REQUIRING LANDLORDS TO GIVE NOTICE TO THE NORTH CAROLINA STATE BAR OF AN ATTORNEY'S DEFAULT ON A LEASE IN ORDER TO PROTECT THE CONFIDENTIALITY OF THE ATTORNEY'S FILES.
Senate committee substitute makes the following changes to 1st edition.
Amends proposed GS 42-14.4, requiring a landlord with actual knowledge that a tenant is an attorney to notify the NC State Bar (State Bar) at least 15 days (was, 30 days) before the destruction or discard (was, destruction or sale) of any potentially confidential materials remaining in the premises after the landlord obtains possession. Makes conforming changes as necessary, changing 30 days to 15 days. Defines landlord for the purposes of the statute to mean any owner and any rental management company, rental agency, or any other person having the actual or apparent authority of an agent to perform the duties imposed by Article 1 of GS Chapter 42. Prohibits the landlord from throwing away, selling, or otherwise disposing of potentially confidential materials remaining on the premises during the 15-day period after notice; however, permits the landlord to move the material for storage purposes. Provides that if neither the State Bar nor its designee takes possession of the materials within the 15-day period, the landlord may destroy or discard the materials per the terms of the lease agreement with the defaulting tenant.
Provides that a landlord who makes a good faith effort to comply with the requirements of proposed GS 42-14.4 is not liable for any losses arising directly or indirectly out of the disposal of any potentially confidential materials. Specifies that failing to comply with statute is not an unfair trade practice under GS 75-1.1.
Amends new subsection (h) to GS 44A-2 (concerning liens on personal property), requiring any landlord of nonresidential property (was, residential or nonresidential property) containing potentially confidential materials to notify the State Bar as required under proposed GS 42-14.4, provided the landlord has actual knowledge that the former tenant is an attorney.