Hamilton v. MORTGAGE INFORMATION SERVICES, INC.

711 S.E.2d 185, 212 N.C. App. 73, 2011 N.C. App. LEXIS 957, 2011 WL 1854977
CourtCourt of Appeals of North Carolina
DecidedMay 17, 2011
DocketCOA10-45
StatusPublished
Cited by51 cases

This text of 711 S.E.2d 185 (Hamilton v. MORTGAGE INFORMATION SERVICES, INC.) 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
Hamilton v. MORTGAGE INFORMATION SERVICES, INC., 711 S.E.2d 185, 212 N.C. App. 73, 2011 N.C. App. LEXIS 957, 2011 WL 1854977 (N.C. Ct. App. 2011).

Opinion

ERVIN, Judge.

Plaintiff Kay R. Hamilton appeals from an order entered on 10 November 2009 to the extent that the order partially granted dismissal motions filed by Defendants First American Title Insurance Company (First American) and Mortgage Information Services, Inc. (MIS), and partially denied Plaintiffs request for class certification. After careful consideration of the record in light of the applicable law, we conclude that Plaintiffs appeal has been taken from an unappealable interlocutory order and must, for that reason, be dismissed.

*74 I. Factual Background

On 22 April 2005, Plaintiff procured a home loan from Ameriquest Mortgage Company. As part of this transaction, Ameriquest engaged MIS, acting as a settlement agent, to provide services in connection with Plaintiffs loan. In exchange for these services, Plaintiff was charged various fees, which were paid from the proceeds of Plaintiffs loan.

On 25 August 2008, Plaintiff filed a complaint in Wake County Superior Court against First American and MIS. 1 In her complaint, Plaintiff alleged that the charging of certain fees associated with her loan constituted an unfair and deceptive trade practice, actionable pursuant to N.C. Gen. Stat. § 75-1.1, and that Defendants “charged numerous other North Carolina borrowers similarly inappropriate fees in connection with their mortgages, thereby giving rise to a class action.” More specifically, Plaintiff challenged the following seven fees:

Closing fee to MIS $325.00
Title search [fee] to MIS $225.00
Title clearing [fee] to MIS $75.00
Title insurance binder [fee] to MIS $50.00
Signing fee to Mobile Closings $250.00
Title insurance $371.60
Courier Fee to MIS $60.00

The claims asserted in Plaintiffs complaint fall into several categories: (1) claims that certain fees represented payments to a non-lawyer for the provision of legal services; (2) claims that certain payments involved the unlawful division of fees for legal services between lawyers and non-lawyers; (3) claims that certain fees violated the prohibition contained in N.C. Gen. Stat. § 28-8(d) against the charging of unreasonable third party fees associated with loan-related goods, products, or services; (4) claims that certain fees violated N.C. Gen. Stat. § 58-33-85(b) because Plaintiff did not consent in advance and in writing to the imposition of those fees; (5) claims that work for which certain fees were charged was not performed properly; (6) claims that certain fees were not permitted by the rate filing that First American had made with the North Carolina Department of Insurance; (7) claims that certain fees exceeded the level authorized by the North Carolina Notary Public Act; (8) claims that the services *75 associated with certain fees were not performed at all; and (9) claims that closing insurance was issued in violation of N.C. Gen. Stat. § 58-26-1.

On 25 November 2008, this case was classified as an Exceptional Case pursuant to Rule 2.1 of the General Rules of Practice and assigned to the trial court. On 27 October 2008, Defendants filed separate dismissal motions. 2 On 27 February 2009, Plaintiff filed a Motion for Class Certification. The trial court heard Defendants’ dismissal motions on 8 May 2009 and Plaintiff’s class certification motion on 4 June 2009.

On 10 November 2009, the trial court entered an order granting Defendants’ dismissal motions in part and denying them in part and granting Plaintiff’s class certification motion in part and denying it in part. The trial court dismissed all of the claims asserted in Plaintiff’s complaint except the claim pertaining to the following:

1. The “closing fee” as it relates to the unreasonableness of the fee under N.C. Gen. Stat. § 24-8(d). This allegation survives as to Defendant MIS only.
2. The “title search” fee as it relates to the unreasonableness of the fee under N.C. Gen. Stat. § 24-8(d). This allegation survives as to Defendant MIS only.
3. The “title clearing” fee as it relates to the unreasonableness of the fee under N.C. Gen. Stat. § 24-8(d). This allegation survives as to Defendant MIS only.
4. The “title binder” fee as it relates to the unreasonableness of the fee under N.C. Gen. Stat. § 24-8(d). This allegation survives as to both Defendant MIS and First American.
5. The “signing fee” as it relates to the unreasonableness of the fee under N.C. Gen. Stat. § 24-8(d), the amount that it was in excess of that set forth in the Notary Public Act, and the failure of Defendant MIS to provide the services associated with it under N.C. Gen. Stat. § 24-8(d). These allegations survive as to Defendant MIS only.
6. The “title insurance” fee as it relates to the conduct of Defendant MIS and Defendant First American in failing to offer the “reissue” rate set forth in First American’s rate filing at the *76 North Carolina Department of Insurance. These allegations survive as to both Defendant MIS and Defendant First American.
7. The “courier fee” as to the unreasonableness of the fee under N.C. Gen. Stat. § 24-8(d) and the failure of Defendant MIS to provide the services associated with it under N.C. Gen. Stat. § 24-8(d). These allegations survive as to Defendant MIS only.

In addition, the trial court granted class certification 3 with respect to the following issues:

... (a) whether the “signing fee” imposed by Defendant MIS was in excess of that prescribed by the Notary Public Act; (b) whether Defendants MIS and First American failed to provide the services associated with the “signing fee” imposed by Defendant MIS; (c) whether the failure of Defendants MIS and First American to offer the “reissue rate” for a title insurance policy in the imposition of the “title insurance fee” violate [d] the filed rate doctrine; and (d) whether Defendant MIS failed to provide the services associated with the Acourier fee” imposed by Defendant MIS.

Plaintiff noted an appeal to this Court on 25 November 2009. Subsequently, Defendants moved for dismissal of Plaintiff’s appeal.

II. Legal Analysis

A. Interlocutory Anneal

An order is either “interlocutory or the final determination of the rights of the parties.” N.C. Gen. Stat. § 1A-1, Rule 54(a). “An interlocutory order is one made during the pendency of an action, which does not dispose of the case, but leaves it for further action by the trial court in order to settle and determine the entire controversy.” Veazey v. City of Durham, 231 N.C. 354, 362, 57 S.E.2d 377, 381 (1950) (citation omitted).

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Cite This Page — Counsel Stack

Bluebook (online)
711 S.E.2d 185, 212 N.C. App. 73, 2011 N.C. App. LEXIS 957, 2011 WL 1854977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-v-mortgage-information-services-inc-ncctapp-2011.