Public-domain · open source
OpenJurist

N.C. Gen. Stat. § 55-7-46

Payment of expenses

Applied in 8 court decisions — leading case 140 N.C. App. 390 - Norman v. Nash Johnson & Sons' Farms, Inc. (2000)

Most recently applied in 264 N.C. App. 277 - Associate Behavioral Services, Inc. v. Smith (March 2019)

1995, c. 149, s. 1; 2025-33, s. 5(d).

How often courts cite this section

20002010201920
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

On termination of the derivative proceeding, the court may do any of the following:

(1) Order the corporation to pay the plaintiff's reasonable expenses, including attorneys' fees, incurred in the derivative proceeding if it finds that the derivative proceeding has resulted in a substantial benefit to the corporation.

(2) Order the plaintiff to pay the corporation's or any defendant's reasonable expenses, including attorneys' fees, incurred in responding to the demand or defending the derivative proceeding if it finds that the demand was made or the derivative proceeding was commenced or maintained without reasonable cause or for an improper purpose.

(3) Order a party to pay an opposing party's reasonable expenses, including attorneys' fees, incurred as a result of the filing of a pleading, motion, or other paper, if the court, after reasonable inquiry, finds that the pleading, motion, or other paper was not well grounded in fact or was not warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it was interposed for an improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation.

Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.