North Carolina Business Litigation Report

Johnson v. Johnson, August 21, 2007 (Tennille)(unpublished)

A case does not have to be "complex" in order to qualify for the Business Court's mandatory jurisdiction.  In Johnson v. Johnson, the Court held that:

Plaintiff argues that the legal issues in this matter are not so complex as to warrant Rule 2.1 designation. Yet complexity or the lack thereof is not an issue under section 7A-45.4. Section 7A-45.4 simply requires that the action involves a material issue related to at least one of six subjects, including “[t]he law governing corporations” and “issues concerning governance” and “breach of duty of directors.” N.C. Gen. Stat. § 7A-45.4(a)(1) (LEXIS through 2007 legislation).

The Complaint in this case alleges, among other things, that Defendant breached his fiduciary duties as a shareholder, director, and officer of a closely held corporation. Since this matter involves material issues related to corporate law and breach of fiduciary duty, Plaintiff’s objection is overruled.

Full Opinion

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Mack Sperling
Brooks Pierce, LLP
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