Appellate Case Roundup

By Joe Murray

The appellate courts have been busy this summer. Unfortunately, none of the opinions are very enjoyable to read—unless you love technical opinions on ERISA, SOX, and the MSPB.

Pense v. MD Dep’t of Public Safety, No. 18-1554 (4th Cir. June 11, 2019) (11th Amendment): Just a reminder when bringing claims under state law against a state in federal court: a state can only waive its 11th Amendment immunity “by the most express language or by such overwhelming implication from the [statutory] text.” Pense’s claims alleging sexual orientation discrimination under Maryland’s FEPA are dismissed.

Northrop Grumman Systems Corp. v. US Department of Labor, No. 17-1811 (4th Cir. June 13, 2019) (SOX): The 4th Circuit makes it clear to DOL that SOX whistleblower protection is limited to six specific areas and is not a catchall retaliation provision. The 4th Circuit reversed the DOL’s judgment,[1] finding that an employee arbitration policy is not shareholder fraud and, even if it could be shareholder fraud, there was no objective reason to believe this particular arbitration clause constituted a violation of SOX.

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Keep Out: NLRB Allows Further Restrictions of Union Access to Employers’ Property

By George J. “Jerry” Oliver

In a June 14, 2019, decision, the National Labor Relations Board clarified whether an employer may limit non-employee union organizers from entering the employer’s private property. UPMC and SEIU, 368 NLRB No. 2. In doing so, the NLRB overruled a precedent held for nearly four decades that allowed non-employee union organizers to enter public spaces on an employer’s private property to convene with employees during union organizing activity. Employers may now prohibit non-employee union representatives’ access to the employer’s private property, including public spaces.

In February 2013, two non-employee union representatives met with a group of hospital employees in the cafeteria of the UPMC Presbyterian Hospital (“hospital”) in Pittsburgh, Pennsylvania, to discuss union organizational campaign matters and distribute union-related materials. The hospital permitted only patients, their families and visitors, and employees to use the cafeteria. Hospital security received two complaints about the presence of the un-permitted non-employee union representatives and following hospital protocol, security asked the union representatives to leave the hospital. When the union representatives refused to leave, hospital security requested the assistance of the police to escort the union representatives from the hospital. The union representatives subsequently filed charges alleging unfair labor practices against the hospital, arguing their presence for the purpose of solicitation and promotional activities is permitted in the hospital cafeteria, as the cafeteria is a public space.

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Items of Interest: Interstate wagering, Nike and the Klaw, Sports Betting

Members of the Sports & Entertainment Law Section found the following recent third party articles to be of potential interest to the Section:

Judge: Law applies to sports betting, not lotteries

Nike may not have a lot to gain taking on Toronto Raptors’ Kawhi Leonard over ‘Klaw’ logo

Antitrust Tripwires: Legal Expert Explains Sports Betting Data Issues

Tom Brady’s own comments put his ‘Tom Terrific’ trademark quest on shaky legal ground

NCAA Adjusts To the New Sports Betting Frontier

Agents Beware: Representation Agreement May Not Be Enforceable If It Violates State Sports Agent Laws

3 Connecticut female athletes file federal discrimination complaint over transgender competition

NY Mobile Sports Betting Up In Flames For 2019, And Possibly Longer

UPDATE: NCAA Flexes Its Muscle in Response to California Fair Pay To Play Act

Beer, wine sales are now possible at college stadiums and arenas in North Carolina

Gigi Hadid “Obliterates” Copyrights With Fair-Use Bazooka

Fair Housing for Construction Lawyers

By Luke J. Farley Sr.

When you think about the statutes and codes that govern the construction and design process in North Carolina, does the N.C. Fair Housing Act come to mind? Probably not—but it should, or your clients may be needlessly exposing themselves to an expensive risk. According to Lawyers Weekly, in 2016 one of the largest settlements in North Carolina resulted from a construction and design dispute under the N.C. Fair Housing Act (NCFHA). The developers, builders, and architects of the SkyHouse high rise apartments in Raleigh and Charlotte agreed to pay $1.8M to correct sliding door thresholds which were inaccessible to people with disabilities. This wasn’t an isolated case. Owners, contractors, and designers around the country have paid out millions of dollars to resolve fair housing construction disputes. You and your clients can’t afford to be unaware of the Fair Housing Act.

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The Stages Of a Lawyer’s Vacation

Is there any day more relaxing than the Wednesday of vacation week? What if every day of vacation could be like that?

By Marc E. Gustafson

As we enter the post-Fourth of July dog days of summer, many of us are either just returning from vacation, leaving soon for a vacation or daydreaming about an upcoming vacation.  After recently returning from an annual “vacation” at the beach with my family and some friends (and I say “vacation” because we have 4- and 6-year-old boys), I spent some time thinking about the various stages of my time away.

Stage 1: Preparing to Leave Work Behind

The first stage begins even before vacation starts.  Undoubtedly, there is the mad rush of deadlines, scrambling to get projects to the stage where they can safely lie dormant for at least a week and trying to avoid calls/emails/incoming work that could completely upend your vacation plans.

If you can safely navigate away from the office without any major events, you can start to relax.  Well, maybe start to start to relax.  As most vacations begin on a Saturday or Sunday, there’s the rush of travel involving luggage, cars, airplanes, shuttles, boats and maybe all the above.

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2017 Tax Act’s $11.2 Million Estate, Gift, and GST Tax Exemption Will Expire In 2025

By John G. Hodnette

The Tax Cuts and Jobs Act of 2017 doubled the unified exemption for the estate, gift, and GST taxes from about $5.6 million to about $11.2 million (adjusted yearly for inflation).  This dramatic change means for years after 2017, a married couple can gift during life or pass by their death up to $22.4 million of assets free of transfer taxes.  While many high net worth clients are aware of the doubled exemption, it is less well known that this doubled exemption is set to expire on December 31, 2025.

This is not the first time Congress has used a sunset schedule for the unified transfer tax exemption amount.  At the end of 2012, taxpayers faced a similar dilemma when it was uncertain whether Congress would act to prevent the automatic reversion of the unified transfer tax exemption from about $5.12 million to $1 million.  In that case, Congress did act to keep the exemption at $5.12 million.  It is unclear, however, if the same will occur in 2025, particularly given the rhetoric about “taxing the ultra-wealthy” from presidential candidates and Democratic Senators such as Bernie Sanders and Elizabeth Warren.  This uncertainty calls for tax planning designed to take maximum advantage of the Tax Act’s increased exemption regardless of what may happen at the end of 2025.

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Gratitude: Chair Reflects On Her Year

By Leslie Pegram

Gratitude is defined as the quality of being thankful; readiness to show appreciation for and to return kindness. As my time as Paralegal Division Chair comes to an end, I want to express my gratitude for the opportunity to contribute to the success of the North Carolina Bar Association Paralegal Division.

I’m grateful to have been surrounded by so many amazing volunteers, leaders, mentors and friends. I am simply in awe of how our members share their time, talents and passions to the betterment of the community, profession, Division and Association. Our members are volunteers serving in various capacities including (but not limited to) Council Members, Committee Chairs, Section Liaisons, CPE planners, notaries/witnesses for Wills for Heroes, mentors, listserv participants and more. For each person who takes time to serve, thank you.

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I learned one thing last week: Wellness is about balance.

During wellness expert Laura Mahr’s NCBA Annual Meeting CLE session, attendees physically embraced wellness techniques.

By Josh McIntyre

It’s hard to avoid the topic of wellness in the legal world these days. Whether it’s a new ABA initiative, an article in last month’s N.C. State Bar Journal, or our own North Carolina Bar Association Annual Meeting, the good news is that the legal community locally and at large seems to be embracing the reality that the stress of our profession is high and we have to take intentional, mindful steps to promote a healthy workplace and lifestyle.

This topic was front and center for me last week, when nearly 700 NCBA members and guests came to Biltmore for our 2019 Annual Meeting. My department is responsible for this event, and our staff spent countless hours over the past year finding speakers, booking activities and setting up dinners and luncheons, nearly all of which included some aspect of our overarching theme of Wellness: Work, Mind, Body, Life.

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Business and International Law Issues Covered At Pinehurst Retreat

See Your Name in Print!  Folks, it’s been some time since we’ve posted.  Before you take a look at this edition, here’s a brief announcement:  The Business Law Section would love  your help with ideas and articles for future posts.  If you have an article you’re working on, thoughts about current developments in law practice management or attorney wellness, an internal firm analysis of a legal issue that you’d like to share (with permission, of course), or information about a recent conference, please let us know.  The circulation we get is quite broad – one of our blog posts this year has nearly 7,000 views at this time.  Please reach out to  [email protected] with content and ideas.

The next few blog posts will catch you up on recent events around the Section.

By Russ Robinson

Business and international lawyers from across the state converged at the Pinehurst Resort earlier this spring for annual section meetings and CLE courses. The mid-February event for the Business Law Section has been an annual event for more than 30 years, and recently the International Law & Practice Section has joined forces as both sections focus on developments in business.

Key themes in this year’s session included technology and the 2018 changes to the North Carolina Business Corporation Act.

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Book Review: The Life and Times Of a Union Organizer At a Tennessee Textile Mill

By Jonathan Harkavy

The Jackson Project
By Phil Cohen
The University of Tennessee Press, 2016

Phil Cohen’s memoir of his days as a union organizer at a troubled southern textile mill is a worthwhile read for any audience. The book’s subtitle, “War in the American Workplace,” is a pithy summary of the author’s main point about unionization in our country. Mr. Cohen traces a tortuous and (spoiler alert) ultimately unsuccessful battle to save the jobs and preserve the dignity of hundreds of mill workers in Jackson, Tennessee. On a deeper level, the book portrays Mr. Cohen’s own struggle to juggle his many roles as a relentless proponent of workplace justice, a trusted confidant of the workers he represents, an effective adversary of mill owners and management, a faithful employee of the Amalgamated Clothing and Textile Workers Union, and – not incidentally at all – a loving father to his pre-school daughter.

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