Where a software license agreement precluded the licensee from developing similar software for an undefined period of time, the license agreement inhibited “free trade” and was therefore unreasonable and unenforceable. Triage Logic Management & Consulting, LLC v. Innovative Triage Services, LLC, 2020 NCBC 57 (J. Robinson). As a […]
Where the operating agreement provides for indemnification and advancement of fees to a manager who becomes a party to any civil action “by reason of the fact that he was an authorized representative of the LLC,” the manager is entitled to have the LLC pay his legal fees […]
Where the parties’ Operating Agreement permitted the member-managers to operate competing businesses, such allowance did not eliminate one member’s implied expectation of no competition with the business. Klos Construction, Inc. v. Premier Homes and Properties, LLC, 2020 NCBC 53 (J. McGuire). As a result, while the harmed member […]
Where the parties’ agreement only provided that, “If the agreement needs to be enforced, the winning party is entitled to receive costs and reasonable attorneys’ fees,” such language did not satisfy the statutory requirements necessary to enable an award of attorneys’ fees. Denver Property Partners, LLC v. Sisson, […]
Where at least one derivative claim asserted “irreparable harm” to the LLC if the member waited 90 days after its demand before filing suit, the member did not have to wait 90 days before asserting other derivative claims. Emrich Enterprises, LLC v. Hornwood, Inc., 2020 NCBC 29 (J. […]
Where parties seek to keep certain documents they have filed under seal and out of the public eye, the Business Court now requires proof that disclosing the information would harm the parties or others before it will agree to permanently seal the items. Bradshaw v. Maiden, et al, […]
Where a minority shareholder exercised domination and control over the company’s sole director and its majority shareholder, it owed a fiduciary duty to the other minority shareholder. Button v. Level Four Orthotics & Prosthetics, Inc., 2020 NCBC 18 (J.Robinson). As a result, the other minority shareholder could maintain […]
Where a business’ out-of-state law firm had no assets or property in North Carolina and its lawyers never visited North Carolina while providing Plaintiff legal advice for many years, the law firm and its lawyer lacked sufficient contacts with North Carolina. Diamond Candles, LLC v. Winter, et al., […]
Where a member of an LLC makes just general allegations in her complaint that she demanded the LLC take action before filing suit, such allegations are insufficient to satisfy the statute’s pre-suit demand requirement. Al-Hassan v. Salloum, 2020 NCBC 14 (J.Conrad). Without a proper demand, the member was […]
Where a business begins operations for the purpose of hiring away employees and winning business from another, the new company might not be a “competitor” for purposes of certain legal claims. Med1 NC Services, LLC v. Med1 Plus, LLC, et al. 2020 NCBC 15 (J.McGuire). Because the plaintiff’s […]
Phil Mohr authors the North Carolina Business Court Report, crafting engaging posts discussing how recent decisions from the North Carolina Business Court impact companies doing business in North Carolina. He is a Partner at Womble Bond Dickinson (US) LLP.
North Carolina Business Court Report 