Section 75-1.1

News & Analysis as of

Federal Opinion Lays Out Categories of Unfair-Trade-Practice Claims

That five-category structure has now appeared in a judicial opinion for the first time, thanks to a recent opinion from Judge Louise Flanagan of the U.S. District Court for the Eastern District of North Carolina....more

Can Contract Ambiguity Cause Liability for Unfair Trade Practices?

Most of the time, a contract breach—even if intentional—does not violate N.C. Gen. Stat. § 75-1.1. A contract breach, however, can turn into a 75-1.1 violation if the breach is accompanied by “substantial aggravating...more

When Is a Breach of a Covenant Not to Compete Also Unfair or Deceptive?

Next Monday, August 31, the North Carolina Supreme Court will hear arguments in an important business-versus-business case. Beverage Systems of the Carolinas v. Associated Beverage Repair (No. 316A14) includes two...more

Claims for Deceptive Practices Must Now Be Alleged in Detail (at Least in Federal Court)

A federal court in North Carolina has held that certain claims under N.C. Gen. Stat. § 75-1.1 require especially detailed allegations. This groundbreaking decision will have major consequences for plaintiffs who pursue 75-1.1...more

Unfinished Negotiations Might Generate Treble Damages

The North Carolina Business Court has recognized a new type of claim: a claim for failing to negotiate in good faith. Raising the stakes further, the court has held that failing to negotiate in good faith could lead to treble...more

Mortgage Servicing and Unfair Trade Practices

When can mortgage servicing and related debt-collection activities violate N.C. Gen. Stat. § 75-1.1? Two recent cases provide some answers....more

More Developments on Section 75-1.1 and the Economic-Loss Rule

Our appetites, of course, are always whetted when section 75-1.1, the economic-loss rule, and the “substantial aggravating circumstances” doctrine intersect....more

The UNC Former Student-Athletes’ Litigation: The Defense Enters the Field

We wrote last month about the lawsuit filed against the University of North Carolina and the NCAA by former UNC student-athletes Rashanda McCants and Devon Ramsey....more

Litigating Injury in a 75-1.1 Case: The 12(b)(1) vs. 12(b)(6) Distinction

In cases under N.C. Gen. Stat. § 75-1.1, it’s important to distinguish arguments under Rule 12(b)(1) from arguments under Rule 12(b)(6). On a Rule 12(b)(6) motion to dismiss for failure to state a claim, a court generally...more

Section 75-1.1 and Out-of-State Injuries Based on In-State Conduct

In earlier posts, we have discussed the two-part test that courts use to assess whether section 75-1.1 applies to out-of-state conduct. First, the plaintiff must suffer an injury in North Carolina....more

Reflections and Gratitude

We started this blog about eight months ago. We did so because of the prevalence of section 75-1.1 claims in North Carolina business disputes. Indeed, it’s the unusual business dispute in North Carolina that does not include...more

HAMP and Section 75-1.1, Part 2

In yesterday’s post, we discussed when a lender’s failure to comply with guidelines under the federal Home Affordable Mortgage Program (HAMP) might violate N.C. Gen. Stat. § 75-1.1 as well. We analyzed a very recent federal...more

HAMP and Section 75-1.1, Part 1

In a recent article, Matt Sawchak explained per se violations of section 75-1.1. When courts recognize a per se violation of section 75-1.1, they are saying that violating a separate source of law—a separate statute, a...more

An Embarrassment of Riches: North Carolina Law Review Features Two Articles on Section 75-1.1

The Chief Justice of the United States recently criticized modern law reviews with these memorable words: “Pick up a copy of any law review that you see. The first article is likely to be, you know, the influence of Immanuel...more

Business Court Judges Explain Section 75-1.1

In my research for this blog, I recently found a June 2006 presentation on section 75-1.1 by Judges Al Diaz and John Jolly. This presentation occurred when Judge Diaz and Judge Jolly were serving together on the North...more

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