Setser v. CEPCO Development Corp.

164 S.E.2d 407, 3 N.C. App. 163, 1968 N.C. App. LEXIS 814
CourtCourt of Appeals of North Carolina
DecidedDecember 11, 1968
DocketNo. 6825SC312
StatusPublished
Cited by1 cases

This text of 164 S.E.2d 407 (Setser v. CEPCO Development Corp.) 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
Setser v. CEPCO Development Corp., 164 S.E.2d 407, 3 N.C. App. 163, 1968 N.C. App. LEXIS 814 (N.C. Ct. App. 1968).

Opinion

Campbell, J.

Messrs. Wilson and Palmer appeared as attorneys for the defendants in the trial court, but for good cause shown, they were permitted to withdraw as counsel by order of Judge Bryson dated 8 October 1968.

In. the complaint filed 25 October 1967, plaintiff alleged that he had r subleased in writing certain premises located in the City of Lenoir, which lease did not expire until 6 January 1973; that at the time of making the sublease he had entered into a written operator’s agreement for a period of ten years, with option to renew, commencing 1 June 1963 pursuant to which the plaintiff was to operate a food and dairy products business known as “Tastee-Freez of Lenoir”; that the plaintiff purchased equipment and inventory [165]*165and commenced business, which the plaintiff “still operates today as a going concern and as a profitable business”; that the defendants acting through Charles E. Parnell, individually and as an officer of the defendant corporations, have “now given notice to the plaintiff that both the ten-year sub-lease agreement and the ten-year operator’s agreement will terminate on October 31, 1967, and [have] demanded that the plaintiff vacate the premises by that date”; that the defendants in attempting to terminate both agreements prior to expiration date have advised the plaintiff that the defendants have assigned all of their rights, title and interest in Tastee-Freez of Lenoir to “Char’s, Inc.”; that the defendants are not acting in good faith and are conspiring among themselves to force the plaintiff to terminate his successful and profitable business and to accept a new sublease agreement with Char’s, Inc.; that these unlawful and wrongful demands have been made by the defendants because the Harlee Manufacturing Company of Illinois has revoked the regional Tastee-Freez franchise which it had granted to Tastee-Freez of Piedmont, N. C., Inc.; and that this revocation had occurred during the summer of 1966. The plaintiff then alleged that “if the defendants are permitted to impose their unlawful and wrongful plans upon this plaintiff, then the plaintiff will be irreparably damaged to the extent of many thousands of dollars, and will be deprived of his livelihood through no fault of his own, and that the plaintiff has no adequate remedy at law for the redress of his grievances.” The plaintiff then prayed judgment that the defendants be restrained from terminating either of the said written agreements, from evicting the plaintiff, and “from molesting, interfering with or harassing the plaintiff in the operation of his business pending a hearing in this matter”, and that the defendants be perpetually restrained.

On 25 October 1967 a temporary restraining order .was issued and on 14 November 1967 this order was continued in effect until the trial. The answer, which was filed by the defendant's on 22 November 1967, admitted the lease, but it alleged that said lease had terminated in accordance with its terms and had been assigned to Char’s, Inc. It was also admitted that plaintiff and Tastee-Freez of Piedmont, N. C., Inc., had entered into a written agreement on 1 June 1963 and that the regional franchise agreement between Harlee Manufacturing Company and Tastee-Freez of Piedmont, N. C., Inc., had been terminated. The defendants set forth in their answer Paragraph 21 of the lease, which provided:

“A territorial franchise agreement exists between Tastee-Freez of Piedmont, N. C., Inc. and Harlee Manufacturing Company, an Illinois Corporation, for the purposes of conducting a [166]*166Tastee-Freez business. It is expressly agreed that should Tastee-Freez of Piedmont, N. C., Inc. become disposed of its franchise agreement in any manner whatsoever, then Lessor shall have the right, privilege and option to cancel and terminate this lease.”

The defendants further alleged that the franchise agreement had been terminated; that the plaintiff had been given notice of this termination; that the lessor in the lease agreement with the plaintiff would exercise its right and privilege to cancel the lease; that the plaintiff was notified to vacate the leased premises by 31 October 1967; but that the plaintiff had failed and refused to do so. The defendants prayed that the restraining order be dismissed; that the plaintiff be ordered to vacate the leased premises; and that the lessors be placed in possession of same.

The plaintiff filed a reply, in which it was stated that, among other things, the franchise agreement between the Harlee Manufacturing Company and Tastee-Freez of Piedmont, N. C. Inc., terminated in September 1966; that thereafter no effort was made to terminate the sublease for a period of thirteen months, while plaintiff was making monthly payments of rent; that the right to do so had been waived; and that the defendants are estopped to exercise said option now.

Two questions are presented by this appeal. 1. Did the trial court commit error in sustaining the demurrer ore tenus for failure to state a cause of action in the complaint? 2. Did the trial court commit error in granting the defendants’ motion for judgment on the pleadings?

“On a demurrer ore tenus to the complaint, we take the case as made by the complaint. It is hornbook law that the office of a demurrer is to test the sufficiency of a pleading, admitting for the purpose, the truth of factual averments well stated and such relevant inferences as may be deduced therefrom, but it does not admit any legal inferences or conclusions of law asserted by the pleader. It is also common knowledge of the Bench and the Bar that the court is required on a demurrer to construe the complaint liberally with a view to substantial justice between the parties, and every reasonable intendment is to be made in favor of the pleader. G.S. 1-151; Bailey v. McGill, 247 N.C. 286, 100 S.E. 2d 860, and cases cited.” Beam v. Almond, 271 N.C. 509, 157 S.E. 2d 215.

Tested by this mandate, we are of the opinion that the demurrer ore tenus was properly sustained. Plaintiff seeks an injunc[167]*167tion. However, there is no averment that the defendants have done anything to the plaintiff. The only factual averment is to the effect that the defendants have given notice to the plaintiff that the ten-year sublease and the ten-year operator’s agreement would terminate on 31 October 1967 and have made demand that the plaintiff vacate the premises by that date. There is no averment that the operation of plaintiff’s business will in any way be affected if the plaintiff fails to comply with the demand made by the defendants. In fact, the complaint itself states that the plaintiff’s business “still operates today as a going concern and as a profitable business.” In the prayer for relief, the plaintiff requested the court to restrain the defendant “from molesting, interfering with or harassing the plaintiff in the operation of his business.” However, there is no averment in the complaint to the effect that the defendants are doing any of these things. The simple averment that the defendants gave notice that the sublease and the operator’s agreement would terminate on 31 October 1967 and made demand that the plaintiff vacate the premises by 31 October 1967 does not show any molestation, interference, or harassment on the part of the defendants. The plaintiff did not allege any facts constituting irreparable damage, insolvency on the part of the defendants, or any grounds for equitable relief.

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Cite This Page — Counsel Stack

Bluebook (online)
164 S.E.2d 407, 3 N.C. App. 163, 1968 N.C. App. LEXIS 814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/setser-v-cepco-development-corp-ncctapp-1968.