**FINAL**
ROBERT EARL DALTON d/b/a B. DALTON & COMPANY v. DAVID CAMP,
NANCY J. MENIUS, and MILLENNIUM COMMUNICATION CONCEPTS, INC.
No. 495PA99-2
(Filed 20 July 2001)
1. Employer and Employee--breach of fiduciary duty--forming rival co
mpany
The trial court properly granted summary judgment in favor of defendant Camp on a claim
for breach of fiduciary duty arising from defendant leaving plaintiff's employment and starting a
rival company, because plaintiff employer failed to establish facts supporting a breach of fiduciary
duty when no evidence suggests that defendant's position in the workplace resulted in domination
and influence over plaintiff.
2. Employer and Employee--breach of loyalty--forming rival company
b>
The trial court properly granted summary judgment in favor of defendant Camp on a claim
for breach of duty of loyalty arising from defendant leaving plaintiff's employment and starting a
rival company, because plaintiff failed to establish that any independent tort for breach of duty of
loyalty exists under our state law.
3. Wrongful Interference--interference with prospective advantage--e
mployees
founding rival business
The trial court properly granted summary judgment in favor of defendants Camp and
MCC on a claim for tortious interference with prospective advantage arising from defendant
Camp leaving plaintiff's employment and starting a rival business publishing employment
newsletters, because: (1) there is no evidence that defendant Camp induced KFI into entering a
contract; and (2) plaintiff employer offers no evidence showing that but for defendant Camp's
alleged interference, a contract with KFI would have ensued.
4. Unfair Trade Practices--employee founding rival business--no fidu
ciary
relationship--no egregious or aggravating conduct
The trial court properly granted summary judgment in favor of defendants Camp and
MCC on a claim for unfair and deceptive trade practices under N.C.G.S. § 75-1.1 arising from
defendant Camp leaving plaintiff's employment and starting a rival business, because: (1)
defendant Camp did not have a fiduciary relationship with plaintiff employer when defendant's
duties as a production manager for plaintiff were limited to those commonly associated with any
employee; (2) defendant Camp did not serve his employer in the capacity of either a buyer or a
seller, nor did he serve in any alternative capacity suggesting that his employment was such that it
otherwise qualified as in or affecting commerce; and (3) there is no evidence of attendant
circumstances to indicate that defendant Camp's conduct was especially egregious or aggravating.
On discretionary review pursuant to N.C.G.S. § 7A-31 of a
unanimous decision of the Court of Appeals, 138 N.C. App. 201,
531 S.E.2d 258 (2000), affirming in part, reversing in part, and
remanding for a new trial an order for summary judgment entered
13 July 1998 by Zimmerman, J., in Superior Court, RandolphCounty. This case was previously remanded by order of the
Supreme Court of North Carolina for the Court of Appeals'
reconsideration in light of Sara Lee Corp. v. Carter, 351 N.C.
27, 519 S.E.2d 308 (1999). Dalton v. Camp, 135 N.C. App. 32, 519
S.E.2d 82 (1999). Heard in the Supreme Court 12 March 2001.
Moser Schmidly Mason & Roose, by Stephen S. Schmidly; and
Murchison, Taylor & Gibson, by Andrew K. McVey, for
plaintiff-appellee.
Wyatt Early Harris & Wheeler, L.L.P., by William E. Wheeler,
for defendant-appellants David Camp and Millennium
Communication Concepts, Inc.
Moore & Van Allen, P.L.L.C., by George M. Teague, on behalf
of North Carolina Citizens for Business and Industry, amicus
curiae.
ORR, Justice.
This case arises out of an employer's allegations of unfair
competitive activity by former employees and a new corporation
formed by them. Plaintiff Robert Earl Dalton d/b/a B. Dalton &
Company (Dalton) produced, under a thirty-six month contract,
an employee newspaper for Klaussner Furniture Industries (KFI).
Dalton hired defendant David Camp (Camp) to produce the
publication and subsequently hired Nancy Menius (Menius) to
assist in the production of the employee newspaper. Near the
conclusion of the contract period, Dalton began negotiations with
KFI to continue publication. After the contract had expired,
Dalton continued to publish the employee newspaper without
benefit of a contract while talks between the parties continued.
During this period, Camp, who was contemplating leaving Dalton's
employ, established a competing publications entity, Millennium
Communication Concepts, Inc. (MCC), and discussed with KFIofficials the possibility of replacing Dalton as publisher of
KFI's employee newspaper. Soon
thereafter, Camp entered into a contract with KFI to produce the
newspaper. He resigned from Dalton's employment approximately
two weeks later.
In the wake of Camp's resignation, Dalton sued Camp,
Menius, and MCC for breach of the fiduciary duty of loyalty,
conspiracy to appropriate customers, tortious interference with
contract, interference with prospective advantage, and unfair and
deceptive acts or practices under chapter 75 of the North
Carolina General Statutes. The trial court first dismissed
Dalton's claim for tortious interference with contract and
subsequently granted Camp's motion for summary judgment against
Dalton for the remaining claims. In its initial review of the
case, the Court of Appeals held that the trial court had properlygranted summary judgment for all defendants as to the claim for
unfair and deceptive trade practices. As for the claim for
breach of duty of loyalty, the Court of Appeals held that summary
judgment was proper for defendant Menius and improper for
defendant Camp. As for Dalton's claim of tortious interference
with prospective advantage, the Court of Appeals again held that
summary judgment was properly granted for defendant Menius and
improperly granted for defendant Camp. Dalton v. Camp, 135 N.C.
App. 32, 519 S.E.2d 82 (1999). After this Court remanded the
case to the Court of Appeals for further review in light of,
inter alia, our holding in Sara Lee Corp. v. Carter, 351 N.C. 27,
519 S.E.2d 308 (1999), the Court of Appeals ultimately concluded
that summary judgment was properly granted for: (1) all claims
against Menius, and (2) the conspiracy to appropriate customers
claim against Camp and MCC. The court also held that summary
judgment was improperly granted for: (1) the breach of duty of
loyalty claim against Camp, (2) the interference with prospective
advantage claim against Camp and MCC, and (3) the unfair and
deceptive trade practices claim against Camp and MCC.
For the reasons set forth below, we hold that the trial
court properly granted summary judgment for all applicable
claims, and we reverse those portions of the Court of Appeals
opinion that hold otherwise. Thus, in sum, none of plaintiff
Dalton's claims survive.
I.
We begin our analysis with an examination of Dalton's
first claim against Camp which, as described in Dalton'scomplaint, constituted a breach of fiduciary duty, including a
duty of loyalty. From the outset, we note that Dalton argues
this claim from two distinct vantage points. First, he alleges
that Camp breached his fiduciary duty by being disloyal. See
Long v. Vertical Techs., Inc., 113 N.C. App. 598, 604, 439 S.E.2d
797, 802 (1994) (defining fiduciary duty as one requiring good
faith, fair dealing, and loyalty). Second, he argues that a
separate and distinct action for breach of duty of loyalty exists
and that Camp's conduct constituted a breach of that duty. We
disagree with both contentions, holding that Dalton has failed to
establish: (1) facts supporting a breach of fiduciary duty, and
(2) that any independent tort for breach of duty of loyalty
exists under state law.
Prior to trial, the trial court granted defendants'
motion for summary judgment as to all pending claims. Summary
judgment is a device whereby judgment is rendered if the
pleadings, depositions, interrogatories, and admissions on file,
together with any affidavits, show that there is no genuine issue
as to any material fact and that any party is entitled to
judgment as a matter of law. N.C. R. Civ. P. 56(c); accord
Fordham v. Eason, 351 N.C. 151, 159, 521 S.E.2d 701, 706 (1999).
The rule is designed to eliminate the necessity of a formal trial
where only questions of law are involved and a fatal weakness in
the claim of a party is exposed. Econo-Travel Motor Hotel Corp.
v. Taylor, 301 N.C. 200, 271 S.E.2d 54 (1980).
When considering a motion for summary judgment, the
trial judge must view the presented evidence in a light mostfavorable to the nonmoving party. Coats v. Jones, 63 N.C. App.
151, 303 S.E.2d 655, aff'd, 309 N.C. 815, 309 S.E.2d 253 (1983).
Moreover, the party moving for summary judgment bears the burden
of establishing the lack of any triable issue. Boudreau v.
Baughman, 322 N.C. 331, 368 S.E.2d 849 (1988).
Thus, the question before us is whether the Court of
Appeals properly concluded that genuine issues of material fact
existed as to Dalton's claims against Camp for breach of
fiduciary duty and/or breach of duty of loyalty. We address the
specifics of Dalton's arguments supporting the Court of Appeals
decision in successive order.
[1]/A HREF>For a breach of fiduciary duty to exist, there must
first be a fiduciary relationship between the parties. Curl v.
Key, 311 N.C. 259, 264, 316 S.E.2d 272, 275 (1984); Link v. Link,
278 N.C. 181, 192, 179 S.E.2d 697, 704 (1971). Such a
relationship has been broadly defined by this Court as one in
which there has been a special confidence reposed in one who in
equity and good conscience is bound to act in good faith and with
due regard to the interests of the one reposing confidence
. . . , [and] 'it extends to any possible case in which a
fiduciary relationship exists in fact, and in which there is
confidence reposed on one side, and resulting domination and
influence on the other.' Abbitt v. Gregory, 201 N.C. 577, 598,
160 S.E. 896, 906 (1931) (quoting 25 C.J. Fiduciary § 9, at 1119
(1921)) (emphasis added), quoted in Patterson v. Strickland, 133
N.C. App. 510, 516, 515 S.E.2d 915, 919 (1999). However, the
broad parameters accorded the term have been specifically limitedin the context of employment situations. Under the general rule,
the relation of employer and employee is not one of those
regarded as confidential. King v. Atlantic Coast Line R.R. Co.,
157 N.C. 44, 72 S.E. 801 (1911); see also Hiatt v. Burlington
Indus., Inc., 55 N.C. App. 523, 529, 286 S.E.2d 566, 569, disc.
rev. denied, 305 N.C. 395, 290 S.E.2d 365 (1982).
In applying this Court's definition of fiduciary
relationship to the facts and circumstances of the instant case
-- in which employee Camp served as production manager for a
division of employer Dalton's publishing business -- we note the
following: (1) the managerial duties of Camp were such that a
certain level of confidence was reposed in him by Dalton; and
(2) as a confidant of his employer, Camp was therefore bound to
act in good faith and with due regard to the interests of Dalton.
In our view, such circumstances, as shown here, merely serve to
define the nature of virtually all employer-employee
relationships; without more, they are inadequate to establish
Camp's obligations as fiduciary in nature. No evidence suggests
that his position in the workplace resulted in domination and
influence on the other [Dalton], an essential component of any
fiduciary relationship. See Abbitt, 201 N.C. at 598, 160 S.E. at
906. Camp was hired as an at-will employee to manage the
production of a publication. His duties were those delegated to
him by his employer, such as overseeing the business's day-to-day
operations by ordering parts and supplies, operating within
budgetary constraints, and meeting production deadlines. In sum,
his responsibilities were not unlike those of employees in otherbusinesses and can hardly be construed as uniquely positioning
him to exercise dominion over Dalton. Thus, absent a finding
that the employer in the instant case was somehow subjugated to
the improper influences or domination of his employee -- an
unlikely scenario as a general proposition and one not evidenced
by these facts in particular -- we cannot conclude that a
fiduciary relationship existed between the two. As a result, we
hold that the trial court properly granted defendant Camp's
motion for summary judgment as to Dalton's claim alleging a
breach of fiduciary duty and reverse the Court of Appeals on this
issue.
[2]As for any claim asserted by Dalton for breach of a
duty of loyalty (in an employment-related circumstance) outside
the purview of a fiduciary relationship, we note from the outset
that: (1) no case cited by plaintiff recognizes or supports the
existence of such an independent claim, and (2) no pattern jury
instruction exists for any such separate action. We additionally
note that Dalton relies on cases he views as defining an
independent duty of loyalty, see McKnight v. Simpson's Beauty
Supply, 86 N.C. App. 451, 358 S.E.2d 107 (1987); In re Discharge
of Burris, 263 N.C. 793, 140 S.E.2d 408 (1965) (per curiam), even
though those cases were devoid of claims or counterclaims
alleging a breach of such duty. In McKnight, the Court of
Appeals held that every employee was obliged to serve his
employer faithfully and discharge his duties with reasonable
diligence, care and attention. 86 N.C. App. at 453, 358 S.E.2d
at 109. However, the rule's role in deciding the case waslimited; it was but a factor in determining whether an employer
was justified in terminating an employee. The circumstance and
conclusion reached in Burris are strikingly similar. At issue in
that case was whether a civil service employee was properly
discharged after he knowingly . . . brought about a conflict of
interest between himself and his employer. Burris, 263 N.C. at
795, 140 S.E.2d at 410. In deciding the case, this Court wrote
[w]here an employee deliberately acquires an interest adverse to
his employer, he is disloyal, and his discharge is justified.
Id. (emphasis added). Conspicuously absent from the Burris
Court's consideration was any claim or counterclaim seeking
damages resulting from an alleged breach of a duty of loyalty.
In our view, if McKnight and Burris indeed serve to
define an employee's duty of loyalty to his employer, the net
effect of their respective holdings is limited to providing an
employer with a defense to a claim of wrongful termination. No
such circumstance is at issue in the instant case, in which Camp
resigned from Dalton's employ. Thus, we hold that: (1) there is
no basis for recognizing an independent tort claim for a breach
of duty of loyalty; and (2) since there was no genuine issue as
to any material fact surrounding the claim as stated in the
complaint (breach of fiduciary duty, including a duty of
loyalty), the trial court properly concluded as a matter of law
that summary judgment was appropriate for Camp.
To the extent that the holding in Food Lion, Inc. v.
Capital Cities/ABC, Inc., 951 F. Supp. 1224 (M.D.N.C. 1996), can
be read to sanction an independent action for breach of duty ofloyalty, see id. at 1229 (There is a cause of action for
violation of the duty of loyalty.), we conclude that the federal
district court incorrectly interpreted our state case law by
assuming that: (1) [s]ince the [state's] courts recognize the
existence of the duty of loyalty, it follows that they would
recognize a claim for breach of that duty, id. (emphasis added);
and (2) the North Carolina . . . Supreme Court[] likely would
recognize a broader claim for a breach of fiduciary duty, id.
(emphasis added). As previously explained, although our state
courts recognize the existence of an employee's duty of loyalty,
we do not recognize its breach as an independent claim. Evidence
of such a breach serves only as a justification for a defendant-
employer in a wrongful termination action by an employee.
Moreover, an examination of our state's case law fails to reveal
support for the federal district court's contention that this
Court would broaden the scope of fiduciary duty to include food-
counter clerks employed by a grocery store chain.
As for the holding in Long, we note that the corporate
employer in that case was awarded damages for a material breach
of . . . fiduciary duty of good faith, fair dealing and loyalty
by its employees. 113 N.C. App. at 604, 439 S.E.2d at 802.
Essentially, the Long court determined that the employees, who
originally founded the company in question and served
respectively as its president and senior vice president, owed a
fiduciary duty to the parent firm and that they breached that
duty by taking actions contrary to the parent firm's best
interests. Thus, the claim and damages awarded in Long resultedfrom: (1) a showing of a fiduciary relationship, (2) ther
eby
establishing a fiduciary duty, and (3) a breach of that duty. No
such fiduciary relationship or duty is evidenced by the
circumstances of the instant case.
II.
[3]As for Dalton's claim against Camp and MCC for
tortious interference with prospective advantage, this Court has
held that interfere[nce] with a man's business, trade or
occupation by maliciously inducing a person not to enter a
contract with a third person, which he would have entered into
but for the interference, is actionable if damage proximately
ensues. Spartan Equip. Co. v. Air Placement Equip. Co., 263
N.C. 549, 559, 140 S.E.2d 3, 11 (1965); see also Cameron v. New
Hanover Mem'l Hosp., Inc., 58 N.C. App. 414, 440, 293 S.E.2d 901,
917 (affirming view that plaintiff must show that contract would
have ensued but for defendant's interference), appeal dismissed
and disc. rev. denied, 307 N.C. 127, 297 S.E.2d 399 (1982).
In applying the law to the circumstances of the instant
case, we note the following: (1) under contract, Dalton had
published a newsletter to the expressed satisfaction of KFI for
thirty-six months; (2) at or about the time that the original
contract expired, Dalton and KFI discussed renewing the deal;
(3) such negotiations reached an impasse over two key terms
(duration of the new contract and price); (4) in the aftermath of
the expired original contract, the parties agreed that Dalton
would continue to publish the newsletter on a month-to-month
basis; (5) during this negotiating period, Camp formed a rivalpublishing company (MCC); and (6) while still in the employ of
Dalton, Camp (representing MCC) entered into a contract with KFI
to publish its newsletter. Approximately two weeks after signing
the KFI deal, Camp resigned his position with Dalton, presumably
in order to run MCC with his partner, Menius.
Although the facts confirm that Camp joined the
negotiating fray at a time when Dalton and KFI were still
considering a contract between themselves, thereby establishing a
proper time frame for tortious interference, two other obstacles
undermine Dalton's claim. First, there is no evidence suggesting
that Camp induced, no less maliciously induced, KFI into entering
a contract. According to testimony from the deposition of Mark
Walker, KFI's human resources director, it was he who approached
Camp about assuming the newsletter contract, not vice versa.
Moreover, Dalton admitted in his own deposition that he had no
personal knowledge as to the specifics of who offered what amid
conversations between Camp and Walker. Thus, nothing in the
record reflects an improper inducement on the part of Camp.
Second, while Dalton may have had an expectation of a
continuing business relationship with KFI, at least in the short
term, he offers no evidence showing that but for Camp's alleged
interference a contract would have ensued. After Dalton's
original contract expired, he met with KFI to discuss terms for a
possible renewal. During the negotiation period, the parties
agreed that Dalton would continue publishing the newsletter on an
interim basis. However, with regard to a new contract, KFI said
it wanted a discount from the original contract price. Inresponse, Dalton said he could not reduce the price as he was not
making any profit on the publication. KFI, through Walker, then
urged Dalton to consider the matter further and get back to the
company, which, by his own admission, Dalton never did. In our
view, such circumstances fail to demonstrate that a Dalton-KFI
contract would have ensued.
The absence of evidence supporting two essential
elements of a party's allegation of interference with prospective
advantage -- intervenor's inducement of a third party and a
showing that a contract would have ensued -- exposes a fatal
weakness in that claim. As a result, we hold that the trial
court properly granted summary judgment for both Camp and his
company, MCC, see Econo-Travel, 301 N.C. at 203, 271 S.E.2d at
57, and thus reverse the Court of Appeals on this issue.
III.
[4]Dalton additionally argues that he has presented a
genuine question of material fact as to alleged unfair and
deceptive trade practices of Camp and MCC. Again, we disagree.
The extent of trade practices deemed as unfair and
deceptive is summarized in N.C.G.S. § 75-1.1(a) (the Act),
which provides: Unfair methods of competition in or affecting
commerce, and unfair or deceptive acts or practices in or
affecting commerce, are declared unlawful. N.C.G.S. § 75-1.1(a)
(1999). The Act was intended to benefit consumers, Pearce v.
American Defender Life Ins. Co., 316 N.C. 461, 469, 343 S.E.2d
174, 179 (1986), but its protections extend to businesses in
appropriate situations. See, e.g., United Labs., Inc. v.Kuykendall, 322 N.C. 643, 665, 370 S.E.2d 375, 389 (1988) (
147;After
all, unfair trade practices involving only businesses affect the
consumer as well.).
Although this Court has held that the Act does not
normally extend to run-of-the-mill employment disputes, see HAJMM
Co. v. House of Raeford Farms, Inc., 328 N.C. 578, 593, 403
S.E.2d 483, 492 (1991) (citing Buie v. Daniel Inter'l Corp., 56
N.C. App. 445, 289 S.E.2d 118 (holding that employment disputes
involving workers' compensation and wrongful termination issues
fall within the purview of other statutes and that such disputes
do not fall within the intended scope of N.C.G.S. § 75-1.1),
disc. rev. denied, 305 N.C. 759, 292 S.E.2d 574 (1982)), we note
that the mere existence of an employer-employee relationship does
not in and of itself serve to exclude a party from pursuing an
unfair trade or practice claim. For example, employers have
successfully sought damages under the Act when an employee's
conduct: (1) involved egregious activities outside the scope of
his assigned employment duties, and (2) otherwise qualified as
unfair or deceptive practices that were in or affecting commerce.
See Sara Lee Corp. v. Carter, 351 N.C. 27, 519 S.E.2d 308
(holding that a defendant cannot use his status as an employee to
shield himself from liability if his conduct constitutes unfair
and deceptive trade practices as defined by the Act).
In order to establish a prima facie claim for unfair
trade practices, a plaintiff must show: (1) defendant committed
an unfair or deceptive act or practice, (2) the action in
question was in or affecting commerce, and (3) the actproximately caused injury to the plaintiff. Spartan Leasing Inc.
v. Pollard, 101 N.C. App. 450, 461, 400 S.E.2d 476, 482 (1991).
A practice is unfair if it is unethical or unscrupulous, and it
is deceptive if it has a tendency to deceive. Polo Fashions,
Inc. v. Craftex, Inc., 816 F.2d 145, 148 (4th Cir. 1987) (citing
Marshall v. Miller, 302 N.C. 539, 548, 276 S.E.2d 397, 403
(1981)). The determination as to whether an act is unfair or
deceptive is a question of law for the court. Gray v. N.C. Ins.
Underwriting Ass'n, 352 N.C. 61, 68, 529 S.E.2d 676, 681 (2000).
As for whether a particular act was one in or affecting
commerce, we note that N.C.G.S. § 75-1.1(b) defines commerce
inclusively as business activity, however denominated. We also
note that while the statutory definition of commerce crosses
expansive parameters, it is not intended to apply to all wrongs
in a business setting. Examples of business activity beyond the
scope of the statutory definition include: professional
services, see N.C.G.S. § 75-1.1(b); most employer-employee
disputes, see HAJMM, 328 N.C. at 593, 403 S.E.2d at 492; and
securities transactions, see Skinner v. E.F. Hutton & Co., 314
N.C. 267, 333 S.E.2d 236 (1985). Moreover, [s]ome type of
egregious or aggravating circumstances must be alleged and proved
before the [Act's] provisions may [take effect]. Allied
Distribs., Inc. v. Latrobe Brewing Co., 847 F. Supp. 376, 379
(E.D.N.C. 1993) (emphasis added); see also Branch Banking & Tr.
Co. v. Thompson, 107 N.C. App. 53, 62, 418 S.E.2d 694, 700, disc.
rev. denied, 332 N.C. 482, 421 S.E.2d 350 (1992). Application of the aforementioned law to the
circumstances underlying the dispute between Dalton and Camp
serves a two-fold purpose. By helping to illustrate the
distinguishing characteristics between the instant case and Sara
Lee -- a case in which an employer successfully pursued an unfair
and deceptive trade practices claim against an employee -- the
analysis simultaneously demonstrates why Camp's actions did not
amount to unfair or deceptive trade practices.
In Sara Lee, this Court concluded that defendant's
relationship to plaintiff as an employee, under these facts, does
not preclude applicability of N.C.G.S. § 75-1.1. 351 N.C. at
34, 519 S.E.2d at 312 (emphasis added). In the Court's view, the
defendant: (1) had fiduciary duties, and (2) was entrenched in
buyer-seller transactions that fell squarely within the Act's
intended reach. Id. While serving as a purchasing agent for
Sara Lee, defendant was simultaneously selling parts to his
employer at inflated prices, a scheme characterized by the Court
as self-dealing conduct in or affecting commerce. Id. at 33,
519 S.E.2d at 311. As a consequence, the Court held that it
would not permit the defendant to use his employment status as a
de facto defense against his employer's unfair and deceptive
trade practices claim.
In contrast, as evidenced in part I of this opinion,
supra, the two parties in the instant case were not in a
fiduciary relationship. Thus, employee Camp was unencumbered by
fiduciary duties, a significant distinction between him and the
employee-defendant in Sara Lee. Camp's duties as a productionmanager for Dalton were limited to those commonly associated with
any employee. He simply produced a magazine -- designing
layouts, editing content, printing copies, etc. Unlike the Sara
Lee defendant, who worked as a purchasing agent, Camp did not
serve his employer in the capacity of either a buyer or a seller.
Nor did he serve in any alternative capacity suggesting that his
employment was such that it otherwise qualified as in or
affecting commerce.
We also find no evidence of attendant circumstances to
indicate that Camp's conduct was especially egregious or
aggravating. See Branch Banking, 107 N.C. App. at 62, 418 S.E.2d
at 700. Camp met with a KFI representative and raised the
possibility of forming his own publishing company. He and the
KFI representative later discussed having Camp's new company
publish KFI's magazine, talks that ultimately culminated in an
exclusive publishing agreement between Camp and KFI. However,
during this period, we note that Camp also continued his best
efforts to publish Dalton's final issue. That he failed to
inform his employer of the ongoing negotiations and resigned
after signing the KFI deal may be an unfortunate circumstance;
however, in our view, such business-related conduct, without
more, is neither unlawful in itself, see parts I and II of this
opinion, supra, nor aggravating or egregious enough to overcome
the longstanding presumption against unfair and deceptive
practices claims as between employers and employees.
As a consequence of concluding that employee Camp was
without fiduciary duty, that his position was not one in oraffecting commerce, and that his business actions were neither
aggravating nor egregious, we conclude that the trial court
properly granted summary judgment as to employer Dalton's claim
under N.C.G.S. § 75-1.1. Therefore, with regard to both
appellants Camp and MCC, we reverse the Court of Appeals on this
issue.
In sum, the decision of the Court of Appeals is hereby
reversed as to appellee Dalton's claims for: (1) breach of
fiduciary duty of loyalty against Camp; (2) interference with
prospective advantage against Camp and his company, MCC; and
(3) unfair and deceptive acts or practices against Camp and MCC.
Accordingly, that court is instructed to reinstate the judgment
of the trial court.
REVERSED.
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