The Federal Trade Commission (FTC) has recently finalized a rule that significantly impacts noncompete clauses in employment contracts, aiming to boost competition and innovation while enhancing worker mobility. Noncompete clauses traditionally prevent employees from joining competitors or starting similar businesses shortly after leaving a company. The new rule, however, prohibits these clauses except for a narrow exemption involving senior executives, who represent less than 1% of the workforce (GeekWire). The FTC argues that noncompete agreements have traditionally suppressed wages, hindered innovation, and restricted entrepreneurs from starting new businesses. By eliminating these clauses, the FTC estimates an increase in worker[...]

Civil litigation encompasses a wide array of legal disputes where one party seeks to claim a right, recover a loss, or resolve a conflict through legal proceedings. In Charlotte, North Carolina, the spectrum of civil litigation is broad, reflecting the diverse legal needs of individuals and businesses in the region. At Parton Law, we navigate these complex legal terrains, ensuring our clients receive adept representation tailored to their unique circumstances. Types of Civil Litigation Disputes Business & Contractual Disputes Contractual disputes are a common occurrence in the business world, often arising from disagreements over contract terms, performance issues, or[...]

Clients who have been wronged often are insistent on going after the opposing party for “punitive damages”.  Typically, those clients are really just looking for “enhanced damages”, meaning they want to force the opposing party pay more money than the client lost. True punitive damages are available in North Carolina where the opposing party acted willfully, or with fraud or malice, but there are numerous conditions and limitations.  For example, a simple breach of contract cannot be the basis for punitive damages. A client must prove that they suffered actual financial harm, and the number of punitive damages can be limited based upon[...]

When government investigators come knocking, people generally get anxious and don’t know what to do.  In our experience, this is equally the case with State and Federal government officials regardless of what agency or department they are from.  Investigators typically have the advantage of knowing when they are coming and what they are looking for, leaving you to feel caught off-guard and out of the loop. Knowing how to act on the spot can help you avoid legal jeopardy and ensure that your interaction with the investigators only lasts as long as necessary. In most cases, if an investigator[...]

The U.S. Supreme Court will soon hear a challenge to widely used race-conscious admissions policies designed to skew college admissions toward Black and Hispanic students across the country. The cases, Students for Fair Admission v. President & Fellows of Harvard College, No. 20-1199, and Students for Fair Admission v. University of North Carolina, No. 21-707, are expected to be heard during the court’s next term beginning in October. The Students for Fair Admission group accuses both universities of race-based discrimination during their admissions process, specifically accusing the University of North Carolina of favoring minorities over white and Asian American applicants in[...]

If you own a share of a privately held business, your rights are largely determined by your operating and purchase agreements.  Where an operating agreement does not address an owner’s rights, North Carolina Law often steps in to provide “default” provisions or rights. However, your rights as a shareholder vary based on the portion of the company that you own. This article will consider some of those statutory rights for “qualified minority” shareholders, meaning those who own between 5% and 50% of a company’s shares or have owned less than 5% for at least six months. If you are[...]

North Carolina Law makes it illegal for businesses to engage in unfair or deceptive practices.  This generally means that they lied, misled, or manipulated their way into economic advantage at the expense of another party. An afflicted party can seek recourse in the civil courts, but it’s not always easy to know when a business has committed an “unfair” or “deceptive” act. A business acts “unfairly” when it intentionally suppresses competition. Forming monopolies, conspiring or forming cartels with other businesses to fix prices, filing frivolous bad faith lawsuits, and even selling gasoline for below cost have all been held[...]

When local and county authorities extend their clutches beyond legal limits, they act ultra vires—a Latin phrase that translates to “beyond the powers.” Government actions that the court finds to be ultra vires can be voided, and upon such a ruling a person may be entitled to compensation for the harm they suffered as a result. Types of government overreach, as defined by the courts, include the government (1) collecting fees without the legal ability to do so, (2) charging you for a service it is unable to provide, (3) collecting taxes inconsistent with the state constitution and laws, and (4) inspecting[...]

​If you sue someone in the United States, the general rule is that you will be required to pay your own attorney’s fees and litigation expenses. This practice is so ingrained in our legal system that it is called the “American Rule” and has been referenced by the Supreme Court (ex: Alyeska Pipeline v. Wilderness Society). In theory, the American Rule ensures that you will not be afraid to sue or defend yourself in court because you might have to pay the legal fees for both sides.  It also ensures that parties only end up in court when it’s really[...]

Civil law ensures that if you are harmed by someone else, you will be repaid for the injury you suffer. This compensation is generally referred to as “damages.” However, unlike criminal law, civil law is invoked only when you file a lawsuit against the person or entity that injured you. How do I recover damages in a lawsuit? A lawsuit allows you to recover damages from a person who was required to act in a certain way (either by statute, contract, or a generally accepted standard of care) fails to do so and causes you monetary loss. Broadly speaking, the law[...]