NC Commerce Protection Act of 2014 (S648)

• Attorney General must make written determination that contingency fee representation is cost-effective and in public interest before state agencies retain private counsel, with specific findings required on resources, case complexity, geographic location, and attorney experience.

• Contingency fee contracts with private attorneys are capped at 25% of damages up to $10 million, decreasing to 5% for damages exceeding $25 million, with an aggregate cap of $50 million, exclusive of costs and expenses.

• Unlawful bad-faith patent assertions are prohibited, with courts considering factors such as failure to provide patent numbers and infringement details, lack of analysis comparing patent claims to accused products, unreasonably short response deadlines, and meritless claims.

• Targets of patent infringement demands may recover equitable relief, damages, attorneys' fees, and exemplary damages up to $50,000 or three times actual damages (whichever is greater); courts may require defendants to post bonds up to $500,000.

• Corporations may adopt exclusive forum provisions in articles of incorporation or bylaws limiting shareholder litigation to North Carolina venues, and successor corporations' asbestos-related liabilities are limited to the fair market value of transferor's assets at time of merger, effective January 1, 2015.