NC S414

Validates reciprocal attorneys' fees provisions in business contracts where all parties sign by hand the agreement.

Defines covered contracts as those for business or commercial purposes, excluding consumer contracts, employment contracts, and contracts involving government agencies.

Limits attorneys' fees awards to reasonable amounts not exceeding the monetary damages awarded or the amount in controversy in disputes.

Requires courts or arbitrators to consider 13 specific factors when determining reasonable attorneys' fees, including amount in controversy, time and labor expended, novelty of legal issues, and settlement offers.

Effective October 1, 2011, applies only to business contracts entered into on or after that date; does not apply to insurance contracts or notes governed by other statutes.