Short Answer

In North Carolina, you can revoke the power of attorney in writing and give immediate notice to the agent and any third parties relying on it. You can also petition the Clerk of Superior Court to compel an accounting and to suspend or limit the agent’s authority, and file a separate Superior Court lawsuit for damages and injunctions if the agent caused losses. If you cannot manage your affairs due to incapacity, a guardian can be appointed and can revoke or amend the power of attorney.

Understanding the Problem

You’re asking whether, in North Carolina, you can stop a relative who used a power of attorney to interfere with your business and who refuses to return the documents. The single decision point is: what immediate legal steps can you take to end the agent’s authority, force transparency, and protect your company and reputation?

Apply the Law

North Carolina’s power of attorney law makes an agent a fiduciary who must act in the principal’s best interests and keep records. Courts can order accountings, suspend or remove an agent, and impose remedies to restore misused property. Proceedings to compel an accounting, terminate or limit authority, or construe the power of attorney begin before the Clerk of Superior Court, but claims for money damages (like breach of fiduciary duty) belong in Superior Court. Venue is proper in the county where you live, where the agent lives, or where your property is located.

Key Requirements

• Revoke authority in writing: Deliver written revocation to the agent and anyone relying on the document; record the revocation if the power of attorney was recorded.
• Force transparency: Petition the Clerk of Superior Court to compel an accounting and to determine or limit the agent’s authority.
• Protect against ongoing harm: Seek suspension or removal of the agent and, if needed, ask a judge for a temporary restraining order to stop further business interference.
• Pursue damages separately: File a civil action in Superior Court for breach of fiduciary duty and related claims to recover losses and impose a constructive trust.
• Capacity fallback: If you cannot manage your affairs, a guardian of your estate can be appointed and may revoke or amend the power of attorney.
• Venue and notice: File where you reside, the agent resides, or your property sits; give proper notice and keep proof of service and recording.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-1-116 (Judicial relief re: POAs) – Clerk can hear accountings, limits/suspension/termination, and authority questions; damages claims go to Superior Court.
• North Carolina Gen. Stat. § 32C-1-117 (Agent’s liability; remedies) – Court may enjoin, order accountings, suspend/remove, restore property, and impose constructive trusts.
• North Carolina Gen. Stat. § 32C-1-110 (Termination and revocation) – Revocation, notice, recording if the power of attorney was recorded, and effect on third parties.
• North Carolina Gen. Stat. § 1-301.3 (Appeals from Clerk orders) – Appeal a Clerk’s order by filing notice within 10 days of service.

Analysis

Apply the Rule to the Facts: You can immediately revoke your relative’s authority in writing and send notice to them and to anyone they’ve shown the power of attorney (banks, vendors, or business partners). If the agent refuses to account, petition the Clerk to compel an accounting and to suspend or limit their authority; then consider a Superior Court action for breach of fiduciary duty to recover business losses and seek injunctions to stop further interference. If your capacity is in question, a guardian can be appointed and can revoke or amend the power of attorney.

Process & Timing

1. Who files: The principal (you). Where: Clerk of Superior Court in your county of residence, the agent’s county, or where your property is located. What: Verified petition to compel an accounting and to limit/suspend or terminate the agent’s authority; written revocation served on the agent and third parties; record the revocation if the POA was recorded. When: Immediately upon discovering misuse; act promptly to prevent ongoing harm.
2. Ask the Clerk to calendar a hearing. Expect service and a hearing within a few weeks, though timing can vary by county. For urgent harm, consult about seeking a temporary restraining order in Superior Court to freeze accounts or stop specific acts.
3. For business losses or unjust transfers, file a civil complaint in Superior Court for breach of fiduciary duty and related claims; request damages, constructive trust, and injunctions. After orders issue, notify all institutions of the suspension/removal and provide copies of the order and revocation.

Exceptions & Pitfalls

• Wrong forum: Money damages claims (breach of fiduciary duty, fraud, negligence) must be filed in Superior Court, not with the Clerk.
• Notice gaps: Third parties may rely on the power of attorney until they receive actual notice of your revocation; promptly serve and, if recorded, record the revocation.
• Capacity issues: If you lack capacity, you cannot personally revoke; seek a guardianship so the guardian can revoke or amend the power of attorney.
• Mixed documents: Revoke all financial powers of attorney in circulation and confirm which were recorded; provide copies of revocation and any court orders to banks and vendors.
• Proof problems: Preserve emails, bank records, invoices, and communications; the agent must keep records, but you strengthen your case by gathering your own.

Talk to a Estate Planning Attorney

If you’re dealing with a power of attorney that’s being misused and it’s affecting your business, 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.