The recent North Carolina Court of Appeals decision in LaMarre v. Martinez addresses an action to quiet title between parties to a real property transaction. Specifically, the court provides guidance for determining the applicable statute of limitations. Actions to Quiet Title In North Carolina, an action to quiet title may be brought to determine the validity of adverse claims by multiple persons to an estate or an interest in real property. The court’s role in such actions is to determine the rightful owner to a particular piece of real property. Disputes over rightful ownership to real property often arise in the context of interfamilial transfers or transfers that…
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ENFORCING COVENANTS NOT TO COMPETE AGAINST DOCTORS: PUBLIC POLICY CONSIDERATIONS
The North Carolina Court of Appeals decision in Aesthetic Facial & Ocular Plastic Surgery Ctr., P.A. v. Zaldivar highlights the unique impact of public policy considerations when determining the enforceability of a non-compete agreement against a medical doctor. To what extent are such agreements enforceable? At what point does the concern for the health of the general public outweigh the interest in enforcing the specific terms of an employment contract? Elements to Determine the Enforceability of Non-Compete Agreements A non-compete agreement restricts a former employee’s ability to work for a competitor of, or otherwise compete with, the employer. They are frequently contained in employment contracts. North Carolina recognizes…
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NO MORE COURT TIME FOR JORDAN “JUMPMAN” COPYRIGHT DISPUTE
Is there a better time than March Madness to talk about basketball? The Ninth Circuit Court of Appeals recently affirmed the lower court’s dismissal of a claim by photographer Jacobus Rentmeester that sports apparel company Nike infringed a copyright owned by Rentmeester. The Plaintiff created this photograph – Michael Jordan airborne dunking a basketball – for a Life magazine article covering athletes who would soon feature in the 1984 Olympic Games. Jordan, then a student-athlete at the University of North Carolina, would go on to play for the United States Men’s Basketball Team in the Olympics that summer. Nike later utilized a similar photograph of Jordan to create its…
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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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IN THE MARKET FOR TRADE SECRETS
In early March, retail grocery store company Aldi, Inc. filed a lawsuit in the Eastern District of North Carolina against two former employees who joined rival company Lidl US. The two former employees, Bruna Maraccini and Colleen Savory, are named as Defendants in the complaint. Both were involved in the company’s real estate strategy and acquisition efforts, and are alleged to have misappropriated trade secrets of their former company for the benefit of their new company. The complaint also alleges that Ms. Maraccini, who was a director of real estate for North Carolina and Virginia while at Aldi, violated confidentiality, non-compete, and non-solicitation agreements by accepting a similar position with…
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Trustworthy Pets
Are you a cat person or a dog person? The truth is many of us love animals. In fact, approximately 68 percent of American households own at least one pet. In some of those households, care for a pet is part of the estate plan. Consider, for example, millionaire head of Chanel, Karl Lagerfeld, who is believed to have left a significant portion of his $195 million fortune to his cat, Choupette. Talk about the cat’s meow! Trust for the Care of an Animal North Carolina recognizes trusts created to care for an animal. Conversely, because North Carolina considers pets property, a pet cannot directly inherit money left to it…
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BREAKING THE (NEWS ABOUT) MOLD
Mold is a very serious issue. It can cause significant health effects or damage to personal property. As part of the obligation to provide and maintain habitable premises, North Carolina requires landlords to respond to complaints of mold in a reasonable period of time depending on the severity of the condition. However, North Carolina takes a markedly different approach to the disclosure of the presence of mold by the landlord to the tenant. No Affirmative Disclosure Obligation Although a landlord may face potential liability, including rent abatement, for failing to respond in a reasonable period of time to complaints of mold, neither federal nor North Carolina statutes create an affirmative…
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Aunt Bee Trust Fund
Many remember the fictional town of Mayberry, the setting for The Andy Griffith Show. Less commonly known, however, is that Mayberry is modeled after Mt. Airy, a small North Carolina town near the Virginia boarder. Frances Bavier, the actress who portrayed Aunt Bee Taylor in the hit television show, recently passed away, and spent the last years of her life in Siler City, another small North Carolina town. Perhaps owing to a soft spot she felt for police officers due to her time on The Andy Griffith Show, Ms. Bavier established a trust with $100,000 in principal to ensure that every member of the Siler City police would enjoy a…
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OPPOSING COUNSEL, WILL YOU BE MY VALENTINE?
The North Carolina Bar released Proposed 2019 Formal Ethics Opinion 3 in January, addressing questions relating to intimate relationships between opposing counsel. The question presented is whether it is permissible for a prosecutor and a criminal defense attorney to engage in a romantic relationship while serving as opposing counsel in multiple cases, and whether the attorneys are obligated to disclose this relationship. Due to concerns regarding actual or potential conflicts of interest, the Bar opines that it is permissible only under certain limited circumstances. The North Carolina Rules of Professional Conduct North Carolina attorneys are governed by the North Carolina Rules of Professional Conduct. As a basis for the proposed…
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Testamentary Capacity and Undue Influence
In 2015 and 2016, media magnate Sumner Redstone amended his trust, which was challenged by former companion Manuela Herzer. A California court recently ruled that Mr. Redstone possessed the required mental capacity to amend his estate plan. In North Carolina, whether an individual is a billionaire business mogul or anyone else, the requirements for testamentary capacity, or the required mental capacity to create a will or a trust, is the same. Testamentary Capacity To have testamentary capacity a person must be “of sound mind, and 18 years of age or over[.]” In practice, this means that the person creating the will, otherwise known as the testator, must be able to…
