While many people recognize the term “power of attorney,” most do not know how to create a valid power of attorney or choose between the various considerations. It is important to prepare safeguards to protect current and future assets long before one faces severe illness or incapacity. A power of attorney is a straightforward and relatively inexpensive document to prepare, compared to the time and expenses that may be incurred if a court is required to settle family disputes or appoint a guardian in the absence of an instructive document. Put simply, a power of attorney is a legal…
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North Carolina Business Court Recognizes New Duty to Negotiate in Good Faith
While North Carolina has never recognized a fiduciary relationship between lenders and borrowers, in June the North Carolina Business Court did recognized a new cause of action: breach of a duty to negotiate in good faith.[1] The Court confined its decision to the particular facts present in the case, leaving many questions unanswered regarding this type of claim. BB&T gave two loans totaling $5.275 million to an experienced real-estate developer. BB&T and the client had a long (30 year) borrower-lender relationship, which the Court characterized as “multifaceted and unique.”[2] The loans needed restructuring, so BB&T and the borrower spent over eight (8) months extensively negotiating their terms. The negotiations…
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The Line Between Cyber-bullying and Freedom of Speech
The intersection of free speech and safety on social media has been a hotly debated topic for many years. Because cyber-bullying takes many different forms, it is difficult to define. While several states criminalize cyber-bullying, the language of these statutes vary greatly and are just recently being challenged under First Amendment grounds. In June, the North Carolina Court of Appeals upheld the state’s cyber-bullying statute over a First Amendment challenge.[1] This decision is noteworthy because it contrasts a 2014 New York Court of Appeals decision striking down an Albany County cyber-bullying statute.[2] While the statutory language of these cyber-bullying statutes differ to some degree, the respective state…
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Removal of Corporate Trustees in North Carolina
The landscape of the American economy changed dramatically in the last decade, particularly due to the 2008 financial crisis. America’s largest commercial banks were forced to sell assets, reorganize, shake-up top management positions, and/or close altogether. As a result, trusts managed by corporate trustees experienced high turnover among trust officials and changes in corporate ownership. While there are many advantages to hiring a corporate trustee, unsatisfied beneficiaries find it difficult to remove them, absent a flagrant breach of duty or express language in the trust document. While many corporate trustee relationships are positive, some beneficiaries become frustrated by a lack of control when confronted with mediocre…
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Fired for Discrimination Complaint: Wrongful Termination Suit Fails to Survive Motion to Dismiss
The North Carolina Court of Appeals recently affirmed a trial court’s decision to grant a motion to dismiss a lawsuit when the Plaintiff, Lisa Green-Hayes (“Green-Hayes”) failed to properly state a claim for retaliatory wrongful termination.[1] In her complaint, Green-Hayes alleged she was subjected to the “discriminatory employment practices and … attitude of [defendant]” when he refused to hire women for certain positions, paid women and minorities less than other employees, and told her not to hire women based on certain physical criteria. Green-Hayes argued she was terminated from her employment in reprisal for engaging in the protected activity of complaining to the Defendant, Handcrafted Homes, LLC (“Handcrafted…
