North Carolina Business Court

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…

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…

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…

North Carolina Business Court