Bui v. Phan

2026 NCBC 3
CourtNorth Carolina Business Court
DecidedJanuary 21, 2026
Docket24-CVS-1348
StatusPublished
AuthorAdam M. Conrad

This text of 2026 NCBC 3 (Bui v. Phan) is published on Counsel Stack Legal Research, covering North Carolina Business Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bui v. Phan, 2026 NCBC 3 (N.C. Super. Ct. 2026).

Opinion

Bui v. Phan, 2026 NCBC 3.

STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE SUPERIOR COURT DIVISION MECKLENBURG COUNTY 24CV001348-590

THAO PHUONG BUI,

Plaintiff,

v. FINDINGS OF FACT, CONCLUSIONS OF LAW, AND JUDGMENT KHANH NGOC PHAN and GOLDEN FOLLOWING BENCH TRIAL ROOSTER, LLC,

Defendants.

1. This case arises out of a dispute between Golden Rooster, LLC’s members—

Plaintiff Thao Phuong Bui and Defendant Khanh Ngoc Phan. In September 2025,

the Court held a bench trial on Bui’s claims for breach of contract and declaratory

judgment. Having considered all relevant evidence, the Court enters the following

findings of fact, conclusions of law, and judgment.

Vilmer Caudill, PLLC by Bo Caudill, Megan Cobb, and Nicholas Williams, for Plaintiff Thao Phuong Bui.

Raynor Law Firm PLLC, by Kenneth Raynor, for Defendant Khanh Ngoc Phan.

No counsel appeared for Nominal Defendant Golden Rooster, LLC. 1

Conrad, Judge.

1 Golden Rooster is a nominal defendant for purposes of Bui’s claims and is not represented

by counsel. I. FINDINGS OF FACT 2

2. Bui and Phan are erstwhile romantic partners. Their relationship, which

goes back nearly twenty years, ended in February 2023 when Bui discovered that

Phan had been unfaithful.

3. Golden Rooster, LLC is a North Carolina limited liability company formed

in early 2019. (Tr. Ex. 1; Stip. ¶ (c).)

4. Bui and Phan are Golden Rooster’s only members, each owning a

fifty-percent interest. (Stip. ¶ (f).)

5. About a year after forming Golden Rooster, Bui and Phan executed an

operating agreement to govern its operations. The agreement is valid, as stipulated

by the parties. Bui and Phan did not consult a lawyer in connection with making the

agreement; rather, Phan created it using a template that she found online. (See Tr.

Ex. 2 [“Op. Agrmt.”]; Stip. ¶¶ (d), (e).)

6. Golden Rooster’s purpose, as stated (somewhat ungrammatically) in the

operating agreement, is “[r]eal estate purchase, sell, and rentals.” (Op. Agrmt. ¶ 3;

see also Stip. ¶ (h).)

2 The trial record includes the testimony of Bui and Phan, who were the only witnesses, and

more than thirty exhibits. The record also includes the parties’ stipulations of fact, which appear in the first section of the final pretrial order. (See ECF No. 110 [“Stip.”].) In general, the Court finds the documentary evidence far more compelling than the witness testimony. Bui and Phan are interested parties, and neither’s testimony, standing alone, was more credible than the other’s. 7. The company’s management “is vested in the Members,” and Bui and Phan

have equal managerial authority and equal voting power for matters requiring a

member or manager vote. (Op. Agrmt. ¶¶ 17, 23; Stip ¶ (g).)

8. The operating agreement values the members’ capital contributions equally,

promises that each “will receive an equal share of any Distribution,” and grants each

the same right to inspect company records. (Op. Agrmt. ¶¶ 6, 8, 45.)

9. The operating agreement also states that neither member “may do any act

in contravention of” its terms; confer “express, implied or apparent authority” on a

nonmember; “make it impossible to carry on the ordinary business of the Company”;

“bind or obligate the Company to any extent with regard to any matter outside the

intended purpose of the Company”; or “confess a judgment against the Company.” A

“violation” of these “forbidden acts will be deemed an Involuntary Withdrawal” from

membership. (Op. Agrmt. ¶¶ 55–60.)

10. A separate provision deals with expulsion from membership. The operating

agreement states that either member may seek to expel the other when “it has been

judicially determined” that the to-be-expelled member “engaged in wrongful conduct

that adversely and materially affected the Company’s business”; “willfully or

persistently committed a material breach of” the agreement “or of a duty owed to the

Company or the other Members”; or “engaged in conduct relating to the Company’s

business that makes it not reasonably practicable to carry on the business with the

Member.” (Op. Agrmt. ¶ 29.) 11. There is also a limitation-of-liability clause, which states that a member

“will be liable only for any and all acts and omissions involving intentional

wrongdoing.” In no event is a member “liable to the Company or to any other Member

for any mistake or error in judgment or for any act or omission believed in good faith

to be within the scope of authority conferred or implied by” the operating agreement.

(Op. Agrmt. ¶ 62.)

12. When Bui and Phan ended their romantic relationship in February 2023,

they decided to end their business relationship as well. At that time, Golden Rooster

owned three rental properties. Bui favored liquidating all three properties and

splitting the proceeds; Phan favored retaining the properties and buying Bui’s

membership interest. (See Tr. Ex. 37.)

13. Over a span of several weeks in February and March 2023, Bui withdrew

more than $300,000 from Golden Rooster’s accounts with Phan’s consent. (Tr. Ex.

38.)

14. In April 2023, Phan withdrew $7,000 from Golden Rooster’s account with

Fifth Third Bank. (Tr. Ex. 28.)

15. The parties dispute whether Bui knew about and gave consent to the April

2023 withdrawal. The Court finds that she did. Three facts support Phan’s

recollection on this point. First, Bui and Phan commonly discussed distributions and

other financial transfers orally without documenting their agreements. Second, Phan

paid $142,000 into the Fifth Third account just a few weeks before the $7,000

withdrawal, significantly weakening any inference of nefarious intent. Third, although Bui lost online access to Golden Rooster’s accounts after the breakup, she

represented to Phan that she “was able to get the info [she] needed for [the Fifth

Third] business accounts” as of July 2023. Despite having “the info [she] needed,”

Bui failed to note or object to the $7,000 payment, supporting an inference that she

knew about it and had given consent. (Tr. Exs. 14, 15, 33, 38.)

16. In July 2023, Bui and Phan agreed to sell two of Golden Rooster’s rental

properties, after which Phan would buy Bui’s membership interest. Closings for these

properties occurred in September and October 2023. (See Tr. Ex. 37.)

17. Also in July 2023, Bui asked Phan to provide access to Golden Rooster’s

Venmo, Baselane, Bank of America, and other financial accounts. In response, Phan

explained which accounts received rent payments from which tenants but did not

divulge online credentials for any account. Phan also stated that she used her

“personal log in” to access the Bank of America account and that, as a result, Bui

would “have to set up [her] own log in for” that account. (See Tr. Exs. 14, 15.)

18. In a lengthy email dated 23 August 2023, Bui told Phan that “[I] am

declaring war against you.” Citing Phan’s infidelity, Bui pledged “no forgiveness” and

to “battle until one of us falls or both of us fall.” According to Bui, “I am willing to

spend money to bring you down,” and “I can totally afford to spend everything I have

to making sure you have nothing left.” She added that “You will fight to keep what

you have . . . and I will fight to prevent you from keeping it.” (Tr. Ex. 31.) 19. Just two days after “declaring war,” Bui sent another email urging Phan to

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Poor v. Hill
530 S.E.2d 838 (Court of Appeals of North Carolina, 2000)
Lane v. Scarborough
200 S.E.2d 622 (Supreme Court of North Carolina, 1973)
Gaston County Dyeing MacHine Co. v. Northfield Insurance
524 S.E.2d 558 (Supreme Court of North Carolina, 2000)
Robbins v. C. W. Myers Trading Post, Inc.
117 S.E.2d 438 (Supreme Court of North Carolina, 1960)
Singleton v. Haywood Electric Membership Corp.
588 S.E.2d 871 (Supreme Court of North Carolina, 2003)
Braun v. Glade Valley School, Inc.
334 S.E.2d 404 (Court of Appeals of North Carolina, 1985)
Schenkel & Shultz, Inc. v. Hermon F. Fox & Associates
658 S.E.2d 918 (Supreme Court of North Carolina, 2008)
Bryson v. Sullivan
412 S.E.2d 327 (Supreme Court of North Carolina, 1992)
Chase Group v. Fisher, Clinard & Cornwell
710 S.E.2d 218 (Court of Appeals of North Carolina, 2011)
Brinckerhoff v. Enbridge Energy Company, Inc.
159 A.3d 242 (Supreme Court of Delaware, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
2026 NCBC 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bui-v-phan-ncbizct-2026.