Swaps, LLC v. Asl Props., Inc., 250 N.C. App. 264

Swaps, LLC obtained a declaratory judgment under the North Carolina Uniform Declaratory Judgment Act (UDJA), N.C. Gen. Stat. § 1‑253 et seq.
After prevailing, Swaps moved under § 1‑263 for an award of “costs,” seeking attorneys’ fees and court costs.
The trial court awarded $37,300.91 in attorneys’ fees and $677.61 in court costs; defendants appealed.
The central statutory provision at issue, § 1‑263, authorizes the court to “make such award of costs as may seem equitable and just.”
North Carolina law treats costs as creatures of statute; historically attorneys’ fees are excluded from court costs unless a statute expressly includes them.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether § 1‑263’s reference to “costs” authorizes awarding attorneys’ fees.	Swaps relied on prior Court of Appeals decisions (e.g., Phillips, Heatherly) and argued costs include attorneys’ fees.	Defendants argued “costs” does not include attorneys’ fees absent an express statutory authorization.	The court held § 1‑263 does not authorize attorneys’ fees because costs are statutory and § 1‑263 does not expressly include attorneys’ fees.

Lassiter ex rel. Baize v. N.C. Baptist Hosps. Inc., 368 N.C. 367 (addresses that costs are statutory creatures)
Wachovia Bank & Trust Co. v. Schneider, 235 N.C. 446 (explains historical policy excluding attorneys’ fees from court costs)
Phillips v. Orange Cty. Health Dep’t, 237 N.C. App. 249 (involved fee award under a different statute authorizing fees)
Soundgarden v. Eikenberry, 871 P.2d 1050 (Wash. 1994) (UDJA “costs” does not include attorneys’ fees)
Kremers-Urban Co. v. Am. Emp’rs Ins. Co., 351 N.W.2d 156 (Wis. 1984) (refuses to expand UDJA costs to include attorneys’ fees)