Justia North Carolina Supreme Court Opinion Summaries

The Supreme Court affirmed the judgment of the trial court granting Defendants' motion for an award of attorneys' fees as part of their costs under N.C. R. Civ. P. 41(d) pursuant to N.C. Gen. Stat. 6-21.5 and the trial court's subsequent order awarding $599,262 in attorneys' fees as costs, holding that the trial court did not abuse its discretion.Plaintiffs, limited partners of the Fayetteville Ambulatory Surgery Center Limited Partnership (FASC), asserted five claims against Cape Fear Valley Ambulatory Surgery Center, LLC and its owner, Cumberland County Hospital System, Inc. Plaintiffs later voluntarily dismissed the case without prejudice. Defendants subsequently brought a motion for fees. The trial court granted the motion for attorneys' fees as part of Defendants' costs under Rule 41(d) pursuant to N.C. Gen. Stat. 6-21.5. The Supreme Court affirmed, holding that the trial court did not abuse its discretion granting the motion for attorneys' fees. View "Woodcock v. Cumberland County System, Inc." on Justia Law

The Supreme Court held that the Due Process Clause allows North Carolina courts to exercise personal jurisdiction over companies that received millions of dollars in assets by E.I. DuPont de Nemours and Company (Old DuPont) when the company, facing liability for releasing harmful chemicals into the North Carolina environment over a period of decades, underwent a significant corporate reorganization.North Carolina brought an action against Old DuPont and its corporate successors, asserting negligence, trespass, public nuisance, fraud, and fraudulent transfer related to Old DuPont's use of harmful chemicals at its Fayetteville Works plant and its subsequent reorganization to avoid liability. At issue was whether the Due Process Clause permits jurisdiction to be exercised over a corporate successor when the predecessor is subject to jurisdiction in the forum and state law subjects the successor to liability. The Supreme Court affirmed the business court's denial of Defendants' motion to dismiss, holding that personal jurisdiction could be established through the imputation analysis for all of the State's claims arising out of or related to Old DuPont's activities in North Carolina. View "State ex rel. Stein v. E.I. DuPont de Nemours & Co" on Justia Law

The Supreme Court affirmed the judgment of the trial court in this complex business dispute, holding that neither party successfully demonstrated a substantial right that had been affected or that an error likely occurred at the trial court.Plaintiff brought this complaint seeking a declaratory judgment setting forth his rights under an Employment Agreement and Level Four Holdings Agreements. Plaintiff also alleged claims for tortious interference with a contract against Penta Mezzanine SIBC Fund I, L.P. (Penta Fund), Seth Ellis, and Level Four SBIC Holdings. The trial court (1) determined it did not have subject matter jurisdiction over Plaintiff's declaratory judgment claim; (2) dismissed the tortious interference with contract claim against all defendants; and (3) denied motions to dismiss for lack of personal jurisdiction by Level Four Holdings and Ellis. The Supreme Court affirmed, holding that there was no error in the proceedings below. View "Button v. Level Four Orthotics & Prosthetics, Inc." on Justia Law

The Supreme Court affirmed the judgment of the business court determining the fair value of shares held by shareholders in Reynolds American Inc. (RAI), holding that the dissenters' challenges to the business court's judgment were without merit.RAI sought judicial appraisal after it was acquired by British American Tobacco. The business court determined that the $59.64 per share plus interest RAI paid the dissenters after they notified RAI of their intent to seek judicial appraisal equaled or exceeded the fair value of RAI shares as of the date of the merger and that no further payments to the dissenters was required. The Supreme Court affirmed, holding that the business court correctly concluded that the dissenters were paid fair value for their shares. View "Reynolds Am. Inc. v. Third Motion Equities Master Fund Ltd." on Justia Law

The Supreme Court reversed the order of the business court refusing to authorize the court-appointed receiver for the company A Perfect Fit For You, Inc. to pay fees to the law firm Womble Bond Dickinson (US), LLP for services rendered by Philip Mohr, one of the firm's attorneys, holding that the business court erred.The business court refused authorization solely on the basis of its conclusion that Mohr and the receiver had flagrantly disregarded requirements imposed by a previous court order establishing the process Womble and the receiver were required to follow when requesting authorization for fee payments. The Supreme Court reversed, holding that the business court (1) abused its discretion in denying authorization for the receiver to pay Womble fees incurred for Mohr's work; (2) erred in imposing monetary sanctions on Womble; and (3) erred in denying the receiver's request for permission to pay Womble's fee-litigation fees without making the necessary findings regarding the value to the receivership of the work that generated those fees. View "Bandy v. A Perfect Fit For You, Inc." on Justia Law

In this appeal arising from a dispute concerning the parties' respective membership interests in three related LLCs the Supreme Court affirmed in part and reversed in part the judgment of the trial court, holding that none of Defendants' challenges to the trial court's judgment and related orders had merit and that, with one exception, the same was true of Plaintiff's challenges to the judgment and orders.Plaintiff filed a complaint alleging claims for conversion, unfair and deceptive trade practices, unjust enrichment, a declaration that he continued to own interests in each of the LLCs and a claim seeking judicial dissolution of the LLCs. The trial court entered judgment in favor of Plaintiff as to certain claims and in favor of Defendants as to other claims. The parties cross-appealed. The Supreme Court affirmed, holding (1) the trial court erred in deciding to direct a verdict in favor of Defendants with respect to Plaintiff's claims related to Carolina Coast Holdings, LLC; and (2) the remaining claims on appeal were without merit. View "Chisum v. Campagna" on Justia Law

The Supreme Court modified and affirmed the decision of the Business Court dismissing Defendant's crossclaims against a co-defendant, holding that the Business Court correctly dismissed the crossclaims.This appeal arose from litigation between Kenneth Nelson, Alliance Hospitality Management, LLC, and Orlando Residence, Ltd. Orlando filed this lawsuit against Alliance and Nelson seeking recovery of funds that Alliance allegedly wrongfully transferred. Nelson, appearing pro se, filed a document in which he asserted eighteen crossclaims against Alliance seeking damages and various forms of equitable relief. The Business Court dismissed the claims asserted by Orlando and all of Nelson's crossclaims. Nelson appealed, arguing that the Business Court incorrectly ruled that a crossclaim asserted by one defendant against a co-defendant automatically ceases to be viable once the plaintiff's original claims against the defendants are dismissed. The Supreme Court agreed, holding (1) with the exception of certain crossclaims, the dismissal of the original action does not, by itself, mandate the dismissal of a crossclaim so long as the crossclaim meets the Rule 13(g) prerequisites for bringing such a claim; and (2) because res judicata barred Nelson's "qualifying claims," the dismissal of Nelson's remaining fifteen crossclaims was proper. View "Orlando Residence, Ltd. v. Alliance Hospitality Management, LLC" on Justia Law

The Supreme Court affirmed the decision of the Business Court in this action brought by Global Textile Alliance, Inc. (GTA) alleging that Defendants engaged in several improper acts during the formation and operation of Dolven Enterprises, Inc., holding that the Business Court did not abuse its discretion either by ordering production of the relevant communications or by conducting a limited review of those communications.When it was discovered that GTA had withheld confidential correspondence between GTA and its outside counsel and Haspeslagh conveying legal advice regarding the matters giving rise to the instant litigation Defendant filed a motion to compel GTA to produce the communications. Defendant argued that GTA waived the attorney-client privilege by including Stefaan Haspeslagh on communications with GTA's counsel. The Business Court granted the motion to compel. The Supreme Court affirmed, holding that the Business Court (1) did not abuse its discretion by determining that communications involving Haspeslagh were not privileged under the attorney-client privilege; (2) did not err in determining that communications involving Haspeslagh were not protected under the work-product doctrine; and (3) did not err by not conducting an exhaustive in camera review of all communications involving Haspeslagh. View "Global Textile Alliance, Inc. v. TDI Worldwide, LLC" on Justia Law

In this business case, the Supreme Court reversed the orders of the business court denying Plaintiffs' motion for default judgment based on its finding that Plaintiffs had failed to satisfy their burden of proving that the court possessed personal jurisdiction over Defendant, a nonresident company, holding that Defendant's contacts with North Carolina were sufficient to permit the exercise of personal jurisdiction over it in North Carolina state courts.In the complaint, Plaintiffs sought an injunction, in part, directing Defendant to turn over certain documents and information necessary for Plaintiffs to wind up the affairs of a limited-liability limited partnership. A default was entered against Defendant, but the business court denied Plaintiffs' motion for default judgment. The Supreme Court reversed, holding that Defendant had sufficient minimum contacts with this state such that a North Carolina court could constitutionally exercise personal jurisdiction over it. View "Beem USA Limited-Liability Limited Partnership v. Grax Consulting LLC" on Justia Law

In this action arising out of an alleged breach of a professional services agreement (PSA) between Vizant Technologies, LLC and YRC Worldwide Inc. the Supreme Court concluded that YRC's motion for summary judgment should be granted in part and denied in part, holding that partial summary judgment should be granted in YRC's favor on the issue of certain damages involving automated clearing house (ACH) batch payments.Vizant sought declaratory and injunctive relief against YRC as well as damages for breach of the PSA, claiming that it was owed outstanding fees for savings that YRC allegedly realized through successful efforts to pay using ACH rather than credit cards. Vizant argued that the PSA required YRC to pay a fee to Vizant because YRC realized savings as a result of the strategies identified by Vizant. YRC, however, argued that it did not owe Vizant a fee because Vizant's suggestions did not actually cause YRC to change business practices and realize savings. The Supreme Court granted in part and denied in part YRC's motion for summary judgment, holding (1) Vizant failed to produce evidence to support its claimed ACH damages; and (2) YRC's summary judgment motion is denied with regard to Vizant's breach of contract claim. View "Vizant Techs., LLC v. YRC Worldwide, Inc" on Justia Law