Armstrong v. Velasquez

CourtCourt of Appeals of North Carolina
DecidedApril 1, 2014
Docket13-652
StatusUnpublished

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

Bluebook
Armstrong v. Velasquez, (N.C. Ct. App. 2014).

Opinion

An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority. Citation is disfavored, but may be permitted in accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of Appellate Procedure.

NO. COA13-652 NORTH CAROLINA COURT OF APPEALS Filed: 1 April 2014 ROBERT AND JACKIE ARMSTRONG, Plaintiffs

Wayne County v. No. 10 CVD 1815

GLADYS MARIE VELASQUEZ, Defendant

Appeal by defendant from order entered 13 February 2013 by

Judge Charles P. Gaylor, III, in Wayne County District Court.

Heard in the Court of Appeals 7 November 2013.

Strickland Lapas & Associates, by Dustin B. Pittman, for Plaintiffs.

The Webster Law Firm, by Walter S. Webster, for Defendant.

ERVIN, Judge.

Defendant Gladys Marie Velasquez appeals from an order

granting summary judgment in favor of Plaintiffs Robert and

Jackie Armstrong with respect to the claims for breach of

contract and malicious prosecution that they asserted against

Defendant as the result of a series of events originating in a

dispute arising from a contract under which Plaintiffs rented a

tract of real property from Defendant on which a residence was -2- situated and had an option to purchase that property. On

appeal, Defendant contends that the trial court erred by

granting summary judgment in Plaintiffs’ favor with respect to

their breach of contract claim on the grounds that Plaintiffs

failed to exercise their option in an effective manner and that

the trial court’s damage award had not been properly calculated

and that the trial court erred by granting summary judgment in

Plaintiffs’ favor with respect to their malicious prosecution

claim on the grounds that the record reveals the existence of a

genuine issue of material fact with respect to the issue of

whether Defendant acted without probable cause and with malice.

After careful consideration of Defendant’s challenges to the

trial court’s order in light of the record and the applicable

law, we conclude that the trial court’s order should be reversed

and that this case should be remanded to the Wayne County

District Court for further proceedings not inconsistent with

this opinion.

I. Factual Background

A. Substantive Facts

On 7 November 2003, Plaintiffs entered into a contract with

Defendant1 which provided that:

1 We are not entirely certain that either the actual contract between the parties or the request for admissions to which Defendant allegedly failed to respond were presented for the -3- 1. [Defendant] agrees to allow [Plaintiffs to] rent the home and land (3.93 acare) [sic] at 404 Woodview for the period of four years.

2. [Plaintiffs] will pay the rent of $780.00 a month due on the 1st no later than the 5th of the month until ready to purchase for the asking price of $119,000.000.

3. [Plaintiffs] will be responsible for all maintains [sic] and repairs with the exception of the central air unit for three months.

4. [Defendant] agrees to allow [Plaintiffs] to cut back the tree line no more than 30 feet from [its] present area.

5. [Plaintiffs] agree to improve the home by painting, wall papering, remolding and landscaping as needed at their own expense.

6. At the time to purchase the home all money paid toward principal into rent plus deposit of $1000.00 will be applied as down payment at closing.

7. If [Plaintiffs] decide not to buy the home and land, all money will be considered rent and the deposit of $1000.000 will be refunded.

trial court’s consideration at the hearing held in connection with Plaintiffs’ summary judgment motion. However, given that there does not appear to be any dispute that the documents that have been presented for our review on appeal are genuine, given that we would reach the same result even if we elected not to consider these documents, and given that a decision to consider these documents will help us to provide better guidance to the trial court on remand, we have determined that we should consider these documents in the course of resolving the matters at issue between the parties on appeal. -4-

After entering into the contract, Plaintiffs made a total of 48

rent payments in the amount of $780 per month, resulting in a

total payment of $37,440. In addition, Plaintiffs spent a total

of $8,123 while improving the property. However, Plaintiffs

lost the right to purchase the property from Defendant as the

result of a foreclosure stemming from Defendant’s failure to

make the payments required under a note and deed of trust

applicable to the property.

On 3 June 2009, Defendant obtained the issuance of warrants

for arrest charging Ms. Armstrong with misdemeanor larceny in

File No. 09-CR-53477. The misdemeanor larceny charge that

Defendant had lodged against Ms. Armstrong was dismissed because

Defendant failed to appear and because a similar claim had been

dismissed with prejudice in a civil action. A similar warrant

for arrest charging Mr. Armstrong with misdemeanor larceny and

injury to real property was issued in File No. 09-CR-55791 on 2

October 2009 at Defendant’s request. The misdemeanor larceny

and damage to real property charges that Defendant had lodged

against Mr. Armstrong were dismissed because Defendant failed to

appear and because of the two previous dismissals. Plaintiffs

claimed to have suffered humiliation, mental suffering, and loss

of time and to have incurred attorneys’ fees and court costs as -5- a result of Defendant’s decision to initiate these criminal

proceedings against them.

B. Procedural Facts

On 30 July 2010, Plaintiffs filed a complaint seeking to

recover damages from Defendant on the basis of breach of

contract and malicious prosecution claims. On 28 February 2011,

Defendant filed a responsive pleading in which she sought to

have Plaintiffs’ complaint dismissed, denied the material

allegations of Plaintiffs’ complaint, and asserted the statute

of frauds and equitable estoppel as affirmative defenses. On 6

November 2012, Plaintiffs served a set of requests for

admissions upon Defendant. On 2 January 2013, Plaintiffs filed

a motion, which was accompanied by an unverified copy of their

complaint, a copy of a discovery request that Plaintiffs had

served upon Defendant, and affidavits signed by both Plaintiffs,

seeking the entry of summary judgment in their favor.

After holding a hearing concerning the merits of

Plaintiffs’ motion on 4 February 2013, the trial court entered

an order on 13 February 2013 granting Plaintiffs’ motion for

summary judgment and requiring Defendant to pay $46,563 in

compensatory damages stemming from Plaintiffs’ breach of

contract claim and $10,000 in compensatory damages stemming from -6- Plaintiffs’ malicious prosecution claim. Defendant noted an

appeal to this Court from the trial court’s order.

II. Legal Analysis

A. Standard of Review

Summary judgment is proper “if the pleadings, depositions,

answers to interrogatories, and admissions on file, together

with the affidavits, if any, show that there is no genuine issue

as to any material fact and that any party is entitled to a

judgment as a matter of law.” N.C. Gen. Stat. § 1A-1, Rule

56(c). In reviewing an order granting summary judgment, our

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