Musarra v. Bock

684 S.E.2d 741, 200 N.C. App. 780, 2009 N.C. App. LEXIS 1720
CourtCourt of Appeals of North Carolina
DecidedNovember 3, 2009
DocketCOA09-249
StatusPublished

This text of 684 S.E.2d 741 (Musarra v. Bock) 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
Musarra v. Bock, 684 S.E.2d 741, 200 N.C. App. 780, 2009 N.C. App. LEXIS 1720 (N.C. Ct. App. 2009).

Opinion

STEELMAN, Judge.

The misspelling of defendant’s name on the summons implicated personal jurisdiction issues which defendant waived by not raising *781 them in his answer. The Superior Court of Macon County had subject matter jurisdiction over the case since actions for the collection of a debt greater than $10,000.00 fall under the original jurisdiction of the superior court pursuant to N.C. Gen. Stat. §§ 7A-240 and 243 (2007). Defendant failed to preserve his statute of limitations argument on appeal.

I.Factual and Procedural Background

Bock Homes, Inc. executed an undated promissory note to É. Anthony Musarra II, M.D.P.C. (plaintiff) in the principal amount of twenty-five thousand dollars ($25,000.00). On 28 April 1994, David E. Bock (defendant) executed a personal guaranty of the twenty-five thousand dollar note. Bock Homes, Inc. executed a second promissory note, dated 1 May 1995 to plaintiff in the original principal amount of twenty-five thousand dollars ($25,000.00). On 1 May 1995, defendant executed a personal guaranty of the second note.

On 24 April 2006, plaintiff filed a complaint in this action seeking the balance due on the notes, together with interest and' attorney’s fees. On 3 December 2007, defendant filed an answer to the complaint, asserting the affirmative defenses of the statute of limitations and lack of subject matter jurisdiction. This matter was heard by Judge Ginn, sitting without a jury. In a judgment dated 19 September 2008, the trial court ordered that plaintiff have and recover of defendant the sum of $89,043.00 together with attorney’s fees in the amount of $13, 356.45. Defendant appeals.

II.Standard of Review

“This Court’s review of a trial court’s conclusions of law is limited to whether they are supported by the findings of fact.” In re J.L., 183 N.C. App. 126, 130, 643 S.E.2d 604, 606 (2007) (citation omitted); see also Sessler v. Marsh, 144 N.C. App. 623, 628, 551 S.E.2d 160, 163, writ of supersedeas and disc. review denied, 354 N.C. 365, 556 S.E.2d 577 (2001). Since Bock does not challenge any of the trial court’s findings of fact, we review this matter only to determine if those findings of fact support the trial court’s legal conclusions. Lumsden v. Lawing, 107 N.C. App. 493, 499, 421 S.E.2d 594, 598 (1992).

III.Personal Jurisdiction

In his first argument, defendant contends that the superior court did not have personal jurisdiction over Bock because he was not properly named in the summons. We disagree.

*782 Defendant’s argument is predicated on the misspelling of his name on the face of the summons. Insufficiency of process is a defense that implicates personal jurisdiction and can be waived. In re J.T. (I), J.T. (II), A.J., 363 N.C. 1, 4, 672 S.E.2d 17, 19 (2009); see also In re K.J.L., 363 N.C. 343, 348, 677 S.E.2d 835, 838 (2009) (lack of a required signature on summons implicated personal jurisdiction though the defect was waived where defendants appeared generally). “Objections to a court’s exercise of personal (in personam) jurisdiction . . . must be raised by the parties themselves and can be waived in a number of ways.” In re J.T. (I), 363 N.C. at 4, 672 S.E.2d at 18 (citing N.C. Gen. Stat. § 1A-1, Rule 12(h)(1)). Rule 12(h)(1) of the North Carolina Rules of Civil Procedure provides:

A defense of lack of jurisdiction over the person, improper venue, insufficiency of process, or insufficiency of service of process is waived (i) if omitted from a motion in the circumstances described in section (g), or (ii) if it is neither made by motion under this rule nor included in a responsive pleading or amendment thereof permitted by Rule 15(a) to be made as a matter of course.

N.C. Gen. Stat. § 1A-1, Rule 12(h)(1) (2007). Defendant failed to raise the defense of lack of personal jurisdiction in his answer and cannot raise this issue for the first time on appeal. Id.; see also Shores v. Shores, 91 N.C. App. 435, 436, 371 S.E.2d 747, 748 (1988) (A defendant waives his right to contest personal jurisdiction where he raises the defense for the first time on appeal). This argument is dismissed.

IV. Subject Matter Jurisdiction

In his second argument, defendant contends that the trial court did not have subject matter jurisdiction over the case. We disagree.

Defendant argues that this case involves a “note and guaranty prepared, executed, delivered, and to be performed in Georgia, between two parties, [who] both, at execution and now, [reside] in Georgia.” Defendant further argues that “[i]f Plaintiff has not properly brought the action according to the laws of the contracting state, North Carolina does not have subject matter jurisdiction.” According to defendant the applicable Georgia statute reads: “When the fact of suretyship appears on the face of the contract, the creditor shall sue out process against the surety and enter up judgment against him as such.” Ga. Code Ann. § 10-7-28 (2007).

To support his argument defendant cites three North Carolina cases: Land Co. v. Wood, 40 N.C. App. 133, 252 S.E.2d 546 (1979); *783 Bank v. Appleyard, 238 N.C. 145, 77 S.E.2d 783 (1953); and Hatcher v. McMorine, 15 N.C. 122 (1883). These cases do not support defendant’s argument, but support only the principles of lex loci and lex fori. Under lex loci and lex fori contract disputes are governed by the substantive law of the jurisdiction in which the contract was formed and the procedural rules of the jurisdiction trying them. Land, 40 N.C. App. at 136-37, 252 S.E.2d at 550. These cases deal only with choice of law analysis and have no bearing on the subject matter jurisdiction of the North Carolina courts. We note that defendant makes no argument concerning jurisdiction based upon an absence of minimum contacts on appeal.

Subject matter jurisdiction is the power to hear and determine cases of the general class to which the action in question belongs. Cooke v. Faulkner, 137 N.C. App. 755, 757-58, 529 S.E.2d 512, 514 (2000). “Subject matter jurisdiction is conferred upon the courts by either the North Carolina Constitution or by statute.” Harris v.

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Related

Tanglewood Land Co., Inc. v. Wood
252 S.E.2d 546 (Court of Appeals of North Carolina, 1979)
Lumsden v. Lawing
421 S.E.2d 594 (Court of Appeals of North Carolina, 1992)
Livaditis v. American Casualty Co.
160 S.E.2d 449 (Court of Appeals of Georgia, 1968)
Merchants & Planters National Bank of Sherman v. Appleyard
77 S.E.2d 783 (Supreme Court of North Carolina, 1953)
Harris v. Pembaur
353 S.E.2d 673 (Court of Appeals of North Carolina, 1987)
Cooke v. Faulkner
529 S.E.2d 512 (Court of Appeals of North Carolina, 2000)
Sessler v. Marsh
551 S.E.2d 160 (Court of Appeals of North Carolina, 2001)
Gore v. Myrtle/Mueller
653 S.E.2d 400 (Supreme Court of North Carolina, 2007)
Town of Franklin v. Franks
170 S.E. 113 (Supreme Court of North Carolina, 1933)
Hatcher v. . McMorine
15 N.C. 122 (Supreme Court of North Carolina, 1833)
Sessler v. Marsh
556 S.E.2d 577 (Supreme Court of North Carolina, 2001)
In re J.T. (I)
672 S.E.2d 17 (Supreme Court of North Carolina, 2009)
In re K.J.L.
677 S.E.2d 835 (Supreme Court of North Carolina, 2009)
In re J.L.
643 S.E.2d 604 (Court of Appeals of North Carolina, 2007)
Schall v. Jennings
393 S.E.2d 130 (Court of Appeals of North Carolina, 1990)
Shores v. Shores
371 S.E.2d 747 (Court of Appeals of North Carolina, 1988)

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Bluebook (online)
684 S.E.2d 741, 200 N.C. App. 780, 2009 N.C. App. LEXIS 1720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/musarra-v-bock-ncctapp-2009.