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Out-of-state lawyers increasingly appear in matters before the North Carolina Business Court, but recent developments underscore that the Business Court expects strict compliance with North Carolina's pro hac vice rules, and that noncompliance carries serious consequences.
The Business Court has made clear that merely planning to apply "later" or using "pro hac vice forthcoming" disclaimers is not acceptable where a filing or appearance suggests representation before admission.
This article distills the key takeaways from Business Court Judge Matthew Houston's January 12, 2026, Order Regarding Pro Hac Vice Admissions in Lexington Ins. Co. v. State of N.C., 2026 NCBC Order 3, addressing improper appearances, and offers practical guidance to out-of-state counsel considering an appearance in Business Court.
Real-world Conduct that Drew the Court's Attention
In the case prompting the Order, the docket reflected multiple filings over time listing out-of-state attorneys as "Counsel for" or "Attorneys for" parties despite a lack of North Carolina licensure or pro hac vice admission in the action. Some attorneys were designated on signature blocks as "pro hac vice forth coming" but never obtained pro hac vice admission. At a January 9, 2026 hearing, at least one out-of-state lawyer purported to make a formal appearance for the movants without having sought or received pro hac vice admission. The Court issued its Order sua sponte to address these issues and to memorialize its instructions to counsel.
The Baseline Rule: You must be licensed in North Carolina or admitted pro hac vice
North Carolina law makes it unlawful for any person who is not an active North Carolina lawyer to appear as an attorney in any action or proceeding, to conduct or defend a case, or to hold his or herself out as counsel before a judicial body. The principal statutory exception allows an out-of-state lawyer to appear in a specific North Carolina case, but only upon being admitted pro hac vice by the court for the sole purpose of appearing for a client in that proceeding.
What Counts as an "Appearance" in the Business Court
In the Order, the Business Court expressly reminds the bar that an attorney's designation on a signature block filed with the Court "with his or her approval" constitutes an appearance. As a result, it is "inappropriate and not in compliance with applicable statutes and rules" for an unlicensed out-of-state lawyer to permit or approve inclusion on a signature block in a way that denotes an appearance before obtaining North Carolina licensure or pro hac vice admission. The Court tied this conclusion to the governing statutes, reinforcing that N.C. Gen. Stat. §§ 84-4 and 84-4.1 control who may appear and when.
Why "pro hac vice forthcoming" is Not a Safe Harbor
The Court has observed a growing practice of listing out-of-state counsel with the caveat "pro hac vice forthcoming" or similar language on signature blocks and filings. The Order makes clear that such disclaimers do not resolve the compliance problem if the signature block or filing signals an appearance as counsel of record. By its plain terms, § 84-4 does not contemplate or permit the "pro hac vice forthcoming" designation to justify an appearance prior to admission.
The Court states the rule plainly: unlicensed out-of-state counsel should not allow their names, signatures, or information to be affixed to a pleading or filing as "counsel" or "attorney" for a party with the designation "pro hac vice forthcoming," particularly where the filing predates a motion for pro hac vice admission.
The Risks: Sanctions, Denial of Admission, and Potential Criminal Exposure
The Court expressly warns that allowing an appearance before securing pro hac vice admission can lead to sanctions and denial of any later pro hac vice application, in the Court's discretion. The Order further notes that such conduct may expose counsel to criminal penalties under North Carolina law governing the unauthorized practice of law. In short, the Court has put unlicensed appearances in the same jeopardy category as other substantive violations of §§ 84-4 and 84-4.1.
The message is that the pathway to participation runs through timely, compliant pro hac vice admission—not informal disclaimers.
Practical Guidance for Out-of-State Counsel Planning to Appear in North Carolina
Out-of-state lawyers intending to participate in a Business Court case should treat pro hac vice admission as an upfront gating requirement rather than a paperwork formality to be addressed later. Before your name appears on any signature block or before you participate in any hearing—even without argument—you should ensure a compliant pro hac vice motion has been prepared, filed, and granted. Because a single misstep can imperil your ability to appear and can affect client rights, the safest approach is to treat authorization as a threshold requirement and to avoid any conduct that could be construed as an appearance before admission.
Because an approved signature block itself constitutes an appearance, coordinating the timing of filings with local counsel is essential. If timing issues arise and you are not yet admitted pro hac vice, your name should not appear as counsel on any filing, and you should refrain from entering a formal or functional appearance until admission is secured.
If your name has already appeared on a filing, or you have participated in a proceeding without admission, you should promptly evaluate whether to file a pro hac vice motion or seek leave to withdraw any appearance. The Court's Order indicates that remediation is expected and that failure to address the issue can invite sanctions, denial of admission, and potential criminal exposure.
Aligning swiftly with the Court's procedures demonstrates respect for the tribunal and reduces the risk of adverse outcomes.
Common Pitfalls to Avoid
Based on the Court's Order, avoid:
- "Pro hac vice forthcoming" beside your name on a signature block. This does not cure an otherwise unauthorized appearance and is not contemplated by § 84-4.
- Allowing your name to appear as "counsel" on any filing before admission. Approval of a signature block designating you as counsel is itself an appearance and must not occur before licensure or pro hac vice admission.
- Informal participation at hearings before admission. Even if you do not argue, appearing as counsel at a hearing can be treated as an appearance and should not occur without admission.
- Delayed remediation after a misstep. The Order requires swift corrective action—either a compliant motion for admission or a certification and motion to withdraw.
Role of North Carolina-licensed Counsel and Collaboration Expectations
North Carolina-licensed counsel of record play a critical role in shepherding out-of-state counsel through compliance with the pro hac vice process. The Order reinforces the expectation that local counsel will help ensure adherence to North Carolina law and the Business Court's requirements.
Local counsel should confirm that no document bearing the out-of-state lawyer's name as "counsel" is filed until the Court grants the motion. If, for any reason, a filing must proceed, the safest course is to proceed with only North Carolina-licensed counsel on the signature block rather than attempting to hedge with "forthcoming" language.
Conclusion
The North Carolina Business Court's January 12, 2026 Order makes one principle unmistakable: representation in the Business Court is reserved for lawyers who are either licensed in North Carolina or have been admitted pro hac vice in the case, and any steps that suggest an appearance before admission are fraught with risk.
Out-of-state lawyers should plan for admission early, coordinate with local counsel, and avoid any signature block, filing, or hearing conduct that could constitute an appearance before the Court grants pro hac vice status. With diligent preparation and strict adherence to the statutory and rule-based framework, out-of-state counsel can participate effectively while protecting themselves and their clients from unnecessary risks.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
