Centura Bank v. Miller

532 S.E.2d 246, 138 N.C. App. 679, 2000 N.C. App. LEXIS 780
CourtCourt of Appeals of North Carolina
DecidedJuly 5, 2000
DocketCOA99-279
StatusPublished
Cited by7 cases

This text of 532 S.E.2d 246 (Centura Bank v. Miller) 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
Centura Bank v. Miller, 532 S.E.2d 246, 138 N.C. App. 679, 2000 N.C. App. LEXIS 780 (N.C. Ct. App. 2000).

Opinion

TIMMONS-GOODSON, Judge.

Plaintiff, Centura Bank, filed a complaint against defendants, Leroy B. Miller (hereinafter, “Miller”), Terry Lee Brown, Gloria R. Brown, Auto Quik, Inc., Robert B. King, D&B Equipment, Inc., and Landmark Leasing, Inc., alleging claims for conspiracy, breach of contract, breach of promissory note, breach of duty of loyalty and due care, fraud, negligent misrepresentation, unfair and deceptive trade practices, and violations of the Racketeer Influence Corrupt Organizations Act of North Carolina. On 19 October 1998, Miller filed an answer and motion to dismiss plaintiff’s action for improper venue. Additionally, Miller moved to transfer venue from Guilford County to Durham County as a matter of right or, alternatively, for the convenience of the witnesses and to promote the ends of justice. The trial court denied the motions by order entered 15 December 1998. Miller appeals and petitions this Court for writ of certiorari.

The question presented on appeal is whether Guilford County is the appropriate venue in which to hear plaintiff’s cause of action *681 against defendants. Miller contends that the trial court erred in denying his motion to dismiss, because our venue statutes require that plaintiffs claims be brought in some forum other than Guilford County. As a related matter, Miller argues that the court erred in denying his motion for change of venue as a matter of right. We address these arguments simultaneously.

Initially, we note that although interlocutory, an order denying a motion to dismiss for improper venue is immediately appealable. McClure Estimating Co. v. H.G. Reynolds Co., Inc., 136 N.C. App. 176, 523 S.E.2d 144 (1999). We further note that direct appeal lies from the denial of a motion for change of venue as a matter of right. Snow v. Yates, 99 N.C. App. 317, 392 S.E.2d 767 (1990). Therefore, the issues raised by the present appeal are properly before us.

Miller contends that plaintiff’s action is primarily to recover personal property, i.e., three automobiles leased to Miller; therefore, under section 1-76 of the General Statutes, the action must be tried in Durham County, where two of the vehicles are located. We cannot agree.

When an action is brought in an improper forum, the trial court must, upon motion of a party, remove the action to an appropriate venue. Travelers Indemnity Co. v. Marshburn, 91 N.C. App. 271, 371 S.E.2d 310 (1988). Section 1-76 of the North Carolina General Statutes dictates that certain causes of action “be tried in the county in which the subject of the action, or some part thereof, is situated.” N.C. Gen. Stat. § 1-76 (1999). Such actions include those for “[r]ecovery of personal property when the recovery of the property itself is the sole or primary relief demanded.” N.C.G.S. § 1-76(4). In determining whether an action is one governed by section 1-76, the court must look to the allegations of the complaint and the principal object of the action. McCrary Stone Service v. Lyalls, 77 N.C. App. 796, 799, 336 S.E.2d 103, 105 (1985).

Plaintiffs complaint asserts fifteen claims arising out of an alleged scheme whereby defendants negotiated a series of fraudulent lease agreements. The complaint states that Miller, a former leasing officer for plaintiff, and the other named defendants obtained money and property at plaintiffs expense by misrepresenting the existence, title, or value of the leased property. Plaintiff, therefore, seeks to recover a judgment against defendants for the damages it sustained as a result of the alleged conspiracy. It is true that plaintiffs prayer for relief includes a request for “an Order that Defendants immedi *682 ately surrender any an all property held pursuant to any lease, promissory note or deed of trust between Defendants and Centura.” However, this relief is ancillary to the primary purpose of the complaint, which is to recover monetary damages. Therefore, we hold that section 1-76(4) does not apply to plaintiffs action. Miller’s contrary argument fails.

Miller argues, in the alternative, that plaintiff’s action is essentially to recover a deficiency owed on a debt and, as such, falls within the mandate of section 1-76.1 of our General Statutes. Under section 1-76.1, “actions to recover a deficiency, which remains owing on a debt after secured personal property has been sold to partially satisfy the debt, must be brought in the county in which the debtor . . . resides or in the county where the loan was negotiated.” N.C. Gen. Stat. § 1-76.1 (1999) (emphasis added). The leased property involved in the instant case, however, has not yet been sold; therefore, section 1-76.1 does not apply. See M & J Leasing Corp. v. Habegger, 77 N.C. App. 235, 237, 334 S.E.2d 804, 805 (1985) (finding section 1-76.1 inapplicable, “because the personal property involved ha[d] not yet been sold and the action [was] not ‘to recover a deficiency which remain[ed] owing on a debt.’ ”) This argument also fails.

Next, Miller contends that Guilford County is an improper forum in which to hear plaintiff’s action, because none of the parties to the lawsuit reside there. Again, we must disagree.

Our residual venue provision, section 1-82 of the General Statutes, states that “[i]n all other cases the action must be tried in the county in which the plaintiffs or the defendants, or any of them, reside at its commencement.” N.C. Gen. Stat. § 1-82 (1999). Section 1-79 of our General Statutes provides that for the purpose of litigation, the residence of a domestic corporation is as follows:

(1) Where the registered or principal office of the corporation ... is located, or
(2) Where the corporation . . . maintains a place of business, or
(3) If no registered or principal office is in existence, and no place of business is currently maintained or can reasonably be found, the term “residence” shall include any place where the corporation ... is regularly engaged in carrying on business.

N.C. Gen. Stat. § l-79(a) (1999).

*683 In the instant case, plaintiff maintains a place of business in Guilford County, but its principal office is in Nash County. Miller contends that under section 1-79, plaintiff resides in Nash County and that for purposes of filing suit and being sued, a domestic corporation has only one residence.

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Bluebook (online)
532 S.E.2d 246, 138 N.C. App. 679, 2000 N.C. App. LEXIS 780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centura-bank-v-miller-ncctapp-2000.