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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EPIC GAMES EMPLOYEE ALLEGEDLY LEAKS EPICLY SECRET DETAILS ABOUT FORTNITE CHAPTER 2
North Carolina-based Epic Games filed a lawsuit over the alleged leak of secret information related to Fortnite Chapter 2. The company claims employee Ronald Sykes violated the terms of a non-disclosure agreement by sharing information related to the new game, including new game-play features and a virtual map of the fictional game universe, prior to its public release. The success of Epic Games’ claims will primarily hinge on whether the non-disclosure agreement is enforceable and whether the allegedly leaked information constituted protected trade secrets. Non-Disclosure Agreements A non-disclosure agreement (“NDA”) is a contract, or part of a contract, that prohibits one or more parties from disclosing certain confidential…
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Can North Carolina Employers Compel Drug Testing and DNA Testing?
In December 2018, a Phoenix, Arizona woman, who spent the last fourteen (14) years in a coma, gave birth to a healthy baby. A police investigation concluded that, while in her comatose state, she had been raped multiple times. The staff at the healthcare facility where she was a patient stated that no one knew she was pregnant until she went into labor. In response to a search warrant issued to the employer, the employer requested that all male employees provide a DNA sample to determine whether the individual who impregnated the woman was a staff member. Without question, the facts of this investigation are shocking. However, it does…
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A Beginners Guide to Arbitration – Part 2 Pros and Cons of Arbitration
Our June 11th blog post broadly discussed arbitration and the upward trend of including mandatory arbitration clauses in agreements. This week, we analyze the pros and cons of arbitration to elucidate when arbitration clauses are useful and when they are potentially harmful. In arbitration, individuals and entities bring legal claims against one another outside the public court system. Although many aspects of arbitration are similar to a civil court trial, arbitration has a number of key differences. Pros Speed – Arbitration is generally faster than litigation. Whereas litigation often takes years, the arbitration process may only take a few months. However, arbitration can take longer when there are…
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Stormy Daniels and Uber: How Nondisclosure Agreements Affect Your Rights
Lately the term “non-disclosure agreements” (or “NDAs”) have inundated the news. These secretive agreements are now forefront in headlines about Stormy Daniels’ alleged affair with President Trump and Uber’s evolving corporate culture in response to claims of sexual harassment and discrimination. This has left many non-lawyers wondering: why do parties enter non-disclosure agreements and how do these agreements work? NDAs are contractual agreements designed to keep specified information confidential. Such agreements list and/or describe the information prohibited from disclosure and the punishment for disclosing such information, often, a large sum of money known as liquidated damages. Generally, parties are free to enter a non-disclosure agreement regarding any information, except that…
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Stormy Daniels and Uber: How Nondisclosure Agreements Affect Your Rights
Lately the term “non-disclosure agreements” (or “NDAs”) have inundated the news. These secretive agreements are now forefront in headlines about Stormy Daniels’ alleged affair with President Trump and Uber’s evolving corporate culture in response to claims of sexual harassment and discrimination. This has left many non-lawyers wondering: why do parties enter non-disclosure agreements and how do these agreements work? NDAs are contractual agreements designed to keep specified information confidential. Such agreements list and/or describe the information prohibited from disclosure and the punishment for disclosing such information, often, a large sum of money known as liquidated damages. Generally, parties are free to enter a non-disclosure agreement regarding any information, except that…
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Harper Lee’s Estate Sues Aaron Sorkin’s Production of “To Kill a Mockingbird”: When Can Estates Sue and Be Sued?
Famed Hollywood writer, director, and producer Aaron Sorkin is on the defending end of a lawsuit brought by Harper Lee’s estate. The estate alleges that his adaptation of the Pulitzer prize-winning “To Kill a Mockingbird” strays too far in the story and the development of some key characters from the original 1960 best selling book. In case you haven’t read it (spoiler alert), “To Kill a Mockingbird” is a favorite among attorneys and the general public alike. At its heart, it is the story of a wrongfully accused African-American man in 1930s Alabama. With prominent local attorney Atticus Finch as his defense counsel, both men struggle with the prejudice and…
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Grumpy Cat Is Not As Grumpy After $710,001 Verdict
We all know Grumpy Cat. She rose to internet fame in 2012 as a meme that swept not only the nation, but the world. With her tiny little scowl, she stole the hearts of millions and even has a wax likeness displayed at Madam Tussaud’s Wax Museum in San Francisco. The six-year-old cat’s real name is Tardar Sauce (sic) and she and her owner, Tabatha Bundesen are $710,001 richer thanks to a court’s ruling regarding copyright and trademark infringement. In 2013, following closely on the tails of Grumpy Cat’s meteoric rise to notoriety, the owners of Grenade Beverage struck a licensing deal to sell a line of iced…
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The Purpose of Non-Disclosure Agreements and How They Could Fail Harvey Weinstein
What happens when you violate a non-disclosure agreement? Are there any circumstances in which is permissible to violate one without consequences? What are non-disclosure agreements even for? What does everyone have to hide? Non-disclosure agreements are a way for businesses or individuals to protect confidential information given to their employees or other parties. They can also be called “confidentiality agreements” or simply “NDAs.” At Lindley Law, all employees sign a confidentiality agreement with respect to client information. In addition to attorney-client confidentiality, it is important to the attorney-client relationship that we maintain confidentiality so as to not compromise or prejudice our clients in any way. Other companies, such…
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The Importance of Being Earnest: Contracts Edition
Most people don’t like reading contracts and it’s no surprise why. They are usually boring, wordy, and full of legalese that can be difficult to understand. Reading them requires an attention span longer than most of us have and it’s easier to just sign on the dotted line rather than slog through each of the terms and determine whether they are agreeable. If a person does not make a living as a general contractor, wedding photographer, or any profession that signs contracts with clients on a regular basis, they may not realize how important a contract is. At it’s very core, a contract is an agreement defining the rights…
