DocRx, Inc. v. EMI Servs. of North Carolina, LLC

367 N.C. 371 (2014)

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DocRx, Inc. v. EMI Servs. of North Carolina, LLC

North Carolina Supreme Court
367 N.C. 371 (2014)

Facts

EMI Services of North Carolina, LLC (EMI) (defendant) agreed to pay commissions to DocRx, Inc. (DocRx) (plaintiff) for sales of EMI’s pharmaceutical products by a third party located by DocRx. After EMI failed to pay commissions, DocRx filed suit in Alabama state court, obtaining a default judgment against EMI when EMI failed to appear. The amount of the judgment was based on an affidavit filed by DocRx. When DocRx filed the judgment in a North Carolina state court, attempting to enforce the judgment, EMI moved for relief from judgment under North Carolina Rule of Civil Procedure (NCRCP) 60(b), arguing that the judgment was not valid because DocRx had committed intrinsic fraud in obtaining the judgment by falsely testifying as to the amount EMI owed DocRx. The trial court granted EMI’s motion, and DocRx appealed. The appellate court reversed, holding that NCRCP 60(b)(3)’s application to the enforcement of foreign judgments was limited and, under the Full Faith and Credit Clause, a foreign judgment could not be set aside due to intrinsic fraud. EMI appealed.

Rule of Law

Issue

Holding and Reasoning (Parker, C.J.)

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