Stanley v. Moore

454 S.E.2d 225, 339 N.C. 717, 1995 N.C. LEXIS 95
CourtSupreme Court of North Carolina
DecidedMarch 3, 1995
Docket114PA94
StatusPublished
Cited by35 cases

This text of 454 S.E.2d 225 (Stanley v. Moore) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stanley v. Moore, 454 S.E.2d 225, 339 N.C. 717, 1995 N.C. LEXIS 95 (N.C. 1995).

Opinion

FRYE, Justice.

The sole issue presented on this appeal is whether the Court of Appeals erred in affirming the trial court’s denial of plaintiffs’ claims for treble damages and attorney’s fees under Chapter 75 of the General Statutes of North Carolina (the Unfair and Deceptive Practices Act). Plaintiffs contend that the prohibition against punitive or treble damages in wrongful eviction actions contained in N.C.G.S. § 42-25.9(a) of the North Carolina Ejectment of Residential Tenants Act, Article 2A, Chapter 42 of the North Carolina General Statutes, *719 does not preclude them from recovering treble damages under N.C.G.S. § 75-16 and attorney’s fees under N.C.G.S. § 75-16.1 of the Unfair and Deceptive Practices Act. We agree and, therefore, reverse the Court of Appeals on this issue.

The facts and circumstances surrounding this case are as follows: Sometime in July 1990, plaintiffs entered into an oral agreement with defendant’s mother to lease a mobile home owned by defendant for $70.00 per week. Plaintiffs’ household consisted of themselves and four minor children, including a four-month-old infant. At the time plaintiffs leased the mobile home, defendant was living out of state.

In mid-February 1991, defendant went to plaintiffs’ home and demanded that they move immediately. Plaintiffs called the Sheriff’s Department. Defendant was advised that summary ejectment procedures were necessary in order to regain possession of the property. That same day, defendant cut the water supply to the residence and removed the thermostat from the water heater.

The next day, defendant forced his way into the residence and demanded to know why plaintiffs had not moved. During this encounter, defendant forcibly removed the breaker box from the bedroom wall, leaving exposed live wiring. Although plaintiffs were able to restore electrical service to the residence that day, on or about 22 February, defendant went to the home and again removed the breaker box. Plaintiffs called the electric company to restore electrical service; however, while utility workers were in the process of restoring service, defendant returned to the residence and, using a hatchet, cut the underground electrical wiring leading to the home. Consequently, the utility company could not restore service due to the extensive damage done to the outside lines to the residence. Plaintiffs were left with no water or electricity and were forced to buy bottled water and other sources of heat. Over $200.00 worth of food was spoiled due to lack of refrigeration.

On 27 February 1991, plaintiffs filed a complaint in District Court, Caldwell County, alleging that defendant had trespassed on their leasehold property and subjected them to unlawful self-help eviction practices, in violation of the North Carolina Ejectment of Residential Tenants Act and the North Carolina Unfair and Deceptive Practices Act. Plaintiffs sought damages for the above claims from defendant, whom they alleged constructively evicted them from the mobile home they rented. On the same day, a temporary restraining order was issued ordering defendant to restore plaintiffs’ utilities. On 13 March *720 1991, a preliminary injunction was issued; it also ordered defendant to restore the utilities.

Defendant failed to respond to the complaint, and on 4 April 1991, plaintiffs filed a motion for entry of default. On that same day, the trial court entered an order for contempt against defendant for his failure to comply with the court’s previous orders of 27 February and 13 March 1991. As part of the contempt order, the trial court ordered defendant to pay to plaintiffs $820.00 in expenses and $1,000 in attorney’s fees.

On 5 August 1991, plaintiffs filed a motion for judgment by default. A hearing was held on the issue of damages in District Court, Caldwell County, on 12 September 1991. The trial court found that plaintiffs had been damaged, pursuant to N.C.G.S. § 42-25.9, in the amount of $798.00 in actual damages. The court further awarded plaintiffs $1.00 in nominal damages and $100.00 in punitive damages on the trespass claim. In addition, the court entered a second order for contempt for defendant’s failure to comply with the previous contempt order and ordered defendant to pay $798.00 to plaintiffs (or get set-off in a like amount) and to pay $1,000 in attorney’s fees. The trial court denied plaintiffs’ claim for relief pursuant to the Unfair and Deceptive Practices Act and their application for attorney’s fees. Plaintiffs moved for reconsideration of the Unfair and Deceptive Practices Act determination and the denial of further attorney’s fees; however, the trial court ruled that it would not reconsider either claim.

On plaintiffs’ appeal, the Court of Appeals concluded that plaintiffs had clearly established a claim under the Unfair and Deceptive Practices Act. This conclusion is not challenged on this appeal. However, that court also affirmed the trial court’s denial of treble damages and attorney’s fees under the Act, concluding that its prior decision in Dobbins v. Paul, 71 N.C. App. 113, 321 S.E.2d 537 (1984), and N.C.G.S. § 42-25.9(a) precluded recovery of punitive or treble damages in actions for wrongful eviction. On 16 June 1994, this Court allowed plaintiffs’ petition for discretionary review of that portion of the Court of Appeals’ decision which denied plaintiffs’ claims for treble damages and attorney’s fees under the Unfair and Deceptive Practices Act.

In affirming the trial court’s denial of plaintiffs’ claims for treble damages and attorney’s fees, the Court of Appeals relied upon binding precedent from that court. In Dobbins v. Paul, 71 N.C. App. 113, *721 321 S.E.2d 537, the plaintiff was wrongfully evicted by her landlords and filed a complaint seeking, inter alia, compensatory damages for wrongful eviction and breach of warranty of quiet enjoyment, punitive damages, treble damages for unfair trade practices, and reasonable attorney’s fees. The Court of Appeals affirmed the trial court’s grant of directed verdicts for the defendant landlords on the treble damages and punitive damages claims, stating:

Plaintiff’s evidence having shown that she was wrongfully evicted . . . after her lease was in effect, plaintiff’s statutory remedy for damages under G.S. 42-25.9(a) attached. . . .
In that the statute expressly disallows treble or punitive damages in such cases, it is clear that the trial court correctly allowed defendants’ motion for a directed verdict as to . . . such damages.

Id. at 117, 321 S.E.2d at 541 (footnote omitted).

While constrained to follow the precedent of Dobbins in the present case, the Court of Appeals astutely recognized the danger in limiting tenants, such as plaintiffs, to recovering only their actual damages. Judge (now Justice) Orr wrote for the court:

While we are bound by the rule which denies a tenant recovery of punitive or treble damages as a result of her constructive eviction due to the exclusivity of the remedies under N.C.G.S.

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Bluebook (online)
454 S.E.2d 225, 339 N.C. 717, 1995 N.C. LEXIS 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stanley-v-moore-nc-1995.