Nobel v. Foxmoor Group, LLC

CourtSupreme Court of North Carolina
DecidedFebruary 11, 2022
Docket337A20
StatusPublished

This text of Nobel v. Foxmoor Group, LLC (Nobel v. Foxmoor Group, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nobel v. Foxmoor Group, LLC, (N.C. 2022).

Opinion

IN THE SUPREME COURT OF NORTH CAROLINA

2022-NCSC-10

No. 337A20

Filed 11 February 2022

LORETTA NOBEL

v. FOXMOOR GROUP, LLC, MARK GRIFFIS, and DAVE ROBERTSON

Appeal pursuant to N.C.G.S. § 7A–30(2) from the decision of a divided panel of

the Court of Appeals, 272 N.C. App. 300, 846 S.E.2d 761 (2020), affirming in part and

reversing in part a judgment entered 30 November 2018 by Judge Charles H. Henry

in Superior Court, New Hanover County. Heard in the Supreme Court 4 October

2021.

Amanda B. Mason and Sarah C. Thomas for plaintiff-appellant.

James E. Lea, III, for defendant-appellee.

BERGER, Justice.

¶1 On November 30, 2018, the trial court, sitting without a jury, determined that

defendant had violated the North Carolina Unfair or Deceptive Trade Practices Act

(the Act). On July 7, 2020, a divided panel of the Court of Appeals reversed the trial

court’s decision as to plaintiff’s claims under the Act. Nobel v. Foxmoor Grp., LLC,

272 N.C. App. 300, 846 S.E.2d 761, review denied in part, 375 N.C. 495, 847 S.E.2d NOBEL V. FOXMOOR GROUP, LLC

Opinion of the Court

884 (2020).1 Plaintiff appeals to this Court pursuant to N.C.G.S. § 7A-30(2), arguing

that the Court of Appeals erroneously concluded plaintiff’s claims were beyond the

scope of the Act. Upon review, we affirm the decision of the Court of Appeals.

I. Factual and Procedural Background

¶2 In November 2010, Dave Robertson (defendant)2 and Mark Griffis formed

Foxmoor Group, LLC (Foxmoor). The business was intended to operate as a trucking

company, and Foxmoor’s annual report filed with the Secretary of State listed the

nature of the business as “agricultural and transportation.” Griffis and defendant

were the sole members and managers of Foxmoor.

¶3 In an effort to raise capital for the newly formed company, Griffis and

defendant reached out to plaintiff and encouraged her to invest in Foxmoor. Plaintiff

was a personal friend of Griffis and defendant. The three interacted in various social

and professional settings, and Griffis and defendant assisted plaintiff financially at

one point. On December 12, 2011, plaintiff emailed Griffis to further inquire about

“how an investment [in Foxmoor] might work.” Griffis subsequently notified plaintiff

of an opportunity to invest either $75,000 or $150,000 in the company. Plaintiff

1 Defendant Robertson petitioned this Court for discretionary review pursuant to N.C.G.S. § 7A–31. Defendant’s petition was denied, and the only issue before this Court is plaintiff’s appeal based upon a dissent at the Court of Appeals. 2 Only defendant filed a timely notice of appeal from the trial court to the Court of

Appeals. As to the other two original defendants, Griffis and Foxmoor Group, LLC, their appeals were dismissed by order of the Court of Appeals on January 31, 2020. Accordingly, the claims against defendant Robertson are the only claims on appeal before this Court. NOBEL V. FOXMOOR GROUP, LLC

informed Griffis and defendant that she was only able to invest $25,000 at that time.

The parties agreed, and plaintiff sent a personal check addressed to “Foxmoor

Transport” on January 9, 2012. Although there is no evidence that a promissory note

was executed by the parties at that time, the check from plaintiff to Foxmoor had the

word “loan” written in the memo line. Plaintiff received payments of $3,510 in March,

April, and May 2012, towards satisfaction of the $25,000 loan.

¶4 Griffis and defendant met with plaintiff throughout April and May 2012, and

they informed plaintiff that the company had been performing well. Griffis and

defendant offered plaintiff an opportunity to make an additional $75,000 investment

in Foxmoor. On May 24, 2012, plaintiff agreed to provide an additional $75,000

investment in Foxmoor. Plaintiff again sent a personal check made out to “Foxmoor

Group, LLC” with “investment” written in the memo line.

¶5 Also on May 24, 2012, Griffis executed a promissory note evidencing

indebtedness to plaintiff for “the principal sum of $75,000, together with interest of

$93,000.” The promissory note required Foxmoor to make monthly payments to

plaintiff to satisfy the debt beginning on July 1, 2012. Additionally, and in light of

their personal friendship, Griffis included an attachment to the promissory note

extending health insurance to plaintiff for four years. That same day, plaintiff’s

$75,000 check was deposited into Foxmoor’s account.

¶6 In June 2012, plaintiff received a check from Foxmoor in the amount of $7,000. NOBEL V. FOXMOOR GROUP, LLC

Defendant advised plaintiff that half of the $7,000 amount constituted the first

payment on the $75,000 loan, with the remainder being an installment of the initial

$25,000 loan. Plaintiff did not receive any additional payments from defendant,

Griffis, or Foxmoor, and she was not provided health insurance. When plaintiff

inquired into the status of the missed payments, Griffis and defendant informed

plaintiff that any further attempt to receive repayment would result in the company

filing for bankruptcy. Foxmoor was administratively dissolved by the Secretary of

State on March 4, 2014.

¶7 In December 2015, plaintiff filed the present action, alleging, inter alia, that

defendant, Griffis, and Foxmoor, “by their conduct, acting individually and

corporately, engaged in unfair and deceptive trade practices in and affecting

commerce, all in violation of N.C.G.S. § 75-1, et. seq.” Following a bench trial, the

trial court determined that defendant, Griffis, and Foxmoor had violated the Act and

awarded treble damages in the amount of $493,500.

¶8 Defendant timely appealed from the trial court’s judgment to the Court of

Appeals. The majority of a divided panel of the Court of Appeals reversed the portion

of the trial court’s judgment that allowed for plaintiff to recover under the Act. Nobel,

272 N.C. App. 300, 310, 846 S.E.2d 761, 768. The Court of Appeals majority reasoned

that the conduct at issue related to an investment for the purpose of funding Foxmoor

and therefore was not “in or affecting commerce.” Id. Based on a dissenting opinion, NOBEL V. FOXMOOR GROUP, LLC

plaintiff appealed to this Court, arguing that the majority opinion of the Court of

Appeals erred in holding that plaintiff’s claim fell outside of the purview of the Act.

We disagree.

II. Analysis

¶9 Whether an act found to have occurred is an unfair or deceptive practice which

violates N.C.G.S. § 75–1.1 is a question of law for the court. Hardy v. Toler, 288 N.C.

303, 308–09, 218 S.E.2d 342, 345–46 (1975).

Ordinarily it would be for the jury to determine the facts, and based on the jury’s finding, the court would then determine as a matter of law whether the defendant engaged in unfair or deceptive acts or practices in the conduct of trade or commerce. Therefore, it does not invade the province of the jury for this Court to determine as a matter of law on appeal that acts expressly found by the jury to have occurred and to have proximately caused damages are unfair or deceptive acts in or affecting commerce under N.C.G.S. § 75–1.1.

Ellis v. N. Star Co., 326 N.C. 219, 226, 388 S.E.2d 127, 131 (1990) (cleaned up).

¶ 10 Pursuant to N.C.G.S.

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