Phelps-Dickson Builders, LLC v. Amerimann Partners

617 S.E.2d 664, 172 N.C. App. 427, 2005 N.C. App. LEXIS 1791
CourtCourt of Appeals of North Carolina
DecidedAugust 16, 2005
DocketCOA04-520
StatusPublished
Cited by62 cases

This text of 617 S.E.2d 664 (Phelps-Dickson Builders, LLC v. Amerimann Partners) 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
Phelps-Dickson Builders, LLC v. Amerimann Partners, 617 S.E.2d 664, 172 N.C. App. 427, 2005 N.C. App. LEXIS 1791 (N.C. Ct. App. 2005).

Opinion

CALABRIA, Judge.

• Phelps-Dickson Builders (“plaintiff’) is a North Carolina residential construction company. In an effort to gain exposure in north *430 Raleigh, plaintiff talked to several developers in that area to discuss becoming part of their building team, including Amerimann Partners, the developer of the La Ventana subdivision, and was able to start construction on a house in that subdivision. Amerimann Partners was also developing two subdivisions named Savannah and Savannah Village at Wakefield Plantation (collectively “Savannah”), a theme community with eight pre-selected house plans for high-end, custom, Charleston-style homes.

Ron Mikesh (“Mikesh”) of Sterling Properties, 1 the sales agent in La Ventana representing Amerimann Partners, also assisted Amerimann Partners in the development of Savannah. After plaintiffs involvement in La Ventana, Mikesh approached plaintiff with the prospect of becoming a builder in Savannah in early June 1999. During ensuing meetings between Mikesh and Brad Phelps, an ownership partner of plaintiff, plaintiff alleges Mikesh represented, inter alia, (1) Greenbriar, a current exclusive builder in Savannah at that time, “could not build its presale homes fast enough”; (2) “pre-sale customers were lined up and waiting to meet” with exclusive builders in Savannah; (3) there were currently seven presales and additional “strong, solid contacts” in Savannah; (4) plaintiff would be one of two exclusive builders permitted to build in Savannah and there would be no competitive bidding; and (5) “the 63 lots in [Savannah] would be divided between the exclusive builders.” Mikesh also noted there would be extensive landscaping, mass advertising, and publication articles in magazines. In order to become an exclusive builder with Greenbriar in Savannah, plaintiff was required to purchase four lots, two of which were available for presale opportunities and two of which plaintiff was required to build a model house according to specifications provided by Amerimann. Many of these understandings on the part of plaintiff were set out in a faxed letter to Mikesh, which included the main points of their discussion at a 16 June 1999 meeting, and was sent approximately two days after the meeting.

On 8 October 1999, plaintiff and Amerimann entered into four contracts for the sale of four lots located in Savannah. None of the contracts included Mikesh’s oral representations to plaintiff. However, the contract did contain a merger clause, which provided as follows: “This instrument (together with any Exhibits attached) *431 constitutes the entire agreement between parties, and supersedes any and all prior agreements and understandings, whether oral or written, between the parties.”

Plaintiff started construction of the two model homes, and shortly thereafter, problems arose between the parties. In October 1999, Amerimann brought a third builder into Savannah, who began construction of a house on one of the lots that had been allocated to plaintiff. Plaintiff said in his deposition that the construction activities of this third builder had the dual effect of decreasing plaintiff’s potential presales and saturating the market. Despite Mikesh’s representations concerning consumer interest in Savannah, presale opportunities were nonexistent, and plaintiff did not meet with any potential clients. Other disputes arose as well. For example, when Greenbriar started experiencing financial difficulties and was unable to build one of its presales, Amerimann created Amerimann Homes, L.L.C. to build the home for the client and, ultimately, brought in another builder to finish the house. In addition, only three presale contracts existed at the time Mikesh represented there were seven. Moreover, when Mikesh did approach plaintiff concerning a possible presale client for a lot assigned to plaintiff and the houseplan associated with that lot, the presale client ultimately declined plaintiff’s bid when Amerimann and Mikesh allowed the desired houseplan to be “reallocated” to another lot for another builder with a lower bid to construct.

Tensions escalated between the parties, and on 12 July 2000, plaintiff met with Amerimann to discuss the issues that had arisen. When the parties could not reach a resolution, plaintiff sought legal assistance and demanded that Amerimann repurchase the two undeveloped lots and purchase the homes plaintiff built on the other two lots. Amerimann responded with an offer to purchase only the two undeveloped lots. Plaintiff threatened to permit foreclosure proceedings, which would eliminate Amerimann’s second mortgage on plaintiff’s lots. Plaintiff failed to make the required payments for the lots with the intention of purchasing the lots after the bank foreclosed on them and sold them at the foreclosure sale. In order to prevent this action, Amerimann repurchased the two unimproved lots but not the two houses constructed by plaintiff in Savannah, which were foreclosed on by the bank. Plaintiff’s partner purchased the two houses at the foreclosure sale and sold them back to plaintiff. Amerimann asked for a written release for all claims upon repurchasing the two unimproved lots, but plaintiff refused. Despite the fact that Amerimann was aware that plaintiff *432 refused to sign a global settlement agreement, Amerimann proceeded with the closing to repurchase the two lots.

On 5 September 2002, plaintiff filed suit against Mikesh, Sterling Properties, and the Amerimann defendants alleging breach of contract against the Amerimann defendants and material misrepresentation and unfair and deceptive trade practices against all defendants. Defendants moved to dismiss and answered the complaint. Amerimann counterclaimed for unfair and deceptive trade practices based on the friendly foreclosure on the two houses in Savannah. On 3 July 2003, the Sterling defendants moved to amend their answer to include the defenses of estoppel, laches, payment, release, and settlement. All defendants moved for summary judgment. Plaintiff filed a motion to compel or review in camera certain documents which the Amerimann defendants claimed were protected by the attorney-client privilege. In addition, plaintiff filed a motion to compel further discovery responses by Mikesh and Sterling Properties (the “Sterling defendants”).

On 7 October 2003, the trial court (1) allowed the Sterling defendants’ motion to amend; however, no amended answer was ever filed; (2) denied plaintiffs motion to compel or review in camera certain documents held by the Amerimann defendants on the grounds that such documents were protected by the attorney-client privilege and were attorney work product; and (3) denied plaintiffs motions to compel discovery responses from Sterling Properties and Mikesh but required those parties to make available all discoverable documents for review and comparison to that which had been produced in discovery with the caveat that such review had to occur not later than 5:00 p.m. on 8 October 2003. On 10 October 2003, the trial court heard defendants’ motions for summary judgment and granted summary judgment in orders entered 25 and 26 November 2003. Plaintiff moved the court to make findings of fact and conclusions of law, which the trial court denied.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Moore v. Brooks
2025 NCBC 69 (North Carolina Business Court, 2025)
Talford v. Fisher-Price CA2/8
California Court of Appeal, 2025
AEROTEK, INC. v. JOBOT, LLC
M.D. North Carolina, 2024
Southland Nat'l Ins. Corp. v. Lindberg
Court of Appeals of North Carolina, 2023
Smith v. Race Engines Plus, LLC
W.D. North Carolina, 2022
Fairchild v. Fairchild
W.D. North Carolina, 2020
Higgins v. Synergy Coverage Sols., LLC
2020 NCBC 4 (North Carolina Business Court, 2020)
Voliva v. Dudley
Court of Appeals of North Carolina, 2019
Wining Taylors, LLC v. Ce Precision, Inc.
2019 NCBC 25 (North Carolina Business Court, 2019)
Reynolds Am. Inc. v. Third Motion Equities Master Fund Ltd.
2018 NCBC 114 (North Carolina Business Court, 2018)
Thompson v. Bass
819 S.E.2d 621 (Court of Appeals of North Carolina, 2018)
Glob. Textile All., Inc. v. Tdi Worldwide, LLC
2018 NCBC 54 (North Carolina Business Court, 2018)
Herrera v. Charlotte School of Law, LLC
2018 NCBC 34 (North Carolina Business Court, 2018)
Alkemal Sing. Pte. Ltd. v. Dew Glob. Fin., LLC
2018 NCBC 35 (North Carolina Business Court, 2018)
Tillery Envtl. v. A&D Holdings, Inc.
2018 NCBC 12 (North Carolina Business Court, 2018)
Transatlantic Healthcare, LLC v. Alpha Constr. of the Triad, Inc.
2017 NCBC 21 (North Carolina Business Court, 2017)
Zagaroli v. Neill
2016 NCBC 105 (North Carolina Business Court, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
617 S.E.2d 664, 172 N.C. App. 427, 2005 N.C. App. LEXIS 1791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-dickson-builders-llc-v-amerimann-partners-ncctapp-2005.