The Court dismissed non-contract claims in a dispute between physicians who were parties to Professional Services Agreements. The Court held, based on established North Carolina law, that "a tort action does not lie against a party to a contract who simply fails to properly perform the contract, even if that failure to properly perform was due to the negligent or intentional conduct of that party, when the injury resulting from the breach is damage to the subject matter of the contract. It is the law of contract . . . which defines the obligations and remedies of the parties in such a situation."

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