Suntrust Bank v. Bryant/Sutphin Properties, LLC

732 S.E.2d 594, 222 N.C. App. 821, 2012 WL 4069652, 2012 N.C. App. LEXIS 1105
CourtCourt of Appeals of North Carolina
DecidedSeptember 18, 2012
DocketNo. COA12-131
StatusPublished
Cited by38 cases

This text of 732 S.E.2d 594 (Suntrust Bank v. Bryant/Sutphin Properties, 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
Suntrust Bank v. Bryant/Sutphin Properties, LLC, 732 S.E.2d 594, 222 N.C. App. 821, 2012 WL 4069652, 2012 N.C. App. LEXIS 1105 (N.C. Ct. App. 2012).

Opinion

STROUD, Judge.

Plaintiff and defendants Bryant/Sutphin Properties, LLC and Donald H. Sutphin appeal. For the following reasons, we reverse the trial court’s entry of an award for unfair or deceptive practice to Bryant/Sutphin Properties, LLC and affirm the trial court on all other issues raised by the parties.

I. Background

Plaintiff and defendant Bryant/Sutphin Properties, LLC (“BSP”) entered into a Commercial Note (“Note”) whereby plaintiff would provide defendant BSP funds to finance a real estate development project; defendant Sutphin was a guarantor on the Note. Plaintiff sued defendants BSP and Sutphin1 (collectively “defendants”) for a claim it entitled as “Suit on Note” which was essentially a breach of contract claim based upon defendants’ alleged failure to pay the Note in accordance with its terms. Defendants answered plaintiff’s complaint and counterclaimed based upon various alleged wrongs plain[823]*823tiff had committed; according to defendants, the allegedly wrongful conduct taken by plaintiff centered upon plaintiffs action of placing a hold on defendant Sutphin’s accounts (“Sutphin Accounts”) “so that no funds could be withdrawn from such Accounts.” Defendants alleged that plaintiff was aware that the Accounts “constituted the primary source of funds needed to conduct the day-to-day business operations of Bryant/Sutphin Properties, including, but not limited to, the development of the Condominium Project, and to conduct day-today business operations of other businesses owned, either [i]n whole or in part, by Don Sutphin.” Defendants sued for improper setoff, conversion, wrongful dishonor of item, breach of covenant of good faith and fair dealing, punitive damages, and unfair/deceptive trade practices pursuant to N.C. Gen. Stat. § 75-1.1. (“Section 75-1.1(a)”).2

After the filing of the initial pleadings, the parties engaged in various legal filings which resulted in a 472 page record and a box of exhibits which includes, inter alia, a reply to defendants’ counterclaims, a motion for summary judgment, a motion to dismiss and objections to the motion for summary judgment, a jury verdict, two motions for judgment notwithstanding the verdict, a motion for a new trial, a motion to tax costs, two notices of appeal, an undertaking to stay execution on appeal, a special motion to docket entry of the stay, an exception to undertaking to stay execution on appeal, and the various orders and judgment of the trial court ruling on the parties’ aforementioned motions.

Ultimately the jury found in favor of defendants as to the factual basis for their claims under Section 75-1.1(a) although it also found no breach of contract by either plaintiff or defendants. The trial court set aside the Section 75-1.1(a) verdict for defendant Sutphin, leaving only the Section 75-1.1(a) verdict for defendant BSP. Defendant BSP was awarded $700,000.00 from plaintiff on its Section 75-1.1(a) claim, and these damages were trebled to $2,100,000.00; plaintiff was also ordered to pay costs of $5,612.90. All of the parties appealed.

II. Plaintiff’s Appeal

Plaintiff argues that the trial court erred in entering an award on defendant BSP’s Section 75-1.1(a) claim and in failing to enter a directed verdict on its claim for breach of contract.

[824]*824A. Defendant BSP’s Claim for Section 75-1.1(a)

The verdict sheet presented 22 issues to the jury, addressing the various claims raised by all of the parties. There is no issue raised on appeal as to the propriety of the verdict sheet or jury instructions. The issues and verdicts as to the relevant questions for purposes of defendant BSP’s Section 75-1.1(a) claim read, in pertinent part:

7. Did [plaintiff] breach the Central Carolina Bank Deposit Agreement related to [defendant] Donald H. Sutphin’s money market account?
Answer: NO
' 12. Did [plaintiff] breach the contract with [defendant] Bryant/Sutphin Properties, LLC for the making and repayment of the loan for the acquisition and development of the property known as Ashley Terrace?
Answer: NO
17. Did [plaintiff] do at least one of the following?
a) Did [plaintiff] place the hold on [defendant] Donald H. Sutphin’s money market account without any prior notice?
Answer: yes
b) Did [plaintiff] fail to make written demand for payment in full of the two D.H. Sutphin Builders’ demand notes before placing the hold on [defendant] Mr. Sutphin’s account?
Answer: yes
c) Did [plaintiff] fail to make written demand for payment in full of the Bryant/Sutphin Properties, LLC loan before placing the hold on [defendant] Mr. Sutphin’s account?
Answer: yes
d) Did [plaintiff] change the prior manner in which it had been dealing with Defendants by placing the hold on [defendant] Mr. Sutphin’s account?
[825]*825Answer: yes
18. Was [plaintiff’s conduct as found in Issue 17 in commerce or did it affect commerce?
Answer: yes
20. Was [plaintiff’s conduct as found in Issue 17 a proximate cause of economic injury to [defendant] Bryant/Sutphin Properties, LLC?
Answer: yes
22. In what amount has [defendant] Bryant/Sutphin Properties, LLC been injured by [plaintiff’s conduct as found in Issue 17?
Answer: $700,000

On 25 July 2011, the trial court entered an order determining that “[t]he conduct found by the jury is determined to constitute an unfair trade practice in violation of N.C.G.S. § 75-1.1, and the damages in the amount of $700,000.00 shall be trebled pursuant to N.C.G.S. § 75-16.” On 25 August 2011, the trial court entered a judgment concluding “that the conduct found by the jury constitutes an unfair trade practice in violation of N.C. Gen. Stat. § 75-1.1. Pursuant to N.C. Gen. Stat. § 75-16, the damages that the jury found Bryant/Sutphin Properties, LLC incurred in the amount of $700,000.00 will be trebled.” Plaintiff contends that the trial court “erred in concluding that [plaintiff] committed [a Section 75-1.1(a) violation] after the jury found that [plaintiff did not breach its contracts with Defendants. Without a breach, the [Section 75-1.1(a)] counterclaim should have necessarily failed.”

1. Standard of Review

“Although it is a question of fact whether the defendant performed the alleged acts, it is a question of law whether those facts constitute an unfair or deceptive trade practice.” RD&J Props. v. Lauralea-Dilton Enters., LLC, 165 N.C. App. 737, 748, 600 S.E.2d 492, 501. “Whether a commercial act or practice violates G.S. § 75-1.1 is a question of law. Moreover, whether an action is unfair or deceptive is dependent upon the facts of each case and its impact on the market[826]*826place.” Norman Owen Trucking v. Morkoski, 131 N.C. App.

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Cite This Page — Counsel Stack

Bluebook (online)
732 S.E.2d 594, 222 N.C. App. 821, 2012 WL 4069652, 2012 N.C. App. LEXIS 1105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suntrust-bank-v-bryantsutphin-properties-llc-ncctapp-2012.