Breeden v. Richmond Community College

171 F.R.D. 189, 1997 U.S. Dist. LEXIS 2301, 1997 WL 85179
CourtDistrict Court, M.D. North Carolina
DecidedFebruary 14, 1997
DocketNo. 3:96CV00054
StatusPublished
Cited by93 cases

This text of 171 F.R.D. 189 (Breeden v. Richmond Community College) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Breeden v. Richmond Community College, 171 F.R.D. 189, 1997 U.S. Dist. LEXIS 2301, 1997 WL 85179 (M.D.N.C. 1997).

Opinion

ORDER

RUSSELL A. ELIASON, United States Magistrate Judge.

Defendants request dismissal of plaintiffs amendments to his complaint. A brief factual background will be helpful. Plaintiff, Willie Breeden, was employed as an instructor at Richmond Community College (hereinafter “College”) through a series of one-year contracts from 1976 to 1995. In June 1995, the College decided not to reappoint plaintiff for the 1995-96 academic year.1 The College contends that the decision not to reappoint plaintiff was made because the grant which funded his position was not renewed. Plaintiff believes he was not reappointed due to racial discrimination.

The original complaint named defendants Richmond Community College, Joseph Grimsley, David Adeimy, and James Chavis, Jr., and alleged racial discrimination in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq., and the North Carolina Constitution; wrongful discharge in violation of N.C.Gen.Stat. § 143-422.2; tortious and malicious interference with economic relations; and civil conspiracy. (Pleading No. 1) The individual defendants were listed in both their individual and official capacities. The College and the individual defendants moved to dismiss the majority of plaintiff’s claims. Plaintiff opposed the motion and also made a motion to amend his complaint.

The Court granted defendants’ first motion to dismiss in substantial part, and also granted plaintiff’s motion to amend. (Pleading No. 16) On the same day, plaintiff filed the amended complaint now under scrutiny, which alleged two new claims: fraudulent misrepresentation and negligent misrepresentation. (Pleading No. 17). The College and the individual defendants have filed the present motion to dismiss these two claims.2

[194]*194A. Fraudulent Concealment/Omission

Defendants seek dismissal of plaintiffs fraudulent misrepresentation claim pursuant to Fed.R.Civ.P. 12(b)(6) for failure to state a claim upon which relief can be granted, and pursuant to Fed.R.Civ.P. 9(b) for failure to plead fraud with particularity. The Court agrees that the claim is deficient under Rule 9(b), but not under Rule 12(b)(6). The source of the apparent deficiency under Rule 12(b)(6) and the actual deficiency under Rule 9(b) lies in the fact that although plaintiff has termed his claim as one of “fraudulent misrepresentation,” it is clear in this case that he really is alleging “fraudulent concealment” or fraud by omission.3 (See Am.Compl. 111114-15, 51). In some circumstances, such concealment or nondisclosure may be considered akin to a positive misrepresentation and serve as a basis for actionable fraud. Rosenthal v. Perkins, 42 N.C.App. 449, 452, 257 S.E.2d 63, 66 (1979) (citing Setzer v. Old Republic Life Ins. Co., 257 N.C. 396, 126 S.E.2d 135 (1962)).

In order to state an actionable claim of fraud under North Carolina law, plaintiff must allege the following essential elements: (1) a false representation or concealment of a material fact, (2) that was reasonably calculated to deceive, (3) which was made with the intent to deceive, (4) that did in fact deceive, and (5) resulted in damage. Liner v. DiCresce, 905 F.Supp. 280, 288 (M.D.N.C.1994) (citing Myers & Chapman, Inc. v. Thomas G. Evans, Inc., 323 N.C. 559, 374 S.E.2d 385 (1988)). And, because this is a case of fraudulent concealment or nondisclosure, plaintiff must additionally allege that all or some of the defendants had a duty to disclose material information to him as silence is fraudulent only when there is a duty to speak. Griffin v. Wheeler-Leonard & Co., 290 N.C. 185, 198, 225 S.E.2d 557, 565 (1976). Marlen C. Robb & Son Boatyard & Marina, Inc. v. Vessel Bristol, 893 F.Supp. 526, 542 (E.D.N.C.1994); see also Brickell v. Collins, 44 N.C.App. 707, 710, 262 S.E.2d 387, 389, review denied, 300 N.C. 194, 269 S.E.2d 622 (1980).

In North Carolina, the general rule is that:

[s]ilence, in order to be an actionable fraud, must relate to a material matter known to the party and which it is his legal duty to communicate to the other ... party, whether the duty arises from a relation of trust, from confidence, inequality of condition and knowledge, or other attendant circumstances____ [T]he silence must, under the conditions existing, amount to fraud, because it amounts to an affirmation that a state of things exists which does not, and the uninformed party is deprived to the same extent that he would have been by positive assertion.

Setzer v. Old Republic Life Ins. Co., 257 N.C. 396, 399, 126 S.E.2d 135, 137 (1962) (citing 23 Am.Jur. Fraud and Deceit § 77).4

[195]*195While the Court agrees that plaintiff has not pled a misrepresentation claim, it is clear that he merely mislabeled his claim and intends to proceed on the basis of fraudulent omission or concealment. In paragraphs 50 through 54 of his amended complaint, plaintiff alleges the basic elements of an actionable fraudulent concealment or fraudulent omission.5 For this reason, the Court will deny defendants’ Rule 12(b)(6) motion to dismiss the claim labeled fraudulent misrepresentation. However, even in a case of fraudulent concealment or omission, a plaintiff must comply with the heightened pleading requirements of Fed.R.Civ.P. 9(b). For the reasons set forth below, the Court finds that plaintiff has failed to comply with this obligation.

Rule 9(b) provides that “[i]n all averments of fraud or mistake, the circumstances constituting fraud or mistake shall be stated with particularity____” In construing Rule 9(b), courts generally require that a plaintiff plead the “time, place, and contents of the alleged fraudulent misrepresentation, as well as the identity of each person making the misrepresentation and what was obtained thereby.” Liner v. DiCresce, 905 F.Supp. at 287 (quoting Riley v. Murdock, 828 F.Supp. 1215, 1225 (E.D.N.C.1993)); see also Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure § 1297, at 590 (1990). This construction works well for cases of affirmative misrepresentations because such are discrete, observable events which can be particularized. An affirmative misrepresentation involves a specific statement made at a specific place and time and involves specific persons.

In contrast to affirmative misrepresentations, fraudulent concealment, or fraud by omission, as alleged in paragraphs 14,15, and 49-54 of plaintiffs amended complaint, “is by its very nature, difficult to plead with particularity.” Daher v. G.D. Searle & Co., 695 F.Supp. 436, 440 (D.Minn.1988). Fraud by omission consists of non-action. The duty of a specific person to speak is determined through consideration of a number of factors to find when, where, how and what duty was created.

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Cite This Page — Counsel Stack

Bluebook (online)
171 F.R.D. 189, 1997 U.S. Dist. LEXIS 2301, 1997 WL 85179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/breeden-v-richmond-community-college-ncmd-1997.