Estate of Hurst v. Moorehead I, LLC

748 S.E.2d 568, 228 N.C. App. 571, 2013 WL 3991552, 2013 N.C. App. LEXIS 843
CourtCourt of Appeals of North Carolina
DecidedAugust 6, 2013
DocketNo. COA12-1285
StatusPublished
Cited by27 cases

This text of 748 S.E.2d 568 (Estate of Hurst v. Moorehead I, 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
Estate of Hurst v. Moorehead I, LLC, 748 S.E.2d 568, 228 N.C. App. 571, 2013 WL 3991552, 2013 N.C. App. LEXIS 843 (N.C. Ct. App. 2013).

Opinion

McCullough, Judge.

Moorehead I, LLC; Park West Premier Properties, LLC; Park West Investments, Inc.; Park West Development Company; and Bruce B. Blackmon, Jr. a/k/a Bruce Blackmon a/k/a Bruce B. Blackmon (“Blackmon,” collectively “defendants”) appeal from a judgment entered by the trial coúrt after trial by jury. On appeal, defendants contend that (1) the jury’s factual findings are inconsistent, (2) the trial court’s judgment improperly expands the jury's verdict, and (3) the trial court’s conclusions of law. and judgment decrees are not supported by the jury’s factual findings. After careful review, we affirm the trial court’s judgment.

I. Background

The present case arises from a mixed-use real estate development project known as the Epic Project consisting of approximately 1271 acres assembled from various property owners in Cabarrus and Mecklenburg Counties. Timothy Alan Hurst (“Hurst”) owned approximately 72.229 acres in Cabarrus County near the proposed project, and Jeffery Wayne Henley and his wife, Beverly Henley (the “Henleys”), owned approximately 3.476 acres adjoining Hurst’s property (collectively, the “Hurst/ [573]*573Henley tract”). The Hurst/Henley tract was part of the approximately 1271 acres contemplated for the Epic Project.

On 28 June 2006, Hurst and the Henleys (collectively, “plaintiffs”) entered into a Purchase and Sale Agreement (the “Purchase Agreement”) to sell the Hurst/Henley tract to Cramer Mountain Development, LLC (“Cramer”) for $4.7 million. Cramer is an entity owned by defendant Frank Desimone (“Desimone”). Pursuant to the terms of the Purchase Agreement, the closing of the purchase transaction was to take place on the earlier of the thirtieth day following the issuance of development permits to Cramer or 28 June 2007 - twelve months from the date of the Purchase Agreement. However, the Purchase Agreement provided that Cramer could accelerate the closing date upon ten days written notice.

On 12 March 2007, the Purchase Agreement was assigned from Cramer to Moorehead I, LLC (“Moorehead I”). The operating agreement of Moorehead I provided that the powers of the company were to be exercised by Blackmon as the sole member of the company. Moorehead I was incorporated on 2 March 2007.

Aso on 12 March 2007, Desimone; defendant Gregory A. Mascaro (“Mascaro”), a licensed real estate broker and friend of the Henleys; and Leslie Danielle Harrison (“Harrison”), also a licensed real estate broker and notary public, met with plaintiffs at the Henleys’ bam near their residence. During this meeting, Desimone, Mascaro, and Harrison procured signatures from plaintiffs on multiple documents, including a North Carolina Special Warranty Deed listing Hurst as grantor and Moorehead I as grantee and a North Carolina Special Warranty Deed listing the Henleys as grantor and Moorehead I as grantee. George Sistrunk (“Sistrunk”), the closing attorney for Moorehead I, prepared these documents. At this time, plaintiffs received payment in the amount of $200,000.00.

On the following day, 13 March 2007, Sistrunk closed on the Hurst/ Henley tract for Moorehead I. Moorehead I executed a promissory note secured by a second priority deed of trust payable to plaintiffs for the balance of the purchase price, $4.5 million. The special warranty deeds signed by plaintiffs at the 12 March 2007 meeting were recorded in the office of the Cabarrus County Register of Deeds.

On the same date, Moorehead I obtained a $3.4 million loan from F&M Bank secured by a first priority deed of trust against the Hurst/ Henley tract. This deed of trust was executed by Blackmon as Member Manager of Moorehead I and was also recorded in the Cabarrus County [574]*574Register of Deeds on 13 March 2007. Moorehead I eventually defaulted on its obligations to F&M Bank and to plaintiffs.

On 29 July 2008, plaintiffs filed a verified complaint alleging claims for breach of contract, fraud, unfair and deceptive trade practices, and punitive damages. In their complaint, plaintiffs alleged that Desimone, Mascaro, and Harrison made representations to plaintiffs at the 12 March 2007 meeting that the documents being signed were to facilitate the payment of a $200,000.00 advance. Plaintiffs alleged that Desimone, Mascaro, and Harrison made further representations to plaintiffs that delivery of the advance did not constitute a closing and that no closing of the purchase transaction was occurring at that time. Plaintiffs alleged that they were never provided with copies of the documents signed, despite making repeated demands for such documents. Plaintiffs alleged that following Hurst’s death on 17 May 2007, plaintiffs learned that a closing had occurred on 13 March 2007, despite the representations that had been made. Plaintiffs further alleged that among the documents received by Hurst’s estate following his death was the promissory note in the amount of $4.5 million executed by Blackmon on behalf of Moorehead I, as well as other documents that plaintiffs alleged had been altered since their signing on 12 March 2007. Plaintiffs alleged that they were defrauded into closing on the purchase transaction under terms different than those agreed to in the Purchase Agreement by the representations made at the 12 March 2007 meeting with Desimone, Mascaro, and Harrison on behalf of Blackmon and Moorehead I. Plaintiffs further alleged that Moorehead I was in breach of the $4.5 million promissory note. Plaintiffs alleged that Desimone, Mascaro, Harrison, and Blackmon exercised complete domination over the various entities involved in the transaction, including Cramer and Moorehead I, justifying a disregard of the corporate form.

A trial was held beginning 24 January 2011. On 23 February 2011, the jury returned a verdict containing multiple findings of fact addressing twelve issues. Based on the factual findings of the jury verdict, on 23 May 2011, the trial court entered judgment concluding, inter alia, that Blackmon is the alter ego of Moorehead I and awarding, inter alia, the amount of $4.9 million to plaintiffs from Moorehead I and Blackmon, jointly and severally, for breach of contract, and the amount of $1.00 to plaintiffs from Moorehead I, Blackmon, and other defendants, jointly and severally, for unfair and deceptive trade practices.

On 2 June 2011, Blackmon filed a motion for judgment notwithstanding the verdict pursuant to Rule 50 of the North Carolina Rules of Civil Procedure. The trial court entered an order denying Blackmon’s [575]*575motion on 11 October 2011. Blackmon then entered written notice of appeal from the trial court’s judgment and order on 9 November 2011.2

II. Standard of Review

Blackmon has raised no issues on appeal concerning the sufficiency of the evidence to support the jury’s factual findings contained in the verdict, nor has Blackmon raised an issue on appeal addressing the trial court’s denial of his motion for judgment notwithstanding the verdict. Rather, all of the arguments presented by Blackmon in this appeal address only the trial court’s conclusions of law and resulting judgment decrees based upon the jury verdict. Therefore, we review each of Blackmon’s arguments under a de novo standard of review. See Tillman v. Commercial Credit Loans, Inc., 362 N.C. 93, 101, 655 S.E.2d 362, 369 (2008).

III. Blackmon’s Personal Liability for Breach of Contract:

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Cite This Page — Counsel Stack

Bluebook (online)
748 S.E.2d 568, 228 N.C. App. 571, 2013 WL 3991552, 2013 N.C. App. LEXIS 843, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-hurst-v-moorehead-i-llc-ncctapp-2013.