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Summary Judgment Motion Denied by N.C. Business Court

An N.C. Business Court judge has denied a summary judgment motion by Qorvo to allow the company to avoid paying millions of dollars to restore a former leased facility in Greensboro to its initial shell condition.

The ruling from Judge Julianna Earp was posted on the court’s website Wednesday.

Qorvo requested the court dismiss the lawsuit filed in October 2022 by BCORE Timber EC Owner LP, an affiliate of Link Industrial Properties of New York City.

BCORE sued Qorvo for breach of the lease contract in July 2022 in Delaware Superior Court. The lawsuit was transferred to N.C. Business Court in June 2023.

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The summary judgment request was based on Qorvo’s assertion of three-year statute of limitations grounds. The company claims it had repudiated the building restoration obligations more than three years before BCORE initiated its breach of lease claim.

Earp ruled the three-year statute of limitations that began in October 2021 had not expired, thus not relieving Qorvo of its restoration obligations.

Qorvo could not be immediately reached for comment on the court order.

Earp’s order also lifted a stay in the complaint. She ordered the parties to file within 10 days an updated case management report, a proposed case management report and next steps that could include mediation.

The legal dispute centers on a 15-year lease that RF Micro Devices — the predecessor of Qorvo — signed in September 2007 for a 120,000-square-foot shell building in a Greensboro industrial park. At the time, RF Micro had announced plans for expanding operations for the fourth time in Greensboro with its third fabrication plant that represented a 300-job, $103 million capital investment.

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As part of the manufacturing expansion, Qorvo made several upgrades to the building, including a steel-framed mezzanine, in 2007 and 2008 that represented overall a $34 million expenditure.

According to the court order, BCORE said Qorvo agreed to restore the building to its initial shell condition upon request at the end of the lease term on Sept. 30, 2022.

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