Short Answer

Yes, under North Carolina law you can pursue monetary damages against an agent who breached fiduciary duties or acted outside their authority. Money claims (like breach of fiduciary duty) are filed in Superior Court. At the same time, the Clerk of Superior Court can order an accounting, suspend or remove the agent, and require delivery of the power of attorney. Involuntary hospitalization follows mental health laws; a financial power of attorney does not by itself authorize commitment.

Understanding the Problem

You are a North Carolina principal asking whether you can recover damages from a relative who, acting as your power-of-attorney agent, involved law enforcement and had you hospitalized after a disagreement. You want to revoke the power of attorney, but the agent will not return the documents. This question sits at the intersection of estate planning (agent duties and remedies) and mental health procedures.

Apply the Law

In North Carolina, an agent under a power of attorney is a fiduciary who must act in the principal’s best interests, within the authority granted in the document and Chapter 32C. A violation of Chapter 32C is a breach of fiduciary duty. Damages claims for a breach are brought in Superior Court. Non-monetary relief—like compelling an accounting, limiting or suspending the agent, and related determinations—can be sought before the Clerk of Superior Court. Involuntary commitment is governed by separate mental health statutes and requires specific evaluations and a court hearing; a financial power of attorney does not give unilateral commitment authority.

Key Requirements

• Fiduciary breach: Show the agent acted outside the document or against your best interests, or misused their position.
• Damages and causation: Tie financial or property loss to the agent’s breach; the court may restore losses and disgorge the agent’s profits.
• Correct forum: File money-damage claims in Superior Court; seek an accounting, suspension, removal, or construction of the POA before the Clerk (with transfer possible in some matters).
• Revocation and notice: You may revoke; serve written revocation on the agent and notify third parties. Record the revocation with the Register of Deeds if real property is implicated or the POA was recorded.
• Venue: You may file in the county where you live, where an agent lives, or where your property is located.
• Hospitalization process: Involuntary commitment requires statutory steps and a prompt district court hearing; a financial POA alone does not authorize commitment.

What the Statutes Say

• NC Gen. Stat. § 32C-1-116 (Judicial relief for powers of attorney) – Sets who can file, what relief is available, and where to file.
• NC Gen. Stat. § 32C-1-117 (Agent’s liability) – Defines breach and remedies, including restoring losses and other equitable relief.
• NC Gen. Stat. § 32C-1-110 (Termination and revocation) – Addresses ending an agent’s authority and recording/notice of revocation.
• NC Gen. Stat. § 122C-261 (Involuntary commitment—initiation) – Starts the mental health custody and evaluation process.

Analysis

Apply the Rule to the Facts: Your relative’s use of a financial power of attorney to involve police and prompt hospitalization after a minor dispute suggests conduct beyond financial management and may conflict with the duty to act in your best interests. If that conduct caused property or business losses, you can pursue damages in Superior Court and seek restoration of losses and any profits the agent gained. Because the agent refuses to surrender the documents, you can petition the Clerk to compel an accounting, limit or suspend the agent, and order delivery of the instrument while you revoke.

Process & Timing

1. Who files: The principal. Where: Clerk of Superior Court in the county where you live, an agent lives, or where your property is located. What: Verified petition to compel an accounting and to limit/suspend/remove the agent; written revocation served on the agent; record revocation with the Register of Deeds if real property is affected. When: Promptly, to prevent further use of the POA.
2. For money damages, file a civil complaint in Superior Court alleging breach of fiduciary duty (and any related torts). Expect standard civil timelines; discovery and motions vary by county.
3. After the Clerk’s orders, the agent may be required to account, surrender the POA, and cease acting. A final Superior Court judgment can award damages or equitable relief.

Exceptions & Pitfalls

• If the relative was also your valid health care agent, they may consent to certain admissions, but civil commitment still requires statutory evaluations and a court hearing.
• Third parties who rely in good faith on a POA may be protected; give actual notice of revocation and record it for real estate matters to cut off reliance.
• If you lack capacity to revoke, a court‑appointed guardian of the estate can revoke and take control; serve the agent and notify institutions.
• Don’t rely on informal requests for the original POA—seek a court order to compel delivery and a full accounting.

Talk to a Estate Planning Attorney

If you’re dealing with an agent who misused a power of attorney and triggered a hospitalization, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.