Recent Posts

North Carolina Business Court Denies TRO in the Midst of a Proxy Fight
Posted on 6 May 2015 by Mack Sperling

The Defendant in Allcorn v. Bradley Creek Boatominium, Inc. sought an injunction against the Plaintiffs in the midst of a proxy fight as to their allegedly defamatory statements in connection with the election of the Defendant's board of directors... Read More

Prior to Derivative Suit, Shareholder Demand Must Clearly Identify Wrong and Demand Action
Posted on 20 May 2013 by Lee Berlik

A shareholder acting on behalf of a corporation may bring a "derivative suit" against corporate directors and management for fraud , mismanagement, self-dealing or dishonesty. Before bringing such a suit, the shareholder must make a written... Read More

North Carolina Business Court: What Part Of Disqualification Do You Not Understand?
Posted on 8 May 2015 by Mack Sperling

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 subscribers ]. Now there is... Read More

E-Discovery Landmark Decision For NC: Attorney-Client Privilege Waived In Electronic Discovery Production
Posted on 3 Aug 2012 by Mack Sperling

In a classic understatement, Judge Gale said in a North Carolina Business Court opinion last Thursday that " North Carolina case law addressing problems inherent in electronic discovery. . .is not yet well developed ." Op. ¶50. But in Blythe... Read More

Maybe We Are Getting Closer to a Decision in North Carolina on Whether LegalZoom Is Engaged in the Unauthorized Practice of Law
Posted on 26 Mar 2014 by Mack Sperling

Legalzoom may be a step closer to overcoming the NC State Bar's assertion that its online legal document service constitutes the unauthorized practice of law (UPL), following yesterday's ruling in LegalZoom, Inc. v. North Carolina State Bar ,... Read More

The "Bright Star" Fades: The NC Business Court on Letters of Credit
Posted on 6 Mar 2014 by Mack Sperling

I've resolved this year to blog about every numbered decision of the Business Court, as opposed to past years, where my lack of enthusiasm about the more boring decisions has left me writing about less than 100% of the Court's decisions. My... Read More

Collateral Estoppel Sinks LLC Members' Claim
Posted on 17 Jun 2014 by Mack Sperling

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... Read More

Trade Secrets Cases in the NC Business Court: You Show Me Yours Before I'll Show You Mine
Posted on 22 Oct 2014 by Mack Sperling

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... Read More

NCCOA: The Constitution Reins in the Uniform Enforcement of Foreign Judgments Act
Posted on 25 Jan 2013 by Mack Sperling

If you've been practicing law for more than a few years, you've undoubtedly been asked to "domesticate" in North Carolina's courts a judgment entered in another state. A pretty easy task you think, covered by North Carolina's... Read More

NC Court of Appeals Affirms Business Court Award of $1 Million in Fees to Class Counsel
Posted on 24 Sep 2015 by Mack Sperling

It seems like forever ago that the then venerable North Carolina institution, Wachovia Bank, failed and was acquired by Wells Fargo. (This was actually seven years ago). But just last week came what might be the final closure in the battle by the lawyers... Read More

Something That You Might Not Have Known About Injunctions
Posted on 26 Jun 2015 by Mack Sperling

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... Read More

Eighty Five Thousand Reasons Not to Represent an LLC Without the Approval of a Majority of the Members (and one Other Thing)
Posted on 13 Nov 2014 by Mack Sperling

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... Read More

When Law Firms Dissolve: Dividing Up The Proceeds From Contingent Fee Cases
Posted on 14 Mar 2013 by Mack Sperling

The Court of Appeals in February 2011 ordered Judge Jolly to dissolve Mitchell, Brewer, Richardson, Adams, Burge & Boughman, a law firm organized as a member-managed professional limited liability company. The dissolution was ordered per N.C.... Read More

Don't Try To Get A Retired Business Court Judge's Orders Changed Or Overruled By A Successor Business Court Judge
Posted on 11 Dec 2014 by Mack Sperling

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... Read More

Williams Mullen Corporate Law Alert - North Carolina
Posted on 4 Aug 2011 by Williams Mullen

by David F. Paulson, Jr. & Miles S. Bruder* Enforcing commercial contracts will likely become a less-costly proposition in North Carolina this fall, thanks to a new exception to the state's general ban on attorneys' fee awards to a prevailing... Read More