Lendingtree, LLC v. Anderson

747 S.E.2d 292, 228 N.C. App. 403, 2013 WL 3991116, 2013 N.C. App. LEXIS 848
CourtCourt of Appeals of North Carolina
DecidedAugust 6, 2013
DocketNo. COA12-1266
StatusPublished
Cited by17 cases

This text of 747 S.E.2d 292 (Lendingtree, LLC v. Anderson) 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
Lendingtree, LLC v. Anderson, 747 S.E.2d 292, 228 N.C. App. 403, 2013 WL 3991116, 2013 N.C. App. LEXIS 848 (N.C. Ct. App. 2013).

Opinion

HUNTER, JR., Robert N., Judge.

David N. Anderson (“Defendant”) appeals a trial court order: (i) denying his application for improper venue; (ii) denying his motion to dismiss; and (iii) granting Plaintiffs motion for leave to amend complaint. Upon de novo review, we affirm.

I. Facts & Procedural History

LendingTree, Inc. (“LendingTree”) is a licensed, multi-state mortgage broker headquartered in Mecklenburg County. Defendant, a Union County resident, is a former employee of LendingTree.

In early 2007, federal authorities investigated Jarrod Beddingfield, one of Defendant’s co-defendants in this action, for violation of federal regulations involving insider trading. As part of the investigation, Beddingfield turned over his bank records and tax returns to LendingTree’s legal department. In spring 2008, as LendingTree reviewed these documents, it discovered fee referral arrangements between others, Defendant, and co-defendant Beddingfield.

[405]*405On 21 April 2008, LendingTree filed a complaint against Defendant, Beddingfield, and others claiming: (i) breach of fiduciary duty; (ii) unauthorized access in violation of the Computer Fraud and Abuse Act; (iii) trafficking in passwords in violation of the Computer Fraud and Abuse Act; (iv) computer trespass; (v) trespass to chattels; (vi) conversion; (vii) unfair and deceptive trade practices; (viii) accounting; and (ix) injunctive relief. The complaint alleged generally the Defendants participated in “kickback” schemes.

On 22 April 2008, Chief Justice Parker designated the action a mandatory complex business case. See N.C. Gen. Stat. § 7A-45.4 (2011). On 22 May 2008 Defendant moved for and received an extension of time to file an answer on the basis that counsel needed additional time to investigate the facts so that he could plead his case.

Later, on 11 June 2008, the Business Court entered an order requiring a Joint Case Management Conference (“the Conference”) on or before 20 June 2008; and (ii) a Joint Case Management Report (“the Report”) within fifteen days of the Conference. See N.C. Bus. Ct. R. 17.1. In compliance with the order, the parties held a teleconference on 18 June 2008 and submitted a report on 20 June 2008. The Report, signed by counsel for all parties, stated, “The parties stipulate that venue is proper in this action.” However, the Report also noted that “[n]othing in this Report is intended to waive any of the objections or defenses Defendants may raise.”1

On 26 June 2008, Defendant’s counsel applied for a second extension of time to investigate the facts of the case so that he could plead his defenses. Based on the stipulations contained in the Report, on 26 June 2008 Judge Calvin E. Murphy entered an order establishing that “[v]enue is proper in this action.” This order appears final and contains none of the limiting language contained in the Report. Nothing in the record indicates any of the parties ever objected to this order, sought its modification or amendment, or have noticed this order for appeal or made it the subject of a writ of certiorari.

On 16 July 2008, Beddingfield moved for a stay of discovery because he “[was] the target in a federal criminal investigation related to the alleged computer or internet-facilitated conduct that gave rise to the instant civil action.” Based on the request of the Assistant U.S. [406]*406Attorney in charge of Beddingfield’s criminal case, LendingTree did not oppose Beddingfield’s motion.

On 23 July 2008, Defendant filed an answer alleging, inter alia, improper venue. Defendant’s answer specifically stated “[v]enue is improperly laid pursuant to the forum selection provision in Anderson’s Employment Agreement.” The forum selection clause in Anderson’s Employment Agreement states:

Any and all disputes between the parties which may arise pursuant to this Agreement will be heard and determined solely before an appropriate federal court in Delaware, or, if not maintainable therein, then in an appropriate Delaware state court. The parties acknowledge that such courts have jurisdiction to interpret and enforce the provisions of this Agreement, and the parties consent to, and waive any and all objections that they may have as to, personal jurisdiction and/or venue in such courts.

Based on this forum selection clause, Defendant requested “[dismissal of the Complaint and all claims therein as against him.” The same day, Defendant noticed depositions of two LendingTree employees. The depositions were scheduled for 5 August 2008. Additionally, Defendant submitted interrogatories and a document request to LendingTree.

On 4 August 2008, the Business Court ordered a stay “until the ongoing criminal investigation of Beddingfield is resolved.” It also ordered Beddingfield to file written 60-day updates “as to the status of the federal criminal investigation.” Due to the Business Court’s stay: (i) the scheduled 5 August 2008 depositions did not occur; and (ii) LendingTree did not respond to Defendant’s interrogatories until 7 January 2011.

The discovery stay lasted for over two years until 28 September 2010. During this time, Beddingfield filed timely status updates. On 16 December 2010, LendingTree dismissed its claims against Beddingfield with prejudice.

On 2 February 2011, LendingTree moved to amend its complaint. Specifically, it wanted to: (i) add more facts; (ii) join Anderson’s wife (Vivienne Anderson), Keith Brent, and Brent’s wife (Christine Brent); and (iii) add additional claims of relief for breach of employment contract, civil conspiracy, and constructive fraud.

On 11 March 2011, Defendant objected to LendingTree’s motion to amend and applied for a determination as to his improper venue defense. See N.C. R. Civ. P. 12(d). Defendant’s application included a [407]*407motion to dismiss under North Carolina Rules of Civil Procedure 12(b) (3) and 12(b)(6). On 24 October 2011, the Business Court held a hearing. On 17 April 2012, the Business Court entered an order: (i) denying Defendant’s motion to dismiss for improper venue; and (ii) granting LendingTree’s motion to amend. On 11 May 2012, Defendant filed timely notice of appeal to this Court of the court’s order of 17 April 2012 only.

II. Jurisdiction & Standard of Review

This Court has jurisdiction to hear Defendant’s appeal of the Business Court’s venue determination pursuant to N.C. Gen. Stat. § 7A-27(d) (2011). As our Supreme Court has stated, “[although the initial question of venue is a procedural one, there can be no doubt that a right to venue established by statute is a substantial right. Its grant or denial is immediately appealable.” Gardner v. Gardner, 300 N.C. 715, 719, 268 S.E.2d 468, 471 (1980) (internal citation omitted). Consequently, although parties generally have “no right of immediate appeal from interlocutory orders and judgments[,]” Goldston v. Am. Motors Corp., 326 N.C. 723, 725, 392 S.E.2d 735, 736 (1990), Defendant has an appeal of right under N.C. Gen. Stat. § 7A-27(d)(1) (2011) because he appeals from an “interlocutory order or judgment of a superior court or district court in a civil action or proceeding which . . .

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Cite This Page — Counsel Stack

Bluebook (online)
747 S.E.2d 292, 228 N.C. App. 403, 2013 WL 3991116, 2013 N.C. App. LEXIS 848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lendingtree-llc-v-anderson-ncctapp-2013.