Park East Sales v. Clark-Langley, Inc.

651 S.E.2d 235, 186 N.C. App. 198, 2007 N.C. App. LEXIS 2120
CourtCourt of Appeals of North Carolina
DecidedOctober 2, 2007
DocketNo. COA06-1496.
StatusPublished
Cited by9 cases

This text of 651 S.E.2d 235 (Park East Sales v. Clark-Langley, Inc.) 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
Park East Sales v. Clark-Langley, Inc., 651 S.E.2d 235, 186 N.C. App. 198, 2007 N.C. App. LEXIS 2120 (N.C. Ct. App. 2007).

Opinion

*237TYSON, Judge.

Carmel Contractors, Inc. ("Carmel") and Lowe's Home Centers, Inc. ("Lowe's") (collectively, "defendants") appeal from order and judgment entered granting Park East Sales, LLC's ("plaintiff") motion for summary judgment and denying their motion to stay or dismiss. Western Surety Company ("Western") also appeals from the order and judgment entered granting plaintiff's motion for summary judgment and denying its motion for judgment on the pleadings. We dismiss in part, reverse in part, and remand.

I. Background

On 8 March 2004, Lowe's entered into a contract with Carmel to construct a Lowe's Home Improvement Store ("project") in Cary, North Carolina. On 10 March 2004, Carmel entered into a subcontract agreement with Clark-Langley, Inc. ("Clark"), as the grading and site work subcontractor.

In February 2004, Clark entered into an a rental agreement with plaintiff. From 25 February 2004 through 28 January 2005, plaintiff provided rental equipment, labor, and materials to Clark for use on the project. Clark agreed to pay for the use and transportation of and maintenance and repairs on the equipment within thirty days of each invoice date. Clark also agreed to pay plaintiff interest on all overdue balances at the highest rate permitted by law.

By November 2004, Clark was delinquent on invoice payments to plaintiff. Plaintiff made repeated demands for payment. Defendant Della Clark Edwards ("Edwards"), the president of Clark, guaranteed in writing that she would pay plaintiff for all obligations Clark incurred thereafter.

On 18 January 2005, plaintiff served a notice of claim of lien for $392,581.48, plus interest and attorney's fees, to Lowe's, Carmel, and Clark. Lowe's made three further payments to Carmel on 21 January 2005, 28 February 2005, and 25 March 2005, totaling $1,629,911.00. On 25 May 2005, plaintiff filed a notice of claim of lien for $441,170.77 plus interest and attorney's fees with the Wake County Clerk of Superior Court. Lowe's retained $1,011,771.00, an amount sufficient to satisfy plaintiff's lien claims. Carmel responded that no unpaid contract balance was owed to Clark at that time because of costs it had incurred and paid to complete Clark's contractual obligations.

Plaintiff filed its initial complaint on 16 June 2005 to enforce its lien rights against Clark, Edwards, Carmel, and Lowe's. Plaintiff amended its complaint on 18 August 2005, to add Western as a party, after receiving notice that Carmel had obtained a lien-discharge bond from Western as surety for plaintiff's claim of lien on the project property.

On 6 October 2005, a default judgment was entered against Clark and Edwards for failure to file a responsive pleading. Clark filed bankruptcy in the U.S. Bankruptcy Court on 14 October 2005 and instituted an adversary proceeding to determine the amount of money, if any, owed by Carmel. Carmel counterclaimed and moved to compel all of Clark's sixteen subcontractors, including plaintiff, to litigate their claims in bankruptcy court.

On 8 June 2006, plaintiff filed a motion for summary judgment against defendants and Western. Defendants requested the trial court stay further proceedings pending final disposition in the bankruptcy action to avoid "substantial injustice." Defendants also asserted plaintiff must obtain a judicial determination of the amount owed by Clark before pursuing its mechanic's lien claim.

Western moved for judgment on the pleadings, asserting plaintiff's claim was not ripe until a final judgment on plaintiff's lien claims has been rendered in bankruptcy court. Western described plaintiff's assertion to add it as a party in the State court action as "premature and unwarranted."

On 10 August 2006, the trial court granted plaintiff's motion for summary judgment. The trial court entered an order and judgment finding Lowe's to be liable for $392,581.48, plus prejudgment interest, and finding Carmel and Western to be jointly and severally liable for $441,170.70 plus prejudgment interest. The trial court also denied the motion to stay or to dismiss made by Lowe's and Carmel and denied the motion for judgment on the pleadings made by Western. Defendants appeal.

*238II. Issues

Defendants argue the trial court erred by: (1) denying their motion to stay or alternatively to dismiss the lawsuit due to the pending bankruptcy action and (2) granting plaintiff's motion for summary judgment. Western argues the trial court erred by denying its motion for judgment on the pleadings.

III. Standard of Review

A. Motion to Stay

The trial court may enter a stay "[i]f, in any action pending in any court of this State, the judge shall find that it would work substantial injustice for the action to be tried in a court of this State." N.C. Gen.Stat. § 1-75.12 (2005). This court has held the denial of a motion to stay or dismiss rests "within the sound discretion of the trial judge and will not be disturbed on appeal absent an abuse of that discretion." Home Indem. Co. v. Hoechst-Celanese Corp., 99 N.C.App. 322, 325, 393 S.E.2d 118, 120 (citing Motor Inn Management, Inc. v. Irvin-Fuller Dev. Co., 46 N.C.App. 707, 711, 266 S.E.2d 368, 370, disc. rev. denied and appeal dismissed, 301 N.C. 93, 273 S.E.2d 299 (1980)), disc. rev. denied and appeal dismissed, 327 N.C. 428, 396 S.E.2d 611 (1990).

B. Summary Judgment

Summary judgment is appropriate "if 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) (2005). The trial court must consider the evidence in the light most favorable to the non-moving party. Summey v. Barker, 357 N.C. 492, 496,

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Cite This Page — Counsel Stack

Bluebook (online)
651 S.E.2d 235, 186 N.C. App. 198, 2007 N.C. App. LEXIS 2120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-east-sales-v-clark-langley-inc-ncctapp-2007.