The North Carolina Court of Appeals affirmed the disposition after remand of a law firm dissolution

This lawsuit arose out of a dispute between the members of the Mitchell, Brewer, Richardson, Adams, Burge & Boughman, PLLC law firm, which resulted in the firm breaking up in the summer of 2005.  Plaintiffs subsequently formed a new firm called Adams, Burge & Boughman, PLLC (“AB&B”), while Brewer, Mitchell, William O. Richardson, and Charles Brittain continued to practice law together as Mitchell, Brewer, Richardson. In the aftermath of the break-up, numerous disagreements arose between the parties regarding the ownership of certain PLLC assets — including future profits from unresolved contingent fee cases brought into the PLLC before the break-up.

The litigation started in 2006 and came before the same court

In Mitchell I, we affirmed in part the trial court’s order, reversed in part, and remanded for further proceedings. With respect to the issue of standing, we held that Plaintiffs possessed standing under N.C. Gen. Stat. § 57C-8-01(a) to assert derivative claims on behalf of the PLLC. Id. at 382-87, 705 S.E.2d at 767-70. We further ruled that because “withdrawal pursuant to N.C. Gen. Stat. § 57C-5-06 was not available as a remedy at law for the parties[,]” the dismissal of Defendants’ counterclaims  premised upon an alleged withdrawal by Plaintiffs was proper. Id. at 390, 705 S.E.2d at 772. We also held that pursuant to N.C. Gen. Stat. § 57C-6-02 dissolution of the PLLC was necessary because there was a deadlock in its management.