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N.C. Business Court

Aug 16, 2023

Attorneys – Firm Departure – Tort/Negligence – Fraud & Tortious Interference – Breach of Contract

G.S. § 84-13 provides, “If any attorney commits any fraudulent practice, he shall be liable in an action to the party injured, and on the verdict passing against him, judgment shall be given for the plaintiff to recover double damages.” Although the plaintiff-law firm has stated a fraud claim against its former officers who left […]

Jul 24, 2023

Tort/Negligence – Misappropriation of Trade Secrets – Preliminary Injunction

Plaintiff has taken significant steps to keep its vendor rebates confidential, has shown that one of its former employees – now employed by defendant – emailed vendor rebate information to himself before he resigned, and would suffer irreparable harm if defendant were to use plaintiff’s vendor rebate information. The court grants plaintiff’s motion for a […]

Jul 12, 2023

Civil Practice – Discovery – Requests for Admission – Service – Withdrawal

Given that some degree of confusion exists regarding the service of plaintiff’s requests for admission upon defendant Woodcock, relief is warranted under N.C. R. Civ. P. 36. Plaintiff has failed to convince the court that it will suffer any prejudice if Woodcock’s deemed admissions are withdrawn and he is allowed to serve responses to the […]

Jul 5, 2023

Tort/Negligence – Unjust Enrichment – Indirect Benefit – Interference with Contract – Knowledge

Plaintiff alleges that its defendant-competitor was unjustly enriched when plaintiff’s former employee gave plaintiff’s confidential information to defendant. The court rejects defendant’s argument that a plaintiff can state a claim for unjust enrichment only if the “benefit” was conferred directly from the plaintiff to the defendant. The court grants defendant’s motion to dismiss plai[...]

Jun 21, 2023

Corporate – Breach of Fiduciary Duty – Employment Contract – Wage & Hour Act Damages

Although defendants argue that third-party defendant Tedder subsequently became an officer of defendant Davis Funeral Service, Inc. (DFS), she negotiated the alleged “sweetheart deal” for the purchase of a car from DFS as part of her employment contract with DFS, when she clearly owed DFS no fiduciary duty. The court rejects defendants’ unsupported theory that, […]

Jun 21, 2023

Civil Practice – Statutes of Limitations – Declaratory Judgment Actions – Related Causes of Action

Defendants rest their declaratory judgment counterclaim as to two capital calls on alleged breaches of the operating agreements of the parties’ limited liability companies, alleged self-dealing in violation of plaintiff JBS Ventures, LLC’s fiduciary duties, or both. As such, defendants’ declaratory judgment counterclaim simply restates defendants’ counterclaims for breach of contract or br[...]

Jun 21, 2023

Civil Practice – Statute of Limitations – Pleadings – Fraud – LLC Members

Plaintiffs allege that defendant Pacheco, a member of the parties’ limited liability company, wrongfully took money from the LLC. Even though plaintiffs allege that defendant Pacheco’s wrongdoing occurred more than three years ago, they allege that they discovered Pacheco’s wrongdoing in a subsequent investigation. Since the complaint does not allege the date of the investigation, […]

Jun 6, 2023

Tort/Negligence – Labor & Employment – Theft by Employee – Trade Secrets – Hard Copies – Unjust Enrichment

The plaintiff-employers allege that, after she learned she was being laid off, the defendant (now former) employee took plaintiffs’ trade secrets – including some in the form of hard copies – to entice employment offers and financial rewards from plaintiffs’ competitors. The employee larceny and embezzlement statutes, G.S. §§ 14-74 and -80, list the types […]

Jun 6, 2023

Taxation – Sales & Use – Prepaid Cell Service

Respondent is a retailer of Boost Mobile goods and services. During the audit period, respondent failed to collect sales tax on Boost’s “Real Time Replenishments” (RTRs). Even though the RTRs may be redeemed on a variety of goods and services sold by Boost – and not just on wireless plans – under G.S. § 105-164.3(27a), […]

Jun 2, 2023

Insurance – Fraud Counterclaim – Fire Damage – Plant Expansion

The parties have forecasted conflicting evidence as to whether the plaintiff-insured attempted to have the defendant-insurers pay, not solely for the damage that fire caused to plaintiff’s facility, but also for plaintiff’s expansion of the facility. Plaintiff is not entitled to summary judgment on defendants’ claim of insurance fraud. Motion denied. G.S. § 58-44-16(f) contains […]

May 22, 2023

Tort/Negligence – Breach of Fiduciary Duty – Corporate Purchase – Environmental Liabilities – Officer & Board Members

Plaintiffs allege that defendants Walker and Sanderson, as well as defendant-executor Yates’ decedent, W.I. Warren, concealed environmental problems at Warren Oil Company, Inc. (Warren Oil), both before and after plaintiffs purchased Warren Oil and after Walker, Sanderson and Warren started to serve as either board members or officers of the resulting company, plaintiff Warren Oil […]

May 10, 2023

Taxation – Administrative – Constitutional Question – ‘As Applied’ vs. Facial Challenge – Subject Matter Jurisdiction

The respondent-taxpayer asked the Office of Administrative Hearings (OAH) to declare that petitioner North Carolina Department of Revenue’s application of a tax statute to respondent violated the dormant Commerce Clause of the U.S. Constitution (the statute treated loans to affiliates inside North Carolina differently than those to affiliates outside the state). Regardless of whether a […[...]

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