I couldn’t pass on writing about a Business Court Order that the Court itself described as “Sua Sponte Order on Abusive Language.”  This is In re SE Eye Ctr, 2023 NCBC Order 15.

Abusive language?  That might be too complimentary a description of the stream of vitriol let loose by Mark McDaniel, a “contingent debtor” of Southeastern Eye Center, in his court filings.  McDaniel, not a physician (nor a lawyer), is the former Executive Director of the Center. He is proceeding pro se.

Judge Bledsoe laid out a

Continue Reading NC Business Court Castigates Pro Se Claimant For Abusive Language

Judge Robinson boldly went where no North Carolina Judge writing published Opinions had gone before last month in the case of Wheeler v. Wheeler, 2018NCBC117.  The subject was a corporate officer’s right to the advancement of legal fees incurred in defending against a lawsuit.

Judge Robinson noted that there was only “one case in which our appellate courts have dealt with the issue of advancement.”  Op. ¶1 & n.1.  That case was inapplicable to the Wheeler decision.

Advancement (the right for an officer, director, agent or employee of
Continue Reading NC Business Court Steps Into Uncharted Territory On Advancement And Indemnification For Corporate Officers

I have been complaining about  the fees approved by the NC Business Court for those lawyers obtaining disclosure only settlements since there was a Wachovia Bank.  Some of you may not be old enough to remember that venerable bank.

Now, at last, Judge Gale has found a disclosure only settlement to have yielded (almost) immaterial disclosures, and slashed the attorneys’ request for fees (by more than 50%) and expenses (to zero).  The Opinion, delivered last month, is In re Krispy Kreme Doughnuts, Inc. Shareholders Litig., 2018 NCBC 58.

Fee
Continue Reading It May Not Be Worth It For Plaintiffs’ Lawyers To Come To North Carolina And To Seek Fees Based On Disclosure Only Class Settlements

The title of Judge Bledsoe’s Opinion in Carolina Home Solutions 1, Inc. v. Crystal Home Solutions, Inc., 2018 NCBC 57, is ominous in itself.  It is titled “Order and Opinion Denying Pro Hac Vice Admission and Referral to the Georgia and North Carolina State Bars.”

How hard is it to get a pro hac vice (PHV) admission in the Business Court?  Not very.  You just have to comply with N.C. Gen. Stat. §84-4.1.  Who even gets denied pro hac admission to the Business Court?  (It happens.  Judge
Continue Reading Don’t Do This If You Are Out-of-State Counsel Appearing in The NC Business Court

It’s not very often that I see a fee application in a settled class action in the Business Court that doesn’t strike me as requesting approval of an overpayment for a less than successful result.  Those are most often in the settlement of merger class action in which the only benefit for the class was the extraction of additional disclosures in a proxy statement.

But last week, looking at the Order approving a class action settlement and a fee petition in Elliott v. KB Home North Carolina, Inc., 2017 NCBC

Continue Reading These Class Action Lawyers Made Their Fees The Old-Fashioned Way. They Earned Them!

The attorney for the Plaintiff in Foster Biodevice, LLC v. Cantrell. 2016 NCBC 51 said that he was only making a limited appearance, but the Business Court (through new Business Court Judge Robinson, in his first Opinion for the Court) wasn’t buying the limited nature of the appearance.

Plaintiff’s counsel had previously obtained an Order from Judge Bledsoe permitting him to withdraw as counsel for Foster Biodevice.  He then appeared in the case and filed a Voluntary Dismissal of the case Without Prejudice after his withdrawal.  He stated in

Continue Reading Your “Limited Appearance” in the Business Court May Not Be As Limited As You Think

Judge McGuire came down pretty hard on a Florida attorney admitted pro hac vice (meaning “for this one particular occasion”) by another Superior Court Judge, in McCarthy v. Hampton, 2016NCBC 4.  He revoked the lawyer’s admission and barred him from practicing law in North Carolina for the next two years.

What had this attorney done to warrant his expulsion from the North Carolina courts?  Judge McGuire said that:

Attorney McCarthy has not only engaged in a course of conduct that does not meet the standard expected of attorneys


Continue Reading NC Business Court Revokes Pro Hac Vice Admission Of Out Of State Lawyer

In an (unpublished) Order last week in Griggs v. Bittersweet Farms, LLC, Judge McGuire ruled that Plaintiffs’ counsel’s instruction to his client not to answer certain deposition questions was improper.  He granted a Motion to Compel responses to the unanswered questions, denied a Motion for Protective Order to excuse the Plaintiffs from having to respond, and ordered the Plaintiffs to pay Defendants’ attorneys’ fees for the cost of Making the Motion to Compel.

Instructing a witness not to answer a deposition question is pretty much forbidden unless a privilege

Continue Reading Be Very Careful If You Are Instructing Your Clients Not To Answer Questions At A Deposition

There are probably some of you who lie awake at night wondering whether Leagalzoom’s offering of do it yourself lawyering products will be found to be the unauthorized practice of law (UPL) in North Carolina.

For those few of you, that uncertainty will continue.  At the end of last week, Judge Gale issued an opinion in Bergenstock v. Legalzoom.com, Inc., 2015 NCBC 49, dismissing a putative class action by Plaintiffs seeking to represent all North Carolina residents who purchased Legalzoom products or services.  The claims were for UPL, unjust

Continue Reading NC Business Court Gives Full Faith And Credit To LegalZoom’s California Class Action Settlement

You will all recall the Business Court’s disqualification of a law firm from representing its longtime client, in Kingsdown Inc. v. Hinshaw, 2015 NCBC 27.  Now there is a second chapter to the disqualification, which came in an Opinion last week, in Kingsdown Inc. v. Hinshaw, 2015 NCBC 35.

The disqualified law firm had asked Judge Bledsoe to clarify his Order disqualifying it from representing the Plaintiff Kingsdown.  That was due to the firm’s past representation of Defendant Hinshaw (the corporation’s CEO) on a personal basis in the

Continue Reading NC Business Court: What Part Of Disqualification Do You Not Understand?