Currituck Associates—Residential Partnership v. Hollowell

601 S.E.2d 256, 166 N.C. App. 17, 2004 N.C. App. LEXIS 1644
CourtCourt of Appeals of North Carolina
DecidedSeptember 7, 2004
DocketCOA03-1082, COA03-1085
StatusPublished
Cited by13 cases

This text of 601 S.E.2d 256 (Currituck Associates—Residential Partnership v. Hollowell) 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
Currituck Associates—Residential Partnership v. Hollowell, 601 S.E.2d 256, 166 N.C. App. 17, 2004 N.C. App. LEXIS 1644 (N.C. Ct. App. 2004).

Opinions

TIMMONS-GOODSON, Judge.

In separate appeals, Shallowbag Bay Development Company, L.L.C. (“Shallowbag”) and Ray E. Hollowell, Jr. (“Hollowell”) (collectively, “appellants”) appeal the trial court order dismissing their claims. Prior to argument, the appeals were consolidated pursuant to N.C.R. App. P. 40 (2004). After reviewing the merits of the consolidated appeal, we affirm the trial court’s order.

The facts and procedural history pertinent to the instant appeal are as follows: In February 1996, The Currituck Associates-Residential Partnership (“appellee”) and appellants entered into a contract whereby appellee would sell appellants a 9.2 acre parcel of property located in Currituck County (“the contract”). The parcel was located within The Currituck Club (“Currituck Club”) a Planned Unit Development in Currituck County. Portions of Currituck Club had previously been developed by appellee. Appellants planned to name the parcel Windswept Ridge Villas (“Windswept Ridge”) and construct ninety-six residential condominium units on it.

The contract contemplated a six-year “take down” of seven pieces of the property designated “pads” by the parties. On 20 March 1997, the parties closed the sale of the first pad. After two modifications of the contract, the parties closed the sale of the second pad on 12 January 1999. On 1 September 1999, the parties closed the purchase of the third pad. However, the parties failed to close the sale of the fourth pad, which was contemplated for Fall 2000.

On 30 April 2001, appellee notified Hollowell that appellants were in default under the contract. On 1 June 2001, appellee filed a Complaint against Hollowell and requested that the trial court declare that “Hollowell materially breached the [contract] and [appellee] is therefore discharged from further obligations thereunder or, in the alternative, for a declaration of the rights and duties of the parties under the [contract][.]” Hollowell filed an Answer and Counterclaim on 20 September 2001, claiming that appellee had breached the contract and requesting damages and specific performance of the terms of the contract. That same day, Shallowbag Bay filed a Complaint against appellee, alleging the [20]*20same breach and requesting the same remedies as Hollowell’s Answer and Counterclaim.

Appellee initiated discovery in the litigation and the parties scheduled witness depositions for Summer and Fall 2002. On 28 August 2002, appellants’ counsel extended a settlement offer to appellee, whereby appellants would close on the remaining pads by 15 January 2002 for an agreed upon price. In a letter dated 30 August 2002, appellee’s counsel responded to the offer and accepted many of its terms. Appellee also proposed that it have an option to repurchase the third pad if appellants failed to close the purchase of pads four through six by 15 January 2003. On 30 August 2002, appellants’ counsel sent appellee’s counsel a letter accepting appellee’s proposal. Appellants suggested that the only issue preventing the parties from settling their claims was the marketing of the condominiums after purchase.

On 3 September 2002, appellee’s counsel confirmed via email that an agreement between the parties had been reached regarding appellants’ marketing of Windswept Ridge. The email also stated that “in view of our settlement, please permit this email to confirm [that] the depositions scheduled for later this week will not take place.” On 6 September 2002, appellee’s counsel sent an email to appellants’ counsel, attaching a “Mutual Release and Settlement Agreement” that outlined the parties’ agreement.

On 2 October 2002, appellee’s counsel solicited appellants’ comments regarding the “Mutual Release and Settlement Agreement.” Appellants’ counsel responded that he “had hoped to have the draft purchase agreement in place for attachment” to his response, but that he would nevertheless “forward the settlement agreement to [appellee’s counsel] [on 3 October 2002] with or without [the comments].” On 3 October 2002, appellants’ counsel sent appellee’s counsel an email describing his “changes to the initial draft of the settlement agreement.” Attached to the email was a copy of the “red-lined changes.” The email stated that appellants’ counsel “must reserve the right to supplement or change [his] comments after [Hollowell’s] review.” The email outlined the “revised document” and noted that appellant “would like to have a full blown purchase contract” replace a portion of the “Mutual Release and Settlement Agreement” that concerned the purchase of pads four through six. On 16 October 2002, appellee’s counsel responded to appellants’ email and outlined various “points to discuss” concerning the agreement.

[21]*21At appellants’ request, Quible and Associates, P.C. (“Quible”) prepared data regarding Currituck Club’s water system in November 2002. After reading Quible’s report, appellants became concerned about the supply of potable water in Currituck Club. After appellants’ counsel notified appellee’s counsel about these concerns, the parties began communications regarding the execution of a storm water management easement and deed.

On 16 December 2002, appellee’s counsel sent appellants’ counsel an email inquiring whether the “deal [was] going to close by Jan. 15.” Appellee’s counsel indicated that he was “starting to have [] doubts that [appellants] [were] going to purchase Pads 4-6.” On 23 December 2002, appellants’ counsel sent appellee’s counsel a “draft contract” outlining the terms of a “Purchase Agreement.” Appellee’s counsel responded with two emails on 23 December 2002. The first email included “comments on the Purchase Agreement.” The second email contained the following statements:

The parties have a settlement. [Appellants] cannot now come up with some “issues” to try to back out of the agreement.
I hope we’re not getting to this point, but I do want to make sure your client realizes that this agreement will be enforced.

The parties did not close the purchase of pads four through six by 15 January 2003. Instead, their counsel continued to negotiate terms of the storm water easement and deed. In Spring 2003, appellants became increasingly concerned about the adequacy of the potable water available to Currituck Club, as well as legal issues surrounding Currituck Club’s water supplier. On 7 March 2003, appellee informed appellants that if they did not close the purchase of pads four through six by 21 March 2003, it would exercise its option to repurchase pad three.

The parties failed to close the purchase of pads four through six by 21 March 2003, and on 4 April 2003, appellee filed a Motion to Enforce Settlement Agreement in Dare County Superior Court. In an order filed 22 May 2003, the trial court concluded that the parties had reached an agreement in September 2002 that satisfied the requirements of the statute of frauds. The trial court then granted appellee’s motion to enforce the settlement agreement, and it ordered that appellee be given sixty days to exercise its option to repurchase pad three. The trial court also dismissed appellants’ claims [22]*22with prejudice and taxed attorneys’ fees and costs against appellants. It is from this order that appellants appeal.

The issues on appeal are: (I) whether the trial court lacked jurisdiction and authority to entertain and grant appellee’s Motion to Enforce Settlement Agreement; and (II) whether the trial court erred in granting appellee’s Motion to Enforce Settlement Agreement.

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Currituck Associates—Residential Partnership v. Hollowell
601 S.E.2d 256 (Court of Appeals of North Carolina, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
601 S.E.2d 256, 166 N.C. App. 17, 2004 N.C. App. LEXIS 1644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/currituck-associatesresidential-partnership-v-hollowell-ncctapp-2004.