SMITHFIELD FINANCIAL SERVICES, INC. v. Conway

600 S.E.2d 521, 165 N.C. App. 275, 2004 N.C. App. LEXIS 1253
CourtCourt of Appeals of North Carolina
DecidedJuly 6, 2004
DocketNo. COA03-1368
StatusPublished

This text of 600 S.E.2d 521 (SMITHFIELD FINANCIAL SERVICES, INC. v. Conway) 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
SMITHFIELD FINANCIAL SERVICES, INC. v. Conway, 600 S.E.2d 521, 165 N.C. App. 275, 2004 N.C. App. LEXIS 1253 (N.C. Ct. App. 2004).

Opinion

LEVINSON, Judge.

Plaintiffs are engaged in the business of providing financing for the purchase of used vehicles in Johnston County, North Carolina. Defendant Kathy Conway was an employee and corporate officer of Smithfield Financial from July 2000 until May 2002. In the spring of 2002, defendant David Lee started Security Credit,which also provides used car financing in Johnston County. In May 2002 Conway resigned from Smithfield Financial and went to work for Security Credit, and in July 2002 she was formally removed from Smithfield Financial's board of directors.

On 15 August 2002 plaintiffs filed suit against defendants, seeking compensatory and punitive damages. Plaintiffs brought claims against all defendants for civil conspiracy and unfair and deceptive trade practices, and brought additional claims against defendant Conway for misappropriation of funds, misappropriation of corporate opportunity, constructive fraud, and breach of fiduciary duty. Defendants each moved for summary judgment. On 3 July 2003 the trial court entered an order for partial summary judgment in favor of defendants. Specifically, the trial court granted summary judgment for all defendants on plaintiffs' claims of civil conspiracy and unfair and deceptive trade practices, and denied Conway's motion for summary judgment on plaintiffs' other claims against her. Plaintiffs appeal.

Plaintiffs argue that the trial court erred by granting partial summary judgment in favor of defendants, on the grounds that there are genuine issues of material fact regarding whether Conway committed certain acts in violation of her fiduciary duties, and whether the other defendants conspired with her to commit these acts. We conclude plaintiffs' appeal is interlocutory and must be dismissed. An order "is either interlocutory or the final determination of the rights of the parties." N.C.G.S. § 1A-1, Rule 54(a) (2003). Interlocutory orders are those "made during the pendency of an action which do not dispose of the case, but instead leave it for further action by the trial court in order to settle and determine the entire controversy." Carriker v. Carriker, 350 N.C. 71, 73, 511 S.E.2d 2, 4 (1999). Interlocutory orders are immediately appealable under two circumstances. "[I]f the order or judgment is final as to some but not all of the claims or parties, and the trial court certifies the case for appeal pursuant to N.C. Gen. Stat. § 1A-1, Rule 54(b), an immediate appeal will lie." N.C. Dept. of Transportation v. Page, 119 N.C. App. 730, 734, 460 S.E.2d 332, 334 (1995) (citations omitted). Or, an interlocutory order may be immediately appealed if it "affects a substantial right of the appellant that would be lost without immediate review." Embler v. Embler, 143 N.C. App. 162, 165, 545 S.E.2d 259, 261 (2001) (citation omitted). This rule is intended to "prevent fragmentary and premature appeals[,]" Bailey v. Gooding, 301 N.C. 205, 209, 270 S.E.2d 431, 434 (1980), and to "'present the whole case for determination in a single appeal from the final judgment.'" Hunter v. Hunter, 126 N.C. App. 705, 708, 486 S.E.2d 244, 245-46 (1997) (quoting Raleigh v. Edwards, 234 N.C. 528, 529, 67 S.E.2d 669, 671 (1951)).

In the instant case, the trial court certified that its order "represents a final judgment on all claims asserted againstdefendants David Lee and Security Credit Corporation and that there is no just reason to delay plaintiffs' appeal." However:

Rule 54(b) certification by the trial court is reviewable by this Court on appeal in the first instance because the trial court's denomination of its decree "a final . . . judgment does not make it so," if it is not such a judgment. Similarly, the trial court's determination that there is no just reason to delay the appeal, while accorded great deference, cannot bind the appellate courts because "ruling on the interlocutory nature of appeals is properly a matter for the appellate division, not the trial court."

First Atl. Mgmt. Corp. v. Dunlea Realty Co., 131 N.C. App. 242, 247, 507 S.E.2d 56, 60 (1998) (quoting Industries, Inc. v. Insurance Co., 296 N.C. 486, 491, 251 S.E.2d 443, 447 (1979), and Estrada v. Jaques, 70 N.C. App. 627, 640, 321 S.E.2d 240, 249 (1984)).

Plaintiffs contend there are genuine issues of fact regarding whether the defendants conspired for defendant Conway to breach her fiduciary duties to plaintiffs. Defendants, on the other hand, assert that Conway did not breach any fiduciary duty owed to plaintiffs, and that there is no evidence of an agreement among defendants to breach Conway's fiduciary duties. The parties thus agree that the central issues in this appeal focus on whether there was any breach, or agreement to breach, Conway's alleged fiduciary duties.

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

Related

Estrada v. Jaques
321 S.E.2d 240 (Court of Appeals of North Carolina, 1984)
Carriker v. Carriker
511 S.E.2d 2 (Supreme Court of North Carolina, 1999)
Embler v. Embler
545 S.E.2d 259 (Court of Appeals of North Carolina, 2001)
Hunter v. Hunter
486 S.E.2d 244 (Court of Appeals of North Carolina, 1997)
Bailey v. Gooding
270 S.E.2d 431 (Supreme Court of North Carolina, 1980)
North Carolina Department of Transportation v. Page
460 S.E.2d 332 (Court of Appeals of North Carolina, 1995)
Jeffreys v. Raleigh Oaks Joint Venture
444 S.E.2d 252 (Court of Appeals of North Carolina, 1994)
Tridyn Industries, Inc. v. American Mutual Insurance
251 S.E.2d 443 (Supreme Court of North Carolina, 1979)
First Atlantic Management, Corp. v. Dunlea Realty, Co.
507 S.E.2d 56 (Court of Appeals of North Carolina, 1998)
City of Raleigh v. Edwards
67 S.E.2d 669 (Supreme Court of North Carolina, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
600 S.E.2d 521, 165 N.C. App. 275, 2004 N.C. App. LEXIS 1253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smithfield-financial-services-inc-v-conway-ncctapp-2004.