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ISSUE 22 | NOV'11

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Brinkley Walser's recently refurbished Pig in the City and 125th Anniversary Banner on West Center Street

Brinkley Walser - 125 Years of Dedication and Service:

This year marks Brinkley Walser’s 125th anniversary of providing legal representation to the people of Lexington, North Carolina and surrounding areas. The firm had its beginning 1886, when Zeb Vance Walser of Davidson County was admitted to the Bar of North Carolina and began to practice law in Lexington. Since that time, this practice has been continued by him, his partners and successors without interruption. Learn more about the firm’s history on our website HERE.

Thanks to everyone who donated food or helped out with the 2nd Annual Brinkley Walser Food Drive on November 20, 2011. It was a big success! We collected $671.00 in cash donations and about 10 milk crates of food. With this donation the pantries can buy $8,052.00 of food from the Second Harvest Food Bank! The winner of the $50 gift card at the Uptown Lexington Christmas Open House was Sandi Tongel.

See more information about this event on our Facebook page and our website.

 

Changes to the Law in Business Contracts Now Allow for Collection of Attorney's Fees:

by Ryan V. McNeill, Attorney

Many people are under the mistaken belief that attorney's fees provisions are enforceable in all civil litigation, but attorney's fees are only allowed in certain circumstances. Prior to October 1, 2011 our courts consistently refused to allow for attorney's fees for business contracts.  Effective October 1, 2011, reciprocal attorney's fee provisions in business contracts are valid and enforceable in the State of North Carolina entered into on or after that date where in the past they were unenforceable. 

What this means is if in creating and executing a business contract in the state of North Carolina, the contract may include a provision that states all parties to the contract can agree to pay or reimburse the other party(ies) for attorney's fees and expenses incurred in connection with any suit, action, proceeding, or arbitration involving the business contract.  For the purposes of this new statute a business contract is defined as "a contract entered into primarily for business or commercial purposes." This is a big change to the law because before this statute, parties to litigation involving a business contract were responsible for their own attorney fees even when they previously agreed in a contract to pay for another party's attorney fees. 

There are a few things you and your attorney must keep in mind when drafting and executing business contracts that include reciprocal attorney's fee provisions that are required to make the provision enforceable:

  1. Consumer contracts, employment contracts, and contracts which a government or governmental agency of the State of North Carolina is party to are expressly excluded from this statute;
  2. the attorney's fee clause must be made applicable to all parties, in other words, if it is made applicable to only one of the parties or excludes a party, the contract cannot be enforced under the new statute;
  3. all parties to the business contract must sign in hand.

Another significant change is the way fees are awarded.  The new statute gives the court or arbitrator more flexibility over if they will award a fee and how much to award.  The statute even states that the contract can set out the amount or percentage but the court or arbitrator can award less or more at their own discretion.  The only limit to the amount of the award is that the award of attorney's fees may not exceed the monetary damages awarded or exceed the amount in controversy.  This is a very wide margin especially if the award or the amount in controversy is a large amount of money. The way the award is calculated in business contracts is very different from the 15% award in other contracts that have enforceable attorney's fees provisions. 

 

To sum up, what this means for a business that has entered into a business contract as of October 1, 2011 is- that if involved in suit, action, proceeding, or arbitration involving the business contract the business is now able to collect attorney's fees if successful.  It also means that if a business had to pay an award, it could end up paying attorney's fees as well.

125th Anniversary - 125 Days Event:

As a part of the 125th Anniversary of the firm, Brinkley Walser is participating in a 125 days event that was kicked off on June 1 with its contribution to the Walter F. Brinkley Scholarship Fund at the Davidson  County Community College.  You can keep up with the 125 days event on our facebook page at www.facebook.com/brinkleywalser or on our website at http://www.brinkleywalser.com/125th-anniversary.html

Today's Law Practiced with Small Town Tradition

Brinkley Walser, PLLC is a firm based  upon a strong tradition since 1886.  A tradition of extraordinary service and attention, a total commitment to our clients.  A tradition of providing the most up-to-date knowledge of the law coupled with good common sense that promotes a solution that is in the best interest of the client.  A tradition of service not only to our clients, but to the community.  A tradition of providing expert, affordable legal advice to almost every area of the law.  The tradition started in 1886 and continues with the dedicated team of men and women who make up today's Brinkley Walser. Visit our facebook page at www.facebook.com/brinkleywalser
 

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