Litigation

Lord & Lindley - Lawyers in Charlotte NC

Fourth Circuit: Arbitration Agreement in Employee Handbook Not Binding

December 10, 2015

          A recent decision by the United States Court of Appeals for the Fourth Circuit ruled that a North Carolina employee suing under federal and North Carolina law for wage and hour violations was not required to participate in arbitration despite an arbitration clause in her employee handbook.[1]  The Fourth Circuit…

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Deceptive Conduct Likely Needed to Transform a Breach Of Contract Claim to Unfair and Deceptive Trade Practice

December 2, 2015

          While unfair and deceptive trade practice claims are sometimes alleged concurrently with breach of contract claims, a breach of contract alone does not constitute an unfair or deceptive trade practice.  To prevail on both a breach of contract claim and an unfair and deceptive trade practice claim, North Carolina and…

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North Carolina Business Court Reaffirms Breadth Of Arbitrators’ Authority in Recent Decision

November 25, 2015

            A recent decision by the North Carolina Business Court (NCBC) re-affirmed long standing precedent that an arbitration award is customarily final and binding, even if it includes an error of fact or law.[1]  In the most recent case, Killian/Simonini, LLC argued the arbitrator exceeded his authority by impermissibly including…

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North Carolina Business Court Weights in on Attorneys’ Fees in Class Action Settlements

November 11, 2015

          Recent decisions by the North Carolina Court of Appeals and North Carolina Business Court (NCBC) shed light on a previously unsettled question of law: when can a North Carolina trial court award attorney’s fees as part of a class-action settlement in the absence of additional statutory authority?      …

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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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