Arbitration Clause John C. Lindley III

North Carolina Business Court Enforces Arbitration Agreement Prohibiting Discovery, Live Testimony, and a Full Hearing

          In a January 2016 (unpublished) order, the North Carolina Business Court (NCBC) enforced a contract provision compelling arbitration and prohibiting any discovery prior to the arbitration.[1]             In Taggart v. Physicians Pharmacy Alliance, Inc., James Taggart sold his business, Physicians Pharmacy Alliance, Inc. (“PPA”), in Read More

employment agreement

North Carolina Business Court: Employment Agreements Automatically Terminate Upon the Sale of a Company

          A recent decision by the North Carolina Business Court held that an employment agreement automatically terminates upon the asset sale of one company to another, despite continued employment with the purchasing company.[1]          In 2001, Andrew Lund executed an employment agreement with his then-employer, Southern Staircases of Read More

employment agreement

North Carolina Business Court Weighs in on Enforceability of Non-Compete and Confidentiality Agreements Post-Merger

           It is well-settled law that adequate consideration is required to create binding restrictive covenants such as non-compete agreements.  Generally, such agreements are entered at the start of an employment relationship, and the new employment itself constitutes consideration.  In North Carolina, continued employment following a merger of two companies does not Read More

signing contract

NCBC: Fifty-Mile Customer Based Geographic Restriction Makes Non-Compete Agreement Unreasonable

           In August, the North Carolina Business Court (“NCBC”) determined a non-compete agreement was unreasonable because of its overly broad geographic restriction, and denied Plaintiff’s motion for preliminary injunction to prohibit a former employee from competing with it.[1]              In North Carolina, non-compete agreements are generally Read More

Symbol of law and justice in the empty courtroom law and justice concept.

Rule 11 Sanctions Imposed for Improper Breach of Fiduciary Duties Claims Against Rank-and-File Employees

           In September 2011, Southeast Air Charter, Inc. (“Southeast Air”) brought suit against three (3) employees (“Defendants”) alleging, among other things, breach of fiduciary duty and constructive fraud.   The North Carolina Business Court (“NCBC”) determined all defendants were rank-and-file employees of Southeast Air and therefore could not be subject to the Read More