The Court of Appeals on Tuesday of last week, in Speedway
Motorsports Int'l Ltd. v. Bronwen Energy Trading, Ltd., [ lexis.com
subscribers may access the enhanced version of this opinion ] unwound a
year old decision by the Business Court . In that decision, Judge Diaz had
ruled that a Defendant...
The Business Court yesterday sifted through cross motions
for summary judgment brought by the seller and buyer of a business selling
"power protection devices used primarily to control power surges and to
provide power filtration in high volume office equipment." The case
turned on the...
The June 8th opinion from Business Court Judge Judge Gale
Cartage, Inc. v. Stonewall Packaging, LLC , 2011 NCBC 15, dismissed the
Plaintiff's complaint, finding its allegations that an alleged partner should
be liable for the partnership debts, or otherwise liable on a veil piercing
Yesterday, Judge Gale entered summary judgment against a
North Carolina lawyer who claimed he was entitled to a greater share of a $3
million fee award to a group of plaintiffs' counsel in a series of settled
class actions. The opinion was in the case brought by the lawyer seeking
For the second time in a space of two weeks, the North
Carolina Business Court granted a motion for a preliminary injunction against an
LLC member/manager as a result of breaches of fiduciary duty. The first
case was GoRhinoGo, LLC v. Lewis , which I blogged
about last week, and the second case,...
Have you ever filed a reply to a counterclaim where your
reply was 89 pages long and to which you attached more than 200 pages of
exhibits? I think you probably haven't, but the Plaintiff in the Business
Court case Fountain v. Fountain Powerboats, Inc . did. When the
Defendant made a Motion to...
You probably know that there is a fight afoot between the
North Carolina State Bar and the do-it-yourself vendor of legal documents,
LegalZoom. The simmering dispute has been covered in the Wall
Street Journal , the ABA
Journal , and the case is now in the Business Court over Legalzooom's
Judges don't like to do in camera reviews of
documents. Part of the reason is the quantity of documents
involved. There was an Order from Judge Tennille a couple of years ago in
which the Judge chastised the parties for submitting notebooks filled with
repetitive paper copies of emails which...
NC Court of Appeals said earlier this month in Browne
v. Thompson that the decisions of the Business Court have "no
precedential value." Being a big fan of the Business Court, that
rankled me. And being the author of a blog which focuses on the Business Court,
it caused me to question...
When you think of sanctions, your mind probably
goes to Rule 11 of the Rules of Civil Procedure. But what about Rule
37(b)(2)? It says that:
if a party . . . fails to obey an order to provide or
permit discovery, . . . a judge of the court in which the action is
pending may make such orders in...
The Fourth Circuit doesn't get into matters of LLC law
very often, but it did last week in Painter's
Mill Grille, LLC v. Brown [ an enhanced version of this opinion is available to lexis.com
subscribers ]. The LLC and its members were suing their landlord for
discriminating against them on...
The best lines in Green v. Freeman , decided last week by the NC Supreme Court, are that "[t]he doctrine of piercing the corporate veil is not a theory of liability [ an enhanced version of this opinion is available to lexis.com subscribers ]. Rather, it provides an avenue to pursue legal claims...
Section 6-21.5 of the North Carolina General Statutes is the closest thing the State has to " loser pays ." It allows for the award of attorneys' fees to a prevailing party "if the court finds that there was a complete absence of a justiciable issue of either law or fact raised by...
A lawyer has limited remedies to collect on a judgment from a defendant who is unwilling to pay. If the defendant holds stock in a corporation, you can execute on the shares, take possession of them, and sell them. N.C. Gen. Stat. §1-324.3 . But if that ownership interest is in an LLC, a "charging...
When I first looked at Judge Murphy's (unpublished) Order in Ehrenhaus v. Baker earlier this month awarding attorneys' fees to the class action attorneys who sued Wachovia and Wells Fargo over their merger in 2008, I was disappointed, though the judge was following a mandate from the Court of...
A bill was introduced this week in the NC General Assembly that would be entitled "An Act to Modernize the Business Court By Making Technical, Clarifying, And Administrative Changes To The Procedures For Complex Business Cases." Here's the text of the bill .
This is a summary of the...
It might seem uncontroversial that the members of a limited liability company cannot follow with a personal lawsuit for injuries after their LLC litigates, and loses, claims based on the same issues.
But it took the Business Court a while to get to that conclusion last week, in Lancaster v. Harold...
There's an ominous sounding sentence in a Business Court decision this week:
A party practicing before the North Carolina Business Court should take the deadlines imposed by its orders and the rules of practice very seriously.
Estate of Capps v. Blondeau . 2014 NCBC 24 at ¶36 [ an enhanced...
The North Carolina Business Court is electronic. Paper copies of documents are not filed with the Business Court. So when you e-file a Notice of Appeal, is that sufficient for purposes of Rule 3 of the NC Rules of Appellate Procedure?
Let's look at the Rule first. It says that:
Any party entitled...
If you litigate cases in the NC Business Court, mark your calendar for October 1st. That's when the General Assembly's "modernization" of the Business Court is due to become effective. The bill containing these changes was signed into law by Governor McCrory last week .
I wrote about...
I think I might have made a Motion for a More Definite Statement. If I did that, I did it only once, and I can't remember the result. Asking for a more definite statement is a rarely used litigation maneuver, allowed by Rule 12(e) of the North Carolina Rules of Civil Procedure .
Three interesting discovery issues were resolved last week by Judge Bledsoe's Order in Gay v. Peoples Bank . First, can you obtain in discovery in a class action the fee arrangement between the plaintiff and his lawyers? Second, can you obtain (in any kind of case) a protective order against the...
There's a new roadblock for plaintiffs in the Business Court suing over trade secrets. It was imposed last week by Judge Bledsoe in DSM Dyneema, LLC v. Thagard , 2014 NCBC 50 , and it bars the plaintiff from proceeding with discovery until the trade secrets allegedly being misused by the defendant...