News & Analysis as of

Limited Liability Company (LLC) Business Court

Fox Rothschild LLP

Wide Access for Inspecting LLC’s Records has Narrow, but Crucial, Guideposts

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As a matter of business hygiene, North Carolina’s records inspection statute is a bit of an information ATM. But the Business Court recently cautioned that a requester still has to press the right buttons. In Extra Care, LLC...more

Fox Rothschild LLP

Business Court Gives Maggie Valley’s Ghost Town in the Sky More Time to Scare up Some Investors

Fox Rothschild LLP on

A member seeking to dissolve an LLC which owns a mothballed amusement park in Maggie Valley, North Carolina, didn’t have a “ghost of a chance” to close out a struggling, yet functional, company. In McClure v. Ghost Town in...more

Fox Rothschild LLP

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

Fox Rothschild LLP on

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

Williams Mullen

North Carolina Business Court’s Recent Opinions on Advancements and Indemnification for Company Officials

Williams Mullen on

Serving as a company official—whether an LLC manager or an officer or director of a corporation—can sometimes be a risky prospect. Company officials on occasion find themselves at the center of complex litigation solely...more

Fox Rothschild LLP

Friends, Family, and Partnerships: a Litigation Tale as Old as Time

Fox Rothschild LLP on

“Ray Reason, along with his aunt and uncle, decided to go into business with Gerald Barfield, a family friend who was a real estate developer.” When that’s a line in a holiday card letter of how the year went, it...more

Womble Bond Dickinson

Putting Things Off Until Tomorrow May Preclude Claims Later

Womble Bond Dickinson on

Where the operating agreement failed to define what constituted “cause” to enable the involuntary withdrawal of a member, there was no “meeting of the minds” as to that contract term. Epic Chophouse, LLC v. Morasso, 2020 NCBC...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

Fox Rothschild LLP

Derivative Claim Boots Are Made For Walking, Business Court Says, But Only When An LLC Leaves Them On The Rack.

Fox Rothschild LLP on

"Before you judge a man, walk a mile in his shoes. After that who cares? He’s a mile away and you’ve got his shoes! -Billy Connolly, Scottish comedian, shoe sage. The N.C. Business Court might not be your first stop for...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

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

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