AN ACT TO VALIDATE CHOICE OF NORTH CAROLINA LAW AND FORUM PROVISIONS IN BUSINESS CONTRACTS. Enacted July 18, 2017. Effective July 18, 2017, and applies to business contracts entered into before, on, or after that date.
BUSINESS CONTRACTS/CHOICE OF LAW AND FORUM.
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View NCGA Bill Details | 2017-2018 Session |
AN ACT TO VALIDATE CHOICE OF NORTH CAROLINA LAW AND FORUM PROVISIONS IN BUSINESS CONTRACTS.Intro. by Barringer.
Bill History:
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Tue, 4 Apr 2017 Senate: Filed
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Wed, 5 Apr 2017 Senate: Passed 1st Reading
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Wed, 5 Apr 2017 Senate: Ref To Com On Rules and Operations of the Senate
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Thu, 6 Apr 2017 Senate: Withdrawn From Com
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Mon, 24 Apr 2017 Senate: Reptd Fav Com Substitute
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Mon, 24 Apr 2017 Senate: Com Substitute Adopted
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Mon, 24 Apr 2017 Senate: Re-ref Com On Commerce and Insurance
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Wed, 26 Apr 2017 Senate: Reptd Fav
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Wed, 26 Apr 2017 Senate: Re-ref Com On Rules and Operations of the Senate
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Wed, 26 Apr 2017 Senate: Reptd Fav
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Wed, 26 Apr 2017 Senate: Placed on Today's Supplemental Calendar
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Wed, 26 Apr 2017 Senate: Passed 2nd Reading
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Wed, 26 Apr 2017 Senate: Passed 3rd Reading
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Thu, 27 Apr 2017 Senate: Regular Message Sent To House
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Thu, 27 Apr 2017 House: Regular Message Received From Senate
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Thu, 27 Apr 2017 House: Passed 1st Reading
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Thu, 27 Apr 2017 House: Ref To Com On Rules, Calendar, and Operations of the House
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Thu, 8 Jun 2017 House: Withdrawn From Com
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Thu, 8 Jun 2017 House: Re-ref Com On Judiciary I
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Wed, 21 Jun 2017 House: Reptd Fav
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Wed, 21 Jun 2017 House: Cal Pursuant Rule 36(b)
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Wed, 21 Jun 2017 House: Placed On Cal For 06/22/2017
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Thu, 22 Jun 2017 House: Passed 2nd Reading
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Thu, 22 Jun 2017 House: Passed 3rd Reading
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Thu, 22 Jun 2017 House: Ordered Enrolled
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Mon, 26 Jun 2017 Ratified
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Tue, 27 Jun 2017 Pres. To Gov. 6/27/2017
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Tue, 18 Jul 2017 Signed by Gov. 7/18/2017
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Tue, 18 Jul 2017 Ch. SL 2017-123
Bill Summaries:
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Bill S 621 (2017-2018)Summary date: Jul 18 2017 - View Summary
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Bill S 621 (2017-2018)Summary date: Apr 24 2017 - View Summary
Senate committee substitute makes the following changes to the 1st edition.
Amends proposed GS 1G-4 (Choice of North Carolina Forum in business contracts). Modifies subsection (d) to expand the exceptions to the parties' choice of forum in an action brought in a county permitted by subsection (c) (choice of venue provisions), providing that a court can change the place of trial to another county in the state pursuant to GS 1-83(2) (when witness convenience and justice is promoted), GS 1-83(3) (when the judge has at any time been interested as party or counsel), or GS 1-84 (removal for fair trial is necessary) only (previously, could be moved only pursuant to GS 1-83(2)).
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Bill S 621 (2017-2018)Summary date: Apr 4 2017 - View Summary
Enacts new GS Chapter 1G, the North Carolina Choice of Law and Forum in Business Contracts Act.
Defines terms as they are used in the Chapter, including business contract (a contract or undertaking entered into primarily for business or commercial purposes, not including consumer contracts or employment contracts).
Provides that the parties to a business contract may agree in the contract that North Carolina law shall govern their rights and duties, whether or not the parties, the contract, or the transaction bears a reasonable relation to the State, or a provision of the contract is contrary to the fundamental policy of the jurisdiction whose law would apply in the absence of the parties' choice of North Carolina law, except to the extent GS 25-1-301(c) conflicts, at which point that statute controls.
Authorizes parties to business contracts to bring an action in this State's courts for a dispute arising from the business contract if the contract contains a provision designating North Carolina law as the law governing the contract, and a provision designating North Carolina's courts as the venue for disputes under the contract. Provides that agreeing to such a contract makes a party consent to personal jurisdiction of this State's courts. Authorizes contracts to designate one or more counties as the proper venue for a dispute arising from the contract, and in the absence of such a clause parties may bring an action in any county in this State. Authorizes Courts to change the place of trial to another county in this state.
Does not affect choice of law or forum provisions in non-business contracts, confer subject matter jurisdiction, or affect the designation of an action as a mandatory complex business case.
Amends GS 25-1-301 to make conforming changes.
Applies to business contracts entered into before, on, or after the date this act becomes law.