Mancuso v. Burton Farm Development Co.

748 S.E.2d 738, 229 N.C. App. 531, 2013 WL 5184317, 2013 N.C. App. LEXIS 985
CourtCourt of Appeals of North Carolina
DecidedSeptember 17, 2013
DocketNo. COA13-38
StatusPublished
Cited by8 cases

This text of 748 S.E.2d 738 (Mancuso v. Burton Farm Development Co.) 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
Mancuso v. Burton Farm Development Co., 748 S.E.2d 738, 229 N.C. App. 531, 2013 WL 5184317, 2013 N.C. App. LEXIS 985 (N.C. Ct. App. 2013).

Opinion

ERVIN, Judge.

Plaintiffs Bernard and Frances Mancuso, Christopher and Linda Burris, and Mancuso Development, Inc., appeal from an order granting summary judgment in favor of Defendants Burton Farm Development Company, LLC, and Boddie-Noell Enterprises, Inc., and from an order denying their motion to compel discovery. On appeal, Plaintiffs argue that (1) Judge Jones erred by granting summary judgment in favor of Defendants with respect to their claims for breach of implied contract, fraud, and unfair or deceptive trade practices and with respect to their request to pierce Burton Farm’s corporate veil so as to reach Boddie-Noell and that (2) Judge Alford erred by denying their motion to compel the production of certain documents during the course of the discovery process. After careful consideration of Plaintiffs’ challenges to the trial courts’ orders in light of the record and the applicable law, we conclude that Judge Jones’ summary judgment order should be affirmed and that Plaintiff’s appeal from Judge Alford’s discovery order should be dismissed as moot.

[533]*533I. Factual Background

A. Substantive Facts

This appeal arises from the development of approximately 900 acres of real property located in Pamlico County known as Arlington Place and revolves around a dispute over the extent to which Defendants failed to comply with an alleged obligation to construct a deep water marina in the course of developing the property. Boddie-Noell is the majority owner of Burton Farm, with both entities having been involved in the development of Arlington Place. Plaintiff Mancuso Development, Inc., is a real estate development and construction company. Plaintiffs Bernard Mancuso, Jr., and his wife, Frances Mancuso, were Mancuso Development’s officers and sole shareholders. In addition, Plaintiffs Christopher Burris and Linda Burris served as Mancuso Development’s Construction Supervisor and Office Manager, respectively.

Defendants purchased the land for Arlington Place in October 2005. According to the marketing materials distributed to potential buyers and the statements made by Defendants’ employees, Defendants’ plans for the development of Arlington Place included the construction of various recreational facilities, including a clubhouse, a swimming pool, a tennis court, and a marina. Plaintiffs became involved with Arlington Place in 2006, at which time Mr. Mancuso spoke with a Boddie-Noell representative about the extent to which Mancuso Development should participate in Arlington Place’s “Signature Builder” program. After discussing the matter among themselves, Plaintiffs decided to buy a certain number of lots in Arlington Place and to participate in the Signature Builders program.

In early October 2006, Arlington Place held a “Phase 1 launch” and began selling lots in the development. Plaintiffs attended the launch, at which time they were provided with various marketing materials, had an opportunity to view the proposed development on land and by means of a helicopter ride, and had the chance to speak with Defendants’ representatives. At that point, Defendants’ intention to construct a marina was indicated in the marketing materials which they disseminated in a variety of ways. On 3 October 2006, Plaintiffs executed contracts for the purchase of five lots, three of which were deeded to both the Burrises and the Mancusos, one of which was deeded to the Mancusos, and one of which was deeded to the Burrises. At that time, Plaintiffs were provided with a HUD property report in a CD format.

On 5 October 2006, aplat for Phase 1 of Arlington Place was filed in the office of the Pamlico County Register of Deeds. The plat for Phase 1 did [534]*534not reflect the construction of a marina. A declaration of restrictive covenants, which was recorded on 31 October 2006, states that Defendants were developing Arlington Place “pursuant to a master plan on file with the Town of Minnesott Beach” and that the “Master Plan [was] subject to continuous revision and change by Declarant, in its discretion.”

Although construction had not yet begun, Defendants continued to indicate during 2005 and 2006 that a marina was planned as part of Arlington Place. In May 2008, Mancuso Development contracted with Defendants to serve as the project manager for Arlington Place. Acting in this capacity, Mr. Mancuso attended staff meetings at which Defendants continued to suggest that they would eventually build a marina in Arlington Place. In February 2010, a model home that Plaintiffs built on Lot 139 in Arlington Place was sold to the owner of Lot 117. As part of that transaction, Plaintiffs agreed to accept Lot 117 in trade and to give the buyers a $100,000.00 credit towards the purchase price of the model home. In March 2010, Plaintiffs entered into an agreement with Burton Farm and Douglas Anderson, an executive with Boddie-Noell, in which Mancuso Development agreed to build a house on another lot in Arlington Place.

In December 2010, Mancuso Development’s contract as project manager for Arlington Place was canceled, subject to a thirty day notice period. In January 2011, Mr. Mancuso attended a management meeting at which he was told that Defendants had no binding legal obligation to build a marina and that constructing a marina made “no sense” given the current economic situation.

B. Procedural History

On 29 April 2011, Plaintiffs filed a complaint against Defendants in which they asserted claims sounding in breach of implied contract, fraud, unfair or deceptive trade practices, and piercing Burton Farm’s corporate veil and sought both compensatory and punitive damages. On 23 May 2011, Defendants filed a motion seeking the dismissal of Plaintiffs’ complaint pursuant to N.C. Gen. Stat. § 1A-1, Rule 12(b)(6), and a motion seeking the imposition of sanctions pursuant to N.C. Gen. Stat. § 1A-1, Rule 11. Defendants’ motions were denied on 13 June 2011 by means of an order entered by Judge John E. Nobles, Jr.

On 20 July 2011, Defendants filed an answer in which they denied the material allegations of Plaintiff’s complaint and in which Burton Farm asserted a counterclaim against Mancuso Development. Mancuso Development filed a reply to Burton Farm’s counterclaim on 14 September 2011. On 14 February 2012, Plaintiffs filed a motion [535]*535seeking the entry of an order compelling Defendants to respond to certain requests for the provision of financial and corporate information relating to Boddie-Noell. Plaintiffs’ motion to compel was denied by Judge Alford on 22 May 2012.

On 30 July 2012, Defendants filed a motion seeking the entry of summary judgment in their favor. On 7 September 2012, Judge Jones entered an order granting summary judgment in favor of Defendants. Plaintiffs noted an appeal to this Court from the trial court’s summary judgment order and from the denial of their motion to compel. On 15 October 2012, Burton Farm voluntarily dismissed its counterclaim against Mancuso Development without prejudice.

II. Legal Analysis

A. Validity of Summary Judgment Order
1. Standard of Review

Summary judgment is properly granted when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.” N.C. Gen. Stat. § 1A-1, Rule 56(c) (2012).

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Bluebook (online)
748 S.E.2d 738, 229 N.C. App. 531, 2013 WL 5184317, 2013 N.C. App. LEXIS 985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mancuso-v-burton-farm-development-co-ncctapp-2013.