NC Fiduciary Litigation Commentary

Lord & Lindley - Lawyers in Charlotte NC

North Carolina Business Court Awards Rule 11 Sanctions for Second Time This Fall

November 4, 2015

          The North Carolina Business Court recently entered Rule 11 sanctions against attorneys who relied on inaccurate information from their clients in preparing and filing lawsuits.  The decision comes just two months after the NCBC awarded Rule 11 sanctions in a case with similar facts (which we summarized Here).    …

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North Carolina Business Court Suggests a Willingness to Impose a Fiduciary Duty on Minority Shareholders

October 7, 2015

          The North Carolina Business Court recently issued an opinion in which it suggested a willingness to adopt a position that “controlling” minority shareholders owe a fiduciary duty to their fellow minority shareholders.[1]             The case arose out of a transaction between Reynolds American, Inc. (“Reynolds…

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Rule 11 Sanctions Imposed for Improper Breach Of Fiduciary Duties Claims Against Rank-and-file Employees

September 2, 2015

           In September 2011, Southeast Air Charter, Inc. (“Southeast Air”) brought suit against three (3) employees (“Defendants”) alleging, among other things, breach of fiduciary duty and constructive fraud.   The North Carolina Business Court (“NCBC”) determined all defendants were rank-and-file employees of Southeast Air and therefore could not be subject to the…

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Creating a Successful Wealth Management Plan: Is a Corporate Trustee Right for You?

June 4, 2015

     As the aging baby boomer generation reaches retirement age and beyond, their wealth management decisions will significantly influence the demand for fiduciary services. Twenty-first century technology makes it easier than ever to retrieve up-to-date financial information and self-help investment guides. Accordingly, baby boomers and subsequent generations are more financially sophisticated than their parents,…

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Kissing Cousins: Breach Of Fiduciary Duty and Constructive Fraud

May 20, 2015

Breach of fiduciary duty and constructive fraud are probably the most conflated causes of action in fiduciary litigation.  If you can’t readily discern between them, you’re in good company—many practitioners allege them in tandem as a single claim for relief, and a number of opinions from our appellate courts treat them likewise.  Breach of fiduciary…

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