J&M Aircraft Mobile T-Hangar, Inc. v. Johnston County Airport Authority

603 S.E.2d 348, 166 N.C. App. 534, 2004 N.C. App. LEXIS 1960
CourtCourt of Appeals of North Carolina
DecidedOctober 19, 2004
DocketNo. COA03-1202
StatusPublished
Cited by5 cases

This text of 603 S.E.2d 348 (J&M Aircraft Mobile T-Hangar, Inc. v. Johnston County Airport Authority) 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
J&M Aircraft Mobile T-Hangar, Inc. v. Johnston County Airport Authority, 603 S.E.2d 348, 166 N.C. App. 534, 2004 N.C. App. LEXIS 1960 (N.C. Ct. App. 2004).

Opinions

ELMORE, Judge.

The first civil action in this case was filed 5 September 2001 in Johnston County, North Carolina. The action concerned airplane hangars which J&M Aircraft Mobile T-Hangar, Inc. (J&M) constructed at the Johnston County Airport, but were never paid for. The Airport Authority was responsible for making sure each of the airlines paid J&M for their individual hangars, and in return the Airport Authority was to earn a commission. The commission agreed upon was $1,000.00 for each of 40 hangars. J&M apparently never received full payment for the hangars and, in return, J&M never paid the Airport Authority their commission. The Airport Authority sued for the commission.

[536]*536The plaintiff therein (the Airport Authority) attempted service on the defendant (J&M), a Georgia corporation, at its office in Georgia. J&M claimed it never received service, and that someone who works in the building where its office is located but does not work for J&M signed the receipt. The signature is apparently indecipherable. J&M was not aware of that action until well after the default judgment was entered against it. The default judgment awarded plaintiffs $37,000.00 plus 8% interest from 15 February 1999 until paid.

J&M learned of the default judgment when it was served with a complaint filed in Georgia attempting to enforce collection of the North Carolina default judgment. J&M and the Perrys, owners and employees of J&M, attempted to attack the North Carolina judgment in the Georgia court, claiming North Carolina had no jurisdiction. J&M’s attorney requested a protective order and an injunction, which was denied by the Georgia trial court. The Georgia trial court then stayed the action in Georgia to allow J&M to attack the North Carolina judgment in North Carolina.

J&M attempted to obtain counsel in North Carolina but eventually filed a pro se complaint which was later amended when it retained counsel. The complaint included a Rule 60 motion to set aside the prior North Carolina default judgment. The complaint also moved the trial court for temporary, preliminary, and permanent injunctive relief to stay the enforcement of the judgment.

The North Carolina court ordered a temporary restraining order against the Airport Authority in June of 2003. Later that month, the trial court heard the motion for an injunction. The trial court denied the motion and granted the defendant’s motion to dismiss, concluding as a matter of law that the service in the original action was sufficient under N.C. Gen. Stat. § 1A-1, Rule 4(j)(6)c. The trial court said that J&M failed to bring evidence to overcome the presumption of valid service. The trial court found the default judgment valid, and found no grounds for continuing the stay of the Georgia action.

From that denial of the Rule 60 motion and motion for injunction, and the granting of the motion to dismiss, J&M appeals.

I.

J&M first assigns error to the trial court’s denial of the motion for preliminary injunction, arguing that the appellants are reasonably likely to have prevailed on the merits and that appellants will suffer irreparable harm if the injunction is not issued.

[537]*537The scope of appellate review in the granting or denying of a preliminary injunction is essentially de novo. An appellate court is not bound by the findings, but may review and weigh the evidence and find facts for itself. Robins & Weill, Inc. v. Mason, 70 N.C. App. 537, 320 S.E.2d 693, disc. review denied, 312 N.C. 495, 322 S.E.2d 559 (1984).

As a general rule, a preliminary injunction is an extraordinary measure taken by a court to preserve the status quo of the parties during litigation:

It will be issued only (1) if a plaintiff is able to show likelihood of success on the merits of his case and (2) if a plaintiff is likely to sustain irreparable loss unless the injunction is issued, or if, in the opinion of the Court, issuance is necessary for the protection of a plaintiffs rights during the course of litigation.

A.E.R Industries, Inc. v. McClure, 308 N.C. 393, 401, 302 S.E.2d 754, 759-60 (1983).

The order denying the injunction contains findings of fact which tend to focus on the sufficiency of service. The trial court concluded as a matter of law that regardless of the sufficiency or insufficiency of process that the defendant did not file his Rule 60 motion “within a reasonable time” pursuant to N.C. Gen. Stat. § 1A-1, Rule 60(b)(4) (2003). The record shows that J&M was aware and in possession of the complaint and default judgment in February 2002, and did not file the current action until 15 months later — 19 months after the filing of the default judgment. The trial court concluded as a matter of law that “15 months is not a reasonable time for filing this action, particularly in light of the fact that the delay may materially affect the Airport’s ability to pursue its claim were the Default Judgment to be set aside,” citing Howard v. Williams, 40 N.C. App. 575, 253 S.E.2d 571 (1979).

A motion for relief under Rule 60(b) is addressed to the sound discretion of the trial court and appellate review is limited to determining whether the court abused its discretion. Sink v. Easter, 288 N.C. 183, 217 S.E.2d 532 (1975); Hilton v. Howington, 63 N.C. App. 717, 306 S.E.2d 196 (1983), disc. review denied, 310 N.C. 152, 311 S.E.2d 291 (1984). While motions pursuant to subsections (b)(1), (b)(2), and (b)(3) of this rule must be made “not more than one year after the judgment, order, or proceeding was entered or taken,” as well as “within a reasonable time,” motions pursuant to subsections [538]*538(b)(4), (b)(5), and (b)(6) of this rale must simply be made “within a reasonable time,” and what constitutes a “reasonable time” depends upon the circumstances of the individual case. Nickels v. Nickels, 51 N.C. App. 690, 277 S.E.2d 577, disc. review denied, 303 N.C. 545, 281 S.E.2d 392-93 (1981).

We note that J&M immediately retained counsel, tried to attack the judgment in Georgia, obtained a stay in Georgia in order to attack the judgment in North Carolina, and filed the Rule 60 motion within 15 months of having notice for the first time that there was a $37,000.00 judgment against it. If J&M can prove that it had no actual notice of the first complaint, then it has a reasonable chance of prevailing on the merits of the Rule 60 motion.

However, reasonable time notwithstanding, a party is also required to demonstrate irreparable harm. Here, defendant did not demonstrate irreparable harm since the Georgia action to collect on the original North Carolina default judgment was stayed pending the outcome of this action. The trial court did not err in denying the motion for injunctive relief, because irreparable harm was not shown.

II.

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603 S.E.2d 348, 166 N.C. App. 534, 2004 N.C. App. LEXIS 1960, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jm-aircraft-mobile-t-hangar-inc-v-johnston-county-airport-authority-ncctapp-2004.