Three managers of two LLCs found themselves up a creek without operating agreements. They couldn’t agree on the ownership shares of one of them, and two of the managers thought
Continue Reading Three’s a Crowd: More LLC Managers, Less Clarity
A(nother) Cautionary Tale on the Importance of Operating Agreements
By Jeff MacHarg and Camryn Rohr
To practitioners familiar with internal disputes involving closely held companies, the allegations in Lafayette Village Pub, LLC v. Burnham, 2025 NCBC 8, are
Continue Reading A(nother) Cautionary Tale on the Importance of Operating Agreements
JNOV is a Tough Road, but it’s Not a One in a Million Shot
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
Continue Reading JNOV is a Tough Road, but it’s Not a One in a Million Shot
When Employees Become Competitors, NC Business Court Keeps a Careful Watch on Disturbances in Marketplace Force
Joshua Langley worked for Autocraft, Inc. for more than five years and rose to have wide access to its business affairs and “substantial responsibility for its overall operations.” While still
Continue Reading When Employees Become Competitors, NC Business Court Keeps a Careful Watch on Disturbances in Marketplace Force
In Planning a Law Firm Exit, Business Court Commends Attention to the Things that Go Unspoken
A Charlotte area law firm alleged it struck a necessary, and rather ordinary, deal with departing partners to divide fees on contingent cases transitioning among firms based on time expended
Continue Reading In Planning a Law Firm Exit, Business Court Commends Attention to the Things that Go UnspokenCorporate Director Duty to at Least “Try” to Carry Out Oversight Functions May Soon Extend to Company Officers
Just last year, in assessing the extent to which a director has a duty to oversee a corporation’s business affairs, the Business Court noted the “limited guidance” afforded by state
Continue Reading Corporate Director Duty to at Least “Try” to Carry Out Oversight Functions May Soon Extend to Company OfficersWho Holds an LLC’s “Cards”?
Business Court Probes Gray Areas Between “Control” and “Opportunity”
Mary Hartsell is a nurse practitioner who joined Mindpath Care Centers, North Carolina, PLLC in April 2001 as a member, minority
Continue Reading Who Holds an LLC’s “Cards”?Sex Toy Titan Sues Estate of Founder to Compel Redemption of Shares Whose Value May Exceed $60 Million
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
Continue Reading Sex Toy Titan Sues Estate of Founder to Compel Redemption of Shares Whose Value May Exceed $60 MillionPatient’s Second “Injury” – Billing for Medical Care
Claims not Within Physician-Patient Relationship, Court says, but also are “Entwined with” and “Directly Tied” to Care
Charles McNew was injured in a fall at his home in June 2021
Continue Reading Patient’s Second “Injury” – Billing for Medical CareMinority Shareholders can “Follow the Money” Linked To Alleged Diversions by Majority for Phantom Salaries and Benefits
The minority shareholders of a podiatry practice felt like they had been kicked around by the alleged financial misadventures of two colleagues who together controlled an 80 percent interest. A
Continue Reading Minority Shareholders can “Follow the Money” Linked To Alleged Diversions by Majority for Phantom Salaries and Benefits