North Carolina Business Litigation Report

New Cases In The North Carolina Business Court: August 2009

Six new cases were designated to the Business Court in August 2009, including a case seeking class certification over charges for medical records (Toney), and a shareholder dispute pitting a father against his son (Shallcross).

Moltzon v. King (Wake)(Tennille): minority shareholder dispute in which plaintiff alleges the defendants breached their fiduciary duties by starting a competing business and forcing him out.

Oak-Bark Corp. v. French (New Hanover)(Tennille); Action by plaintiff against former employees for breach of restrictive covenants and misappropriation of trade secrets.

Shallcross v. Shallcross (Wake): Plaintiff, 89 years old and legally blind, sued his son to invalidate an irrevocable proxy allowing the son to vote his father's shares. The father contends that the son misrepresented the nature of the proxy as being revocable.

Thompson v. Manuel (Rowan)(Tennille): allegations regarding breach of partnership agreement, breach of fiduciary duty, alter ego, and accounting.

Toney v. IOD Inc. (Wake)(Jolly): Class action against a company which provides copies of medical records, for which Plaintiffs allege it overcharged in violation of North Carolina state law.

Williams v. McAlpine (Union)(Diaz): Securities claim by investor based on alleged misrepresentations as to defendant homebuilder's financial strength, contention that officers and members of LLC defendants are personally liable.

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Mack Sperling
Brooks Pierce, LLP
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