Julian Wright Quoted in North Carolina Lawyers Weekly on Fraud CasePDF
North Carolina Lawyers Weekly covered a recent North Carolina Business Court case in which one former partner of a real estate investment company accused the other in a derivative action of fraud and breach of fiduciary duty, despite the first partner having signed a release agreement that included potential derivative claims. James Shaw, represented by Julian H. Wright Jr. of Robinson Bradshaw, has accused Raymond Gee in a derivative action on behalf of their LLC of hiding a $300,000 payment at the time the release was signed. Shaw contends that therefore the release should be vacated and the suit allowed to proceed, as the agreement containing the release was signed under fraudulent pretenses. Gee claims that Shaw’s signing of the agreement bars him from bringing any derivative claim. Judge Louis Bledsoe agreed with Gee about the broad release covering derivative claims, but allowed the suit to continue based on Shaw’s fraud allegations – a rare move.
“As somebody who regularly represents individuals who owe fiduciary duties to partnerships, LLCs and corporations, I find this significant,” Wright said. “And I think it’s probably a helpful bright line for business people to have in a reported decision.”
To read “Fraud Claim Defeats Release Agreement,” please visit North Carolina Lawyers Weekly. A subscription is required to view the full article.