State Ex Rel. Cooper v. Ridgeway Brands Manufacturing, LLC

655 S.E.2d 446, 188 N.C. App. 302, 2008 N.C. App. LEXIS 89
CourtCourt of Appeals of North Carolina
DecidedJanuary 15, 2008
DocketCOA06-1711
StatusPublished
Cited by12 cases

This text of 655 S.E.2d 446 (State Ex Rel. Cooper v. Ridgeway Brands Manufacturing, 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
State Ex Rel. Cooper v. Ridgeway Brands Manufacturing, LLC, 655 S.E.2d 446, 188 N.C. App. 302, 2008 N.C. App. LEXIS 89 (N.C. Ct. App. 2008).

Opinion

STEELMAN, Judge.

Where the plaintiff failed to allege that an out-of-state corporate defendant (Trevally, Inc. or “Trevally”) was present in North Carolina at the time of the alleged transaction or otherwise availed itself of the laws and privileges of this State, the trial court did not err in dismissing the plaintiffs claims against defendant Trevally pursuant to N.C. R. Civ. P. 12(b)(2) for lack of personal jurisdiction.

I. Factual and Procedural Background

This is the second time this year that this case has come before this Court. A detailed discussion of the prior procedural history of this matter is contained in our opinion in the case of State v. Ridgeway Brands Mfg., LLC, 184 N.C. App. 613, 646 S.E.2d 790 (2007) (Ridgeway I). On 10 May 2006, the Superior Court of Wake County entered an order allowing plaintiff to amend its First Amended Complaint to add Trevally, Inc. (Trevally), an Arizona corporation, as a party defendant to this lawsuit. The amended complaint added a seventh claim against Trevally seeking to recover funds transferred from Ridgeway Brands Manufacturing, LLC (Ridgeway) to Trevally at a time when Ridgeway did not have sufficient assets to pay its liability to the State of North Carolina under N.C. Gen. Stat. § 66-291.

On 27 July 2006, Ridgeway and Trevally filed motions to dismiss pursuant to N.C.G.S. § 1A-1 Rules 12(b)(2) and 12(b)(6). These motions were heard before Judge Spencer on 15 September 2006. The State submitted a limited portion of the deposition of defendant James C. Heflin (Heflin) to the court. On 23 October 2006, the court denied the motion to dismiss pursuant to Rule 12(b)(6) but granted *304 Trevally’s motion to dismiss under Rule 12(b)(2) for lack of personal jurisdiction. The order contained specific findings of fact and concluded as a matter of law that:

The factual allegations contained in Plaintiff’s Second Amended Complaint and in the deposition of James C. Heflin are not sufficient to support a determination that personal jurisdiction exits [sic] on a statutory or constitutional due process basis.

From the entry of this order, plaintiff appeals.

II. Interlocutory Anneal

The order appealed from does not dispose of all matters pending in the case, and is therefore interlocutory. See N.C. Dept. of Transp. v. Page, 119 N.C. App. 730, 733, 460 S.E.2d 332, 334 (1995). However, an order dismissing a party for lack of personal jurisdiction affects a substantial right and is immediately appeal-able. N.C.G.S. § l-277(a)-(b) (2005).

II. Standard of Review

Motions to dismiss for lack of personal jurisdiction are heard by the trial court sitting without a jury. The trial court may hold an evidentiary hearing including oral testimony or depositions or may decide the matter based upon affidavits. N.C.G.S. § 1A-1, Rule 43(e). Under the provisions of N.C.G.S. § 1A-1, Rule 52(a)(2), findings of fact and conclusions of law are necessary only when requested by a party. In the absence of such a request, “it will be presumed that the judge, upon proper evidence, found facts sufficient to support the judgment.” J.M. Thompson Co. v. Doral Mfg. Co., 72 N.C. App. 419, 424, 324 S.E.2d 909, 912 (1985). In the event that the trial court makes findings of fact, our review is limited to whether the trial court’s findings of fact are supported by competent evidence in the record and whether the conclusions of law are supported by the findings of fact. See Robbins v. Ingham, 179 N.C. App. 764, 768, 635 S.E.2d 610, 614 (2006).

“Where no exception is taken to a finding of fact by the trial court, the finding is presumed to be supported by competent evidence and is binding on appeal.” Koufman v. Koufman, 330 N.C. 93, 97, 408 S.E.2d 729, 731 (1991) (citations omitted). In the instant case, appellant does not assign as error any of the trial court’s findings of fact, but only assigns error to the trial court’s granting of Trevally’s motion to dismiss. Our review in this case is thus limited to the issue *305 of whether the trial court’s findings of fact support its conclusion of law that there was no personal jurisdiction over Trevally “on a statutory or constitutional due process basis.”

III. Analysis

Plaintiff contends that the trial court erred in holding that it had no personal jurisdiction over Trevally, reasoning that: (1) Trevally is the “alter ego” of Ridgeway, a North Carolina corporation; (2) jurisdiction exists under N.C.G.S. § 1-75.4(3) arising out of a local act or omission; and (3) jurisdiction exists under N.C.G.S. § 1-75.4(6) because the transaction involves local property which was within this State at the time that Trevally acquired possession or control over it. We disagree.

In the Second Amended Complaint, plaintiff made the following allegations pertaining to defendants Trevally and Ridgeway:

7. Defendant, Trevally, Inc.,... is upon information and belief an Arizona corporation with its principal place of business at 105 West Rose Lane, Phoeniz [sic], Arizona, 85013 which address is a personal residence of James C. Heflin, who is an owner and member manager of Defendant Ridgeway Manufacturing. Upon information and belief, Defendant Trevally is owned and operated by James C. Heflin and Suzanne C. Heflin and was the receiver of fraudulent conveyances from Defendant Ridgeway Manufacturing.
12. This Court has personal jurisdiction over Defendant Trevally pursuant to N.C. Gen. Stat. § l-75.4(6)(c), as this Defendant has assets of Defendant Ridgeway Manufacturing, which were in North Carolina at the time they were conveyed to Defendant Trevally and which must be recovered to satisfy escrow obligations and penalties herein claimed to be owed to Plaintiff by Defendant Ridgeway Manufacturing. Further this Court has personal jurisdiction over Defendant Trevally because this Defendant is one and the same with or an alter ego of Defendant Ridgeway Manufacturing.
79. Defendant Trevally is the alter ego of Defendant Ridgeway Manufacturing.

*306 The only additional evidence introduced at the hearing was the partial deposition of Heflin.

A. Alter Ego Theory

We first note that Judge Spencer’s order is devoid of any findings of fact pertaining to an alter ego theory. In such a situation it is presumed that the trial court found facts sufficient to support his order. See Thompson Co., 72 N.C. App. at 424, 324 S.E.2d at 912.

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Cite This Page — Counsel Stack

Bluebook (online)
655 S.E.2d 446, 188 N.C. App. 302, 2008 N.C. App. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-cooper-v-ridgeway-brands-manufacturing-llc-ncctapp-2008.