Int'l Prop. Devs., LLC v. K Constr. & Roofing, LLC

824 S.E.2d 854
CourtCourt of Appeals of North Carolina
DecidedFebruary 5, 2019
DocketNo. COA17-509-2
StatusPublished

This text of 824 S.E.2d 854 (Int'l Prop. Devs., LLC v. K Constr. & Roofing, 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
Int'l Prop. Devs., LLC v. K Constr. & Roofing, LLC, 824 S.E.2d 854 (N.C. Ct. App. 2019).

Opinion

MURPHY, Judge.

There are two appeals before us resulting from a contract Evangel Worship Center, Inc. ("Evangel") entered into with K Construction & Roofing, LLC ("KCR"). Evangel hired KCR to repair warehouses that were damaged by storms in 2013. KCR subcontracted with International Property Developments, LLC d/b/a Signature Group ("Signature") to provide water remediation services. Signature was not paid in full by KCR and served Evangel with a claim of lien upon funds for its unpaid services. Evangel argues that damages awarded to Signature in quantum meruit at trial were improper. In its separate appeal, Signature contends it was improper for the trial court to grant Evangel's motion for summary judgment on the lien upon funds claim and the motions for summary judgment by Bank of the Ozarks ("Ozarks"), the successor-in-interest of the bank holding the mortgage on Evangel's property, on the equitable lien and constructive trusts claims.

Where a case has proceeded to trial and has been determined on the merits by the trier of the facts, denial of summary judgment is not appealable. Additionally, a damages award is proper where supported by competent evidence and calculated correctly by crediting a previous payment. Additionally, a lien upon funds is only valid where a balance remains due on the contract. Furthermore, if no payments were made over the claim of lien upon funds, then there is nothing to which the lien can attach. Neither an equitable lien nor a constructive trust are available remedies where adequate remedies at law were available to the seeking party, especially as here, where another party had a secured contractual right to the proceeds being sought. Accordingly, we dismiss Evangel's appeal of the summary judgment order, affirm the trial court's grants of summary judgment for Evangel and Ozarks, and affirm the valuation of the awarded damages.

BACKGROUND

In 2013, a warehouse complex owned by Evangel was damaged by severe thunderstorms.1 The roofs in several of the buildings collapsed causing water damage, and Evangel filed a claim with its insurance carrier. Evangel entered into a contract with KCR to remediate and repair the warehouses. The contract between Evangel and KCR provided that KCR was to be paid when the insurance carrier paid Evangel. KCR hired Signature as a subcontractor to perform all necessary water remediation services for Evangel's property.

KCR performed temporary repairs to the buildings, and Signature performed drying services between 11 - 21 July 2013. The project was temporarily halted on approximately 21 July 2013 due to a dispute between Evangel and its insurance carrier, and Evangel brought a separate suit against the insurance carrier.

In August 2013, after being paid by KCR for seventy-five percent of the work already performed, Signature resumed water remediation work at Evangel's property. After Signature completed its work on the project, Signature served a Notice of Claim of Lien Upon Funds on Evangel and KCR on 14 December 2013. An Amended Notice of Claim of Lien Upon Funds was received by Evangel on 23 January 2014. Evangel settled with its insurance carrier and settled with Ozarks in exchange for canceling the Deed of Trust against the property in September 2014.2

Signature maintains the insurance proceeds were required to be used to pay KCR, which in turn would have been used to pay Signature and satisfy its claim of lien upon funds. Signature brought suit on 11 February 2015 in Cabarrus County Superior Court against KCR, Evangel, and Ozarks alleging breach of contract against KCR, quantum meruit against KCR and Evangel, claiming a lien upon funds, and claiming an equitable lien against Ozarks on the insurance proceeds.

Evangel and Ozarks each moved for summary judgment. Evangel's motion for summary judgment seeking dismissal of the quantum meruit claim was denied, but summary judgment was granted as to the claim of lien upon funds. Ozarks's motion for summary judgment as to the equitable lien claim was granted. The trial court allowed Signature to file an amended complaint alleging a constructive trust over funds received by Ozarks. Ozarks filed another motion for summary judgment. Ozarks's motion as to the constructive trust was granted, and, with no other claims against Ozarks remaining, it was dismissed from the case.

The remaining parties agreed to try the case without a jury, and, after Signature rested its case, Evangel made a Rule 41(b) motion for involuntary dismissal as to Signature's quantum meruit claim. The trial court denied Evangel's motion, and judgment was entered against Evangel on the quantum meruit claim. Evangel appealed the denial of its motion for summary judgment and the award of damages to Signature. Signature appealed the trial court's grants of summary judgment in favor of Evangel and Ozarks.

ANALYSIS

A. Evangel's Issues on Appeal

Evangel contends in its opening brief on appeal that the trial court erred in denying its motion for summary judgment on Evangel's quantum meruit claim, awarding damages when Signature failed to sufficiently prove damages, and not considering a previous payment made to Signature when calculating damages. We conclude that the denial of Evangel's motion for summary judgment is not appealable and the damages award is supported by competent evidence.

1. Denial of Summary Judgment

Evangel assigns error to the trial court's denial of its motion for summary judgment. However, our Supreme Court has made clear that, "[a]fter there has been a trial, [the purpose of summary judgment] cannot be served. Improper denial of a motion for summary judgment is not reversible error when the case has proceeded to trial and has been determined on the merits by the trier of the facts, either judge or jury." Harris v. Walden , 314 N.C. 284, 286, 333 S.E.2d 254, 256 (1985). Evangel contends that such a rule is inapplicable when questions of fact need not be decided at trial. However, the Court in Harris makes no such caveat in its holding that "the denial of a motion for summary judgment is not reviewable during appeal from a final judgment rendered in a trial on the merits." Harris , 314 N.C. at 286, 333 S.E.2d at 256. This case has been determined on the merits by a trier of fact, and a final judgment has been entered. Therefore, denial of Evangel's motion for summary judgment is not appealable.

2. Damages

Evangel next contends that, because Signature was not able to produce drying logs and moisture maps, important records for water remediation services, it presented insufficient evidence to ascertain or measure lost profits with reasonable certainty. We disagree.

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Bluebook (online)
824 S.E.2d 854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intl-prop-devs-llc-v-k-constr-roofing-llc-ncctapp-2019.