House committee substitute makes the following changes to 2nd edition. Enacts new GS 45A-9 directing a settlement agent who maintains a trust or escrow account for the purposes of receiving and disbursing closing funds and loan funds to pay any interest earned on the funds in such accounts to the North Carolina State Bar (State Bar) to be used for the purposes authorized by the State Bar under the Interest on Lawyers’ Trust Account Program. Effective January 1, 2012. Directs the State Bar to adopt rules for the collection and disbursement of such funds.
Amends GS 84-8 to provide that no person is entitled to collect any fees for service performed in violation of the unauthorized practice of law. Enacts new GS 84-7.1, exempting legal clinics at law schools, certain law students, and certain lawyers from provisions regarding the unauthorized practice of law. Effective December 1, 2011, and applies to offenses committed on or after that date.
Enacts new GS 84-10.1 to provide for a private cause of action to recover damages and reasonable attorneys’ fees if damaged by a person who violates the provisions concerning the unauthorized practice of law, holds himself or herself out as a North Carolina certified paralegal, or knowingly aids and abets another person to commit the unauthorized practice of law. Effective October 1, 2011.
Makes other organizational and conforming changes, including conforming change to the bill title.