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.