AN ACT TO PROVIDE THAT RECIPROCAL ATTORNEYS' FEES PROVISIONS IN BUSINESS CONTRACTS ARE VALID AND ENFORCEABLE UNDER THE LAWS OF THIS STATE. Summarized in Daily Bulletin 3/23/11, 4/11/11, 4/20/11, 4/26/11, and 6/15/11. Enacted June 27, 2011. Effective October 1, 2011.
Summary date: Jun 30 2011 - More information
Summary date: Jun 15 2011 - More information
House committee substitute makes the following changes to 3rd edition. Clarifies that reciprocal attorneys’ fees provisions in business contracts are valid and enforceable only if all the parties to the business contract sign that contract by hand.
Summary date: Apr 26 2011 - More information
Senate amendment makes the following changes to 2nd edition, as amended. Amends new GS 6-21.6(b) to provide that any award of reasonable attorneys’ fees in an action or proceeding on the contract primarily for monetary damages may not exceed the monetary damages awarded. Adds a subsection providing that nothing in the new statute in any way makes valid or invalid attorney’s fees provisions in a contract of insurance governed by GS Chapter 58 (replaces provision added in previous amendment).
Summary date: Apr 20 2011 - More information
Senate amendment makes the following changes to 2nd edition.
Amends proposed GS 6-21.6 to clarify that reciprocal attorneys’ fees provisions in business contracts are valid and enforceable for the recovery of reasonable attorneys’ fees and expenses only if all parties to the business contract sign the contract. Adds a provision stating that the award of reasonable attorneys’ fees may not exceed the amount in controversy.
Summary date: Apr 11 2011 - More information
Senate committee substitute makes the following changes to 1st edition. Clarifies that the act applies to business contracts entered into on or after the October 1, 2011, effective date.
Summary date: Mar 23 2011 - More information
Enacts new GS 6-21.6 to provide that reciprocal attorneys’ fees provisions in business contracts (defined as contracts entered into primarily for business or commercial purposes) are valid and enforceable for the recovery of reasonable attorney’s fees and expenses. Provides that if a business contract governed by the state’s laws contains a reciprocal attorneys’ fees provision, the court or arbitrator involved in a suit, action, proceeding, or arbitration involving the contract may award reasonable attorneys’ fees according to the terms of the contract. Establishes 13 factors to be considered in determining reasonable fees and expenses. Prohibits reasonable attorneys’ fees and expenses from being governed by (1) any statutory presumption or provision in the contract providing for a stated percentage, or (2) the amount recovered in other cases in which the business contract contains reciprocal attorneys’ fees provisions. Provides for the recovery of fees and expenses when the business contract is also a note, conditional sale contract, or other evidence of indebtedness.
Effective October 1, 2011.