News & Analysis as of

Fiduciary Duty Business Court

Fox Rothschild LLP

JNOV is a Tough Road, but it’s Not a One in a Million Shot

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A party seeking to unseat a verdict by JNOV “bears a heavy burden under North Carolina law.” Only a “scintilla of evidence” is needed to support the elements of the prevailing claim. But as the Business Court reminded in...more

Fox Rothschild LLP

Sex Toy Titan Sues Estate of Founder to Compel Redemption of Shares Whose Value May Exceed $60 Million

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When Philip Harvey died in December 2021 he owned more than 400 shares of common capital stock in PHE, Inc., a Hillsborough, North Carolina-based business that sells sexual wellness products and sex toys through a website and...more

Fox Rothschild LLP

Patient’s Second “Injury” – Billing for Medical Care

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Charles McNew was injured in a fall at his home in June 2021, and subsequently treated at the Fletcher Hospital emergency room in Hendersonville, North Carolina. Three months later he claims to have suffered an injury of a...more

Smith Anderson

North Carolina Business Court Clarifies Corporate Director Duties of Care

Smith Anderson on

The North Carolina Business Court recently issued a lengthy opinion discussing the duties of corporate directors. Key points include: ..Directors comply with their duty to exercise adequate oversight if the board makes a...more

Fox Rothschild LLP

No Harm, No Foul

Fox Rothschild LLP on

Longtime college basketball commentator Billy Packer is credited with one of the better Yogi Berra-isms in NCAA hoops lore: “This is going to be a long three minutes here.” And that’s about how long it took for litigation...more

Holland & Knight LLP

Holland & Knight's China Practice Newsletter: January-February 2022

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Holland & Knight invites you to read our China Practice Newsletter, in which our authors discuss pertinent Sino-American topics. HIGHLIGHTS: ...Patterns of Trade Secret Issues ...Fiduciary Responsibilities When...more

Fox Rothschild LLP

In A Church Divided, Secular Courts Have Limited Tools To Rejoin What A Congregation Has Put Asunder

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Discord within a faith community comes with all the challenges of a secular dispute, but carries with it the special responsibility that members of a congregation share in a collective spiritual undertaking. Yet, there are...more

Womble Bond Dickinson

Even Breach of Fiduciary Duty Claim May Be Barred By the Economic Loss Rule

Womble Bond Dickinson on

While one party may owe a fiduciary duty to another outside of their contract, the Business Court will nonetheless examine the damages the plaintiff seeks from each and every claim. Perry v. Frigi-Temp Frigeration, Inc., 2020...more

Ward and Smith, P.A.

NC Business Court Clarifies Exception to Rule that LLC Members Do NOT Owe Fiduciary Duties to One Another

Ward and Smith, P.A. on

One of the hallmarks of limited liability companies ("LLCs") is that members of an LLC ordinarily do not owe fiduciary duties to each other or to the company itself.  Generally speaking, a fiduciary duty is an obligation...more

Womble Bond Dickinson

Someone Steal Your Confidential Information? You Might Just Be Out Of Luck

Womble Bond Dickinson on

Where a business alleges that a former employee stole its confidential information and gave it to a competitor which then used it to compete, the business has no claim for unjust enrichment against the former employee or...more

Brooks Pierce

NC Business Court Deals With “Unclean Hands”

Brooks Pierce on

The Business Court Opinion last month in Shaw v. Gee, 2018 NCBC 108, deals with two interesting trial procedure issues: how to preserve all your arguments for making motions for judgment not withstanding the verdict and for a...more

Brooks Pierce

"Holding All The Cards" And Fiduciary Duty Claims

Brooks Pierce on

It is hard to base your case on a breach of fiduciary duty when there is a contract in place between the parties. Contracting parties owe no special duties to each other beyond the terms of the contract. ...more

Butler Snow LLP

The Tennessee Business Court Clarifies Fiduciary Duties of LLC Members

Butler Snow LLP on

In a recent opinion, decided 12/22/15, the Tennessee Business Court clarified the circumstances under which members of a Tennessee limited liability company owe fiduciary duties to one another. In Ewing v. Miller, Case No....more

Brooks Pierce

Is It Better To Be A LLC Member In The Minority Than A Minority Corporate Shareholder?

Brooks Pierce on

It is pretty common to think that limited liability company members have similar rights as shareholders in a corporation. But they don't, (although in some respects the rights afforded to LLC members may be better). The...more

Brooks Pierce

The Business Court Rules Again On Claims Under The North Carolina Securities Act

Brooks Pierce on

Last week's decision in Atkinson v. Lackey, 2015 NCBC 13 doesn't tell you everything you wanted to know about the North Carolina Securities Act (the "NCSA"), but it comes pretty close. The lawsuit was brought by three...more

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