North Carolina, like many states, recognizes that employees owe a certain level of duty to their employers. However, the North Carolina Supreme Court has specifically rejected any independent liability for breaching such duty.
In its 2001 Dalton v. Camp decision, the Supreme Court addressed a troubling situation. B. Dalton & Co. had a contract with a furniture company to publish its employee newsletter. David Camp was the Dalton employee in charge of the account.
After the publishing contract expired, but while Dalton was still publishing the newsletter, Camp quietly formed a competing publishing company, negotiated on the side to win the furniture company’s business and then resigned from Dalton.
The North Carolina Supreme Court held that there is no independent cause of action in North Carolina for an employee’s breach of his duty of loyalty. It held that a breach of the duty only served as a defense in a wrongful...(register to read more)