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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
SESSION LAW 2026-14
HOUSE BILL 315
*H315-v-6*
AN ACT TO PROHIBIT L ITIGATION INVESTMENTS IN THE CIVIL JUSTI CE SYSTEM
AND TO AMEND THE WORKERS' COMPENSATION ACT TO INCREASE CERTAIN
BENEFITS UNDER THE SCHEDULE OF INJURIES.
The General Assembly of North Carolina enacts:
PART I. PROHIBIT LITIGATION INVESTMENTS
SECTION 1. Chapter 66 of the General Statutes is amended by adding a new Article
to read:
"Article 52.
"Prohibit Litigation Investments Act.
"§ 66-511. Short title.
This Article may be cited as the Prohibit Litigation Investments Act.
"§ 66-512. Definitions.
The following definitions apply in this Article:
(1) Civil proceeding. – A civil action, arbitration, mediation, administrative
proceeding, or other proceeding to resolve a civil legal claim.
(2) Immediate family member. – Defined in G.S. 53-244.030.
(3) Litigation investment. – The provision of money, whether as a direct payment,
advancement, loan, investment, or otherwise, for the fees, costs, and expenses
of or related to a pending or potential civil proceeding in exchange for a right
to receive repayment or other consideration that is contingent in any respect
on the outcome of the pending or potential civil proceeding. The term does
not include any of the following:
a. The provision of legal services on a contingency basis in accor dance
with the North Carolina Rules of Professional Conduct.
b. An attorney or law firm 's advancement of costs and expenses in
accordance with the North Carolina Rules of Professional Conduct.
c. An insurer or other entity 's contractual obligation to indem nify or
defend a party to a civil proceeding.
d. The provision of money to or by a nonprofit organization for the fees,
costs, and expenses of a civil proceeding commenced by the nonprofit
organization on behalf of itself or its members so long as any
repayment amount is limited to the original amount plus reasonable
interest.
e. The provision of money to or by a nonprofit legal services organization
for the pro bono, cost -free representation of a client in a civil
proceeding so long as any repayment amount is limited to the original
amount plus reasonable interest.
f. A direct loan to a party, law firm, or attorney so long as repayment of
the loan is not contingent on the outcome of any civil proceeding.
Page 2 Session Law 2026-14 House Bill 315
g. The provision of money or other financial support to a party for
personal and household expenses during the pendency of a civil
proceeding so long as the money or financial support is not used for
the fees, costs, and expenses of the civil proceeding.
h. The provision of money or other financial support t o a party for fees,
costs, and expenses of a civil proceeding so long as the source of the
money or financial support does not receive a right to any portion of
the judgment, settlement, or other monetary relief the party recovers
in the civil proceeding or any other right to receive repayment or other
consideration that is contingent in any respect on the outcome of the
civil proceeding.
i. An immediate family member's provision of money or other financial
support to a party for fees, costs, and expenses of a civil proceeding or
for personal and household expenses during the pendency of a civil
proceeding, regardless of whether the immediate family member
receives a rig ht to any portion of the judgment, settlement, or other
monetary relief the party recovers in the civil proceeding or any other
right to receive repayment or other consideration that is contingent in
any respect on the outcome of the civil proceeding.
"§ 66-513. Prohibition on litigation investment.
It is unlawful for a person to engage in litigation investment in this State or to furnish
litigation investment to a party or counsel of record in a civil proceeding in this State.
"§ 66-514. Enforcement; penalties; remedies.
(a) A contract in violation of this Article is void.
(b) The Attorney General may bring an action to enjoin violations of this Article. In this
action, the court may also impose a civil penalty of up to fifty thousand dollars ($50,000) for
each violation of this Article.
(c) A person injured by a violation of this Article may bring an action to recover damages
and is entitled to elect at judgment between common law damages as measured by the trier of
fact and statutory damages as measur ed by treble the amount of the full potential litigation
investment contemplated by the investor. The injured person is also entitled to an award of court
costs and reasonable attorneys' fees.
(d) In an action arising under subsection (b) or (c) of this se ction, a person that has
engaged in the business of litigation investment or furnished litigation investment to a party or
counsel of record in a civil proceeding in this State has purposefully availed itself of the privileges
of conducting business in this State and is subject to suit in this State, whether or not the person
is transacting or has transacted any other business in this State. This Article shall be construed as
a special jurisdiction statute in accordance with G.S. 1-75.4(2).
(e) The remedies and penalties available under this section are in addition to any other
remedies provided for by law.
"§ 66-515. Construction.
This Article shall be liberally construed to effectuate its purpose."
PART II. UPDATE CERTAIN WORKERS' COMPENSATION BENEFITS
SECTION 2.(a) G.S. 97-29 reads as rewritten:
"§ 97-29. Rates and duration of compensation for total incapacity.
(a) When an employee qualifies for total disability, the employer shall pay or cause to be
paid, as hereinafter provided by subsections (b) through (d) of this section, to the injured
employee a weekly compensation equal to sixty -six and two -thirds percent (66 2/3%) of his
average weekly wages, but not more than the amount established annually to be effective January
1 as provided herein, nor less than thirty dollars ($30.00) fifty dollars ($50.00) per week.
House Bill 315 Session Law 2026-14 Page 3
…."
SECTION 2.(b) G.S. 97-31 reads as rewritten:
"§ 97-31. Schedule of injuries; rate and period of compensation.
In cases included by the following schedule the compensation in each case shall be paid for
disability during the healing period and in addition the disability shall be deemed to continue for
the period specified, and shall be in lieu of all other compensation, including disfigure ment, to
wit:
…
(21) In case of serious facial or head disfigurement, the Industrial Commission
shall award proper and equitable compensation not to exceed twenty thousand
dollars ($20,000). forty thousand dollars ($ 40,000). In case of enucleation
where an artificial eye cannot be fitted and used, the Industrial Commission
may award compensation as for serious facial disfigurement.
(22) In case of serious bodily disfigurement disfigurement, where there may be a
rational connection to employability or earnin g capacity and for which no
compensation is payable under any other subdivision of this section, but
excluding the disfigurement resulting from permanent loss or permanent
partial loss of use of any member of the body for which compensation is fixed
in the schedule contained in this section, the Industrial Commission may
award proper and equitable compensation not to exceed ten thousand dollars
($10,000).twenty thousand dollars ($20,000).
…
(24) In case of the loss of or permanent injury to any important external or internal
organ or part of the body for which no compensation is payable under any
other subdivision of this section, the Industrial Commission may award proper
and equitable compensati on not to exceed twenty thousand dollars
($20,000).forty thousand dollars ($40,000)."
SECTION 2.(c) This section becomes effective July 1, 2027, and applies to claims
arising on or after that date.
Page 4 Session Law 2026-14 House Bill 315
PART III. EFFECTIVE DATE
SECTION 3. Except as otherwise provided, this act is effective when it becomes
law, and Section 1 of this act applies to civil proceedings commenced on or after that date and
applies to contracts entered into, renewed, or amended on or after that date.
In the General Assembly read three times and ratified this the 11th day of June, 2026.
s/ Rachel Hunt
President of the Senate
s/ Donna McDowell White
Presiding Officer of the House of Representatives
s/ Josh Stein
Governor
Approved 3:26 p.m. this 22nd day of June, 2026