Bolier & Co. v. Decca Furniture (Usa), Inc.

792 S.E.2d 865, 250 N.C. App. 323, 2016 N.C. App. LEXIS 1155
CourtCourt of Appeals of North Carolina
DecidedNovember 15, 2016
Docket15-1219
StatusPublished
Cited by3 cases

This text of 792 S.E.2d 865 (Bolier & Co. v. Decca Furniture (Usa), Inc.) 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
Bolier & Co. v. Decca Furniture (Usa), Inc., 792 S.E.2d 865, 250 N.C. App. 323, 2016 N.C. App. LEXIS 1155 (N.C. Ct. App. 2016).

Opinion

DAVIS, Judge.

*323 Bolier & Company, LLC ("Bolier"), Christian G. Plasman ("Plasman"), and Christian J. Plasman a/k/a Barrett Plasman ("Barrett") (collectively "Plaintiffs") appeal from an order by the trial court enforcing a preliminary injunction previously entered against them in this action. After careful review, we dismiss Plaintiffs' appeal.

Factual Background

Bolier is a closely held North Carolina company in the business of selling furniture. Bolier was originally founded and owned by Plasman. On 31 August 2003, Plasman entered into an operating agreement (the "Agreement") with Decca Furniture (USA), Inc. ("Decca USA"), which *324 is a wholly-owned subsidiary of Decca Contract Furniture, LLC ("Decca China"). 1 Pursuant to the Agreement, Plasman conferred a 55% ownership interest in Bolier to Decca USA while retaining a 45% interest for himself. In return, Decca USA agreed to supply Bolier with furniture for retail sale.

According to Plasman, Richard Herbst, the president of Decca USA, and Tsang C. Hung, the chairman of Decca USA's board of directors, represented to him prior to the execution of the Agreement that while it was necessary for Decca to own a majority ownership interest in Bolier "on paper" due to certain rules of the Hong Kong Stock Exchange, Bolier would, in reality, be operated as a 50/50 partnership between Decca USA and Plasman. Following the execution of the Agreement, Plasman served as Bolier's president and chief executive officer while his son, Barrett, worked as Bolier's operations manager. However, this arrangement ended on 19 October 2012 when Herbst terminated the employment of both Plasman and Barrett because Bolier's revenues were no longer sufficient to support their annual salaries.

Although their employment had been terminated, Plasman and Barrett continued to work regularly out of Bolier's offices, ultimately causing Decca USA to change the locks to the company's offices. Plasman and *867 Barrett also opened bank accounts in Bolier's name and diverted approximately $600,000.00 in customer payments intended for Bolier to those accounts. They proceeded to pay themselves at least $62,192.15 from those accounts as salaries, despite the fact that they were no longer employed by Bolier.

On 22 October 2012, Plaintiffs filed the present action (the "Lawsuit") in Catawba County Superior Court alleging claims for dissolution; breach of contract; fraud; constructive fraud; misappropriation of corporate opportunities; trademark, trade dress and copyright infringement; conspiracy to defraud; and unfair trade practices. On 24 October 2012, the Lawsuit was designated as a mandatory complex business case and assigned to the North Carolina Business Court. Decca removed the Lawsuit to the United States District Court for the Western District of North Carolina on 29 October 2012. On that same date, Decca filed a motion for a temporary restraining order and preliminary injunction against the Plasmans pursuant to Rule 65 of the Federal Rules of Civil Procedure seeking, among other things, to prohibit any additional *325 diversion of Bolier funds and to recover the funds that had already been diverted.

A hearing on Decca's motion was held before the Honorable Richard L. Voorhees. On 27 February 2013, Judge Voorhees entered an order ("Judge Voorhees' Order") granting Decca's motion by entering a preliminary injunction that barred the Plasmans from taking any further actions on Bolier's behalf. Judge Voorhees' Order also directed them to return all diverted funds to Bolier within five business days and to provide an accounting of those funds to Decca USA. The order also put in place various mechanisms to safeguard Plasman's rights as a minority owner of Bolier during the pendency of the litigation.

Plaintiffs filed a document entitled "Plaintiffs' and Third Party Defendant's Response to Court Order" on 6 March 2013. In this document, they represented that they had "fully complied to the best of their ability with the Court Order signed on February 27, 2013." In addition, they stated that "Plaintiffs['] response herein is intended to comply with the spirit of the Court Order, and by complying herein, Plaintiffs are not waiving Plaintiffs' rights to request reconsideration or appeal."

On 13 March 2013, Plaintiffs filed a document captioned "Supplemental Motion for Preliminary Injunction Conditions and Plaintiff Safeguard Conditions" in which they requested that the federal court impose additional obligations on Decca to protect Plasman's status as a minority owner of Bolier-including the issuance of an injunction bond.

Plaintiffs never made any attempt to appeal Judge Voorhees' Order to the United States Court of Appeals for the Fourth Circuit. Nor did they file a motion for reconsideration of Judge Voorhees' Order.

On 19 September 2014, Judge Voorhees entered an order dismissing Plaintiffs' federal copyright claims and declining to exercise supplemental jurisdiction over Plaintiffs' state law claims. As a result, the Lawsuit was remanded to state court.

Upon remand, Plaintiffs filed in the Business Court a motion entitled "Plaintiffs' Motion to Amend Preliminary Injunction, to Dissolve Portions of the Preliminary Injunction and Award Damages, and Motion for Sanctions." In this document, Plaintiffs asked the court, inter alia , to amend various aspects of the preliminary injunction conditions set forth in Judge Voorhees' Order and to dissolve other portions of that order. In support of their motion, Plaintiffs asserted, in part, that

since the Preliminary Injunction was entered, Plaintiff has obtained significant evidence supporting that [sic]
*326 (1) the Preliminary Injunction was improvidently granted, (2) incorrectly entered without protection of an injunction bond, as well as [sic] (3) the facts demonstrate changed circumstances warranting amendment of the Preliminary Injunction.

Plaintiffs then requested the entry of an order containing the following provisions:

1. Plasman and Barrett should be awarded at least $574,660.36 in damages relating to improper termination.
*868 2. Decca USA should be required to pay [a] cash bond of at least $5,471,000.00 and up to $10,000,000.00 to reimburse Bolier relating to Decca's self-dealing, misappropriation of Bolier's corporate opportunities and other tortious conduct.
3.

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Related

Plasman v. Decca Furniture (USA), Inc.
800 S.E.2d 761 (Court of Appeals of North Carolina, 2017)
Plasman v. Decca Furn. (USA)
Court of Appeals of North Carolina, 2017

Cite This Page — Counsel Stack

Bluebook (online)
792 S.E.2d 865, 250 N.C. App. 323, 2016 N.C. App. LEXIS 1155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bolier-co-v-decca-furniture-usa-inc-ncctapp-2016.