The Compass

The Compass

Charting Business and Technology Litigation in North Carolina and the Fourth Circuit

Category Archives: Uncategorized

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NC Supreme Court Reminds Court of Appeals That Typical Lender-Borrower Relationship is Not a Fiduciary One

Posted in Uncategorized
The North Carolina Supreme Court recently reaffirmed that a run-of-the-mill lender and borrower are not fiduciaries, reversing the Court of Appeals decision that would have this issue to go to the jury.  The case is Dallaire v. Bank of America. The Dallaires sought a home refinance loan from Bank of America (BOA).  They claimed that… Continue Reading

Fourth Circuit Rejects Broad Reading of Arbitration Ban in Dodd-Frank

Posted in Arbitration, Contracts, Fourth Circuit, Uncategorized
In a variation on a familiar refrain, the Fourth Circuit recently upheld the enforceability of another arbitration provision under the Federal Arbitration Act (“FAA”) in Santoro v. Accenture Federal Services, LLC. This time, the plaintiff attempted to escape arbitration by relying on restrictions in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”)… Continue Reading

Don’t Be Late! Business Court Closes Its Doors at 5:00 P.M. – or is it 4:00 P.M.?

Posted in Uncategorized
Wednesday’s ruling in Carter v. Clements Walker PLLC is a cautionary tale for lawyers using the Business Court’s unique electronic filing system. Judge Gale dismissed an appeal for missing the 5:00 p.m. filing deadline by two-and-a-half hours—even though the would-be appellants’ counsel filed an affidavit saying that the delay was due to technical problems. Unlike… Continue Reading

Removal to Federal Court Based on Diversity Jurisdiction: How Long Do You Have?

Posted in Uncategorized
Complaints filed in state court routinely allege only damages “in excess of $10,000.” If you’re a defendant considering removal to federal court based on diversity, such an allegation doesn’t meet the $75,000 amount in controversy threshold.  But if you have information outside of the complaint – for example, based on settlement conversations or demands –… Continue Reading

Caller Beware: The Growing Risk of Hiring Telemarketers

Posted in Uncategorized
telemarketerOutsourcing telemarketing to a third party may raise your risk profile. That appears to be the lesson from a recent discovery ruling in Mey v. Monitronics International, Inc., et al, highlighting the burgeoning legal exposure for companies that outsource telemarketing services. Minitronics is a home security company that engaged a small army of independent contractors—styled… Continue Reading

Fraud by Omission Claims: Pleading Isn’t Easy

Posted in Uncategorized
In a recent decision by Judge Gale, the North Carolina Business Court has reminded plaintiffs seeking to advance the claim of fraud by omission that the particularity pleading threshold has teeth. Island Beyond, LLC v. Prime Capital Group, LLC arose from a real estate development deal gone bad.  In 2005, the parties formed an LLC… Continue Reading

Government Reorganization and Efficiency Act Back from the Dead

Posted in Uncategorized
Senate Bill 10, the Government Reorganization and Efficiency Act, was introduced back in January 2013.   It’s received a lot of attention since then for some of its more controversial provisions.  Namely, it would have dismissed all current members of the N.C. Utilities Commission, state Industrial Commission, Coastal Resources Commission, Environmental Management Commission and Wildlife Resources Commission. … Continue Reading