Paradigm Park Holdings, LLC v. Global Growth Holdings

CourtCourt of Appeals of North Carolina
DecidedMarch 5, 2025
Docket24-482
StatusPublished

This text of Paradigm Park Holdings, LLC v. Global Growth Holdings (Paradigm Park Holdings, LLC v. Global Growth Holdings) 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
Paradigm Park Holdings, LLC v. Global Growth Holdings, (N.C. Ct. App. 2025).

Opinion

IN THE COURT OF APPEALS OF NORTH CAROLINA

No. COA24-482

Filed 5 March 2025

Durham County, No. 22CVS2723

PARADIGM PARK HOLDINGS, LLC, Plaintiff,

v.

GLOBAL GROWTH HOLDINGS, INC., a Delaware Corporation, f/k/a ACADEMY ASSOCIATION, INC., Defendant.

Appeal by Defendant from judgments entered 1 February 2024 and 13 March

2024 by Judge Brian C. Wilks in Durham County Superior Court. Heard in the Court

of Appeals 28 January 2025.

Longleaf Law Partners, by Benjamin L. Worley, for the plaintiff-appellee.

Fox Rothschild LLP, by Matthew Nis Leerberg, and Condon Tobin Sladek Thornton Nerenberg PLLC, by Aaron Z. Tobin and Jared T.S. Pace, Pro Hac Vice, for the defendant-appellant.

WOOD, Judge.

Paradigm Park Holdings, LLC (“Paradigm Park”) initiated this action against

Global Growth Holdings, Inc. (“Global Growth”), alleging Global Growth did not pay

rent according to the parties’ lease agreement. Paradigm Park sued for breach of

contract, and alternatively, quantum meruit. Global Growth asserted defenses and

filed a counterclaim for unjust enrichment. Following cross summary judgment

motions, the trial court granted Paradigm Park’s motion, dismissed Global Growth’s PARADIGM PARK HOLDINGS, LLC V. GLOBAL GROWTH HOLDINGS, INC.

Opinion of the Court

counterclaim, and awarded attorneys’ fees to Paradigm Park. Global Growth

appeals, arguing the trial court erred by granting summary judgment in favor of

Paradigm Park and by dismissing its counterclaim for unjust enrichment. For the

reasons discussed below, we reverse the trial court’s judgment.

I. Factual and Procedural Background

On 9 February 2018, Paradigm Park was formed as a North Carolina limited

liability company. Global Growth, previously Academy Association, Inc., is a

Delaware corporation with a principal place of business in Durham County, North

Carolina. Paradigm Park and Global Growth were affiliated entities, both owned and

controlled by Greg Lindberg. Mr. Lindberg was the sole manager of Paradigm Park

and was the president of Global Growth.

Paradigm Park was established as a single-purpose entity to own a property

comprising two office buildings in Durham County (the “Property”). It existed solely

to hold the Property, and the revenue generated from its management. To purchase

the Property, Paradigm Park borrowed funds from Fifth Third Bank (the “Bank”) and

thereafter provided the Bank with a promissory note and Deed of Trust on the

Property. At the time of purchase, part of the Property was subject to two leases with

existing tenants. As a condition of financing, the Bank required Paradigm Park to

secure an additional tenant. Subsequently, Mr. Lindberg caused Global Growth to

enter into a lease agreement for the remaining portion of the Property.

-2- PARADIGM PARK HOLDINGS, LLC V. GLOBAL GROWTH HOLDINGS, INC.

On 11 May 2018, Paradigm Park executed a “Commercial Lease Agreement”

(the “Lease”) with Global Growth for a five-year term from May 2018 to May 2023.

The Lease consisted, inter alia, of the following terms: Paradigm Park, as the

landlord, would lease 141,441 square feet of the Property to Global Growth; Global

Growth, as the tenant, would pay $3,182,422.50 per year, or $265,201.88 per month,

in rent to Paradigm Park. Mr. Lindberg signed the Commercial Lease Agreement on

behalf of both entities.

Under the terms of the Lease, Paradigm Park was responsible for “capital

repairs and replacements” on the Property, including repairs to the roof, foundation,

structural supports, and exterior walls. Likewise, Paradigm Park was required to

maintain the heating, ventilation and air condition systems, and as necessary, pay

for repairs to the units. Global Growth was required, at its expense, to maintain the

condition of the Property, including general landscaping. Paradigm Park was also

responsible for the payment of taxes on the Property, as well as payment for

commercial, general liability, and other necessary insurance. Global Growth was

required to reimburse Paradigm Park for the respective insurance payments within

fifteen days of receipt of notice of amounts due. The Lease did not specify which

entity was responsible for utilities, janitorial services, trash services, the sprinkler

system, pest control, or other miscellaneous items for the Property.

During the term of the Lease, Global Growth did not make any rent payments

to Paradigm Park. Instead, in lieu of rent payments, Global Growth paid Paradigm

-3- PARADIGM PARK HOLDINGS, LLC V. GLOBAL GROWTH HOLDINGS, INC.

Park’s monthly mortgage payments to the Bank from approximately May 2018 to

April 2022. Additionally, Global Growth paid the Property’s operating and

maintenance expenses for Paradigm Park, notwithstanding the terms of the Lease

agreement. This arrangement continued for several years.

In September 2020, new management took over control of Paradigm Park and

the parties to the Lease became unaffiliated entities.1 Upon reviewing the Lease and

associated records, the new management discovered Global Growth had not been

making rent payments. On 24 January 2022, Paradigm Park sent Global Growth a

notice of default because of its failure to make rent payments according to the terms

of the Lease. The notice acknowledged Global Growth’s monthly mortgage payments

in lieu of rent, but alleged Global Growth owed an outstanding balance of

$9,239,563.89 because the monthly mortgage payment was less than the monthly

rent payment. After receiving the notice of default, Global Growth did not make any

payments. On 16 February 2022, Paradigm Park notified Global Growth of the

termination of the Lease and its intent to take possession of the Property. On 25

1 On 30 June 2017, PB Life and Annuity Co., Ltd. (“PBLA”) created the “PBLA ULICO 2017 TRUST”

(the “Trust”), pursuant to a “Reinsurance Trust Agreement” (“RTA”), between PBLA, as the grantor, Universal Life Insurance Company (“ULICO”), as the sole beneficiary, and TMI Trust Company (“TMI”) as the trustee. According to the RTA, PBLA was required to maintain a threshold amount of funds in the Trust in order for ULICO to make payments to its policyholders. At that time, PBLA was owned by Mr. Lindberg. In December 2018, the assets in the Trust had taken a loss. To recover, Global Growth conveyed one hundred percent of the common ownership and fifty percent of the preferred equity in Paradigm Park to PBLA. PBLA then transferred its ownership interests in Paradigm Park to the Trust. PBLA subsequently entered liquidation proceedings in Bermuda. The appointed provisional liquidators for PBLA thereafter assumed control of the proceedings and the authority to act on behalf of Paradigm Park.

-4- PARADIGM PARK HOLDINGS, LLC V. GLOBAL GROWTH HOLDINGS, INC.

March 2022, Durham County Magistrate’s Court granted Paradigm Park’s motion for

summary ejectment, and Global Growth was evicted on 18 April 2022.

On 18 May 2022, Paradigm Park sent another demand for payment, but Global

Growth did not respond. On 15 June 2022, Paradigm Park filed the current action,

asserting claims for breach of contract, and alternatively, quantum meruit. In its

breach of contract claim, Paradigm Park alleged Global Growth breached the Lease

by failing to pay rent payments totaling $14,308,971.80. In its alternative claim of

quantum meruit, Paradigm Park alleged Global Growth owed $8,209,325.69 for the

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