North Carolina Business Litigation Report

Schlieper v. Johnson, 2007 NCBC 29 (N.C. Super. Ct. Aug. 31, 2007)(Tennille)

The Court held that the plaintiffs could not state a claim for fraud because neither of them took advantage of their opportunity to investigate the facts presented to them or to seek clarification, and there was no allegation that they had been denied the opportunity to investigate.

Plaintiffs also had no claim for unfair and deceptive practices, because their claims were not "in or affecting commerce." Their claims were essentially a dispute over compensation due to them as employees under the terms of various documents that governed their relationship with their employer." Employee-related claims are generally not within the scope of the deceptive trade practices statute, with minor exceptions that were discussed and distinguished by the Court.

The Court held that the unfair and deceptive practices statute is not meant to apply to the internal affairs of business associations.

Full Opinion

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Mack Sperling
Brooks Pierce, LLP
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