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Silence as to Some Facts in a Complaint can be Golden

A dispute between co-owners of a trampoline park in Asheville came before the Business Court, appropriately enough, on defendants’ motion to bounce plaintiffs’ claims regarding misappropriation of funds. In Bivins v....more

Business Court Holds Clause Curbing Limitations Period Means Exactly What Contracting Parties Said it Did

While an insurance carrier “labor[ed] valiantly” to rescue claims over $3.1 million in overpayments to a hospital in its network, the Business Court held it failed because the contract at issue “clearly and unambiguously”...more

Episode 2: The One Where the Consent Order Didn’t Bring Much in the Way of Finality

In one of many litigations to arise from alleged contamination at the Fayetteville Works chemical manufacturing plant, the Business Court recently decided that a “been there, done that” motion to dismiss should not stop the...more

Business Court Rejects Effort to Eclipse Tax Credit Regime that Spurred NC Solar Farm Builds

The NC Department of Revenue sought to throw some shade at the financing regimes through which solar farm and other renewable energy projects are built by challenging the flow of tax credits from LLC developers to their...more

Friends, Family, and Partnerships: a Litigation Tale as Old as Time

“Ray Reason, along with his aunt and uncle, decided to go into business with Gerald Barfield, a family friend who was a real estate developer.” When that’s a line in a holiday card letter of how the year went, it...more

A Corporate Riddle: When are Three Director Seats on a Five-Member Board not a Majority?

Adam Downing had a rather ordinary request under North Carolina corporate inspections law. As a shareholder in Cycle Holdings, Inc. he wanted to inspect financial and business records of Cycle Labs, Inc. – a holding of Cycle...more

Half the Battle May be Just Showing Up, but in Business Court Giving Timely Notice that You’re Coming is an Unbending Rule

“You are remembered for the rules you break.” Gen. Douglas MacArthur- First, this is certainly true. Second, when it comes to the exacting nature of the rules for getting a case properly before the North Carolina Business...more

Do Sanctions Against AWOL Litigants Make a Sound When they Land?

If a court “throws the book” at steadfastly uncooperative litigants, did it really happen if there’s no one around to take the hit? The Business Court tested that “tree falling in the woods” theory in JCG. & Assocs., LLC v....more

Sex Toy Titan Sues Estate of Founder to Compel Redemption of Shares Whose Value May Exceed $60 Million

When Philip Harvey died in December 2021 he owned more than 400 shares of common capital stock in PHE, Inc., a Hillsborough, North Carolina-based business that sells sexual wellness products and sex toys through a website and...more

Patient’s Second “Injury” – Billing for Medical Care

Charles McNew was injured in a fall at his home in June 2021, and subsequently treated at the Fletcher Hospital emergency room in Hendersonville, North Carolina. Three months later he claims to have suffered an injury of a...more

Investors in Wilmington Project Lose Bid to Sue Company that Solicited Their Investments through Marketing Efforts in China

A targeted effort by a New York company and its president to recruit Chinese investors for a marina and hotel project in Wilmington, North Carolina brought an international spin to one of the Business Court’s regular...more

Vodka Maker’s Hopes for Partnership with Duke University Land Something it Didn’t Seek: a Defendant’s Chair in a North Carolina...

A business plan to promote vodka sales in North Carolina, with a particular focus on Duke University sports fans, was key to a North Carolina Business Court decision that GameDay Vodka had sufficient contacts with the state...more

Court Sharply Limits Attorney Fee Award in Dispute Over Access to Corporate Records of Charlotte Country Club

For the golf fan curious about the finances and back-office maneuvering of “Big Golf,” nothing has been better than the LIV Golf-PGA Tour throwdown played out in dueling press conferences, snippy tweets, and Saudi-funded...more

Buyer Acquired Claims “of Any Kind,” Including Seller’s Charge that its Own President’s Misconduct Forced a Sale at Suppressed...

Robert Martin was the president of a medical device company, Vent Tech Corporation, during times that the company alleges he embezzled funds and through lax oversight allowed the company to be “pillaged” by its former CFO....more

Yes, This Post is About Taxes, but There’s Bonus Content about The Beatles and Batman!

Wary of the old maxim about giving inches and losing miles, the North Carolina Department of Revenue appealed an Office of Administrative Hearings decision that favored a taxpayer by $371. In N.C. Dep’t of Revenue v. Clifton,...more

Business Court Finds that Alleged Lack of Diligence by Law Firm Had No Impact on Large Trial Court Loss

Facing a $12.8 million judgment, a plaintiff sought recourse in a legal malpractice claim against his trial counsel for its alleged role in that unhappy result. But his undoing was the Business Court’s focus on whether he...more

Can a Lengthy Complaint Provide Too Much Notice of its Claims?

In Oliver v. Brown & Morrison, Ltd., 2022 NCBC 16, the Business Court weighed a challenge to an allegedly “sprawling, 247-paragraph Complaint, largely padded by needless detail” that defendants claimed violated Rule 8(a)’s...more

A Business Court Finds There is Little “Neutral” Ground in Disputes Over Church Business

An intra-congregational dispute over control of church bank accounts led the Wakefield Missionary Baptist Church to a schism that forced out a senior pastor, saw church doors locked, and resulted in competing factions...more

“As Is” Purchases of Commercial Property May Come with Limited Remedial Tools to Avoid Closing, Business Court Confirms

As failed commercial property deals go, the one at the heart of Miriam Equities, LLC v. LB-UBS-2007-C2 Millstream Road LLC, 2022 NCBC 3, was not outside the norm for a Business Court transaction autopsy. There was a missed...more

Some Corporate Insiders Can Safely Throw Stones from Glass Offices

The North Carolina Supreme Court ruled recently that a company’s allegedly fraudulent efforts to raise capital from outside investors can avoid sanction as an unfair or deceptive trade practice because the conduct is not...more

No Harm, No Foul

Longtime college basketball commentator Billy Packer is credited with one of the better Yogi Berra-isms in NCAA hoops lore: “This is going to be a long three minutes here.” And that’s about how long it took for litigation...more

NC Supreme Court Endorses Flexibility for Business Court in Determining “Fair Value” for Dissenting Shareholders

In 2017, British American Tobacco (BAT) purchased a North Carolina-based tobacco company, Reynolds American Inc., for $49 billion. The deal allowed BAT to acquire the 57.8% of Reynolds it didn’t already own and brought many...more

One Law Firm. Two Clients. Three Times the Complexity.

Amidst a “bitter family dispute” over future control of a closely held oil company, can the same law firm represent the directors paving the way for their son to take the reins and the company that minority shareholders seek...more

In A Church Divided, Secular Courts Have Limited Tools To Rejoin What A Congregation Has Put Asunder

Discord within a faith community comes with all the challenges of a secular dispute, but carries with it the special responsibility that members of a congregation share in a collective spiritual undertaking. Yet, there are...more

To Thine Own Documents Be True

When a motion for reconsideration hearing features a plaintiff’s accusation that the court made arguments for the other side, the effort to flip a prior ruling – already a tough get – has gone a bit off the rails. In Bayport...more

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