBA Form 2-A-11 Additional Provisions Addendum ....................................657 FORM 14 NCBA Form 3 General Warranty Deed .................................................659 FORM 15 NCBA Form 4 Promissory Note ...............................................................661 FORM 16 NCBA Form 5 N.C. Deed of Trust ...........................................................663 FORM 17 NCBA Form 6 N.C. Special Warranty Deed ............................................667 FORM 18 NCBA Form 7 N.C. Non-Warranty Deed .................................................669 FORM 19 NCBA Form 8 Option to Purchase ...........................................................671The N.C. Bar Forms© are included as samples. To obtain N.C. Bar Forms©, contact NCBA Sections and Divisions or visit the NCBA Real Property Section website at www.ncbar.org.

Group 2 FORM 20 HUD-1 Form - Settlement Statement ..................................................................673 FORM 21 HUD-1A Form - Refinance Settlement Statement ...............................................675 FORM 22 Substitution of Trustee .........................................................................................677 FORM 23 Subordination Agreement ....................................................................................679 FORM 24 Truth-in-Lending Disclosure Statement ...............................................................683 FORM 25 Form Acknowledgments ......................................................................................685 FORM 26 Residential Property Disclosure Statement ..........................................................687Real Property Forms Software Venders / Printers ....................................................................................689Land Measures .........................................................................................................................................691

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North Carolina General Practice DeskbookThird Edition (2004)

Volume IV

Table of Contents

Preface .......................................................................................................................................................... iPublisher Remarks ..................................................................................................................................... iiiAuthor/Editor Biographies ...........................................................................................................................v

Chapter I: Appealsby Robert C. Montgomery

I. APPELLATE REVIEW ...................................................................................................................1 A. Civil Cases ...........................................................................................................................1 1. Final Judgments .......................................................................................................1 2. Interlocutory Orders .................................................................................................1 B. Criminal Cases .....................................................................................................................8 1. Defendant’s Right to Appeal ....................................................................................8 2. State’s Right to Appeal ..........................................................................................12II. NOTICE OF APPEAL ...................................................................................................................14 A. Time Limits ........................................................................................................................15 B. Content of Notice ...............................................................................................................16III. PROTECTION OF APPEAL .........................................................................................................17 A. Avoiding Dismissals and Sanctions ...................................................................................18 1. Motions ..................................................................................................................18 2. Rule 2 .....................................................................................................................18 3. Certiorari ................................................................................................................19 B. Seeking a Stay ..........................................................................................................................19IV. PERFECTING APPEAL ...............................................................................................................20 A. Obtaining a Transcript .......................................................................................................20 B. Service of Proposed Record on Appeal .............................................................................22 C. Settlement of Record ..........................................................................................................25 D. Filing of Record .................................................................................................................27V. BRIEFING .....................................................................................................................................27 A. Filing ..................................................................................................................................27 B. Content ...............................................................................................................................28 C. Formatting ..........................................................................................................................29 D. Reply Briefs .......................................................................................................................30VI. ORAL ARGUMENT .....................................................................................................................31VII. PETITIONS FOR REHEARING ..................................................................................................31VIII. APPEAL TO SUPREME COURT ................................................................................................32 A. Appeal of Right ..................................................................................................................32 B. Discretionary Review .........................................................................................................33 C. Certiorari ............................................................................................................................34Form 1 Notice of Appeal ................................................................................................................35Form 2 Record on Appeal ...............................................................................................................37Form 3 Brief ...................................................................................................................................41Form 4 Petition for Discretionary Review ......................................................................................47Form 5 Notice of Appeal to N.C. Supreme Court ..........................................................................49

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Chapter II: Collectionsby James A. Clark

STATUTORY REFERENCES ................................................................................................................... iiiCASE REFERENCES ............................................................................................................................... ivI. PRE-JUDGMENT DEBT COLLECTION AND APPLICABLE LAWS .......................................1 A. Fair Debt Collection Practices Under Federal Law .............................................................1 B. Communications with the Consumer Debtor .......................................................................2 1. The Dunning Letter ..................................................................................................4 2. Notice Required by the F.D.C.P.A. ..........................................................................6 3. Telephone Communications .....................................................................................8 C. Debt Collection Acts Prohibited Under North Carolina Law ..............................................9 1. Definitions ................................................................................................................9 2. Prohibited Conduct ..................................................................................................9 3. Penalties for Violations ..........................................................................................14 D. Debt Collection Practices to Avoid ....................................................................................14 1. Communications ....................................................................................................15 2. Conduct ..................................................................................................................16 E. Resolution other than Collecting upon a Judgment ...........................................................17 1. Settlement Agreements ..........................................................................................17 2. Security ..................................................................................................................17II. JUDGMENT ENFORCEMENT ...................................................................................................20 A. Locating and Reaching the Debtor’s Assets .......................................................................20 B. Transcribing, Docketing, and Renewing a Judgment ........................................................22 1. Docketing a Judgment ............................................................................................22 2. Transcribing the Judgment to Other Counties .......................................................23 3. Renewing a Judgment ............................................................................................24 4. Interest on a Judgment ...........................................................................................24 5. Satisfying a Judgment ............................................................................................25 C. Exemptions from Collection on a Judgment ......................................................................25 1. Allowing the Debtor the Right to Claim Exemptions ............................................26 2. The Statutory Exemptions in North Carolina ........................................................28 D. Execution upon a Judgment ...............................................................................................29 1. The Execution Form ...............................................................................................29 2. Property Against Which the Execution Is Served .................................................29 3. Obtaining a Debtor’s Property from Third Parties .................................................30 4. Execution Sales ......................................................................................................31 E. Uniform Enforcement of Foreign Judgments Act ..............................................................31 F. Miscellaneous Collections Matters ....................................................................................32 1. Out-Of-State Registration of a North Carolina Judgment .....................................32 2. Installment Payments on a Judgment .....................................................................33 3. Cancellation of a Judgment ....................................................................................33 4. Bankruptcy .............................................................................................................34III. SUPPLEMENTAL PROCEEDINGS ............................................................................................35 A. Procedures for Discovering Assets ....................................................................................35 1. Written Interrogatories and Requests to Produce Documents ...............................36 2. Oral Examination of the Debtor .............................................................................36 B. Other Methods for Obtaining Assets or Information .........................................................37 1. Sanctions for Non-Compliance ..............................................................................37 2. Remedies in the Event the Debtor Conceals Property ...........................................38

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3. Investigation of the Debtor .....................................................................................38IV. ACTIONS ANCILLARY TO OBTAINING A JUDGMENT .......................................................39 A. Claim and Delivery ............................................................................................................39 B. Pre-Judgment Attachment ..................................................................................................40 C. Arrest and Bail ...................................................................................................................41 D. Liens ...................................................................................................................................42 1. Mechanics ..............................................................................................................42 2. Laborers and Materialmen’s Liens .........................................................................43 3. Health Care Providers ............................................................................................44 4. Warehousemen .......................................................................................................45 5. Ambulance Services ...............................................................................................45 E. Pre-Judgment Garnishment ................................................................................................46Form 1 Dunning Letter ...................................................................................................................47Form 2 Notice Required by the F.D.C.P.A. ....................................................................................49Form 3 Settlement Agreement ........................................................................................................51Form 4 Promissory Note .................................................................................................................55Form 5 Security Agreement ............................................................................................................57Form 6 Financing Statement ...........................................................................................................67Form 7 Deed of Trust .....................................................................................................................69Form 8 Confession of Judgment .....................................................................................................75Form 9 Transcript and Certification of Judgment ...........................................................................77Form 10 Complaint to Renew a Judgment .......................................................................................79Form 11 Satisfaction of Judgment ....................................................................................................81Form 12 Notice of Right to Claim Exemptions ................................................................................83Form 13 Motion to Claim Exempt Property .....................................................................................85Form 14 Writ of Execution ...............................................................................................................89Form 15 Authorization to Cancel Judgment .....................................................................................91Form 16 Notice of Bankruptcy Filing ..............................................................................................93Form 17 Supplemental Proceedings Questionnaire ..........................................................................95Form 18 Order of Attachment ..........................................................................................................97Form 19 Affidavit in Attachment Proceeding ...................................................................................99

Chapter III: Eminent Domain – Condemnationby Emmett Boney Haywood, Francis P. Rasberry and Christopher J. Simmons

I. CONSTITUTIONAL LIMITATION ON THE POWER OF EMINENT DOMAIN ......................1II. PUBLIC USE ...................................................................................................................................1III. LEGISLATURE HOLDS EXCLUSIVE POWER OF EMINENT DOMAIN ................................2 A. Private Condemnors .............................................................................................................2 B. Extent of Taking in Discretion of Condemnor .....................................................................3IV. INVERSE CONDEMNATION ........................................................................................................3 A. Taking vs. Police Power or Regulation ................................................................................4V. DISPOSITION OF EXCESS PROPERTY ......................................................................................4VI. RIGHT OF ENTRY PRIOR TO CONDEMNATION .....................................................................5VII. THREE SEPARATE EMINENT DOMAIN PROCEDURES .........................................................5 A. Article 2, Chapter 40A Procedure - Private Condemnor .....................................................5 1. Petition .....................................................................................................................6 2. Service of Process ....................................................................................................6 3. Lis Pendens ..............................................................................................................7 4. Answer to Petition ....................................................................................................7

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5. Notice of Hearing to Appoint Commissioners .........................................................8 6. Hearing on Appointment of Commissioners ............................................................8 7. Commissioners’ Hearings ........................................................................................8 8. Commissioners’ Report ............................................................................................9 9. Exceptions to Report ................................................................................................9 10. Judgment of Clerk ....................................................................................................9 11. Appeal ....................................................................................................................10 12. Possession by Condemnor .....................................................................................10 13. Final Judgment; Vesting of Title ............................................................................10 14. Costs .......................................................................................................................11 B. Article 3, Chapter 40A Procedure - Local Public Condemnors .........................................11 1. Notice of Action .....................................................................................................11 2. Complaint and Declaration; Deposit ......................................................................11 3. Summons ...............................................................................................................12 4. Memorandum of Action .........................................................................................12 5. Vesting of Title and Public Condemnor’s Right of Possession ..............................12 6. Disbursement of Deposit to Property Owner .........................................................13 7. Answer and Reply ..................................................................................................13 8. Filing of Plat ..........................................................................................................14 9. Determination of Issues Other Than Damages ......................................................14 10. Use of Commissioners ...........................................................................................15 11. Continuance of Case until Project Completed .......................................................16 12. Final Judgments .....................................................................................................16 13. Refund of Excess Deposit to Condemnor ..............................................................17 14. Court Costs ............................................................................................................17 C. Article 9, Chapter 136 Procedure – DOT and DOA (State Agencies) ...............................18 1. General ...................................................................................................................18 2. Commencement, Venue, Complaint and Declaration of Taking ............................18 3. Deposit of Estimated Compensation; Memorandum of Action .............................19 4. Vesting of Title and Condemnor’s Immediate Right of Possession .......................20 5. Disbursement of Deposit to Property Owner .........................................................20 6. Answer ...................................................................................................................21 7. Filing of Plat ..........................................................................................................21 8. Determination of Issues Other than Damages .......................................................21 9. Immediate Appeal from Determination of Issues Other Than Damages ...............22 10. Use of Commissioners in Chapter 136 Cases ........................................................22 11. Appointed Attorneys and Guardians Ad Litem ......................................................23 12. Continuance of Case until Project Completed .......................................................23 13. Refund of Excess Deposit ......................................................................................23 14. Court Costs and Attorney Fees ..............................................................................24 15. Dispute as to Those Entitled to Payment of Just Compensation ............................24VIII. VALUATION/JUST COMPENSATION IN CONDEMNATION .................................................25 A. Constitutional Requirement of Just Compensation ...........................................................25 B. “Total Take” – One Rule for Measuring Damages ............................................................25 C. “Partial Taking” – Different Rules for Measuring Damages .............................................26 1. Chapter 136 Condemnations ..................................................................................26 2. Chapter 40A Condemnations .................................................................................26 D. Time of Valuation – Date of Taking ...................................................................................27 E. Just Compensation - Market Value - Factors to be Considered .........................................27 F. What Constitutes the “Parent” Tract Affected by Condemnation ......................................28

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G. Chapter 40A Rule on “Parent” Tract .................................................................................29 H. Appraisal Methods in Condemnation Cases ......................................................................30 I. General and Special Benefits to Remainder .......................................................................30 1. Definition ...............................................................................................................30 2. Off-Setting Benefits in Chapter 136 Condemnations ............................................31 3. Burden of Proof ......................................................................................................31 4. No Consideration of Project Effects in “Before” Evaluation ................................31 5. Compensation to Reflect Project as Planned .........................................................32 6. Chapter 40A - Compensation Cannot Be Less Than Value of the Land “Taken” ...................................................................................................32 7. Interest as Part of Just Compensation ....................................................................33 J. Property Tax Reimbursement .............................................................................................34 K. Condemnation of Property Subject to Lien .......................................................................34 L. Condemnation of Property Subject to Life Tenancy ..........................................................35FORM 1 CHAPTER 40A– CITY CONDEMNATION ....................................................................37 1.1. Resolution of City Council ................................................................................................37 1.1.1. Exhibit 1 .................................................................................................................38 1.2. Notice of Action .................................................................................................................39 1.3. Complaint, Declaration of Taking and Notice of Deposit .................................................40 1.3.1. Exhibit A ................................................................................................................43 1.3.2. Exhibit B ................................................................................................................49 1.3.3. Exhibit C ................................................................................................................50 1.3.4. Exhibit D ................................................................................................................51 1.3.5. Exhibit E ................................................................................................................52 1.3.6. Exhibit F ................................................................................................................53 1.3.7. Exhibit G ................................................................................................................54 1.3.8. Exhibit H ................................................................................................................55 1.3.9. Exhibit I .................................................................................................................56 1.3.10. Verification .............................................................................................................57 1.4. Memorandum of Action .....................................................................................................58 1.5. Answer ...............................................................................................................................59 1.6. Motion for Final Judgment – No Answer ..........................................................................62 1.7. Final Judgment – No Answer .............................................................................................65 1.8. Final Judgment – No Exceptions to Report .......................................................................67 1.9. Consent Judgment (with Disbursement) ............................................................................69FORM 2 CHAPTER 136 – CITY CONDEMNATION ....................................................................73 2.1. Complaint, Declaration of Taking, and Notice of Deposit ................................................73 2.1.1. Exhibit A ................................................................................................................75 2.1.2. Exhibit B ................................................................................................................77 2.1.3. Exhibit C ................................................................................................................78 2.1.4. Exhibit D ................................................................................................................79 2.1.5. Exhibit E ................................................................................................................80 2.2. Memorandum of Action .....................................................................................................81 2.3. Answer ...............................................................................................................................82 2.4. Final Judgment – No Answer .............................................................................................86FORM 3 CHAPTER 136 – DOT CONDEMNATION .....................................................................89 3.1. Complaint ...........................................................................................................................89 3.2. Declaration of Taking and Notice of Deposit ....................................................................91 3.3. Exhibits to Complaint, Declaration of Taking, and Notice of Deposit ..............................93 3.3.1. Exhibit A ................................................................................................................93

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3.3.2. Exhibit B ................................................................................................................94 3.3.3. Exhibit C ................................................................................................................95 3.4. Consent Motion for and Order Granting Disbursement ....................................................96 3.5. Answer .............................................................................................................................100FORM 4 CHAPTER 40A – PRIVATE CONDEMNATION ..........................................................103 4.1. Petition for Condemnation ...............................................................................................103 4.2. Lis Pendens ......................................................................................................................118 4.3. Order Appointing Commissioners ...................................................................................120 4.4. Oath of Commissioners ....................................................................................................124 4.5. Notice of Appointment of Commissioners ......................................................................125 4.6. Report of Commissioners ................................................................................................126 4.7. Motion to Schedule Hearing on Exceptions ....................................................................127 4.8. Final Determination of the Clerk .....................................................................................129 4.9. Consent Judgment ............................................................................................................1354.10. Agreement for Right of Entry ......................................................................................................146

Chapter IV: Foreclosure Under Power of SaleRevised by Timothy G. Sellers

I. INITIAL OBSERVATIONS .............................................................................................................1 A. Scope 1 B. Statutory References ............................................................................................................1 C. Special Situations .................................................................................................................2 1. Multiple Instruments ................................................................................................2 2. Multiple Counties ....................................................................................................2 3. Claims of Lien ..........................................................................................................2 4. Deeds in Lieu of Foreclosure ..................................................................................3II. POST DEFAULT/PRE-ENFORCEMENT ACTIVITIES ...............................................................4 A. Initial Demand Letters .........................................................................................................4 1. Breach/Default Letters (Form 26) ............................................................................4 2. Pre-Foreclosure Demand Letter per N.C.G.S. § 21-16(c)(5a) (Form 32) ................4 B. Document Collection and Review .......................................................................................5 C. Title Search ..........................................................................................................................5 D. Substitution of Trustee - N.C.G.S. § 45-10 (Form 1) ..........................................................6 E. “Law of the Clerk” ...............................................................................................................7III. THE FORECLOSURE PROCESS STEP BY STEP .......................................................................7 A. N.C.G.S. § 45-21.16(c)(5a) - Notice Letter (Form 32) ........................................................7 B. Notice of Hearing (Forms 2, 4, 4a) ......................................................................................8 C. Service of Notice of Hearing (Forms 6, 7a-7f) ....................................................................8 D. Preparation of Lender Affidavit/Statement of Account .......................................................9 E. Hearing before the Clerk of Superior Court and Appeals ..................................................10 F. Mailing, Posting and Publishing of Notice of Sale (Form 5) ............................................11 G. Sale .....................................................................................................................................12 H. Upset Bid Period ................................................................................................................12 I. Substitute Trustee’s Deed/Entry of Foreclosure (Forms 10 and 33) ..................................12 J. Final Report and Account ..................................................................................................13IV. ACTIONS FOR POSSESSION .....................................................................................................13V. JUDICIAL AND POWER OF SALE FORECLOSURE COMPARED ........................................14 A. Advantages .........................................................................................................................14 B. Limitations .........................................................................................................................14

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VI. BANKRUPTCY .............................................................................................................................14VII. FORMS ..........................................................................................................................................15Form 1 Appointment of Substitute Trustee ....................................................................................17Form 2 Petition for Hearing ............................................................................................................19Form 3 Affidavit .............................................................................................................................21Form 4 Notice of Hearing ...............................................................................................................23Form 4a Service of Notice of Hearing .............................................................................................27Form 5 Notice of Foreclosure Sale .................................................................................................29Form 6 Return of Service ...............................................................................................................31Form 7 Certificate of Service by Certified Mail .............................................................................33Form 8 Order of Foreclosure ..........................................................................................................39Form 9 Notice of Postponement .....................................................................................................43Form 10 Notice of Foreclosure of a Deed of Trust ...........................................................................45Form 11 Assignment of Bid .............................................................................................................47Form 12 Letter to Debtors ................................................................................................................49Form 13 Letter to Holder of Subsequent Deed of Trust ...................................................................51Form 14 Letter to Judgment Creditors .............................................................................................53Form 15 Letter to Trustee .................................................................................................................55Form 16 Letter to Internal Revenue Service .....................................................................................57Form 17 Federal Tax Liens ...............................................................................................................59Form 18 Letter to Newspaper ...........................................................................................................61Form 19 Deed in Lieu of Foreclosure ..............................................................................................63Form 20 Affidavit of Individual Giving Deed in Lieu of Foreclosure .............................................65Form 21 Motion for Appointment of Guardian ad Litem .................................................................67Form 22 Order Appointing Guardian Ad Litem ...............................................................................69Form 23 Letter to Parties re: upset bid .............................................................................................71Form 24 Petition for Defaulting Bidder ...........................................................................................73Form 24a Notice for Defaulting Bidder .............................................................................................75Form 25 Order for Defaulting Bidder ...............................................................................................77Form 26 Demand Letter ...................................................................................................................79Form 27 Order of Possession 10-day Notice Letter .........................................................................81Form 28 Application for Order of Possession ..................................................................................83Form 29 Order of Possession ............................................................................................................85Form 30 Motion for Relief from Stay ..............................................................................................89Form 31 Order Modifying Stay ........................................................................................................91Form 32 Written Statement of Debt and Attorney’s Fee Enforcement Notice .................................93Form 33 Trustee’s Deed ....................................................................................................................95Form 34 Receipt and certification ....................................................................................................99

Chapter V: Key ERISA ConceptsRevised by Steven B. Long

I. WHAT IS A PLAN AND WHEN IS IT SUBJECT TO ERISA? ....................................................1 A. What is ERISA? ...................................................................................................................1 B. Coverage of ERISA .............................................................................................................1 1. Welfare Plan .............................................................................................................2 2. Pension Plan .............................................................................................................2 3. Exceptions ................................................................................................................3 4. Top Hat Plans ...........................................................................................................3 C. Necessary Elements for Plan ...............................................................................................5

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1. Individual Employment Contracts ...........................................................................5 2. Severance Pay Plans .................................................................................................6 D. Plan Must Cover Employees ..............................................................................................10 1. In General ...............................................................................................................10 2. Sole Proprietors and Partners .................................................................................10II. WELFARE PLAN REQUIREMENTS ..........................................................................................11 A. Welfare Plan Formalities ....................................................................................................11 B. Welfare Plan Reporting and Disclosure Requirements ......................................................12 1. Summary Plan Description (“SPD”) ......................................................................12 2. Annual Report and Summary Annual Report ........................................................14 C. Accuracy of Plan Communications and Documents .........................................................16 1. Misrepresentation ...................................................................................................16 2. Oral Modifications .................................................................................................17 3. Claim for Wrongful Inducement ............................................................................18 4. Disclosure of Risks ................................................................................................18III. PLAN ADMINISTRATIVE CLAIMS ..........................................................................................19 A. In General ...........................................................................................................................19 B. Filing of Claims .................................................................................................................19 C. Review of Claims ...............................................................................................................20 D. Appeals of Decisions to Deny Claims ...............................................................................21 E. Civil Actions ......................................................................................................................23 F. Important Fourth Circuit Decision .....................................................................................23IV. WHO IS A FIDUCIARY? .............................................................................................................24 A. ERISA Definition of “Fiduciary” .......................................................................................24 B. Functional Emphasis ..........................................................................................................24 1. Plan Administrator and Trustee ..............................................................................25 2. Committee Members ..............................................................................................25 3. Officers and Directors ............................................................................................26 C. Limits on Fiduciary Status .................................................................................................26 D. Duration of Fiduciary Status ..............................................................................................26V. ERISA CIVIL ACTIONS ..............................................................................................................27 A. In General ...........................................................................................................................27 B. Participants and Beneficiaries May Bring Civil Actions: ..................................................27 1. For failure to provide required disclosures ............................................................27 2. To recover benefits, enforce rights or clarify rights ...............................................28 3. For a fiduciary breach ............................................................................................29 4. To enjoin a violative act .........................................................................................30 5. For failure to provide individual benefit statements ..............................................32 C. Fiduciaries May Bring Civil Actions Under ERISA ..........................................................32 D. The Secretary of Labor May Bring Civil Actions Under ERISA for the Following Violations: .........................................................................................................32 E. Co-Fiduciary Liability .......................................................................................................34 F. Exhaustion of Remedies ....................................................................................................35 G. Right to a Jury Trial ...........................................................................................................36 H. Attorney’s Fees ..................................................................................................................36

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Chapter VI: Name Changeby Sandra G. Herring

STATUTORY REFERENCES .................................................................................................................... iiCASE LAW REFERENCES ...................................................................................................................... iiOTHER REFERENCES ............................................................................................................................. iiI. COMMON LAW NAME CHANGE ...............................................................................................1II. SPECIAL SITUATIONS .................................................................................................................3 A. Upon Marriage .....................................................................................................................3 B. Upon Divorce .......................................................................................................................3 C. Upon Application by a Widow or Widower .........................................................................3 D. Upon Adoption .....................................................................................................................4 E. Upon Legitimation ...............................................................................................................4 F. Birth Certificates ..................................................................................................................4 G. Attorney Affidavit ................................................................................................................5 H. For Business/Professional Purposes ....................................................................................5III. STATUTORY METHOD .................................................................................................................5 A. Adult Petition for Name Change ..........................................................................................6 1. Pre-filing Notice .......................................................................................................6 2. Petition .....................................................................................................................6 3. Affidavits of Good Character ...................................................................................7 4. Order and Certificate of Name Change ....................................................................7 B. Minor Petition for Name Change .........................................................................................8 1. Pre-filing Notice .......................................................................................................8 2. Petition .....................................................................................................................8 3. Consent ....................................................................................................................8 4. Minors 16 Years of Age or Over ..............................................................................9IV. After Name Change .........................................................................................................................9 A. Social Security Administration and Internal Revenue Service ............................................9 B. North Carolina Driver License ...........................................................................................10 C. Other Changes ....................................................................................................................10Form 1 Application/Notice of Resumption of Former Name (AOC-SP-600) ................................11Form 2 Attorney Affidavit of Name Change ..................................................................................13Form 3 Certificate of Assumed Name ............................................................................................15Form 4 Notice of Intent to Change Name (Adult) ..........................................................................17Form 5 Petition for Name Change (Adult) .....................................................................................19Form 6 Affidavit of Good Character (Adult) ..................................................................................21Form 7 Order and Certificate of Name Change (AOC-SP-601) .....................................................23Form 8 Notice of Intent to Change Names (Minor) .......................................................................25Form 9 Petition for Name Change (Minor) ....................................................................................27Form 10 Consent for Name Change (Minor) ...................................................................................29Form 11 Application for Social Security Card (SSA Form SS-5) ...................................................31Form 12 Affidavit of Name Change (DMV Form DL-101) .............................................................37