North Carolina HB 44: General Statutes Commission Electronic Signatures.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 44

Short Title: GSC Electronic Signatures. (Public)
Sponsors: Representative Davis.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Judiciary 1, if favorable, Rules, Calendar, and Operations of the House
February 5, 2025
*H44-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CLARIFY THE USE OF ELECTRONIC SIGNATURES IN CERTAIN 2
CONTEXTS, PURSUANT TO A REVIEW DIRECTED BY THE GENERAL 3
ASSEMBLY, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 6-21.6 reads as rewritten: 6
"§ 6-21.6. Reciprocal attorneys' fees provisions in business contracts. 7
(a) As used in this section, the following definitions apply: 8
(1) Business contract. – A contract entered into primarily for business or 9
commercial purposes. The term does not include a consumer contract, an 10
employment contract, or a contract to which a government or a governmental 11
agency of this State is a party. 12
(2) Consumer contract. – A contract entered into by one or more individuals 13
primarily for personal, family, or household purposes. 14
(3) Employment contract. – A contract between an individual and another party 15
to provide personal services by that individual to the other party, whether the 16
relationship is in the nature of employee-employer or principal-independent 17
contractor. 18
(4) Reciprocal attorneys' fees provisions. – Provisions in any written business 19
contract by which each party to the contract agrees, in the manner set out in 20
subsection (b) of this section, upon the terms and subject to the conditions set 21
forth in the contract that are made applicable to all parties, to pay or reimburse 22
the other parties for attorneys' fees and expenses incurred by reason of any 23
suit, action, proceeding, or arbitration involving the business contract. 24
(b) Reciprocal attorneys' fees provisions in business contracts are valid and enforceable 25
for the recovery of reasonable attorneys' fees and expenses only if all of the parties to the business 26
contract sign by hand the business contract. Signature "by hand" is not intended to prevent the 27
application of this section to a business contract executed by either the contract by hand or with 28
one of the following: 29
(1) A party's An electronic signature, as defined in G.S. 66-312, if the party's 30
electronic signature originates from an affirmative action on the part of the 31
party to evidence acceptance and execution such as typing the party's signature 32
or writing the party's signature with a finger or stylus on a touchscreen to 33
indicate acceptance and execution. 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 44-First Edition
(2) A party's manual signature that is delivered by an electronic reproductive 1
image thereof. 2
(c) If a business contract governed by the laws of this State contains a reciprocal 3
attorneys' fees provision, the court or arbitrator in any suit, action, proceeding, or arbitration 4
involving the business contract may award reasonable attorneys' fees in accordance with the 5
terms of the business contract. In determining reasonable attorneys' fees and expenses under this 6
section, the court or arbitrator may consider all relevant facts and circumstances, including, but 7
not limited to, the following: 8
... 9
(7) Offers of judgment pursuant to Rule 68 of the North Carolina Rules of Civil 10
Procedure G.S. 1A-1, Rule 68, and whether judgment finally obtained was 11
more favorable than such these offers. 12
... 13
(d) Reasonable attorneys' fees and expenses shall not be are not governed by (i) any 14
statutory presumption or provision in the business contract providing for a stated percentage of 15
the amount of such the attorneys' fees or (ii) the amount recovered in other cases in which the 16
business contract contains reciprocal attorneys' fees provisions. 17
(e) Nothing in this section shall in any way make valid or invalid makes valid or invalid 18
attorneys' fees provisions in consumer contracts or in any note, conditional sale contract, or other 19
evidence of indebtedness that is otherwise governed by G.S. 6-21.2. If the business contract is 20
also a note, conditional sale contract, or other evidence of indebtedness that is otherwise governed 21
by G.S. 6-21.2, then the parties that are entitled to recover attorneys' fees and expenses may elect 22
to recover attorneys' fees and expenses either under this section or G.S. 6-21.2 but may recover 23
only once for the same attorneys' fees and expenses. 24
(f) In any suit, action, proceeding, or arbitration primarily for the recovery of monetary 25
damages, the award of reasonable attorneys' fees may shall not exceed the amount in controversy. 26
(g) Nothing in this section shall in any way make valid or invalid makes valid or invalid 27
attorneys' fees provisions in a contract of insurance gov