MVA Secures Complete Defense Verdict for Coats in North Carolina Jury Trial

Moore & Van Allen secured a complete defense verdict on behalf of longtime client Coats HP, Inc. following a six-day jury trial against Safety Components Fabric Technologies, Inc., a subsidiary of Elevate Textiles, Inc.

The dispute arose from Coats’ sale of yarn to Safety Components and included claims for breach of contract, fraud, and violation of the North Carolina Unfair and Deceptive Trade Practices Act related to Coats’ alleged improper termination of the Supply Agreement and the subsequent negotiation and sale of Coats’ Kings Mountain, North Carolina facility.  This matter involved numerous issues under the North Carolina Uniform Commercial Code, including contract formation, enforceability, and types of damages available to a buyer. 

During trial, the court dismissed the fraud and unfair and deceptive trade practices claims on directed verdict. The case then proceeded to the jury on the remaining breach of contract claim.  After only 39 minutes of deliberation, the jury returned a verdict in favor of Coats, finding that Coats properly terminated the Supply Agreement for cause based on Safety Components’ own breaches of the Supply Agreement and, therefore, had not breached the Supply Agreement.

The MVA trial team included Ben Shook, Katie McDiarmid, and Madi Guise. Shook represents clients in complex commercial disputes and other high-stakes litigation; McDiarmid focuses on complex civil and commercial litigation, white collar criminal defense, and investigations; and Guise brings significant prior trial experience as a former Assistant District Attorney.