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In re the North Carolina State Bar

Citations: 361 N.C. 687; 2007 N.C. LEXIS 1463

Court: Supreme Court of North Carolina; October 11, 2007; North Carolina; State Supreme Court

Narrative Opinion Summary

The North Carolina Supreme Court has authorized the implementation of a comprehensive Interest On Lawyers' Trust Accounts (IOLTA) program, as petitioned by the North Carolina State Bar. This program aims to address the significant unmet legal needs of individuals eligible for assistance, thereby enhancing public trust in the justice system. The Court recognized that mandatory participation by eligible active members of the State Bar in the IOLTA program is likely to generate substantial revenue to support legal services for low-income residents, ultimately advancing access to justice. The order mandates that all active members maintaining general client trust accounts in North Carolina participate in the IOLTA program, effective January 1, 2008. This decision is made under the Court's inherent authority to regulate attorney conduct in the state. The order was issued on October 11, 2007, and signed by Judge Hudson for the Court.

Legal Issues Addressed

Advancement of Access to Justice

Application: By generating substantial revenue to support legal services for low-income residents, the IOLTA program aims to advance access to justice.

Reasoning: This program aims to address the significant unmet legal needs of individuals eligible for assistance, thereby enhancing public trust in the justice system.

Implementation of IOLTA Program

Application: The Court authorized the IOLTA program to address unmet legal needs and enhance public trust in the justice system, mandating participation by eligible attorneys.

Reasoning: The North Carolina Supreme Court has authorized the implementation of a comprehensive Interest On Lawyers' Trust Accounts (IOLTA) program, as petitioned by the North Carolina State Bar.

Mandatory Participation in IOLTA

Application: All active members of the State Bar maintaining general client trust accounts in North Carolina must participate in the IOLTA program starting January 1, 2008.

Reasoning: The order mandates that all active members maintaining general client trust accounts in North Carolina participate in the IOLTA program, effective January 1, 2008.

Regulation of Attorney Conduct

Application: The North Carolina Supreme Court exercised its inherent authority to mandate participation in the IOLTA program, thereby regulating the conduct of attorneys in the state.

Reasoning: This decision is made under the Court's inherent authority to regulate attorney conduct in the state.