Recovery of Attorneys’ Fees in North Carolina Business Litigation

One of the most frequently asked questions in litigation is, “Can I recover my attorneys’ fees in this suit?” Under the general rule in American courts, each party is responsible for paying its own attorneys’ fees. However, there are several exceptions to this rule under both state and federal law, where prevailing parties may be entitled to recover their legal fees.

Federal Statutes Permitting Recovery of Attorneys’ Fees

Several federal laws specifically permit the award of attorneys’ fees to the prevailing party. Some of the most common claims where this applies include:

• Wage and hour claims
• Civil rights violations
• Age discrimination claims
• Family medical leave violations

In these cases, if you win your lawsuit, the opposing party may be required to cover your legal expenses.

North Carolina Statutes Allowing Recovery of Attorneys’ Fees

North Carolina has several statutes that allow the prevailing party to recover reasonable attorneys’ fees in certain types of business litigation. These statutes include:

• Unfair and Deceptive Trade Practices Act (N.C.G.S. § 75-16.1): This statute allows for attorneys’ fees to be awarded in cases involving deceptive business practices.
• Claims based on notes, conditional sale contracts, or other evidence of indebtedness (N.C.G.S. § 6-21.2): This statute applies to claims involving debts or financing arrangements.
• Frivolous lawsuits (N.C.G.S. § 6-21.5): Attorneys’ fees can be awarded if a lawsuit is deemed frivolous, meaning it lacks any basis in law or fact.
• Business contracts with reciprocal attorneys’ fees provisions (N.C.G.S. § 6-21.6): If a business contract contains a valid reciprocal attorneys’ fees provision, the prevailing party may recover their legal fees.
• Consumer credit sales claims (N.C.G.S. §§ 25A-21 & 25A-44): Attorneys’ fees may be recoverable in cases involving consumer credit transactions.
• Discrimination in business claims (N.C.G.S. § 75B-4): This statute allows for the recovery of attorneys’ fees in cases of discrimination in business practices.

Strategizing Attorneys’ Fees in Litigation

The potential recovery of attorneys’ fees should be addressed early in any business dispute. In some cases, there may be strategies to present claims without exposing yourself to the risk of paying the other party’s legal fees if you are unsuccessful. At Ferikes Bleynat & Cannon, our experienced Business Litigation Attorneys can evaluate the strengths and weaknesses of your case and provide informed advice about pursuing claims that may allow for attorneys’ fees.

Addressing Attorneys’ Fees in Business Contracts

In addition to assisting with litigation, our attorneys also help businesses draft contracts that effectively address attorneys’ fees. Including enforceable attorneys’ fees provisions in business contracts can help avoid costly surprises down the road. It’s important to ensure that the contract language is precise and complies with North Carolina law to avoid finding out too late that an attorneys’ fees provision is unenforceable.

Contact Us

If you or your business has questions about attorneys’ fees in business litigation or disputes, or if you need assistance drafting contracts that address attorneys’ fees, contact the civil trial lawyers at Ferikes Bleynat & Cannon today. Our experienced attorneys are ready to provide the guidance you need.