We’ve written often about two recurring issues in contract disputes that limit a party’s ability to bring a section 75-1.1 claim: the economic-loss rule and “substantial aggravating circumstances.” The economic-loss rule provides that, in most cases, a breach of contract does not give rise to tort claims between contracting parties. […]
Today’s post is about North Carolina’s common-law tort of unfair competition. We’ve talked about the tort before, and mentioned her a time or two in passing. But often, we just remember unfair competition as “the child of confusion,” the stepsister of trademark infringement, and the oft-forgotten cousin of section 75-1.1. […]
Section 75-1.1 claimants find themselves stuck in a HAJMM sandwich when their complaint arises out of conduct that occurs in a securities transaction, but for which the securities laws provide no remedy. In these circumstances, the securities exemption based on HAJMM Co. v. House of Raeford Farms, Inc. will bar […]
As we’ve discussed before, N.C. Gen. Stat. § 75-1.1 does not apply to securities transactions. Courts have held that disputes involving securities transactions are not “in or affecting commerce” under the statute. The securities exemption was born in Skinner v. E.F. Hutton & Co. In HAJMM Co. v. House of Raeford […]