Hanson v. LEGASUS OF NORTH CAROLINA, LLC

695 S.E.2d 499, 205 N.C. App. 296, 2010 N.C. App. LEXIS 1150
CourtCourt of Appeals of North Carolina
DecidedJuly 6, 2010
DocketCOA09-1155
StatusPublished
Cited by12 cases

This text of 695 S.E.2d 499 (Hanson v. LEGASUS OF NORTH CAROLINA, 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
Hanson v. LEGASUS OF NORTH CAROLINA, LLC, 695 S.E.2d 499, 205 N.C. App. 296, 2010 N.C. App. LEXIS 1150 (N.C. Ct. App. 2010).

Opinion

STROUD, Judge.

Plaintiffs sued defendants for money they alleged defendants owed them pursuant to an agreement between the parties. The trial court entered judgment in favor of defendants, concluding that the agreement demonstrated by the evidence was required by N.C. Gen. Stat. § 22-2, the Statute of Frauds, to be in writing, but that the agreement was not in compliance with the Statute of Frauds. Plaintiffs *297 appeal. As we can discern no agreement between plaintiffs and defendants, we affirm.

I.Background

On 20 May 2008, plaintiffs sued defendants alleging that “[o]n or about May 1, 2007, Defendants entered into an agreement wherein Defendant agreed to pay Plaintiffs one hundred thirty-three thousand eight hundred and 00/100 dollars ($133,800.00) with nine percent (9%) interest, due and payable on October 15, 2007.” Plaintiffs further alleged that “[d]efendants defaulted in payment[.]” Plaintiffs sued for breach of contract and attorneys’ fees. Plaintiffs also requested, in the alternative, a constructive trust.

On 21 July 2008, defendants filed a motion to dismiss plaintiffs’ complaint. On 15 September 2008, defendants’ motion to dismiss was granted as to the claim for attorneys’ fees but otherwise denied. On or about 15 September 2008, defendants answered plaintiffs’ complaint and alleged affirmative defenses of accord and satisfaction and the Statute of Frauds. In June 2009, a bench trial was held. The trial court made the following uncontested findings of fact:

1. That in 2006, plaintiffs and defendants entered into a contract for the purchase and sale of real property known as “Trout Creek” in Glenville, North Carolina (“Agreement”), for a purchase price of $3,617,600.00. Said property consists of approximately 261.58 acres and is more particularly described in Deed Book 1471, Page 420 of the Jackson County Public Registry.
2. That the Agreement was memorialized in writing.
3. That pursuant to the Agreement, defendants paid plaintiffs $60,000.00 in earnest money, plus an additional $10,000.00, for a total of $70,000.00 in an earnest money deposit.
4. That pursuant to the Agreement, closing was to occur on or before September 15, 2006.
5. That the closing date of September 15, 2006 arrived but defendants could not close the transaction because they did not have the funds to do so and could not obtain the necessary funds.
6. That proposals were exchanged between the parties to extend the closing date, one of which is plaintiffs’ Exhibit 2, in which defendants proposed to pay 15% annual interest on the original purchase price, which sum was to be added to the con *298 tract purchase price. Defendants proposed that said sums be paid to plaintiffs in equal monthly installments of $44,500.00 up to and including May 15, 2007, when closing was to occur.
7. That monies were paid by defendants to plaintiffs pursuant to the agreement to extend the closing date of the Agreement and that such monies were accepted by plaintiffs.
8. That defendants failed to make the first two payments to plaintiffs under the agreement to extend the closing date, then made two payments and finally made two more payments for a total of four payments in the total amount of $178,400.00.
8. [sic] That these payments made by defendants to plaintiffs left an outstanding balance under the agreement to extend the closing date of $178,000.00.
10. That defendants assigned their interests in the Agreement to J. Patrick Kennedy, Trustee of the Patrick and Patricia Kennedy 2000 Trust u/a/d December 18, 2000 (“Kennedy Trust”).
11. That there was no written agreement between defendants and the Kennedy Trust memorializing the assignment, nor was there a written agreement between plaintiffs and the Kennedy Trust regarding what obligations the Kennedy Trust was assuming under the Agreement.
12. That plaintiff William C. Hanson admitted under oath that he had knowledge of and agreed to the assignment of defendants’ interests in the Agreement to the Kennedy Trust.
13. That the transaction was in fact closed on May 17, 2007.
14. That the plaintiffs were not physically present at the closing.
15. That at the time of the closing, the plaintiffs were in the country of Nicaragua.
16. That on May 15, 2007, plaintiffs executed a North Carolina General Warranty Deed before a Notary Public, which deed transferred the subject property to the Kennedy Trust.
17. That on November 19, 2007, defendant Ted Morlok emailed plaintiff William C. Hanson and stated, “Tony and I have every intention of paying the note we owe you.” Said email was contained in plaintiffs’ Exhibit 4.
*299 18. That the note mentioned in the aforementioned email contained in plaintiffs’ Exhibit 4 does not exist.

The trial court ordered “that judgment be entered in favor of defendants, that plaintiffs have and recover nothing of defendants and that the costs of this action be taxed to plaintiffs.” Plaintiffs appeal.

II. Standard of Review

In a bench trial in which the superior court sits without a jury, the standard of review is whether there was competent evidence to support the trial court’s findings of fact and whether its conclusions of law were proper in light of such facts. Findings of fact by the trial court in a non-jury trial are conclusive on appeal if there is evidence to support those findings. A trial court’s conclusions of law, however, are reviewable de novo.

Hinnant v. Philips, 184 N.C. App. 241, 245, 645 S.E.2d 867, 870 (2007) (citation, quotation marks, and ellipses omitted).

III. Statute of Frauds

In its order, the trial court found “[t]hat both parties agreed that there were outstanding amounts due under the agreement to extend the closing date; however, no written agreement was ever entered into by plaintiffs and defendants regarding the payment of these amounts.” The trial court further concluded “[t]hat defendants’ obligation to pay plaintiff the outstanding balance under the agreement to extend the closing date, if any, was not in writing and therefore violated the provisions of N.C.G.S. § 22-2.” Plaintiffs first contend that “the trial court erred in finding from the evidence presented that the agreement between plaintiffs and defendants concerning extension of the closing date was not in writing and therefore violated the Statute of Frauds.” (Original in all caps.)

N.C. Gen. Stat. § 22-2 provides that

[a]ll contracts to sell or convey any lands, tenements or hereditaments, or any interest in or concerning them . . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Woollens v. Hamad
Court of Appeals of North Carolina, 2026
The Law Off. of Robert Forquer v. Arcuri
Court of Appeals of North Carolina, 2025
In re: B.M.T.
Court of Appeals of North Carolina, 2024
Parker v. Desherbinin
Court of Appeals of North Carolina, 2018
In Re Estate of Skinner
787 S.E.2d 440 (Court of Appeals of North Carolina, 2016)
Montessori Children's House of Durham v. Blizzard
781 S.E.2d 511 (Court of Appeals of North Carolina, 2016)
Bottoms v. Strum
Court of Appeals of North Carolina, 2014
White v. Farabee
713 S.E.2d 4 (Court of Appeals of North Carolina, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
695 S.E.2d 499, 205 N.C. App. 296, 2010 N.C. App. LEXIS 1150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanson-v-legasus-of-north-carolina-llc-ncctapp-2010.