To render a binding judgment, a court must have both subject matter jurisdiction over the controversy (the subject of the dispute) and personal jurisdiction over the parties (plaintiff and defendant). While subject matter jurisdiction refers to the court’s power to hear a particular type of suit, personal jurisdiction—also known as in personam jurisdiction—concerns the court’s power to bind a particular person or party.

A special appearance is a procedure in civil litigation, and the purpose of a special appearance is to object to the court’s exercise of jurisdiction over the defendant or the defendant’s property on the ground that such person or property is not subject to the court’s jurisdiction. A defendant (person or entity) who has been sued in a state other than the defendant’s primary residence will often challenge the court’s exercise of jurisdiction over the nonresident defendant.

In North Carolina, as in other states, a court must have both subject matter jurisdiction and personal jurisdiction to render a binding judgment. Subject matter jurisdiction is the court's authority to hear a specific type of case, which is typically defined by statute or constitution. Personal jurisdiction, on the other hand, refers to the court's power to make a decision affecting the rights of the specific parties involved. North Carolina courts can establish personal jurisdiction over a party if that party has sufficient contacts with the state, such as conducting business in the state, owning property in the state, or committing a tortious act within the state. The North Carolina Rules of Civil Procedure allow a defendant to make a special appearance to challenge personal jurisdiction. This is done by filing a motion to dismiss for lack of personal jurisdiction before taking any other action in the case. If a defendant participates in the case without challenging jurisdiction, they may waive their objection to the court's authority over them. It is important for a defendant to consult with an attorney to understand the implications of challenging jurisdiction and to ensure that their rights are protected.