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North Carolina
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August 07, 2024
Fintech Firm Says Plaintiff Is 'Forum Shopping' With NC Suit
Fintech company Figure Lending is urging a North Carolina federal judge to toss a proposed class action over its home equity lines of credit, saying the plaintiff who brought the case is forum shopping with insufficient claims that have been dismissed in other courts.
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August 07, 2024
Pipe Co. Exec Says Criminal Antitrust Charges Unconstitutional
A former executive of an aluminum pipe company defending the Fourth Circuit's reversal of his bid-rigging conviction has told the U.S. Supreme Court to rule that all criminal antitrust prosecutions under Section 1 of the Sherman Act are unconstitutional, claiming they violate "fundamental constitutional principles" of nondelegation and objectivity.
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August 07, 2024
Tennis Player Says NCAA Prize-Money Ban Causes Real Harm
In a blistering response to the NCAA's defense of its ban on college athletes receiving prize money in non-collegiate competition, college tennis player Reese Brantmeier pointed to the contrast between the ban and new policies allowing name, image and likeness compensation, saying the disparity in rules "strains credibility."
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August 07, 2024
NC Hospital Can't Avoid Doc's False Report Claims
A North Carolina federal court should only throw out part of a doctor's lawsuit alleging his former employer made a false report to a federal oversight board about an internal investigation, a magistrate judge has recommended, reasoning that the physician plausibly claimed his reputation and business prospects were harmed.
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August 07, 2024
NC Biz Court Bulletin: The Battles Making Summer Sizzle
A 1983 championship basketball team's intellectual property rights and a public feud between Cadwalader Wickersham & Taft LLP and its insurer are among the legal battles that have kept North Carolina Business Court judges and Tar Heel state private practice attorneys busy this summer. In case you missed those and others, here are the highlights.
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August 07, 2024
3 Firms Steer $405M G1-Pharmacosmos Pharma Deal
G1 Therapeutics Inc., a North Carolina-based developer of cancer therapies, has agreed to sell the business to the U.S. subsidiary of Denmark's Pharmacosmos A/S, for approximately $405 million, the companies said Wednesday.
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August 07, 2024
Pool Co. Can't Get Atty Fees After Losing False Ads Trial
A pool parts supplier on the hook for a $16 million false advertising and unfair business practices judgment isn't entitled to attorney fees in the case, a North Carolina federal judge has ruled, finding there's "no question" the winning party is its opponent given the eight-figure damages award.
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August 07, 2024
4th Circ. Revives Sex Bias Suit Over Workplace Romance Row
The Fourth Circuit reopened a former salesperson's lawsuit alleging a wine and spirits distributor fired her because she rejected the owner's sexual advances after they broke up, saying a trial is needed to delineate when the relationship ended.
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August 06, 2024
4 Takeaways From Landmark Google Search Ruling
A landmark ruling in D.C. federal court Monday found that Google illegally maintains its search engine monopoly, and experts say the case could have broad implications for the company as well as the wider internet and shows how existing antitrust laws can apply to modern technology.
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August 06, 2024
Cadwalader Slams Lloyd's For 'Needless' Disclosure, Mockery
Cadwalader Wickersham & Taft LLP has opposed a bid by a Lloyd's of London syndicate to unseal the law firm's complaint seeking $1 million of coverage for a November 2022 data breach, telling the North Carolina Business Court that Lloyd's has chosen to "mock and insult their own customer" while exposing confidential information in its filing to the court.
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August 06, 2024
NC Hospital Gets New Shot At Emergency Dept. Plan Approval
A state appellate panel on Tuesday unraveled a decision overturning approval for a freestanding emergency department in rural North Carolina, ruling that an administrative law judge misapplied precedent when deciding whether a state agency's failure to hold a public hearing prejudiced the decision-making process.
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August 06, 2024
NC Farming Business Wants H-2A Forced Labor Claims Cut
Farming companies accused of human trafficking, forced labor and underpaying H-2A foreign temporary workers have urged a Virginia federal judge to dismiss the workers' suit, saying they failed to show the companies brought them to the U.S. for "involuntary servitude."
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August 06, 2024
NC Panel OKs Short-Term Rentals In Luxury Home Community
A North Carolina state appeals court on Tuesday upheld a ruling that an Asheville-area neighborhood's ban on short-term rentals is unreasonable, finding the community's covenants don't explicitly outlaw that type of real estate arrangement.
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August 06, 2024
NC Panel Says $40M Award Fitting For Drunken Driving Crash
A North Carolina state appeals court on Tuesday refused to vacate a $40 million verdict against a drunken driver and the owner of a car involved in a fatal head-on collision, saying there's no reason to disturb what it described as the largest drunken driving verdict in the state's history.
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August 06, 2024
Lowe's Must Face Retail Logistics Co.'s Software IP Suit
Lowe's Home Centers LLC lost its bid to dismiss a retail logistics company's claims it ripped off a merchandise return management software and breached its contract with that software's manufacturer, with a North Carolina federal judge declining to fully toss any of the claims but flagging that some contradicted each other.
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August 06, 2024
NC Software Execs Can't Unravel Payroll Tax Fraud Conviction
Two former software executives found guilty of failing to pay over $600,000 in employment taxes failed to clear a steep hurdle in trying to reverse their convictions, a North Carolina federal judge said in rejecting their bid for acquittal or a new trial.
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August 05, 2024
FTC Says Syngenta 'Distorts' Info Rules In Competition Case
The Federal Trade Commission is urging a North Carolina federal court to force Syngenta Corp. to produce documents in a lawsuit accusing the chemical maker and Corteva Inc. of suppressing competition from cheaper generic pesticides, emphasizing that the information is relevant to the case despite Syngenta's contentions to the contrary.
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August 05, 2024
Abandoned Gas Wells Class Action Survives 4th Circ. Battle
The Fourth Circuit on Monday rejected EQT Corp.'s and Diversified Energy Co.'s efforts to evade a proposed class action filed by West Virginia property owners who allege they've been harmed by abandoned oil and gas wells.
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August 05, 2024
BofA Can't Get 4th Circ. To Look At Collective Cert. Process
A collective of mortgage loan officers seeking unpaid overtime won't land in front of the Fourth Circuit, a North Carolina federal judge ruled Monday, turning down Bank of America's bid to sort out which method to use for certifying collectives.
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August 05, 2024
NC Cigarette Co. Challenges $11M In Denied Drawback Claims
A North Carolina-based cigarette distributor is challenging a decision by U.S. Customs and Border Protection in which its request for more than $11 million in drawback duties on cigarette imports was denied, saying the refund claims were timely filed.
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August 05, 2024
4th Circ. Revives Duke Monopoly Suit, Orders New Judge
The Fourth Circuit on Monday revived Florida-based NTE Energy Services' lawsuit accusing Duke Energy of squeezing it out of the market in North Carolina, concluding that the lower court should have looked at the big picture of the allegations.
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August 05, 2024
USAA Agrees To $64M Settlement In Military Borrower Suit
USAA Federal Savings Bank will pay $64.2 million to end a proposed class action alleging it flouted federal laws protecting military borrowers, according to newly filed settlement documents in North Carolina federal court.
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August 05, 2024
Google Abused Monopoly Over Search Market, Court Finds
A D.C. federal judge ruled on Monday that Google is a monopolist in the general search market and has violated antitrust law by paying billions of dollars to make its search engine the default on devices made by Apple, Samsung and others.
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August 05, 2024
PE Firms Carlyle, Quantum Ink $3B Deal For US Power Co.
Houston-based Quantum Capital Group said Monday it has agreed to purchase Cogentrix Energy, a U.S. independent power producer, from Carlyle for about $3 billion.
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August 02, 2024
Ex-Exec Can't Escape Drug Co.'s Trade Secret Suit
The North Carolina Business Court refused to give a win before trial to the former president of a United Therapeutics Corp. subsidiary on a claim that he took trade secrets to a rival, with the court reasoning the drug company took reasonable steps to protect the secrets beyond a three-year limit in his employment agreement.
Expert Analysis
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Immigration Program Pitfalls Exacerbate Physician Shortages
Eliminating shortcomings from U.S. immigration regulations and policies could help mitigate the national shortage of physicians by encouraging foreign physicians to work in medically underserved areas, but progress has been halted by partisan gridlock, say Alison Hitz and Dana Schwarz at Clark Hill.
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Perspectives
Mallory Gives Plaintiffs A Better Shot At Justice
Critics of the U.S. Supreme Court's recent decision in Mallory v. Norfolk Southern claim it opens the door to litigation tourism, but the ruling simply gives plaintiffs more options — enabling them to seek justice against major corporations in the best possible court, say Rayna Kessler and Ethan Seidenberg at Robins Kaplan.
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Courts Can Overturn Deficient State Regulations, Too
While suits challenging federal regulations have become commonplace, such cases against state agencies are virtually nonexistent, but many states have provisions that allow litigants to bring suit for regulations with inadequate cost-benefit analyses, says Reeve Bull at the Virginia Office of Regulatory Management.
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Tales From The Trenches Of Remote Depositions
As practitioners continue to conduct depositions remotely in the post-pandemic world, these virtual environments are rife with opportunities for improper behavior such as witness coaching, scripted testimony and a general lack of civility — but there are methods to prevent and combat these behaviors, say Jennifer Gibbs and Bennett Moss at Zelle.
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The Legal Issues Flying Around The Evolving Drone Market
As the number of drone registrations is expected to more than double over the next three years, the industry faces new risks and considerations related to privacy, Fourth Amendment, criminal, evidentiary, First Amendment, and insurance litigation, say attorneys at Covington.
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Opinion
Mallory Opinion Implicitly Overturned NC Sales Tax Ruling
The U.S. Supreme Court recently declined to review Quad Graphics v. North Carolina Department of Revenue, but importantly kicked the legs from under Quad's outcome a week later, stating in its Mallory decision that the high court has the prerogative to overrule its own decisions, says Richard Pomp at the University of Connecticut.
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Employer Drug-Testing Policies Must Evolve With State Law
As multistate employers face ongoing challenges in drafting consistent marijuana testing policies due to the evolving patchwork of state laws, they should note some emerging patterns among local and state statutes to ensure compliance in different jurisdictions, say attorneys at Troutman Pepper.
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Tide May Be Turning On Texas Two-Step Bankruptcy Strategy
Recent developments in several high-profile bankruptcy cases suggest that the use of the Texas Two-Step to shield solvent companies from tort claims may be falling out of favor, but until the U.S. Supreme Court hears one of these cases the strategy will remain divisive and the subject of increased scrutiny, say attorneys at Rivkin Radler.
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Sackett Ruling, 'Waters' Rule Fix Won't Dry Up Wetlands Suits
In the wake of the U.S. Supreme Court's recent ruling in Sackett v. U.S. Environmental Protection Agency narrowing the scope of Clean Water Act protections, the Biden administration is amending its rule defining "waters of the United States" — but the revised rule will inevitably face further court challenges, continuing the WOTUS legal saga indefinitely, say attorneys at Milbank.
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Level Up Lawyers' Business Development With Gamification
With employee engagement at a 10-year low in the U.S., there are several gamification techniques marketing and business development teams at law firms can use to make generating new clients and matters more appealing to lawyers, says Heather McCullough at Society 54.
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High Court 'Purely Legal' Appeal Ruling Raises New Questions
The U.S. Supreme Court’s unanimous May decision in Dupree v. Younger, holding that “purely legal” arguments rejected at summary judgment can be appealed without post-trial motions, resolves a circuit split but creates new questions that appellate counsel must now carefully navigate in each circuit, say attorneys at DLA Piper.
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Mallory Ruling Leaves Personal Jurisdiction Deeply Unsettled
In Mallory v. Norfolk Southern Railway, a closely divided U.S. Supreme Court recently rolled back key aspects of its 2017 opinion in Daimler AG v. Bauman that limited personal jurisdiction, leaving as many questions for businesses as it answers, say John Cerreta and James Rotondo at Day Pitney.
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4 Legal Issues Grant-Funded Broadband Projects May Face
The Biden administration's recently announced funding allocations represent the largest ever government investment in broadband internet infrastructure, but these new development opportunities will require navigation of complicated and sometimes arcane legal environments, says Casey Lide at Keller & Heckman.
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5 Ways Firms Can Rethink Office Design In A Hybrid World
As workplaces across the country adapt to flexible work, law firms must prioritize individuality, amenities and technology in office design, says Kristin Cerutti at Nelson Worldwide.
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Opinion
Bar Score Is Best Hiring Metric Post-Affirmative Action
After the U.S. Supreme Court's ruling striking down affirmative action admissions policies, law firms looking to foster diversity in hiring should view an applicant's Multistate Bar Examination score as the best metric of legal ability — over law school name or GPA, says attorney Alice Griffin.