Paul L. Whitfield, P.A. v. Gilchrist

485 S.E.2d 61, 126 N.C. App. 241, 1997 N.C. App. LEXIS 346
CourtCourt of Appeals of North Carolina
DecidedMay 20, 1997
DocketNo. COA96-577
StatusPublished
Cited by4 cases

This text of 485 S.E.2d 61 (Paul L. Whitfield, P.A. v. Gilchrist) 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
Paul L. Whitfield, P.A. v. Gilchrist, 485 S.E.2d 61, 126 N.C. App. 241, 1997 N.C. App. LEXIS 346 (N.C. Ct. App. 1997).

Opinion

McGEE, Judge.

This appeal presents the question of whether the doctrine of sovereign immunity bars a quantum meruit action against the State of North Carolina.

In the complaints filed in these actions, plaintiff makes the following allegations. Since 1967, Paul Whitfield, plaintiffs principal attorney, has represented defendants in filing various public nuisance actions. Defendant Gilchrist, as District Attorney for the 26th Judicial District, engaged him for the purpose of filing a public nuisance action against the Downtown Motel Corporation, a North Carolina corporation, known as the Downtown Motor Inn on North Tryon Street in the City of Charlotte (Downtown Motel action). Defendant Gilchrist, as District Attorney, also engaged him to file a public nuisance action against Ashak Patel, Mani, Inc., a North Carolina corporation d/b/a Alamo Plaza Hotel Courts, Alamo Plaza Courts & Alamo Amusements, in the City of Charlotte (Alamo action). In both the Downtown Motel action and the Alamo action, plaintiff worked continuously with Gilchrist as District Attorney, with commanders and officers of the Charlotte Police Department, and with an asset forfeiture specialist, in the investigation and preparation of the actions from 1990 through 1993.

Plaintiff also alleges that in the Downtown Motel action, as a result of plaintiffs legal services, an agreement was reached with the owners that closed the Inn and abated the nuisance. In the Alamo action, as a consequence of plaintiff’s legal services, Alamo was found to be a public nuisance and was closed by order of the Superior Court. In both actions, the State benefitted from plaintiffs services and plaintiff expected to be paid for his legal services. In his complaints, plaintiff seeks payment for the reasonable value of his services based on a theory of quantum meruit.

[244]*244In the Alamo action, defendants have admitted in their answer “that the Defendant Gilchrist signed the complaint [against Alamo] as a relator and was aware that Plaintiff did expend efforts with regard to the investigation and preparation of a public nuisance action against the Alamo.” Defendants further admit “that Plaintiffs legal efforts assisted in reaching an agreement with the owners of the property that provided for the abatement of the nuisance.” In addition, paragraph 12 of defendants’ Alamo answer states:

12. . . . Defendant Gilchrist admits that there was an implied understanding with the Plaintiff concerning payment for his efforts in public nuisance actions, including the action against Alamo, under the terms of which the Plaintiff’s payment was to be limited to and contingent upon an award from the trial court pursuant to N.C.G.S. § 19-8 in the public nuisance action, and was to be paid entirely either by the individual or individuals committing the public nuisance or from the proceeds of the sale of property declared to be a nuisance or both.

In this answer, defendants deny there was any other express or implied agreement or understanding between plaintiff and defendants other than that admitted in paragraph 12 of their answer. Defendants have not made similar admissions in the Downtown Motel answer but simply deny plaintiff’s substantive allegations.

The issue presented on appeal is whether these quantum meruit actions are barred under the doctrine of sovereign immunity. Plaintiff contends the actions are not barred because the State consented to be sued when, acting through District Attorney Gilchrist, it engaged plaintiff as an attorney. Defendants contend that consent to be sued on claims sounding in contract extends only to cases in which the State has entered into an express contract and does not extend to quantum meruit actions.

We note that plaintiff has sued both the State of North Carolina and Gilchrist, in his role as district attorney. We first delineate the theories of recovery presented by plaintiff’s allegations. We then address whether sovereign immunity bars plaintiff’s claims against the State and against defendant Gilchrist.

I. Alleged Theories of Recovery

The term “quantum meruit” can denote both a method of measuring recovery in restitution and a substantive theory of relief in restitution. See generally Dan B. Dobbs, Dobbs Law of Remedies [245]*245§§ 4.1(1), 4.2(3) (2nd ed. 1993) (summarizing these principles). As a measure of recovery, quantum meruit refers generally to the reasonable value of services rendered. See Dobbs, § 4.2(3). Quantum meruit type recovery may be obtained for breach of an implied in fact contract and on the substantive theory of a contract implied in law. Suggs v. Norris, 88 N.C. App. 539, 544, 364 S.E.2d 159, 162, cert. denied, 322 N.C. 486, 370 S.E.2d 236 (1988); see also Dobbs, §§ 4.2(3), 12.7(1). An implied in fact contract is a “ ‘real’ ” contract, i.e., a genuine agreement between the parties. Ellis Jones, Inc. v. Western Waterproofing Co., 66 N.C. App. 641, 645-46, 312 S.E.2d 215, 217-18 (1984). “The term, implied in fact contract, only means that the parties had a contract that can be seen in their conduct rather than in any explicit set of words.” Id. at 646, 312 S.E.2d at 218. In contrast, an implied in law contract “is not the product of an agreement between the parties but is imposed by law to prevent unjust enrichment of a defendant when he should not be permitted to retain a benefit that he has received from plaintiff.” Id. at 645, 312 S.E.2d at 217.

The specific type of recovery available varies based on whether the complainant seeks recovery under a theory of implied in fact contract or implied in law contract. Id. at 645, 312 S.E.2d at 217. Under a contract implied in fact theory, “damages are based on the reasonable value of the services ‘rendered pursuant to request and agreement to pay therefor (sic).’ ” Id. at 646, 312 S.E.2d at 218. Under a contract implied in law theory, “the measure of recovery is quantum meruit, the reasonable value of materials and services rendered by the plaintiff that are ‘accepted and appropriated by defendant.’ ” Id. at 647, 312 S.E.2d at 218 (quoting Thormer v. Lexington Mail Order Co., 241 N.C. 249, 252, 85 S.E. 2d 140, 143 (1954)).

In Ellis Jones, this Court determined that the plaintiff’s pleadings and evidence were “broad enough to support the alternative theories of an implied in fact contract and an implied in law contract.” Ellis Jones, 66 N.C. App. at 647, 312 S.E.2d at 218; see also, Thormer, 241 N.C. at 253, 85 S.E.2d at 218 (finding complaint broad enough to support quantum meruit recovery on implied in law contract theory). Similarly here, upon examination of plaintiff’s complaints, we find plaintiff’s allegations in both complaints are broad enough to encompass both implied in fact and implied in law theories of recovery.

II. Claims Against the State

Given this determination, we now examine whether the doctrine of sovereign immunity bars plaintiff’s recovery against the State [246]*246under either or both of these theories. In Smith v. State, 289 N.C. 303, 222 S.E.2d 412

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Bluebook (online)
485 S.E.2d 61, 126 N.C. App. 241, 1997 N.C. App. LEXIS 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-l-whitfield-pa-v-gilchrist-ncctapp-1997.