GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

S                                                                                                                                                    D

SENATE DRS85038-MH-11  (01/27)

Short Title:        Civil Litigation Costs Reform Act of 2011.		(Public)
Sponsors:	Senator Rouzer.
Referred to:

A BILL TO BE ENTITLED

AN ACT to Establish as a general rule in civil actions That Prevailing defendants be awarded attorneys' fees.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 3 of Chapter 6 of the General Statutes is amended by adding a new section to read:

"§ 6-19.3.  Attorneys' fees to prevailing parties.

(a) General Rule. - The court shall award reasonable attorneys' fees resulting from the successful defense of any civil action to the defendant. For purposes of this section, "successful defense" means the defendant prevailed after trial or in a motion for summary judgment pursuant to Chapter 1A-1, Rule 56, with respect to all claims presented by plaintiff, the defendant prevailed in a motion under Chapter 1A-1, Rule 50, with respect to all claims presented by plaintiff, or the action was dismissed pursuant to Chapter 1A-1, Rules 12(b)(6), 12(c), or 41(b).

(b) Records. - Counsel of record in actions subject to an award of attorneys' fees under this section shall maintain accurate, up-to-date records of hours worked on the matter regardless of the fee arrangement with the client. The court may decline to award fees to a prevailing defendant otherwise eligible for a fee award under subsection (a) of this section or may reduce the fee award should it find that the defendant's costs are excessive, speculative, or not adequately documented.

(c) Statutory Exceptions. - This section does not apply when a specific statute otherwise addresses an award of attorneys' fees, except that G.S. 6-21.1 shall apply concurrently with this section."

SECTION 2.  G.S. 6-21.5 reads as rewritten:

"§ 6-21.5.  Attorney's fees in certain nonjusticiable cases.

In any civil action, special proceeding, or estate or trust proceeding, the court, upon motion of the prevailing party, may award a reasonable attorney's fee to the prevailing party if the court finds that there was a complete absence of a justiciable issue of either law or fact raised by the losing party in any pleading. The filing of a general denial or the granting of any preliminary motion, such as a motion for judgment on the pleadings pursuant to G.S. 1A-1, Rule 12, a motion to dismiss pursuant to G.S. 1A-1, Rule 12(b)(6), a motion for a directed verdict pursuant to G.S. 1A-1, Rule 50, or a motion for summary judgment pursuant to G.S. 1A-1, Rule 56, is not in itself a sufficient reason for the court to award attorney's fees, but may be evidence to support the court's decision to make such an award. A party who advances a claim or defense supported by a good faith argument for an extension, modification, or reversal of law may not be required under this section to pay attorney's fees. The court shall make findings of fact and conclusions of law to support its award of attorney's fees under this section."

SECTION 3.  This act becomes effective October 1, 2011, and applies to civil actions filed on or after that date.