In a recent decision, the Court of Appeals of North Carolina upheld a trial court ruling that denied New-Indy Catawba LLC's motion to dismiss a lawsuit filed by Superior Cranes, Inc. The case revolves around a dispute over crane rental services and payment issues, which has significant implications for businesses dealing with contracts across state lines.

The court ruled on October 7, 2026, in the case identified by docket number 26-79. This ruling affects both parties involved in the case, particularly New-Indy Catawba, which operates a manufacturing mill in South Carolina and sought to dismiss the case based on a forum selection clause that it claimed required the dispute to be settled in South Carolina.

Background

Superior Cranes, Inc. is a North Carolina corporation that provides crane rental, rigging, and heavy hauling services. New-Indy Catawba LLC, the defendant in this case, owns and operates a linerboard and pulp manufacturing mill located in Catawba, South Carolina. The dispute began when Superior Cranes provided crane services to New-Indy Catawba starting in May 2022.

On January 7, 2025, after discovering a significant crack in its lime kiln, New-Indy Catawba contacted Superior Cranes for emergency crane support. Superior Cranes provided an estimate for a one-week rental of two cranes and a crew, totaling $695,387. After verbal approval from New-Indy Catawba, the work commenced, but the defendant later requested additional services, leading to invoices totaling $1,482,254.13. New-Indy Catawba did not pay these invoices, prompting Superior Cranes to file a lawsuit in Mecklenburg County Superior Court on April 7, 2025, claiming breach of contract and seeking a declaratory judgment for payment.

New-Indy Catawba responded by filing a motion to dismiss the case, arguing that the purchase orders included a forum selection clause that mandated any legal action to be taken in South Carolina. Superior Cranes opposed this motion, stating that the defendant's website contained multiple sets of standard terms with conflicting venue provisions, and that they had never agreed to any of these terms. The trial court ultimately denied the motion to dismiss, leading to the appeal by New-Indy Catawba.

The Ruling

The Court of Appeals, led by Judge Allegra Collins, affirmed the trial court's decision to deny New-Indy Catawba's motion to dismiss. The court found that the trial court did not abuse its discretion in determining that the forum selection clause was not validly incorporated into the contract between the parties.

The court stated, "the purchase order does not identify which of the four forum selection clauses apply, and the website does not provide any guidance for selecting amongst them."

This ruling highlighted the confusion caused by the multiple sets of standard terms on New-Indy Catawba's website, which included clauses for various states, including California, Illinois, Indiana, and South Carolina. The court concluded that the trial court could reasonably determine that the purchase order did not expressly incorporate the South Carolina forum selection clause.

The court also addressed New-Indy Catawba's argument regarding North Carolina General Statute § 22B-3, which prohibits enforcement of contracts requiring litigation in another state if the contract was formed in North Carolina. The court found that the last act necessary to form the contract occurred in North Carolina, as the approval of the purchase order was made by Superior Cranes' representative in North Carolina.

The court noted, "the contract was entered into in North Carolina, the South Carolina forum selection clause is unenforceable as a matter of law under N.C. Gen. Stat. § 22B-3."

Impact

This ruling has significant implications for businesses that operate across state lines and rely on contracts with forum selection clauses. It emphasizes the importance of clarity and consistency in contract terms, particularly when multiple documents or sets of terms are involved. The decision reinforces the notion that a party cannot unilaterally impose a forum selection clause without clear agreement from the other party.

The ruling also serves as a reminder to businesses that contracts formed in North Carolina may be subject to state laws that can render certain provisions unenforceable. This case could influence how companies draft contracts and negotiate terms, especially when dealing with clients in different states.

What's Next

New-Indy Catawba may seek further legal avenues, including a potential appeal to a higher court. However, details regarding any related cases or further actions were not available in the court filing. For now, the case will proceed in the Mecklenburg County Superior Court as originally filed by Superior Cranes.