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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 Weighs in on Enforceability Of Non-compete and Confidentiality Agreements Post-merger

October 28, 2015

           It is well-settled law that adequate consideration is required to create binding restrictive covenants such as non-compete agreements.  Generally, such agreements are entered at the start of an employment relationship, and the new employment itself constitutes consideration.  In North Carolina, continued employment following a merger of two companies does not…

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Estates Of the Deceased “wilmington Ten” Barred From Petitioning for Remuneration Payments for Wrongful Convictions

October 21, 2015

          In 1971, amidst heated racial confrontations following court-ordered desegregation of public schools, Mike’s Grocery Store in Wilmington, North Carolina was firebombed.  Police and fire rescue personnel responding to the scene were attacked by the perpetrators, and the event resulted in the arrest and conviction of nine black men and one…

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Caveat to a Caveat to a Will: North Carolina Court Of Appeals Offers Non-binding Opinion

October 14, 2015

          In October the North Carolina Court of Appeals issued an unpublished opinion addressing the circumstances under which it is appropriate to grant a motion to dismiss in the context of a will caveat.[1]  A caveat is a legal challenge to the probate of a will when there is confusion or…

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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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Eastern District Of North Carolina Predicts the North Carolina Supreme Court Will Apply the Doctrine Of Inevitable Disclosure “under Certain Circumstances.”

September 30, 2015

            The Eastern District of North Carolina recently decided a case affirming that, while North Carolina courts have not yet adopted the doctrine of inevitable disclosure, North Carolina would adopt the doctrine under certain circumstances.[1]  Spirax Sarco, Inc., (“Spirax”), alleged a claim for, among other things, injunctive relief under the…

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Challenging the Validity Of a Will Vs. the Construction Of a Will: North Carolina Court Of Appeals Clarifies

September 23, 2015

              Earlier in September the North Carolina Court of Appeals highlighted the procedural difference between challenging the validity of a will through a caveat proceeding and resolving questions as to the construction of a will through an action for declaratory judgment.[1]                …

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Partition Proceedings in North Carolina

September 16, 2015

          Real property owned by multiple individuals is held either as tenants in common, joint tenants with rights of survivorship, or (in the case of married couples) tenants by the entirety.    Disputes may arise among joint owners of real property regarding its best and highest use or because personal relationships deteriorate. …

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Ncbc: Fifty-mile Customer Based Geographic Restriction Makes Non-compete Agreement Unreasonable

September 9, 2015

           In August, the North Carolina Business Court (“NCBC”) determined a non-compete agreement was unreasonable because of its overly broad geographic restriction, and denied Plaintiff’s motion for preliminary injunction to prohibit a former employee from competing with it.[1]              In North Carolina, non-compete agreements are generally…

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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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