North Carolina HB 913: Liability/Unfair/Deceptive Development Actions.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 913
Committee Substitute Favorable 4/29/25

Short Title: Liability/Unfair/Deceptive Develop. Actions. (Public)
Sponsors:
Referred to:
April 14, 2025
*H913-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO HOLD LOCAL GOVERNMENTS ACCOUNTABLE FOR DEVELOPMENT 2
DECISIONS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Article 14 of Chapter 160D of the General Statutes is amended by 5
adding a new section to read: 6
"§ 160D-1425. Damages, attorneys' fees, and costs. 7
(a) The court may allow the person with standing to recover reasonable attorneys' fees 8
attributed to an action brought pursuant to this Article. 9
(b) The court shall allow the person with standing to recover reasonable attorneys' fees 10
attributed to the action in any action brought pursuant to this Article in which any of the following 11
occurs: 12
(1) The person with standing successfully shows the local government 13
intentionally acted in violation of this Chapter. 14
(2) The person with standing successfully shows the local government 15
intentionally delayed action on a development approval to cause the person to 16
seek action under this Article. 17
(3) The person with standing successfully shows the local government acted in a 18
flagrantly unfair or deceptive manner with respect to the development 19
approval with intent to cause the person with standing to initiate an action 20
under this Article. 21
(c) Upon a finding by the court that subdivision (3) of subsection (b) of this section 22
applies, the court shall award punitive damages in addition to any reasonable attorneys' fees 23
attributed to the action in an amount as determined by the court, up to 10 times the damages. For 24
purposes of this subsection, damages shall mean loss of revenue, increases in costs due to the 25
delays caused by the local government's actions, and any other damages proven by the prevailing 26
party. 27
(d) The court shall not award attorneys' fees against the local government under this 28
section if the court finds that the local government acted in reasonable reliance on any of the 29
following: 30
(1) A judgment or an order of a court applicable to a local government in the same 31
or similar circumstances. 32
(2) The published opinion of an appellate court, an order of the North Carolina 33
Business Court, or a final order of the Trial Division of the General Court of 34
Justice. 35
(3) A written opinion, decision, or letter of the Attorney General." 36

General Assembly Of North Carolina Session 2025
Page 2 House Bill 913-Second Edition
SECTION 2. This act becomes effective October 1, 2025, and applies to causes of 1
action arising on or after that date. 2