In S&S Family Business Corp., et al. v. Clean Juice Franchising, LLC, the North Carolina Court of Appeals addressed the impact of a forum selection clause in a business contract. A forum selection clause is a contractual provision that, if enforceable, designates a particular state or court to bring any litigation between the parties. In most instances, a forum selection clause can be mandatory – the parties must litigate disputes in the forum provided in the clause. Factual History Clean Juice Franchising, LLC (“Clean Juice”) entered a multi-unit agreement (the “Multi-Unit Agreement”) with S&S Family Business Corp. (“S&S”) to franchise at least three Clean Juice stores. The Multi-Unit…
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INTERSAL, INC. v. SUSI H. HAMILTON, et al.: a Separate Battle over Pirates and Treasure
In another case distinct from last week’s shipwreck blog post, salvage company Intersal, Inc. (“Intersal”) seeks to overturn a decision in favor of the North Carolina Department of Natural and Cultural Resources (the “NCDNCR”), the Secretary for the NCDNCR, the State of North Carolina, and the now-dissolved non-profit company Friends of Queen Anne’s Revenge (“FQAR”). Unlike the previous blog post, which addressed alleged copyright infringement, the litigants to the instant dispute are debating the enforceability of two contracts between the parties, whether the NCDNCR breached those contracts, and whether FQAR induced NCDNCR’s alleged breach. The Permits In 1994, the NCDNCR granted two permits to Intersal to search for…
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EMI DOESN’T LOVE KANYE LIKE KANYE LOVES KANYE
Recording artist Kanye West and music publisher EMI are currently embroiled in dueling lawsuits with each other regarding an alleged breach of West’s co-publishing contract with EMI. West, who filed a complaint against EMI in court in California, asserts that California law should govern the terms of the contract. He also asserts that the contract amounts to a contract for personal services that began in 2003, thus violating a California statute that limits personal services contracts to seven years or less. Conversely, EMI filed a complaint in New York, asserting that New York law governs due to the choice of law provision in the contract. EMI also asserts that West’s…
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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 a stock purchase agreement. The agreement contains a provision mandating arbitration as to “any claim, controversy, or other matter in question based upon, arising out of, or otherwise in respect of this Agreement.” The agreement further specifies: “[i]t is the desire and intent of the Parties that such arbitration be held without any discovery,…
