WHEN ATTORNEYS FEES CAN BE RECOVERED IN NORTH CAROLINA CASES

Attorney Awards in North Carolina Law Suits

In North Carolina, it is not always possible to receive an award of attorney’s fees. In fact, the situations where attorney’s fees are paid by the Defendant are quite limited. The following is a list of instances when Attorney’s fees can be awarded in North Carolina litigation. You will find many of these topic areas discussed on separate pages of our website or you can call us to discuss your specific problem and issue.

1. The most notable way for the court to impose attorney’s fees is as a sanction for improper filings and arguments before the court. For example, Rule11 of the North Carolina Rule of Civil Procedure, allows for the award of attorney’s fees as a sanction when a pleading is filed with the Court that is not warranted by existing law or a good faith argument for extension, modification or reversal of existing law, that it is interposed for an improper purpose such as to harass or to cause unnecessary delay or needless increase in the cost of the litigation.
2. In addition, specific North Carolina statutes allow for the award of attorney’s fees in certain instances, such as:
   1. NCGS §6-21.5 (non-justiciable issue- basically this is like Rule 11, which is described above)
   2. NCGS §1D-45 (pursuing or defending a claim for punitive damages)
   3. NCGS §6-21.1 (personal injury and property damage cases where the judgment is under $10,000 and when an insured sues his insurer and recovers less than $10,000 when there was an unwarranted refusal to pay by the insurer)
   4. NCGS §6-21.2 (upon a note, conditional sales contract, or other evidence of indebtedness where the writing specifically provides for the collection of attorney’s fees. The maximum amount of attorney’s fees collectable is 15% of the amount of the debt)
   5. NCGS §6-21.3 (bounced checks, if several criteria are met)
   6. NCGS §6-19.1 (party who successfully appeals decision of a state agency through a “civil action”)
   7. NCGS §75-16.1 (North Carolina’s Unfair and Deceptive Trade Practices Act)
   8. NCGS §75B-4 (business discrimination actions)
   9. NCGS §75C-5 (motion picture bidding actions)
   10. NCGS §75D-8 (civil RICO actions)
   11. NCGS §75E-4 (unlawful corporate transactions cases under 75E)
   12. NCGS §78A-56 (NC Securities Act cases)
   13. NCGS §75C-38 (Investment Advisers Act cases)
   14. NCGS § 47C-4-117 (Condominium Act)
   15. NCGS § 66-111(a) (Loan Broker Act)
   16. NCGS § 6-21.4 (cases involving principals, teachers, and corporal punishment)
   17. NCGS § 1-569.25 (attorney’s fees for Motions conforming/vacation Arbitration awards)
   18. NCGS § 44A-35 (lien cases)
3. Finally, certain cases judicial opinions have interpreted statutes to allow for the award of attorneys fees. For example,
   1. Bromhal v. Scott, 341 N.C. 702 the Court interpreted NCGS § 52-10.1 to allow for recovery of attorney’s fees via separation agreement.
   2. Carter v. Foster, 103 N.C. App. 110 recovery of attorney’s fees via settlement agreement (“parties may, in settling disputes, agree to the payment of attorney's fees.”)

This list is not exhaustive but demonstrates some of the rare occasions when you can recover attorney’s fees in a lawsuit. In order to fully understand these issues, simply call, Lea, Rhine & Rosbrugh, P.L.L.C. at 910-772-9960 or toll free at 1-866-772-9960 or submit an online questionnaire.