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N.C. Business Court

Aug 12, 2021

Civil Practice — Default Judgment – Personal Jurisdiction – Damages – Unfair Trade Practices

An individual identifying himself as defendant Fields called in to the hearing on plaintiffs’ motion for default judgment, and he claimed that he and defendant Crete are currently residents of Florida and that they had been unaware, until then, that this action had been filed against them. Although Fields indicated that he opposed the motion, […]

Aug 12, 2021

Insurance — Pollution Exclusion – Summary Judgment Motion – Conflicting Forecasts

Excess insurer Arrowood Indemnity Co. relies on an unsigned pollution exclusion endorsement to argue that it is entitled to summary judgment on plaintiff’s claim for coverage related to coal ash liabilities. Where the policy stated that its terms could not be changed without a signed endorsement, the lack of a signature on the purported pollution […]

Jul 31, 2021

Corporate — Shareholder’s Records Request – Renovation Project – Business Judgment Rule

A qualified shareholder of the defendant-country club seeks to inspect corporate records to investigate whether a proposed renovation project is in the country club’s best interest, whether the board’s approval of the project complies with the country club’s bylaws, whether any improper transactions have occurred in connection with the board’s approval of the project, any […]

Jul 31, 2021

Corporate — LLC – Members’ Authority – Attorney’s Fees – Reconsideration

Defendant Greater Greensboro Entertainment Group, LLC’s (GGEG’s) operating agreement requires a majority in interest of GGEG to agree on any expenditure exceeding $10,000, such as the contingency fee agreement the plaintiff-law firm seeks to enforce. After this court’s denial of defendants’ motion for summary judgment, plaintiff made admissions that make it clear Rocco Scarfone did [&helli[...]

Jul 31, 2021

Contract — Uninsured Hospital Patient – Open Price Term – Class Action – Declaratory Judgment

When the uninsured plaintiff was admitted to the defendant-hospital for an emergency appendectomy, he signed a contract agreeing to pay all charges “in accordance with the regular rates and terms” used by the hospital. Although the hospital has mooted the individual plaintiff’s claim by renouncing its intention to seek payment from him, plaintiff’s claim for […]

Jul 8, 2021

Tort/Negligence — Computer Trespass – Network – Misappropriation of Trade Secrets – Secrecy Measures

Although plaintiff alleges that its former employee accessed its network rather than its computers, the computer network at issue provides access to plaintiff’s server. “Server” is not defined in our computer trespass act, but standard non-legal dictionaries define “server” as a computer. Therefore, plaintiff has stated a claim for computer trespass by alleging that its […]

Jul 8, 2021

Contract — Debit & Credit Card Transactions – Data Breach – Merchant Agreement

After a data breach at Arby’s, the plaintiff-bank—which serves as intermediary between merchant Arby’s and payment card networks Visa and Mastercard—paid assessments to Visa and Mastercard and then sought reimbursement from Arby’s. The bank reads some provisions of the parties’ merchant agreement too broadly; however, Arby’s had notice and an opportunity to be heard in […]

Jul 8, 2021

Civil Practice — Personal Jurisdiction – Specific Jurisdiction – Insufficient Contacts

Defendant-merchant Arby’s, a Georgia corporation, brings third-party claims against payment-card networks Visa (a California corporation) and Mastercard (a New York corporation). The claims arise out of contracts between Visa and Mastercard on one side and the plaintiff-bank on the other. Although the bank is now headquartered in North Carolina, at the time it originally contracted […]

Jul 1, 2021

Civil Practice — Rule 60 Motion – Fraud on the Court – Standard of Proof – Late-Discovered Documents

Plaintiff seeks relief from judgment under N.C. R. Civ. P. 60(b)(3), arguing that defendant Sisson committed a fraud upon the court. North Carolina’s courts have not identified the burden of proof that applies to allegations of fraud under Rule 60(b)(3). The court finds the analogous federal law persuasive and will require plaintiff to prove its […]

Jul 1, 2021

Tort/Negligence — Interference with Prospective Advantage – Landlord/Tenant – Default Notice

  During ultimately unsuccessful negotiations for defendant Bryant to buy the plaintiff-nonemergency ambulance service company, Bryant had access to plaintiff’s trade secrets. Although plaintiff alleges that Bryant thereafter used plaintiff’s trade secrets to obtain the exclusive contract to provide nonemergency ambulance services in Robeson County (a contract previously held by plaintiff[...]

Jul 1, 2021

Taxation — Constitutional – Commerce Clause – Sales Tax – Out-of-State Seller

Petitioner is a Wisconsin company engaged in the business of the commercial printing of books, magazines, catalogs, and items for direct mail (“printed materials”) to customers throughout the United States. Since title and possession of the printed materials occurred when petitioner delivered the printed materials to the U.S. Postal Service or other common carrier outside […]

Jul 1, 2021

Labor & Employment — Restrictive Covenants – Choice of Law – Michigan Law

A covenant not to compete is overly broad because it prohibits the defendant-former employees of plaintiff from even purchasing solar and roofing products from a competitor in the areas defined by the employment agreement. A non-solicitation provision is overly broad because it prohibits defendant from soliciting employees that he never interacted with and regardless of […]

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