Hodges v. Hodges

312 S.E.2d 703, 67 N.C. App. 290, 1984 N.C. App. LEXIS 3053
CourtCourt of Appeals of North Carolina
DecidedMarch 20, 1984
DocketNo. 8311SC467
StatusPublished

This text of 312 S.E.2d 703 (Hodges v. Hodges) 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
Hodges v. Hodges, 312 S.E.2d 703, 67 N.C. App. 290, 1984 N.C. App. LEXIS 3053 (N.C. Ct. App. 1984).

Opinion

VAUGHN, Chief Judge.

A full factual summary of this case is contained in our previous opinion. See Hodges v. Hodges, supra. We only briefly review here the major facts as they pertain to this appeal.

On the death of their mother intestate, plaintiff and his brother, the defendant Firth Hodges, inherited a parcel of land as tenants in common which they divided by cross-deeds into two separately owned tracts. The tract received by plaintiff is the subject of this action.

At some point subsequent to the division of the farm land, plaintiff needed funds for his trucking business. He contacted his brother and the result of their discussions was an arrangement by which plaintiff would convey his tract to Firth, who would use the entire tract as security for a $25,000 loan, the proceeds of which would be received by plaintiff. In addition, Firth would give plaintiff the option to buy back plaintiffs tract for $25,000, with provisions for adjusting the $25,000 figure if certain expenses were incurred. There was an express stipulation that the option could only be exercised within a certain amount of time. The resultant deed, deed of trust, and option agreement were recorded, and the loan was closed.

The evidence tends to show that on the date by which the option was to be exercised, plaintiff sent Firth a telegram requesting the execution of a deed so that the parties could “close the matter as above specified.” However, no deed was ever sent to plaintiff, nor was any money tendered to defendant Firth. Plaintiff, believing he was entitled to the tract of land he had deeded to his brother, decided to take legal action to regain it. This decision resulted in the filing of three lawsuits, of which this is the third.

In his complaint, plaintiff alleges several theories to support reconveyance, but the only one pertinent to this appeal is that the deed was actually given to secure an indebtedness and should be reformed to reflect a mortgage between the parties. At the close [292]*292of plaintiffs evidence, the trial court granted defendants’ motion for a directed verdict. Plaintiff appeals from the order granting the directed verdict.

To prevail upon this appeal, that is, to show that the trial court erred in directing a verdict for defendants, plaintiff must show that he presented evidence at the second trial materially different from that produced at the first trial, and plaintiff must further show that the directed verdict was improperly granted. We hold that plaintiff has not so shown and therefore affirm.

It has been stated that upon remand, substantially different facts must be shown before an appellate court can consider the same question on a subsequent appeal.

As a general rule, when an appellate court passes on questions and remands the case for further proceedings to the trial court, the questions therein actually presented and necessarily involved in determining the case, and the decision on those questions become the law of the case, both in subsequent proceedings in the trial court and on a subsequent appeal, provided the same facts and the same questions, which were determined in the previous appeal, are involved in the second appeal. . . .

Transportation, Inc. v. Strick Corp., 286 N.C. 235, 239, 210 S.E. 2d 181, 183 (1974) (citations omitted), quoting Collins v. Simms, 257 N.C. 1, 11, 125 S.E. 2d 298, 305 (1962).

In deciding whether the evidence on retrial is substantially the same, or materially different, from that adduced at the previous trial, it is necessary to examine and compare the evidence offered at each trial. As our Supreme Court concluded in one case, where such a comparison discloses “variances, discrepancies, omissions and some additions, in minor details, [b]ut in basic trend and content there is no material difference in the evidence adduced, [i]t is substantially the same.” Maddox v. Brown, 233 N.C. 519, 522, 64 S.E. 2d 864, 866 (1951).

We have examined and compared the evidence adduced at the two trials in the instant case, paying particular attention to the testimony that plaintiff claims demonstrates material factual differences in the evidence. Our comparison reveals no material differences, and we are thus compelled to accept this Court’s ear[293]*293lier decision reversing the denial of defendants’ motion for a directed verdict as “the law of the case.”

In particular, we do not think that the affidavit and oral testimony offered at the second trial by Y. T. Jernigan, a former tenant of the land that is the subject of this action, materially contradicts the testimony that he offered at the first trial. In his affidavit, Mr. Jernigan stated that “Firth also told me that he had George’s land for security for the $25,000 he had given to George.” At the second trial he testified that plaintiff “made the arrangements with his brother to give him, secure his money with the deed.” This is substantially similar to Mr. Jernigan’s testimony at the first trial, where he stated that he had “heard Firth say that he loaned George Twenty-Five Thousand Dollars.” We agree with this Court’s assertion on the first appeal of this matter that while these bits of evidence are “inconsistent with the idea of a sale,” they are of “such scant probative value as to be insufficient ... to carry plaintiffs case to the jury.” Hodges v. Hodges, supra, at 469, 246 S.E. 2d at 818.

Having concluded that the evidence adduced at the two trials is substantially similar, there is no need to consider whether the trial court at the second trial erred in granting defendants’ motion for a directed verdict. As the same facts and the same questions were involved in both appeals, we must adopt the earlier holding of this Court as the law of the case. See Transportation, Inc. v. Strick Corp., supra, at 239, 210 S.E. 2d at 183. We nevertheless express our approval of this Court’s reasoning and application of the law as contained in our prior opinion. In this opinion, the Court treated plaintiffs principal theory as “based on his allegations that at the time the deed and contract providing plaintiff an option to repurchase were executed and delivered the relationship of debtor and creditor existed between him and his brother, Firth, and that the deed and contract together were intended to constitute and did constitute a mortgage.” Hodges v. Hodges, supra, at 466, 246 S.E. 2d at 816.

In the first appeal, this Court comprehensively reviewed the law by which a court determines whether a particular transaction constitutes a deed and option or a mortgage. There is no need for us to do more than briefly synopsize that law here. “[T]he inquiry in every case must be, whether the contract in the specific case is [294]*294a security for the repayment of money or an actual sale.” Conway v. Alexander, 11 U.S. (7 Cranch) 218, 236-37, 3 L.Ed. 321, 328 (1812).

Whether any particular transaction amounts to a mortgage or an option of repurchase depends upon the real intention of the parties, as shown on the face of the writings, or by extrinsic evidence, and the distinction seems to be whether the debt existing prior to the conveyance is still left subsisting or has been entirely discharged or satisfied by the conveyance.

Ferguson v. Blanchard, 220 N.C. 1, 7-8, 16 S.E. 2d 414, 418 (1941).

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Related

Conway's Executors & Devisees v. Alexander
11 U.S. 218 (Supreme Court, 1812)
Collins v. Simms
125 S.E.2d 298 (Supreme Court of North Carolina, 1962)
Jones v. SATTERFIELD DEVELOPMENT COMPANY
191 S.E.2d 435 (Court of Appeals of North Carolina, 1972)
Maddox v. Brown
64 S.E.2d 864 (Supreme Court of North Carolina, 1951)
Tennessee-Carolina Transportation, Inc. v. Strick Corp.
210 S.E.2d 181 (Supreme Court of North Carolina, 1974)
O'Briant v. . Lee
200 S.E. 865 (Supreme Court of North Carolina, 1939)
Ferguson v. . Blanchard
16 S.E.2d 414 (Supreme Court of North Carolina, 1941)

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Bluebook (online)
312 S.E.2d 703, 67 N.C. App. 290, 1984 N.C. App. LEXIS 3053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodges-v-hodges-ncctapp-1984.