Reynolds v. Devotion Fam., LLC

CourtCourt of Appeals of North Carolina
DecidedDecember 3, 2025
Docket24-711
StatusPublished

This text of Reynolds v. Devotion Fam., LLC (Reynolds v. Devotion Fam., LLC) 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
Reynolds v. Devotion Fam., LLC, (N.C. Ct. App. 2025).

Opinion

IN THE COURT OF APPEALS OF NORTH CAROLINA

No. COA24-711

Filed 3 December 2025

Surry County, No. 22CVS000233-850

W. NOAH REYNOLDS, Plaintiff,

v.

DEVOTION FAMILY, LLC and BROOK E. REYNOLDS, Defendants.

Appeal by Defendant Brook E. Reynolds from order entered 1 March 2024 by

Judge Angela B. Puckett in Surry County Superior Court. Heard in the Court of

Appeals 26 February 2025.

Robinson & Lawing, LLP, by Attorneys H. Brent Helms and Jeremy Demmitt, for the plaintiff-appellee.

Ferikes Bleynat & Cannon, PLLC, by Attorney Edward L. Bleynat, Jr., for the defendant-appellant Brook E. Reynolds.

STADING, Judge.

Brook E. Reynolds (“Defendant”) appeals from the trial court’s order granting

W. Noah Reynolds’s (“Plaintiff”) motion to confirm several interim arbitration

awards. On appeal, Defendant asserts the trial court erred by confirming the interim

awards and erred by denying her motion to vacate or modify. In turn, Plaintiff moved

to dismiss Defendant’s appeal pursuant to N.C. R. App. P. 37(a), asserting the order

appealed from is interlocutory and does not affect a substantial right. After careful REYNOLDS V. DEVOTION FAMILY, LLC

Opinion of the Court

review, we hold this Court possesses the requisite jurisdiction to consider Defendant’s

appeal. See N.C. Gen. Stat. §§ 7A-27(b)(4), 1-569.28(a)(3) (2023). Turning to the

merits, the trial court erred by denying Defendant’s motion to modify since the

Arbitrator exceeded his scope of authority by requiring the parties to resolve all

future disputes by way of arbitration. Otherwise, the Arbitrator’s actions were

proper.

I. Factual and Procedural Background

This appeal arises from arbitration between Plaintiff and Defendant over a

dispute involving Devotion Family, LLC (“Devotion”), a family-owned limited liability

company formed in 2008. The record tends to reflect that Devotion owns

approximately 4,135.09 acres of real property across Surry and Alleghany Counties,

including buildings, improvements, furniture, vehicles, farm equipment, and tools.

At the time of Devotion’s formation, William Neal Reynolds, II—the father of Plaintiff

and Defendant—was the sole owner.

Following Mr. Reynolds’ death in February 2009, Plaintiff and Defendant each

obtained a 36.30% ownership interest in Devotion, while their mother, Sandra Reid

Reynolds, retained a 27.40% interest. Mrs. Reynolds later transferred her remaining

ownership interest in Devotion to Plaintiff and Defendant equally. Following this

transfer, Plaintiff and Defendant each possessed a 50% ownership interest in

Devotion, maintaining six of the twelve voting shares respectively.

-2- REYNOLDS V. DEVOTION FAMILY, LLC

On 23 September 2019, Devotion dissolved, ceasing its existence as a legal

entity. Following dissolution, Plaintiff and Defendant were unable to agree on “the

winding up of Devotion and the distribution of Devotion’s assets.” As a result,

Plaintiff filed a claim and demand for arbitration with the American Arbitration

Association (“AAA”) pursuant to Section 12.6 of Devotion’s Amended Operating

Agreement (the “Operating Agreement”)—the dispute resolution clause—and

concurrently filed a complaint against both Defendant and Devotion in the trial court,

asserting the following alternative claims for relief:

SECOND CLAIM FOR RELIEF (ALTERNATIVE) APPOINTMENT OF A RECEIVER FOR WINDING UP DEVOTION (N.C. GEN. STAT. § 57-D-6-07)

....

31. To the extent the matter is not resolved under the arbitration award, the Court should enter an Order appointing a receiver to wind up Devotion and distribute its assets in kind as contemplated by the Operating Agreement.

THIRD CLAIM FOR RELIEF (ALTERNATIVE) PARTITION OF REAL PROPERTY (N.C. GEN. STAT. § 46A-21)

34. If the distribution of the Property is not completely settled by the arbitrator, then [Plaintiff] would request that the Court take appropriate measures to partition the Property in kind in the manner identified on Exhibit 2 with the prior and existing easements to ensure adequate road access and that owners have the ability to traverse their respective property tracts in a convenient manner as has been the case during Devotion’s ownership of the Property

-3- REYNOLDS V. DEVOTION FAMILY, LLC

35. [Plaintiff] would further request that the Court distribute tract C-1 to [Plaintiff] and tract C-2 to [Defendant] as identified on Exhibit 2, with any necessary owelty affixed, and further partition by sale the portions of the Property identified as Tracts A and B with either [Plaintiff] or [Defendant] being allowed to purchase either tract from the other through any private sale or listing through a public auction as determined by the Court.

Plaintiff simultaneously moved to compel arbitration and stay litigation. See N.C.

Gen. Stat. § 1-569.7 (2023).

The parties later entered a consent order, compelling arbitration and staying

“litigation pending the completion of the arbitration proceedings before the AAA.”

After reviewing the relevant materials, the Arbitrator entered three interim

arbitration awards;1 however, only the second and third awards2 are at issue in the

matter sub judice.

The second award partitioned Devotion’s property into four tracts, awarding

Tracts A and C-1 to Plaintiff, awarding Tract C-2 to Defendant, and designating Tract

1 Compare ARBITRATION AWARD, Black’s Law Dictionary (12th ed. 2024) (“A final decision by an

arbitrator or panel of arbitrators; specif., a written decision by an arbitral tribunal setting forth the final and binding determination of the merits of a claim, defense, or issue, whether or not the decision resolves the entire dispute. An arbitration award may consist merely of a grant of interim relief.”), with INTERIM AWARD, Black’s Law Dictionary (12th ed. 2024) (noting that an interim award is an “arbitral panel’s decisions on the applicable law and its jurisdiction made before the panel decides the issues in an arbitration. – Also termed partial award; preliminary award.”), and with PARTIAL AWARD, Black’s Law Dictionary (12th ed. 2024) (“An arbitral award that disposes of some but not all of the claims, defenses, or issues to be decided.”). 2 The Arbitrator entered the second and third interim arbitration awards on 11 December 2023.

-4- REYNOLDS V. DEVOTION FAMILY, LLC

B for sale.3 The second award also required the parties to enter a Declaration of

Easements, Covenants, and Restrictions (“DECR”), establishing obligations related

to road maintenance, reservoir restoration, easement negotiation, and mandatory

arbitration of future disputes. Finally, the second award concluded that

“[s]ubsequent orders may be entered to finalize the winding up of Devotion and to

complete this arbitration proceeding including a Third Interim Order dealing with

[Defendant’s] Objections to the DECR.”

The third award addressed several objections raised by Defendant regarding

the DECR. Defendant contested, inter alia, that the DECR distributed “rights

unfairly, burdening [her] property and benefiting [Plaintiff’s] property[.]” She also

asserted that “given the transactions and occurrences between the [Plaintiff and

Defendant] over the course of this arbitration it is unfair to expect future cooperation

to achieve resolution of business ventures such as hunting and fishing rights, road

maintenance and use of the water reservoir.” After consideration, the Arbitrator

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