Certain clauses in breach of contract matters, particularly in construction agreements, have been found to be per se illegal under North Carolina law. It is important for business owners, general contractors, and individuals entering into agreements with larger national entities who use standard form contracts to be aware of these contracts which violate public policy in North Carolina. Contact the business litigation attorneys at Maginnis Howard at (919) 526-0450 or submit a new case inquiry here to discuss your issues regarding unenforceable contract clauses or other business litigation disputes.
Any provision in a contract entered into in North Carolina or any contract that provides for the provision of construction services or materials that attempts to require that the lawsuit or arbitration be heard in another state is void. What this means is that contracts which require a party to litigate outside of this state are not enforceable; you can file your suit in North Carolina. This issue is important for contracts with larger out-of-state developers or corporations. One also cannot require a party to waive their rights to a jury trial, which is a common clause in agreements with national entities.
Additionally, an individual cannot waive their right to recover for bodily injuries or damage to property arising out of another party’s negligence. Contractors cannot contract to force another subcontractor to pay for damages arising out of the contractor’s own negligence. This means that many waiver and indemnity clauses in construction contractor and sub-contractor agreements could be stricken. However, parties can potentially still use limitation of liability clauses in construction contracts, which serves many of the same purposes.
Maginnis Howard is a Raleigh civil litigation firm with breach of contract attorneys handling cases in Cary, Apex, Durham, Chapel Hill, Morrisville and the rest of the Research Triangle area. Contact the firm at (919) 526-0450 or visit our website to inquire about a free consultation to discuss your construction law or business law matter.
