Tort/Negligence – Defamation – Attorneys – Absolute Privilege – DHC Proceedings – Relevance

Watts-Robinson v. Shelton (Lawyers Weekly No. 011-013-17, 11 pp.) (Rick Elmore, J.) Appealed from Mecklenburg County Superior Court (Linwood Foust, J.) N.C. App.

Holding: Central to the hearing before the Disciplinary Hearing Commission was plaintiff’s alleged mismanagement of entrusted client funds, including settlement proceeds in her representation of client Louis Billips; therefore, defendant’s testimony that he was concerned plaintiff was running a scam on Billips was sufficiently relevant to the proceeding, and defendant’s statement was absolutely privileged.

We affirm the trial court’s dismissal of plaintiff’s defamation claim.

The order disbarring plaintiff was relevant to whether defendant’s testimony during the disciplinary hearing was absolutely privileged. It showed that plaintiff was disciplined for mismanagement of Billips’ settlement proceeds. The trial court did not violate N.C. R. Evid. 403 by refusing to exclude the disbarment order.