Bill Summary for S 853 (2013-2014)

Summary date: 

Jul 1 2014

Bill Information:

View NCGA Bill Details2013-2014 Session
Senate Bill 853 (Public) Filed Tuesday, May 27, 2014
AN ACT TO MODERNIZE THE BUSINESS COURT BY MAKING TECHNICAL, CLARIFYING, AND ADMINISTRATIVE CHANGES TO THE PROCEDURES FOR COMPLEX BUSINESS CASES, TO STREAMLINE THE PROCESS OF CORPORATE REORGANIZATION UTILIZING HOLDING COMPANIES, AND TO ESTABLISH A BUSINESS COURT MODERNIZATION SUBCOMMITTEE OF THE JOINT LEGISLATIVE ECONOMIC DEVELOPMENT AND GLOBAL ENGAGEMENT OVERSIGHT COMMITTEE.
Intro. by Rucho, Barringer.

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Bill summary

The House committee substitute to the 4th edition makes the following changes.

Amends GS 7A-45.4(a)(9), regarding the designation of complex business cases, to clarify that a required condition to be met under which contract disputes may be designated as complex business cases is that at least one plaintiff and one defendant is a corporation, partnership, or limited liability company, including any entity authorized to transact business in North Carolina under Chapter 55, 55A, 55B, 57D, or 59 of the General Statutes (was, only specified that one plaintiff or one defendant be an entity transacting business under the specified statutes in North Carolina). Also amends GS 7A-45.4(b)(1) regarding actions required to be designated as mandatory complex business cases to include a civil action under GS 105-241.17 that contains a constitutional challenge to a tax statute among the cases that must be designated as a mandatory complex business case by the petitioner or plaintiff. Amends GS 7A-45.4(g) to provide that if anaction was required to be designated as a mandatory complex business case under subsection (b)(1) or (b)(3) of GS 7A-45.4 and was not designated as such, thenthe Superior Court in which the action was filed isrequiredto enter an ordersua sponte(of its own accord) to stay the action until it has been properly designated under this section. Provides that if the action is required to be designated as a mandatory complex business case under subjection (b)(2) of this section but is not designated as such, then theSuperiorCourt in which theaction was filed mayenter an ordersua sponte(of its own accord) to stay the action until it has been properly designated under this section.Provides that the filing fee required under GS 7A-305(a)(2) is payable on a pro rata basis by each party to the action (was, required the party designating the action as a mandatory complex business case to pay the filing fee).Effective October 1, 2014.

Deletes changes to Article 26A of GS Chapter 1 that created a three-judge panel to hear certain constitutional challenges to acts of the General Assembly.

Makes Section 6 of this act,enactingnew GS 55-11-11, Merger to effect a holding companyreorganization, effective October 1, 2014 (was, August 1, 2014).

Adds new GS 55-7-50 to declare that a provision in the articles of incorporation or bylaws of a corporation that specifies that North Carolina is the exclusive forum or venue for litigation relating to the internal affairs of the corporation is valid and enforceable.

Adds a new Section 8 to this act, which creates an 18-member working group to study (1) judicial efficiency and (2) Business Court modernization. Specifies qualifications of the appointees and designates the appointing authorities. Provides criteria for the operation of the Working Group. Provides that all expenses of the Working Group are to be paid from the Legislative Services Commission's Reserve for Studies.Providesthat the Working Group may submit an interim report at any time to theGeneral Assembly. Directs the Working Group to submit a final report on the results of its study to the General Assembly before the convening of the 2015 General Assembly. The Working Group terminates upon the convening of the 2015 General Assembly or the filing of its final report, whichever occurs first.

Except as otherwise indicated, this act is effective when it becomes law.

Makes conforming changes totheact's long title.

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