Plaintiff sought information via a discovery motion not only as to the face amount of defendant’s insurance policies, but also the amount of coverage remaining.  The Court ruled that plaintiff was entitled to this information, because "when it comes time to negotiate, the amount of liability coverage available to a defendant should be disclosed to the plaintiff."  A plaintiff is entitled to the "true facts" about the amount of coverage, which means the actual amount remaining to be paid under the policy.  A refusal to provide accurate information about liability insurance coverage at the time of mediation would not be mediating in good faith. 

Full Opinion

(The briefs on this motion were filed under seal and are not available)

 

The Court approved a voluntary dismissal of a class action, pre-certification, without notice to class members. There was a separate class action which had been settled in California, which bound the class members. The Court determined that "[s]ending a class notice regarding dismissal of this action would be costly, time-consuming, and confusing." Court approval of the dismissal of a class action is required, even if the class has not been certified.

Full Opinion

The Court granted a Motion to Dismiss a claim for slander, ruling that plaintiff had failed to plead the allegedly defamatory statement with sufficient particularity. It held that, although plaintiff was not required to plead the words verbatim, it was required to plead them either substantially as they were said or at least with sufficient particularity to determine whether the statement was defamatory. The Court held that "it would be unduly harsh to require defendants to venture a response to weighty allegations of slander couched only in the most general of terms."

The Court let stand, however, plaintiff’s claim for tortious interference with contract against the defendant, who was dissatisfied with the plaintiff homebuilder’s work for him. Plaintiff had expressed his displeasure to others for whom the plaintiff was working, which resulted in them terminating their contracts with the plaintiff.

In reaching this conclusion, the Court considered the factors set out in the Restatement (Second) of Torts §767, which include "(a) the nature of the actor’s conduct, (b) the actor’s motive, (c) the interests of the other with which the actor’s conduct interferes, (d) the interests sought to be advanced by the actor, (e) the social interests in protecting the freedom of the actor and the contractual interests of the other, (f) the proximity or remoteness of the actor’s conduct to the interference, and (g) the relations between the parties." The Court held that this tort does not require the element of force, or threat, or intimidation, and also that it does not require independently tortious conduct.

Full Opinion

 

This case involved a troubled company, whose board of directors had hired turnaround consultants to assist with management. When the composition of the board of directors changed, the new board sued the consultants, and others, for fraud and unjust enrichment, alleging that the consultants had withheld information from the board and that they had been unjustly enriched (i.e. overpaid). The Court denied a motion to dismiss on the fraud claim, although it said that plaintiffs’ claim was tenuous.

The Court granted the motion to dismiss as to the unjust enrichment claim, finding that plaintiffs had failed to plead with specificity why the amounts paid were unjust. There were several other claims.

The Court expressed serious doubt as to the viability of a claim for aiding and abetting fiduciary duty under North Carolina law. It dismissed that claim on a different ground, however, finding that the consultant stood in a direct fiduciary relationship to the company, and that it would be redundant and confusing to allow both a direct claim for breach of fiduciary duty as well as an aiding and abetting claim.

The Court let stand a claim for punitive damages, after determining that there is no requirement that the party seeking damages specifically allege the circumstances underlying the aggravating factors required by N.C.G.S. §1D-15(a).

The Court refused to exclude an expert witness identified by the defendants, ruling based on North Carolina Supreme Court precedent that trial courts "should be hesitant when making outcome-determinative rulings on expert testimony" because so doing may "unnecessarily encroach upon the constitutionally-mandated function of the jury to decide issues of fact and to assess the weight of the evidence."

The Court then turned to issues of attorney-client privilege. A law firm for the corporation had retained another law firm to advise it with regard to an asset sale. The corporation’s law firm then discussed the advice it had received with the corporation’s board of directors and the turnaround consultant. The consultant sought to obtain these materials by subpoena, but the law firm had objected. The Court held that there was no privilege, because "a communication intended to be disclosed to a third party is not confidential," and it ordered production. The result was different with regard to the communications between corporate counsel and a third law firm, which had been retained to advise on other issues. These communications had not been transmitted to third parties, and the Court held there had been no waiver of the privilege.

Full Opinion

The Court dismissed some of plaintiff’s claims because they had been the subject of a dismissal, with prejudice, in a prior action. The Court held that a dismissal with prejudice is a final judgment for purposes of res judicata. Other claims were being simultaneously litigated in another action between the parties. It was difficult to determine, because of the procedural posture of the cases, in which action the claims had been first filed. The Court had jurisdiction over both actions, and determined that it would manage them "so as to assure their efficient resolution."

Full Opinion

The attorneys for the parties missed the mediation deadline set by the Court, twice. They ultimately did mediate, and did settle some of the claims in the case. The Court sanctioned them, however, finding that their explanations for missing the deadlines were inadequate and without good cause. The Court noted that North Carolina’s Rules Implementing Statewide Mediated Settlement Conferences in Superior Court Actions do not provide for sanctions, but held that it had the inherent power to impose sanctions for wilful failure to comply with the rules of court. The sanction was minimal, $100 per lawyer.

Full Opinion

The Court granted defendants’ motion to dismiss for lack of personal jurisdiction based on their lack of minimum contacts with the State of North Carolina. The Court found that defendants had not made a general appearance in the case, and thereby waived their right to contest jurisdiction by participating in discovery, by asking the Court to set a peremptory trial date, and by asking to be excused from the mediation conference.

Full Opinion

The Court dismissed non-contract claims in a dispute between physicians who were parties to Professional Services Agreements. The Court held, based on established North Carolina law, that "a tort action does not lie against a party to a contract who simply fails to properly perform the contract, even if that failure to properly perform was due to the negligent or intentional conduct of that party, when the injury resulting from the breach is damage to the subject matter of the contract. It is the law of contract . . . which defines the obligations and remedies of the parties in such a situation."

Full Opinion