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In an (unpublished) Order last week in Griggs v. Bittersweet Farms, LLC, Judge McGuire ruled that Plaintiffs’ counsel’s instruction to his client not to answer certain deposition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?

The Business Court on Wednesday disqualified  a law firm from representing its longtime corporate client in a lawsuit against the corporation’s former CEO and Chairman of its Board of Directors.

The basis for the ruling in Kingsdown Inc. v. Hinshaw, 2015 NCBC 27 was that a partner in the law firm (now deceased) had represented the former CEO/Chairman of the corporate plaintiff (Hinshaw) on a personal basis in some of the transactions that were at issue in the lawsuit.

Hinshaw moved to disqualify the law firm over its protestations

Continue Reading Dead Partner And Disqualification

It’s probably never a good idea to proceed without a lawyer in any Court, but if you are a non-lawyer and insist on proceeding pro se in the Business Court, don’t be defiant and obnoxious.  You will not like the result.

Two of the Defendants (JW Ray and Digi-Plus LLC) in a case called London Leasing LLC v. Arcus  terminated the counsel representing them and decided to proceed on their own.

They did that in a high-handed and arrogant way. When Plaintiff’s counsel called Ray to try to arrange

Continue Reading If You Are Proceeding Pro Se In The Business Court It Is Best Not To Be Defiant

Be sure that an LLC member has the authority to hire you before accepting the representation of the LLC in a suit by or against another LLC member.  That authorization generally requires a majority of the interest of the members, at least under the default provisions of the LLC Act, which apply in the absence of an Operating Agreement providing to the contrary.

But what if a 50% owner goes ahead and retains counsel to represent the LLC against her 50% co-owner, who does not consent to the representation?  That

Continue Reading Eighty Five Thousand Reasons Not To Represent An LLC Without The Approval Of A Majority Of The Members (and one Other Thing)

United States District Court Judge Catherine Eagles of the Middle District of North Carolina delivered an admonition last week to all of the lawyers with cases in her Court.

You can read the "text order" here, but she said it was prompted by a recent "rash of briefs"  that were out of compliance with the M.D.N.C.’s Local Rules.  The Order was entered in "most of the Court’s pending civil cases,"  even those in which offending briefs had not been filed.

She said that the Order was being entered "to

Continue Reading A Few Things To Avoid When Filing A Brief In The Middle District Of North Carolina