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Fourth Circuit on LLC Law and Fried Chicken and Waffles

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...

Collateral Estoppel Sinks LLC Members' Claim

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...

Mark Your Calendar For October 1st For Changes to the Business Court

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...

Trade Secrets Cases in the NC Business Court: You Show Me Yours Before I'll Show You Mine

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...

Business Court (In Judge McGuire's First Opinion) Outlines the "Indispensable Requirements" for The Formation of a Partnership

Well, newest Business Court Judge Gregory McGuire has gotten off to a running start with his first opinion, issued only about a week after his appointment to the Business Court by Governor McCrory. The case is La Familia Cosmovision, Inc. v. The Inspiration Networks , 2014 NCBC 51 [ an enhanced version...

Eighty Five Thousand Reasons Not to Represent an LLC Without the Approval of a Majority of the Members (and one Other Thing)

Be sure that an LLC member has the authority to hire you before accepting the representation of the LLC in a suit by or against another LLC member. That authorization generally requires a majority of the interest of the members, at least under the default provisions of the LLC Act, which apply in the...

The NC Business Court Rules on Recovering Attorneys' Fees in a Derivative Action Against an LLC

In this week's opinion in Ekren v. K&E Real Estate Investments , 2014 NCBC 56 , Judge Bledsoe outlined how a derivative action plaintiff can recover attorneys' fees [ an enhanced version of this opinion is available to lexis.com subscribers ]. What Constitutes A 'Substantial Benefit"...

Don't Try To Get A Retired Business Court Judge's Orders Changed Or Overruled By A Successor Business Court Judge

When there is a change in the Business Court Judge handling your case, there is probably a natural reaction to try to get the new Judge to revisit rulings by the previous Judge which were unfavorable to your client. That effort is most likely to come to naught, as illustrated by Judge Bledsoe's decision...

A "Proper" Party Isn't Necessarily A "Necessary" Party

What is the difference between a "proper" party and a "necessary" party"? Judge McGuire spelled out the difference early this week in Cape Hatteras Electric Membership Corp. v. Stevenson , 2014 NCBC 62 [ an enhanced version of this opinion is available to lexis.com subscribers...

North Carolina Business Court: What Part Of Disqualification Do You Not Understand?

You will all recall the Business Court's disqualification of a law firm from representing its longtime client, in Kingsdown Inc. v. Hinshaw , 2015 NCBC 27 [ an enhanced version of this opinion is available to lexis.com subscribers ]. Now there is a second chapter to the disqualification, which came...

An Interesting Trade Secrets Case from the North Carolina Business Court

If you were unsure whether customer information held by your client -- like customer contact information, sales reports, prices and terms books, sales memos, sales training manuals, commission reports, and vendor information -- can be considered a "trade secret", the Business Court's opinion...

Interpreting the Right to Specific Performance in a Shareholder Buy-Sell Agreement

I've never thought very hard about the remedy of specific performance. That means ordering a party to a contract to perform its contractual obligations. But the ability of the Court to order specific performance was front and center in the North Carolina Business Court's decision Wednesday...

Something That You Might Not Have Known About Injunctions

I had always thought that you need to post a bond in order to obtain an injunction, both in federal and state court. It turns out that I was wrong. The federal rule seems to require a bond. It says: (c) Security . The court may issue a preliminary injunction or a temporary restraining order only...

There's a Difference Between "Confidential and Proprietary Information" and a Trade Secret

I can't remember the last time that the Business Court granted a motion opposing the designation of a case as a mandatory complex business case. And since the Business Court Modernization Act went into effect in October 2014? I don't think one has been granted. But earlier this week, Judge...

The Meaning of "Successors," "Members," and "Designees" in a Release

The words "successors," "members," and "designees," as used in a Release were at issue in Judge Bledsoe's Opinion last week in TaiDoc Technology Corp. v. OK Biotech Co ., 2015 NCBC 71 [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance...