Cury v. Mitchell

688 S.E.2d 825, 202 N.C. App. 558, 2010 N.C. App. LEXIS 264
CourtCourt of Appeals of North Carolina
DecidedFebruary 16, 2010
DocketCOA09-238
StatusPublished
Cited by12 cases

This text of 688 S.E.2d 825 (Cury v. Mitchell) 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
Cury v. Mitchell, 688 S.E.2d 825, 202 N.C. App. 558, 2010 N.C. App. LEXIS 264 (N.C. Ct. App. 2010).

Opinion

ELMORE, Judge.

Alexandra Cury (plaintiff) appeals an order dismissing her complaint against David Mitchell (defendant). After careful review, we affirm in part and reverse in part.

Plaintiff alleged the following facts in her 28 August 2008 complaint: The parties were “long-time domestic companions and resided together as such,” although they never married. They also had a child together, who was nine years old at the time the complaint was filed. “In September 1998 the parties contributed their resources for the purchase of a home [in Asheville], Specifically, Plaintiff contributed $25,000 of her own monies towards the $142,000 purchase price of the property. Title of the home in question was placed solely in Defendant’s name.” At the time plaintiff contributed $25,000.00 towards the purchase of the house, plaintiff was pregnant with their child. She alleged that, as a result, they had a fiduciary and “trusting” relationship.

In 1998, plaintiff’s contribution represented eighteen percent of the property’s purchase price and defendant had made no significant improvements since its purchase. After the parties separated, plaintiff asked defendant to “reimburse her for her contributions to the property, particularly her financial contribution at the time of’ its purchase. “Although Defendant has repeatedly informed Plaintiff, both verbally and in writing, that he would do so, as of the time of the institution of this action Defendant has made no efforts to compensate Plaintiff for her acknowledged contributions.” The complaint alleged that defendant acknowledged his obligation in writing in November 2006 and November 2007. At the time the parties purchased the property, “it was never the intentions of the parties that Defendant would receive exclusive interest in the home without compensating Plaintiff for her contribution.” Specifically, “there was no agreement of the *560 parties that Plaintiff would go uncompensated for her $25,000 contribution at the time of closing.”

Defendant moved to dismiss the action for failure to state a claim upon which relief can be granted, pursuant to Rule 12(b)(6) of our Rules of Civil Procedure. Defendant also filed an answer to plaintiffs complaint, denying that he agreed to compensate plaintiff for her contribution to the house purchase and alleging several defenses. The trial court held a hearing on defendant’s motion on 4 November 2008; however, the parties did not include a transcript of that hearing in the record on appeal. On 4 December 2008, the trial court granted defendant’s motion to dismiss!

Because this appeal arises from defendant’s motion to dismiss for failure to state a claim, “we treat plaintiff[’s] factual allegations as true. The question then becomes whether the allegations of the complaint, if treated as true,, are sufficient to state a claim upon which relief can be granted under some legal theory.” Thompson v. Waters, 351 N.C. 462, 462-63, 526 S.E.2d 650, 650 (2000) (citations omitted).

Dismissal under Rule 12(b)(6) is proper when one of the following three conditions is satisfied: (1) the complaint on its face reveals that no law supports the plaintiff’s claim; (2) the complaint on its face reveals the absence of facts sufficient to make a good claim; or (3) the complaint discloses some fact that necessarily defeats the plaintiff’s claim.

Wood v. Guilford Cty., 355 N.C. 161, 166, 558 S.E.2d 490, 494 (2002) (citation omitted).

Plaintiff first argues that she set forth an adequate claim for relief based on the theory of a constructive trust.

A constructive trust is a duty, or relationship, imposed by courts of equity to prevent the unjust enrichment of the holder of title to, or of an interest in, property which such holder acquired through fraud, breach of duty or some other circumstance making it inequitable for him to retain it against the claim of the beneficiary of the constructive trust. ... [A] constructive trust is a fiction of equity, brought into operation to prevent unjust enrichment through the breach of some duty or other wrongdoing. It is an obligation or relationship imposed irrespective of the intent with which such party acquired the property, and in a well-nigh unlimited variety of situations. . . . [T]here is a common, indispensable element in the many types of situations out of which a construe *561 tive trust is deemed to arise. This common element is some fraud, breach of duty or other wrongdoing by the holder of the property, or by one under whom he claims .... This equitable device belies its name, for no ongoing trust relationship is created when a court imposes a constructive trust. [T]he constructive trust plaintiff wins an in personam order that requires the defendant to transfer specific property in some form to the plaintiff. When the court decides that the defendant is obliged to make restitution, it first declares him to be constructive trustee, and then orders him[,] as trustee, to make a transfer of the property to the beneficiary of the constructive trust, the plaintiff.

Roper v. Edwards, 323 N.C. 461, 464, 373 S.E.2d 423, 424-25 (1988) (quotations and citations omitted; alterations in original). Although most constructive trusts arise from fraud, our Supreme Court held in Roper that the absence of fraud alone is not necessarily fatal to a claim of constructive trust:

Inequitable conduct short of actual fraud will give rise to a constructive trust where retention of the property by the holder of the legal title would result in his unjust enrichment. Fraud need not be shown if legal title has been obtained in violation of some duty owed to the one equitably entitled.

Id. at 465, 373 S.E.2d at 425 (quotations and citation omitted). In Booher v. Frue, this Court explained that the “plaintiffs, by alleging that a fiduciary relationship existed, that a fiduciary duty was breached, and that [the] defendants gained because of that breach . . . have made a claim for constructive trust.” 86 N.C. App. 390, 395, 358 S.E.2d 127,130 (1987), aff’d per curiam by 321 N.C. 590, 364 S.E.2d 141 (1988).

In this case, plaintiff alleged that defendant had a fiduciary relationship with her at the time he purchased the house because she was pregnant with his child and they were in a “trusting” relationship. Our Supreme Court has broadly defined a fiduciary relationship

as one in which there has been a special confidence reposed in one who in equity and good conscience is bound to act in good faith and with due regard to the interests of the one reposing confidence . . ., [and] it extends to any possible case in which a fiduciary relationship exists in fact, and in which there is confidence reposed on one side, and resulting domination and influence on the other.

*562

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Cite This Page — Counsel Stack

Bluebook (online)
688 S.E.2d 825, 202 N.C. App. 558, 2010 N.C. App. LEXIS 264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cury-v-mitchell-ncctapp-2010.