Green v. Freeman (Lawyers Weekly No. 14-07-0289, 17 pp.) (Donna Stroud, J.) Appealed from Guilford County Superior Court (Edwin Wilson Jr., J.) On remand from the N.C. Supreme Court. N.C. App. Holding: It is true that a letter from defendant ...Read More »
Reeger Builders, Inc. v. J.C. Demo Insurance Group, Inc. (Lawyers Weekly No. 14-16-0221, 15 pp.) (Wanda Bryant, J.) Appealed from Gaston County Superior Court (Yvonne Mims Evans, J.) N.C. App. Unpub. Holding: Even though defendant J.C. Demo Insurance Group Inc. ...
Tagged with: J.C. Demo Insurance Group IncRead More »
Corporate – Nonprofit — Derivative Action – Brought Without Reasonable Cause — Attorneys’ Fee Award – Amount
McMillan v. Ryan Jackson Properties, LLC (Lawyers Weekly No. 14-07-0054, 18 pp.) (Robert C. Hunter, J.) Appealed from Guilford County Superior Court (Edgar B. Gregory, J.) N.C. App. Holding: Given that – at the summary judgment stage – plaintiffs could ...Read More »
Corporate – Shareholder/Creditor Claims – Tort/Negligence – Breach of Fiduciary Duty – Piercing the Veil – Agency
Green v. Freeman Despite defendant Corinna Freeman’s positions as the owner of one of the three affiliated companies in question, the majority shareholder of the other two, and chairperson of all three companies, the plaintiff-investors only met her a handful of times and said nothing more than “hello.
Tagged with: affiliatedRead More »
The Island Beyond, LLC v. Prime Capital Group, LLC Even though an LLC’s operating agreement granted its manager broad powers, including engaging in competition with the LLC, members of an LLC cannot contractually limit a manager’s liability for (1) actions it knows conflict with the interests of the LLC or (2) effecting transactions from which the manager derives an improper personal benefit.
Tagged with: Prime CapitalRead More »
Corporate – Tort/Negligence – Breach of Fiduciary Duty – Withheld Information – Shareholder Vote – Direct or Derivative Action
Gusinsky v. Flanders Corp : Although a shareholder can bring a direct action against corporate directors who withheld material information before a shareholder vote, the shareholder’s complaint must allege why the withheld information was material. Defendants’ motion to dismiss is granted.
Tagged with: Air AcquisitionRead More »
Nelson v. Alliance Hospitality Management LLC Even though defendant Axis Hospitality, Inc. is not a director of defendant Alliance Hospitality Management LLC, since Axis can appoint and remove directors, Axis may owe fiduciary duties to Alliance’s members.
Tagged with: Hospitality ManagementRead More »
Corporate – Tort/Negligence – Breach of Fiduciary Duty – 50 Percent Shareholder – Direct & Derivative Actions – Access to Corporate Records
Maurer v. Maurer Plaintiff alleges that defendant has taken complete control of SlickEdit, Inc.; however, since plaintiff owns half of SlickEdit’s shares, defendant does not owe plaintiff the fiduciary duty that is owed by a controlling shareholder to a minority shareholder.
Tagged with: business judgmentRead More »
Berger v. New Hanover County Board of Commissioners The common law amotion procedure is used to remove a corporate officer from office; it has been used in North Carolina to remove municipal officials from office, the N.C. Supreme Court has not disavowed the procedure, and there is no reason it cannot be used by a county in the same way it has been used by municipalities.
Tagged with: Supreme CourtRead More »