§ 114-2.4. Settlement agreements.

484 words·~2 min read·/nc/chapter-114/114-2-4

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)The Attorney General shall review the terms of all proposed agreements entered into by the State or a State department, agency, institution, or officer to settle or resolve litigation or potential litigation, that involves the payment of public monies in the sum of seventy-five thousand dollars ($75,000) or more. In order for such an agreement or contract to be effective against the State, the Attorney General shall submit to the State or the State department, agency, institution, or officer a written opinion regarding the terms of the proposed agreement and the advisability of entering into the agreement, prior to entering into the agreement. The written opinion required by this section shall be maintained in the official file of the final settlement agreement. The Attorney General by rule may delegate to a deputy or assistant Attorney General or to another subordinate the authority to review settlement agreements. This subsection shall not apply to proposed agreements entered into by an entity, officer, or employee of the Judicial Branch.

(a1)Where a dispute, claim, or controversy names as a party a State department, agency, or institution, or officer, a proposed settlement agreement or other agreement that would dispose of the dispute, claim, or controversy shall be approved by the head of the department, agency, or institution, or by the State officer, before the agreement may be entered.

(a2)Where a dispute, claim, or controversy is challenging a North Carolina statute or provision of the North Carolina Constitution, and the Speaker of the House of Representatives and the President Pro Tempore of the Senate

(i)have intervened on behalf of the General Assembly in accordance with G.S. 1-72.2 or

(ii)are otherwise jointly named in their official capacities as parties to the dispute, claim, or controversy, a proposed settlement agreement or other agreement that would dispose of the dispute, claim, or controversy shall be jointly approved by the Speaker of the House of Representatives and the President Pro Tempore of the Senate, or by and through counsel of their choice, before the agreement may be entered.

(a3)Where a dispute, claim, or controversy is brought against an entity, official, or employee of the Judicial Branch, a proposed settlement agreement or other agreement that would require the payment of monies from State funds, including potential attorneys' fees, shall be approved by the Director of the Administrative Office of the Courts, or by and through a designee of his or her choice, before the agreement may be entered.

(b)The Attorney General shall report to the Joint Legislative Commission on Governmental Operations on all agreements entered into by the State or a State department, agency, institution, or officer to settle or resolve litigation or potential litigation, that involves the payment of public monies in the sum of seventy-five thousand dollars ($75,000) or more. (1997-443, s. 20.14(a); 2014-100, s. 17.3A(d); 2021-180, s. 18.7(b); 2024-57, s. 3D.2(c).)