Business Litigation in North Carolina

When business relationships break down, the disputes that follow can be complex, contentious, and expensive. North Carolina law provides several avenues for resolving business disputes — in court, through arbitration, or through negotiated settlement. Sherrill & Cameron has represented business owners, partners, shareholders, and closely-held companies in Rowan County and throughout the western Piedmont.

Partnership and LLC Disputes

Disputes among business partners and LLC members are among the most common forms of business litigation. Common issues include:

• Breach of fiduciary duty: Partners and managers owe duties of loyalty and care to the business and to each other. Diverting business opportunities, self-dealing, or misappropriating company funds can give rise to individual and derivative claims.
• Deadlock: When 50/50 owners cannot agree on a major business decision, courts may appoint a receiver or order dissolution under N.C.G.S. § 57D-6-02 (LLC) or § 59-1 (partnerships).
• Buyout disputes: Disagreements over the valuation and forced purchase of a departing partner’s or member’s interest.
• Improper dissolution: Claims that assets were improperly distributed or debts were not paid upon winding up a business.

Shareholder Litigation

Minority shareholders in closely-held North Carolina corporations have protections against oppressive conduct by majority shareholders. Under N.C.G.S. § 55-14-30, courts may dissolve a corporation — or fashion alternative relief — when directors or majority shareholders have acted in a manner that is illegal, oppressive, or fraudulent, or have misapplied or wasted corporate assets.

Unfair and Deceptive Trade Practices (UDTP)

North Carolina’s Unfair and Deceptive Trade Practices Act (N.C.G.S. § 75-1.1) is a powerful remedial statute. To establish a UDTP claim, a plaintiff must show: (1) an unfair or deceptive act or practice, (2) in or affecting commerce, (3) that proximately caused the plaintiff’s injury. The critical advantage: treble damages and mandatory attorney’s fees are available to prevailing plaintiffs. UDTP claims often arise alongside breach of contract, fraud, and misrepresentation claims.

Trade Secrets and Non-Compete Agreements

Protecting business information is critical. North Carolina’s Trade Secrets Protection Act (N.C.G.S. § 66-152 et seq.) allows businesses to seek injunctive relief and damages when a former employee or competitor misappropriates confidential business information. We also enforce and, when representing employees, challenge non-compete and non-solicitation agreements under North Carolina’s reasonableness standard.

How We Can Help

Our litigation team provides full-service business dispute representation:

• Evaluating claims and defenses and advising on litigation strategy
• Pre-suit demand letters and cease-and-desist correspondence
• Temporary restraining orders and preliminary injunctions to stop ongoing harm
• Filing or defending complaints in Rowan County Superior Court
• Discovery and depositions of parties, witnesses, and experts
• Mediation, arbitration, and alternative dispute resolution
• Trial representation