Southland Nat'l Ins. Corp. v. Lindberg

CourtCourt of Appeals of North Carolina
DecidedDecember 3, 2025
Docket25-183
StatusPublished

This text of Southland Nat'l Ins. Corp. v. Lindberg (Southland Nat'l Ins. Corp. v. Lindberg) 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
Southland Nat'l Ins. Corp. v. Lindberg, (N.C. Ct. App. 2025).

Opinion

IN THE COURT OF APPEALS OF NORTH CAROLINA

No. COA25-183

Filed 3 December 2025

Wake County, No. 19CVS013093-910

SOUTHLAND NATIONAL INSURANCE CORPORATION in Liquidation, BANKERS LIFE INSURANCE COMPANY in Rehabilitation, COLORADO BANKERS LIFE INSURANCE COMPANY, in Rehabilitation, and SOUTHLAND NATIONAL REINSURANCE CORPORATION, in Rehabilitation, Plaintiffs,

v.

GREG E. LINDBERG, GLOBAL GROWTH HOLDINGS, LLC, EDWARDS MILL ASSET MANAGEMENT, LLC, NEW ENGLAND CAPITAL, LLC, and PRIVATE BANKERS LIFE AND ANNUITY CO., LTD., Defendants.

Appeal by defendants from an order entered 30 August 2024 by Judge A.

Graham Shirley II in Wake County Superior Court. Heard in the Court of Appeals 26

August 2025.

Monica Langdon Jackson, for defendants-appellants.

Michael G. Newell, for defendants-appellants.

Williams Mullen, by Wes J. Camden, Caitlin M. Poe, Lauren E. Fussell, for plaintiffs-appellees.

FLOOD, Judge.

Defendant Greg E. Lindberg and Defendant Global Growth Holdings, LLC

(“Global Growth”) (collectively, “Defendants”) appeal from the trial court’s order

holding them in civil contempt for violation of a Temporary Restraining Order. Upon

careful review, we affirm the trial court’s civil contempt order. SOUTHLAND NAT’L INS. CORP. V. LINDBERG

Opinion of the Court

I. Factual and Procedural Background

The following factual and procedural background is derived in part from the

facts set forth in this Court’s prior opinion of Southland Nat’l Ins. Corp. v. Lindberg,

289 N.C. App. 378 (2023), issued upon Defendants Greg E. Lindberg, Global Growth

Holdings, Inc. f/k/a Academy Association, Inc., and New England Capital, LLC’s prior

appeal to this Court.

The Plan

Southland National Insurance Corporation, Bankers Life Insurance Company,

Colorado Bankers Life Insurance Company, and Southland National Reinsurance

Corporation (collectively, “Plaintiffs”) are insolvent insurers, who were purchased by

Defendant Lindberg in 2014.

In 2014, Lindberg re-domesticated Plaintiffs to North Carolina in order to take

advantage of this State’s favorable regulations as to insurance companies’

investments. Prior to this re-domestication, Lindberg, acting as owner of Plaintiffs,

made a special agreement with former North Carolina Commissioner of Insurance,

Wayne Goodwin, allowing Lindberg to invest up to forty percent of Plaintiffs’ assets

into Lindberg’s affiliated business entities. Lindberg then invested up to forty percent

of Plaintiffs’ money into the purchase of other, non-insurance companies, also owned

by Lindberg. Simply put, Lindberg created a scheme in which he caused $1.2 billion

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that was held for Plaintiffs’ policyholders to be invested into other non-insurance

companies he also owned or controlled.

In November 2016, Wayne Goodwin lost re-election and his seat as

Commissioner of Insurance to Mike Causey, who then reduced the cap on affiliated

investments from forty percent to ten percent. Lindberg struggled to untangle his

affiliated investments and, as the deadline for diversification drew near, the North

Carolina Department of Insurance (“NCDOI”) grew concerned over “mismatch

between investments and policyholder liabilities.” In other words, because Lindberg

had invested so much of Plaintiffs’ money into his affiliated companies, NCDOI

worried Plaintiffs might experience a shortfall on their obligation to pay claims by

individual policyholders.

To address this problem, in June 2019, Lindberg and many of his companies

entered into a series of agreements with Plaintiffs for timely repayment of the

policyholders, and Plaintiffs gave one of Lindberg’s companies an additional $40

million loan to prevent his non-insurance borrower companies from immediate

collapse. They also agreed to grant Lindberg’s borrower companies more favorable

lending terms to facilitate them paying the loans over a longer period. These

agreements resulted in the parties entering into, inter alia, a Memorandum of

Understanding (the “MOU”) on 27 June 2019, wherein Lindberg agreed that, on or

before 30 September 2019, the borrower companies—or Specified Affiliated

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Companies (the “SACs”)—would be placed under a New Holding Company governed

by an independent board, charged with protecting Plaintiffs’ policyholders. These

companies were called SACs because, as the MOU provided, some of the affiliated

companies—companies either directly or indirectly owned and controlled by

Lindberg—would not be contributed to the New Holding Company and would remain

under Lindberg’s control. On the same day the parties entered into the MOU,

Lindberg agreed to have Plaintiffs enter into rehabilitation. During the period of

rehabilitation and upon execution of the MOU, Defendants had either direct or

indirect control over most of the SACs and the authority to contribute those entities

to the New Holding Company.

The Breach

On 1 October 2019, Plaintiffs filed suit against Defendants for breach of the

MOU and fraud, alleging Lindberg failed to make the SACs subsidiaries of the New

Holding Company on or before 30 September 2019. Plaintiffs requested specific

performance of the MOU, compensatory damages, and punitive damages. Plaintiffs

also filed a Motion for Preliminary Injunction and sought a Temporary Restraining

Order (the “TRO”) against Defendants. The TRO, which was approved by the trial

court, prohibited Defendants from, inter alia, selling, encumbering, or otherwise

devaluing the SACs. The TRO also contained restrictions on, not just the SACs, but

any company affiliated with Lindberg because Lindberg had created a complex web

-4- SOUTHLAND NAT’L INS. CORP. V. LINDBERG

of companies and investments through which he controlled the flow of capital—which

included “multiple tiers of operating and holding companies; loans that had been

syndicated and repackaged, then transferred several times; underlying loan

agreements and sellers’ notes; equity equivalence agreements; and third-party

financing agreements.” Southland Nat’l Ins. Corp., 289 N.C. App. at 392. Finally, the

TRO restrained Defendants from dissipating their own assets. On 7 October 2019,

with the consent of the parties, the trial court entered a Consent Extension of the

TRO, for which there has yet to be a hearing.

The Trial Court’s Initial Order and the Parties’ Initial Appeal

After a bench trial held by the trial court from 21 June to 30 June 2021, the

trial court entered a judgment in favor of Plaintiffs, and ordered specific performance

of the MOU, but not compensatory or punitive damages. On 26 May 2022, the trial

court entered an Amended Judgment and Order to correct clerical errors. On 13 June

2022, Defendants appealed to this Court from the Amended Judgment and Order. On

21 June 2022, Plaintiffs cross-appealed on the narrow issue of whether the trial court

erred in failing to award fraud damages. On 20 June 2023, this Court issued its

opinion, affirming the trial court’s award of specific performance of the MOU and

directing the trial court to enter an immediate award of damages in favor of Plaintiffs.

Id. at 394.

-5- SOUTHLAND NAT’L INS. CORP. V. LINDBERG

After this Court issued its opinion, Defendants petitioned the Supreme Court

for discretionary review.

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