Braun v. TRUST DEVELOPMENT GROUP, LLC

713 S.E.2d 528, 213 N.C. App. 606, 2011 N.C. App. LEXIS 1488
CourtCourt of Appeals of North Carolina
DecidedJuly 19, 2011
DocketCOA10-1479
StatusPublished
Cited by3 cases

This text of 713 S.E.2d 528 (Braun v. TRUST DEVELOPMENT GROUP, LLC) 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
Braun v. TRUST DEVELOPMENT GROUP, LLC, 713 S.E.2d 528, 213 N.C. App. 606, 2011 N.C. App. LEXIS 1488 (N.C. Ct. App. 2011).

Opinion

HUNTER, Robert C., Judge.

Todd Braun (“plaintiff”) appeals from the trial court’s 18 August 2010 order disqualifying plaintiff’s counsel. After careful review, we affirm.

Background

On 3 September 2008, plaintiff entered into two contractual agreements with defendant Trust Development Group, LLC (“Trust”) — a residential lease agreement and a purchase agreement. Pursuant to the terms of these agreements, plaintiff was to rent a condominium owned by Trust in Charlotte, North Carolina and then purchase the condominium within 18 months. Plaintiff provided a $140,000.00 deposit upon execution of the purchase agreement.

*607 On 9 November 2009, plaintiff, through his attorneys at the Bray Law Firm, sent a letter to James M. Donnelly at Trust, stating that plaintiff no longer intended to purchase the condominium due to Trust’s alleged breach of the lease and purchase agreements. Specifically, plaintiff claimed that Trust had not completed some areas of the condominium as it previously agreed to do, such as the rooftop terrace. Plaintiff requested that his rent be reduced and that Trust return his deposit, which it refused to do.

On 18 December 2009, plaintiff filed a complaint against Trust alleging, inter alia, breach of the lease and purchase agreements. Plaintiff sought return of the $140,000.00 deposit. On 26 January 2010, plaintiff amended his complaint and added defendant Pursuit Development Group Two, LLC (“Pursuit Development”) who purchased Trust’s interest in the condominium. 1 On 1 February 2010, defendants filed an answer and counterclaim alleging, inter alia, that plaintiff had damaged the condominium and breached the lease ágreement by failing to pay his rent, utilities, and pro rata share of the real estate taxes on the condominium. Defendants further alleged that plaintiffs “default under the Lease is deemed a default under the Purchase Agreement. . . .” Defendants sought specific performance of the purchase agreement.

On 15 March 2010, the parties signed a settlement agreement, which provided that plaintiff would purchase the condominium at the price stated in the purchase agreement by 30 April 2010. Defendants agreed to provide, inter alia, architectural plans and construction permits pertaining to the rooftop terrace by 26 April 2010. The settlement agreement provided that it would be deemed null and void if plaintiff failed to purchase the condominium by 30 April 2010 or if defendants failed to provide the documentation related to the rooftop terrace.

After the settlement agreement was signed and prior to 30 April 2010, plaintiff’s attorneys, William P. Bray (“Mr. Bray”) and Jeffrey A. Long (“Mr. Long”), communicated with defendants’ counsel, Jackson N. Steele (“Mr. Steele”) and Adam W. Foodman (“Mr. Foodman”), on numerous occasions via telephone and email concerning plaintiff’s financing difficulties. Plaintiff’s attorneys acknowledged that there was no financing contingency in the settlement agreement and requested an extension of the 30 April 2010 deadline; however, it appears from the record that no agreement was reached prior to 30 April 2010.

*608 Plaintiff did not close on 30 April 2010, but on that date, Mr. Long sent Mr. Steele a letter stating that defendants had not complied with the settlement agreement because they did not provide plaintiff with the documents pertaining to the rooftop terrace. Plaintiff claimed that this “material breach” rendered the settlement agreement null and void. On 7 June 2010, the trial court, upon consent of the parties, entered an order allowing plaintiff to amend his complaint. On that same day, plaintiff filed an amended complaint stating that defendants had violated the settlement agreement. Plaintiff again sought the return of his $140,000.00 deposit.

On 14 June 2010, defendants filed a consent order for substitution of counsel in which they substituted Steven L. Smith for Mr. Steele. On 25 June 2010, defendants filed an amended answer and counterclaim alleging, inter alia, that plaintiff “anticipatorily repudiated” the settlement agreement when his counsel stated that plaintiff “could not finance the closing of the real estate purchase on'April 30, 2010,” thereby “excusing” defendants of the duty to provide the documents pertaining to the rooftop terrace.

On 1 July 2010, defendants filed a motion to disqualify plaintiffs counsel. Defendants claimed that “[t]he testimony of Jeffrey A. Long and William P. Bray relate to a contested issue of Plaintiffs anticipatory repudiation of the Settlement Agreement” because Mr. Bray and Mr. Long communicated to defendants’ attorneys on multiple occasions that plaintiff would be unable to close on the 30 April 2010 deadline. Defendants asserted that they intended to call Mr. Bray and Mr. Long as witnesses at trial. On 18 August 2010, the trial court granted defendants’ motion to disqualify plaintiff’s counsel, determining that, inter alia: (1) “Mr.. Bray and Mr. Long are likely to be necessary witnesses to explain their communication and conduct with Mr. Steele and Mr. Foodmanf,]” and (2) “Mr. Bray and Mr. Long are likely to be necessary witnesses to lay a foundation for their written and electronic communications with opposing counsel.” Plaintiff timely appealed from this order.

Interlocutory Nature of Appeal

Plaintiff appeals from an interlocutory order of the trial court. Our courts have consistently held “ ‘that no appeal lies to an appellate court from an interlocutory order or ruling of the trial judge unless such ruling or order deprives the appellant of a substantial right which he would lose if the ruling or order is not reviewed before final judgment.’ ” Waters v. Qualified Personnel, Inc., 294 N.C. 200, 207, *609 240 S.E.2d 338, 343 (1978) (quoting Consumers Power v. Duke Power Co., 285 N.C. 434, 437, 206 S.E.2d 178, 181 (1974)). “Essentially a two-part test has developed — the right itself must be substantial and the deprivation of that substantial right must potentially work injury . . . if not corrected before appeal from final judgment.” Goldston v. American Motors Corp., 326 N.C. 723, 726, 392 S.E.2d 735, 736 (1990).

Our Supreme Court has held that an order granting a motion to disqualify counsel affects a substantial right because it

has immediate and irreparable consequences for both the disqualified attorney and the individual who hired the attorney. The attorney is irreparably deprived of exercising his right to represent a client. The client, likewise, is irreparably deprived of exercising the right to be represented by counsel of the client’s choice. Neither deprivation can be adequately redressed by a later appeal of a final judgment adverse to the client.

Travco Hotels, Inc. v. Piedmont Natural Gas Co., Inc., 332 N.C.

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

Related

In Re Se. Eye Ctr. (Pending Matters)
2020 NCBC 9 (North Carolina Business Court, 2020)
Harris & Hilton, P.A. v. Rassette
798 S.E.2d 154 (Court of Appeals of North Carolina, 2017)
In Re Accutane Litigation
233 N.C. App. 319 (Court of Appeals of North Carolina, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
713 S.E.2d 528, 213 N.C. App. 606, 2011 N.C. App. LEXIS 1488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braun-v-trust-development-group-llc-ncctapp-2011.