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N.C. Business Court

May 19, 2020

Landlord/Tenant – Airport Hangar Lease – Breach of Contract – Tortious Interference with Contract

Plaintiffs allege that their two hangar lease agreements with the defendant-city are month-to-month leases. Under G.S. § 42-14, a monthly tenancy may be terminated by a notice to quit given seven days or more before the end of the current month of the tenancy. The complaint reveals that the city gave timely written notice of […]

May 19, 2020

Partnership – Breach of Contract – Breach of Fiduciary Duty – Civil Practice – Default Judgment

Defendant, who has not responded to plaintiffs’ lawsuit, (1) is a party to plaintiff Beem USA Limited Liability Limited Partnership’s limited partnership agreement (the Agreement) and (2) has violated the terms of the Agreement by (a) continuing to act as general partner of Beem after being removed from that position, (2) participating in the business […]

May 19, 2020

Administrative – Tobacco Settlement – Nonparticipant’s Escrow Fund – Refund – Statutory Amendment

Plaintiff, a tobacco manufacturer that declined to participate in the 1998 master settlement agreement (MSA) between states and participating tobacco manufacturers, is not entitled to have its market share “grandfathered” to its pre-MSA market share. Such grandfathering was an incentive for tobacco manufacturers to join the MSA. The court grants summary judgment for defendants (1) […]

May 19, 2020

Contract – Ambiguity – Real Property – Option Agreement – LLC Formation & Financing

The option agreement in a real estate development project is ambiguous as to whether a defendant’s failure to sign an LLC’s operating agreement is sufficient to trigger plaintiff’s option to buy the land in question. The court denies defendants’ motion for judgment on the pleadings. Facts As part of a multi-contract real estate development project, […]

May 19, 2020

Civil Practice – Pleadings – Complaint Introduction – Motion to Strike

The five-page case summary and introduction to plaintiff’s 47-page complaint uses aggressive and accusatory language. However, plaintiff’s unfair trade practices claim is based, at least in part, on the same conduct supporting its breach of contract claim, necessitating proof of egregious or aggravating circumstances. Under these circumstances, the court concludes that the complaint’s allega[...]

May 19, 2020

Civil Practice – Stay Motion – New York Action – Unfair Trade Practices – Appeal Certification

Where defendant’s unfair trade practices counterclaims in this action and its unfair trade practices claim in a New York action are based on different facts, the court declines to stay this action pending resolution of the New York action. Defendant’s motion to stay is denied. Plaintiff’s motion to certify judgment for appeal is denied. In […]

May 19, 2020

Insurance – Civil Practice – Declaratory Judgment – Different Insureds – Hog Farm Nuisance Suits

The court declines to issue a declaratory judgment to determine the responsibilities of insurers that provide coverage to different insureds in a case where no claims have yet been made against the insurers. American Guarantee & Liability Insurance Company’s (Zurich) counterclaim for a declaratory judgment is dismissed. Background Zurich provided excess insurance for plaintiff, which [&helli[...]

May 19, 2020

Tort/Negligence – Tortious Interference with Contract – Non-Outsider – Personal Benefit – Civil Practice – Personal Jurisdiction – Corporate

Even though defendant Irish was a non-outsider with regard to plaintiff’s employment agreement, since she used her insider control to fire plaintiff and then take his job as CEO of the defendant-employer, plaintiff has stated a claim against Irish for tortious interference with contract. The court grants defendants’ motion to dismiss plaintiff’s declaratory judgment claim […]

May 19, 2020

Attorneys – Civil Practice – Personal Jurisdiction – Out-of-State Counsel – Contract – Forum Selection Clause

A California attorney and law firm assisted in the sale of a North Carolina corporation without ever coming to North Carolina or making any filings here. The fact that their client was a North Carolina resident is insufficient to allow this court to exercise personal jurisdiction over the out-of-state attorney and law firm. Defendants Baker […]

May 19, 2020

Corporate – Minority Shareholder – Dissolution – Breach of Fiduciary Duty

Where a long-term employee agreed to stay on and turned down a job offer from a different employer because defendants made him a shareholder in the defendant-corporation, this minority shareholder’s allegation that defendants subsequently terminated his employment could support a judicial dissolution of the corporation. The court grants summary judgment for defendants as to plaintiff’s [&helli[...]

May 19, 2020

Tort/Negligence – Tortious Interference – Contract & Prospective Advantage – Misappropriation of Trade Secrets

Plaintiff’s complaint does not allege that defendants’ actions interfered with plaintiff’s ability to perform, or be compensated for, plaintiff’s exclusive contract to provide non-emergency ambulance services for Robeson County; consequently, the complaint does not state a claim for tortious interference with contract. However, plaintiff sufficiently alleges that defendants used plaintiff�[...]

May 19, 2020

Corporate – LLC – Derivative Claims – Demand – Civil Practice – Pleadings – Breach of Contract

An LLC member’s bare allegation that she made undefined written demands of the LLC is insufficient to allow her to bring derivative claims on behalf of the LLC. The court grants defendants’ motion to dismiss plaintiff’s derivative claims. The court denies defendants’ motion to dismiss plaintiff’s breach of contract claims. Although the complaint alleges that […]

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