Why It’s Crucial to Obey Civil Court Orders in North Carolina By Caitlin S. TrueloveAttorney at Law When a judge issues a civil court order in North Carolina, it’s not a suggestion — it’s a legal command. Whether the order relates to restraining orders, monetary judgments, or compliance with a contract, obeying civil court orders is critical. Ignoring them can …
Domesticating a Foreign Judgment in North Carolina By Caitlin S. TrueloveAttorney at Law Domestication is the legal process by which a judgment from one state (or “foreign” court) is recognized and enforced in another state. Under the Full Faith and Credit Clause of the U.S. Constitution, North Carolina courts are generally required to honor judgments from courts in other U.S. …
In today’s increasingly digital world, writing checks may seem old-fashioned—but it still happens more often than many think. Unfortunately, sometimes checks are written without sufficient funds to cover them. In North Carolina, doing so isn’t just a mistake—it can carry serious legal consequences, both criminal and civil.
Mechanics’ liens serve as a powerful tool for contractors, subcontractors, and suppliers to secure payment for labor and materials provided on a construction project. However, North Carolina law imposes strict procedural requirements for perfecting a lien, and even minor mistakes can render a lien unenforceable.
Construction contracts often include provisions governing payment terms between general contractors and subcontractors. One such provision is the “pay-if/when-paid” clause, which dictates that a subcontractor will receive payment only after the general contractor has been paid by the project owner. While “pay-if/when-paid” clauses may be enforceable in Arizona, Colorado, Georgia, Florida, Illinois, Michigan and Maryland, such clauses are unenforceable in the state of North Carolina.
When it comes to debt collection, a judgment lien can be a powerful tool for creditors. A judgment lien is created via a judgment against a defendant. This judgment lien allows a creditor to secure an interest in a debtor’s property. In North Carolina, this judgment lien gives the creditor the right to collect the debt by seizing and/or selling the debtor’s property, assets, and bank accounts if the debt remains unpaid.
Did you know that only about two percent of lawsuits go to trial? Most lawsuits are settled outside of Court. A big reason for this large disparity between cases settling and going to trial is that the outcome of a lawsuit is never guaranteed, even with the best of facts supporting your stance, so most parties agree that it is in their best interest to settle the case before trial.
During the litigation of a lawsuit against an individual, the creditor/plaintiff must file what we affectionately call SCRAs, which is short for Service Member Relief Act forms. A good rule of thumb is that the plaintiff/creditor should resubmit the SCRA within sixty days of any hearing before the Court.
I have seen construction contracts which contain a forum selection clause requiring any dispute to be subject to arbitration in a particular location. The reason for such a clause is quite simple, it limits how and where to litigate any dispute arising out of that agreement. Most contracts we see with out-of-state general contractor’s state that arbitration will occur in the state where their principal office is located. Sometimes, they will say arbitration shall occur in the state where their principal office is located or in the county where the project is located. Let us say that you as a subcontractor signed a subcontractor agreement with an out-of-state general contractor, which stated that arbitration shall occur in the state where the general contractor’s principal office is located. Let us say the project is in Wake County, North Carolina. Let us further speculate that you wish to file suit against the general contractor in the Superior Court Division of Wake County.
The Discovery stage of a lawsuit is important because it is when you can determine what information the opposing party is in possession of to support their claims or defenses. These discovery tools include interrogatories, requests for production of documents, requests for admission, and depositions.
Have you ever looked at the payment terms on your invoices and quotation documents? What does the fine print say? Does it reflect what is in your signed contract with the other party? Do you have provisions for interest, attorneys’ fees, and restocking fees? Let’s look at some of the language to include in an invoice
We often assist clients with collecting accounts that are past due. Those clients often want to know if they can recover their attorneys’ fees. The answer we often give clients is that it depends. In the state of North Carolina, it has long been upheld by the courts that unless a statute specifically awards attorneys’ fees, each party is responsible for its own attorneys’ fees.
We assist people with the post-judgment collection process on a judgment that was rendered by another state. We do this by domesticating that out of state judgment in the State of North Carolina. Some reasons to consider domesticating a judgment in the State of North Carolina include that the judgment debtor(s) reside or are located in North Carolina, and/or the judgment debtor(s) owns property in North Carolina. This process is typically straightforward and relatively routine. Once this process is complete, North Carolina recognizes that judgment as if it were rendered in this state. This means the creditor may use any means allowed by North Carolina statutes to pursue judgment debtor(s) in post-judgment collections. However, if a significant amount of time has passed since the judgment was issued, the creditor’s ability to enforce its judgment may be affected.
