Messer v. Laurel Hill Associates

378 S.E.2d 220, 93 N.C. App. 439, 1989 N.C. App. LEXIS 221
CourtCourt of Appeals of North Carolina
DecidedApril 18, 1989
Docket8815SC393
StatusPublished
Cited by14 cases

This text of 378 S.E.2d 220 (Messer v. Laurel Hill Associates) 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
Messer v. Laurel Hill Associates, 378 S.E.2d 220, 93 N.C. App. 439, 1989 N.C. App. LEXIS 221 (N.C. Ct. App. 1989).

Opinion

COZORT, Judge.

Plaintiffs instituted causes of action for anticipatory breach of contract and breach of contract in which they sought to enforce a covenant contained in a deed alleged to require defendant partnership, as grantee, to construct two roads on the property conveyed by the deed. The trial court granted summary judgment in defendant’s favor on both claims and denied plaintiffs’ motion for summary judgment. We affirm the trial court’s ruling on the claim for anticipatory breach of contract but vacate the judgment in favor of defendant on the breach of contract claim.

*441 On or about 25 August 1983, plaintiffs entered into a Contract of Sale with James E. Plymire (not a party to this action) wherein plaintiffs agreed to sell, and Plymire to buy, 60.3 acres of land known as Laurel Hill IV and V, located in Chapel Hill, North Carolina. Included in that Contract were provisions that the deed would reserve for plaintiff Hunt an easement for right of way over two roads (Bayberry Drive and Rhododendron Drive) which Plymire agreed to build by 30 December 1985. On 22 September 1983, plaintiffs signed an Agreement with Plymire and four other individuals whereby (1) Plymire assigned his rights involving Laurel Hill IV and V to the four individuals (referred to as “Grantees”), (2) the four individuals assumed Plymire’s obligations, and (3) plaintiffs released Plymire from any obligations arising from the 25 August 1983 Contract of Sale. A warranty deed dated 22 September 1983 conveyed Laurel Hill IV and V to those same four individuals. The deed reserved, for plaintiff Hunt’s adjacent retained tract of 120 acres, two easements, described by metes and bounds, over proposed streets referred to as Bayberry Drive and Rhododendron Drive. The deed also contained the following covenant:

Grantees agree for themselves and their heirs, successors, and assigns, that they shall build to Chapel Hill standards both Bayberry Drive (from Arboretum Drive to Rododendron [sic] Drive and to the eastern boundary of Laurel Hill IV) and Rododendron [sic] Drive by December 30, 1985.

The deed was signed by plaintiff Hunt, the record owner, and plaintiff Messer, who released any rights he had in the property.

In their complaint, plaintiffs allege that defendant, a partnership, agreed to perform the obligations of Plymire in the 25 August 1983 contract.

Thereafter, defendant began development of Laurel Hill IV and V, which were renamed “The Woods,” into sites for traditional homes and condominiums. On 13 May 1985 the parties to this action signed a Contract of Sale Modification which purported to* modify the 25 August 1983 Contract of Sale between plaintiffs and Plymire and which, inter alia, provided as follows:

Plymire shall build to Chapel Hill standards Bayberry Drive from Arboretum Drive to Rododendron [sic] Drive and to the eastern boundary of Laurel Hill IV by December 1, 1987. (Emphasis added.)

*442 On 17 December 1985 plaintiff Messer brought an action alleging that defendant was in anticipatory breach of its obligation under the Contract of Sale Modification to build Bayberry Drive. In an amended complaint filed 14 July 1986, Hunt joined the action as a plaintiff, and several additional counts were added to the complaint, including a count for breach of the covenant to build Rhododendron Drive by 30 December 1985, as set forth in the 22 September 1983 warranty deed. The claim for anticipatory breach alleged that defendant had “by its statements and actions, including statements that it is discontinuing development of the Woods for the time being and banking the land, is in anticipatory breach of its obligation to complete Bayberry Drive by December 1, 1987.” Plaintiffs requested the court to order specific performance by defendant of its alleged obligation to build Bayberry Drive and Rhododendron Drive, damages, costs, and other appropriate relief.

Defendant filed an Answer admitting its status as a general partnership which had begun development of the Woods but denying other material allegations of the complaint except insofar as such allegations were consistent with the language of the agreements and the deed attached to plaintiffs’ complaint.

Both parties moved for summary judgment. The motions came on for hearing before the Honorable Henry V. Barnette, Jr., who, on 29 December 1986, denied plaintiffs’ motion and entered summary judgment in favor of defendant, dismissing with prejudice plaintiffs’ claims for anticipatory breach and breach of the agreements to build Bayberry Drive and Rhododendron Drive. The parties having voluntarily dismissed their remaining claims and counterclaims in a final judgment entered 10 November 1987, plaintiffs appeal from the trial court’s ruling.

A motion for summary judgment should be granted when the evidence presented to the trial court reveals that there is no genuine issue as to any material fact and that either party is entitled to judgment in its favor as a matter of law. N.C. Gen. Stat. § 1A-1, Rule 56; Kessing v. National Mortgage Corp., 278 N.C. 523, 180 S.E. 2d 823 (1971). In considering a motion for summary judgment, the trial court should not undertake to resolve an issue of credibility. Landrum v. Armbruster, 28 N.C. App. 250, 220 S.E. 2d 842 (1976). However, to avoid entry of summary judgment against it, a party must come forward with evidence of a dispute as to a material fact such that resolution of that dispute would affect the *443 result of the action before the court. Clerk of Superior Court v. Guilford Builders Supply Co., 87 N.C. App. 386, 361 S.E. 2d 115 (1987), disc. review denied, 321 N.C. 471, 364 S.E. 2d 918 (1988).

When the promisor to an executory agreement for the performance of an act in the future renounces its duty under the agreement and declares its intention not to perform it, the promisee may treat the renunciation as a breach and sue at once for damages. Pappas v. Crist, 223 N.C. 265, 25 S.E. 2d 850 (1943). In order to maintain a claim for anticipatory breach, the words or conduct evidencing the renunciation or breach must be a “positive, distinct, unequivocal, and absolute refusal to perform the contract” when the time fixed for it in the contract arrives. Edwards v. Proctor, 173 N.C. 41, 44, 91 S.E. 584, 585 (1917); 4 Corbin, Contracts § 973 (1951).

Plaintiffs’ claim for anticipatory breach of the agreement to construct Bayberry Drive by 1 December 1987 was based on defendant’s alleged statement that it was “discontinuing development of the Woods for the time being and banking the land.” Plaintiff has not come forward with any evidence showing when or in what context this statement was made. Defendant submitted no evidence that it did or did not make the statement as alleged.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Watts Guerra LLC v. Series 1 of Oxford Ins. Co. Nc LLC
2026 NCBC 17 (North Carolina Business Court, 2026)
W&W Partners, Inc. v. Ferrell Land Co., LLC
2019 NCBC 44 (North Carolina Business Court, 2019)
Brock v. Johnson Breeders, Inc.
775 S.E.2d 925 (Court of Appeals of North Carolina, 2015)
In re Rose
512 B.R. 790 (W.D. North Carolina, 2014)
Azalea Garden Bd. & Care, Inc. v. Vanhoy
2009 NCBC 7 (North Carolina Business Court, 2009)
In Re Eagle Creek Subdivision, LLC
397 B.R. 758 (E.D. North Carolina, 2008)
Strategic Outsourcing, Inc. v. Continental Casualty Co.
414 F. Supp. 2d 545 (W.D. North Carolina, 2006)
Dishner Developers, Inc. v. Brown
549 S.E.2d 904 (Court of Appeals of North Carolina, 2001)
Omnicom of Michigan v. Giannetti Investment Co.
561 N.W.2d 138 (Michigan Court of Appeals, 1997)
Mountain Farm Credit Service v. Purina Mills, Inc.
459 S.E.2d 75 (Court of Appeals of North Carolina, 1995)
Marrow v. Marrow
454 S.E.2d 853 (Court of Appeals of North Carolina, 1995)
Messer v. Laurel Hill Associates
401 S.E.2d 843 (Court of Appeals of North Carolina, 1991)
Allen v. Weyerhaeuser, Inc.
381 S.E.2d 824 (Court of Appeals of North Carolina, 1989)
Gordon v. Howard
379 S.E.2d 674 (Court of Appeals of North Carolina, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
378 S.E.2d 220, 93 N.C. App. 439, 1989 N.C. App. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/messer-v-laurel-hill-associates-ncctapp-1989.