1. Appeal and Error--appealability--interlocutory order--no substantial right
Plaintiff's appeal from the trial court's denial of his motion for partial summary judgment
on his claim for breach of the settlement agreement is dismissed since it is an interlocutory order
that has not been certified by the trial court and plaintiff has not shown he will be deprived of a
substantial right.
2. Venue--motion for change--action incidental to real property
The trial court did not err in granting defendant's motion for change of venue, even
though plaintiff contends N.C.G.S. § 1-76 provides that the action must be tried where the
pertinent property is located, because: (1) title to realty must be directly affected by the judgment
in order to render the action local; (2) plaintiff's argument focusing on breach of the settlement
agreement is incidental to the pertinent real property, rather than direct; and (3) specific
performance of the settlement agreement is an in personam action, meaning it is transitory rather
than local.
The Bishop Law Firm, P.A., by J. Daniel Bishop, for plaintiff-
appellant David M. Bishop.
Farris & Farris, P.A., by Thomas J. Farris, for defendant-
appellee George F. Lattimore, Jr.
Boxley, Bolton & Garber, L.L.P., by Ronald H. Garber, for
defendant-appellees Elizabeth Darnell, Executrix of the Estate
of William J. Darnell, and William I. Darnell.
McGEE, Judge.
George Goodyear (Goodyear) and William J. Darnell (Darnell),
both now deceased, along with George Lattimore, Jr. (Lattimore),
entered into a partnership on 31 December 1962. This partnership,known as Interstate Investors, was for the purpose of leasing or
purchasing real estate for the construction of residential rental
property. In accordance with the partnership agreement, theparties leased a 3.45 acre tract of land and erected the Hamilton
House Apartments in Charlotte, North Carolina. Each of the parties
owned as general partners a one-third interest in the apartments.
The parties agreed in 1967 to refinance the indebtedness of
the partnership and formed a corporation known as Park House
Realty, Inc. (Park House). The parties executed bills of sale and
other instruments transferring the property and assets of the
partnership to the corporation. In return, each party received
one-third of the stock issued. The parties became the sole
shareholders, directors, and officers of the corporation. They
also entered into a written agreement which provided that the
Hamilton House Apartments were not to be encumbered, mortgaged,
sold, or conveyed without the written consent of all three
individuals. Additionally, all future disbursements and management
of the property, except for items in the normal course of
operation, were to be managed by Lattimore, Goodyear and Darnell.
Lattimore filed a complaint in Wake County Superior Court in
December 1996 alleging direct and derivative claims purportedly dueto the misconduct of the other two shareholders. Executor of
Goodyear's estate, B.W. Miller (Miller), filed an answer to the
complaint on behalf of David Bishop (Bishop), as Trustee of the
Goodyear Trusts. Miller filed a motion for change of venue from
Wake County to Mecklenburg County. Bishop filed a motion to
intervene and joined in Miller's answer and motion for change of
venue. The trial court granted Bishop's motion to intervene, butthereafter denied the motion for change of venue. Our Court
affirmed the trial court's decision in an unpublished opinion on 16
February 1999 in Lattimore v. Miller (No. COA 98-717). Our Supreme
Court denied a petition for discretionary review on 22 July 1999.
In the Wake County suit, Lattimore, Elizabeth Darnell, William
I. Darnell (president of Park House), Bishop and Park House were
ordered by the trial court to appear in Wake County for a mediated
settlement conference on 12 August 1997. At the conference, the
parties and their attorneys reached an agreement and signed a
"Memorandum of Settlement" (settlement agreement). The terms set
forth in the settlement agreement included the following:
1. Park House Realty, Inc. ("Park House")
will redeem all of the stock of George F.
Lattimore, Jr. ("Lattimore") in Park House,
upon the following terms:
(a) $50,000.00 payable to Lattimore at
closing; provided that Lattimore
shall have the option to defer
receipt of some part or all of said
amount until January 1, 1998; and
(b) $5,000.00 per month principal and
interest for a period of 20 years,
beginning November 1, 1997,
evidenced by the promissory note of
Park House in favor of Lattimore or
holder[.]
(c) The foregoing obligations of Park
House will be secured by a
collateral assignment of Park
House's interests as tenant under
ground lease for Hamilton House
apartments, and a collateral
assignment of the rents from
Hamilton House apartments.
2. Closing hereunder, including execution of
all settlement documents, will take place on
or before September 30, 1997 (the "ClosingDate").
. . .
4. All claims, cross-claims and
counterclaims in the Suit will be dismissed
with prejudice.
5. All parties to the Suit will execute a
mutual general release of all claims. Without
limiting the foregoing, it is expressly agreed
that Lattimore will release any and all
claims, whether or not presently encompassed
in the Suit, against the Estate of George S.
Goodyear and its Executor, the George S.
Goodyear Family Trust and its Trustee, the
George S. Goodyear Marital Trust and its
Trustee, the Estate of William J. Darnell and
its Executor; Mrs. Elizabeth Darnell in her
individual capacity; Mrs. Dorris Goodyear in
her individual capacity; William I. Darnell,
Park House and its officers and directors.
. . .
7. The parties acknowledge that all of their
agreements reached in mediation, and every
part of every agreement so reached, are set
out in this memorandum.
Bishop filed the complaint in this action in Mecklenburg
County on 10 March 1998. In an amended complaint against
Lattimore, Elizabeth Darnell, William I. Darnell, and Park House,
Bishop specifically sought: (1) enforcement of the settlement
agreement; (2) to restrain the corporate defendant Park House from
paying dividends pending consummation of the settlement agreement;
(3) enforcement of a supplemental agreement between Bishop and
William I. Darnell; (4) a declaratory judgment to declare the 1968
agreement void; and (5) a preliminary injunction prohibiting a
declaration of any dividend or any redemption of William I.
Darnell's claimed shares, or other distribution by Park House,except for redemption required by the settlement agreement.
Lattimore moved to dismiss the complaint in Mecklenburg County
or alternatively to stay the proceedings until the prior pending
action in Wake County was resolved. Lattimore also alleged the
proper venue for the trial of the action was Wake County and moved
that the case be transferred from Mecklenburg County to Wake
County. Bishop filed a motion for partial summary judgment on 10
August 1998 on his claim for breach of the settlement agreement.
The trial court denied Bishop's partial summary judgment motion and
granted Lattimore's motion for change of venue in an order filed 21
September 1998. Bishop appeals the order of the Mecklenburg County
trial court.
In the case before us, plaintiff's argument is focused on a
breach of the settlement agreement. Any effect that his claim has
on real property is simply incidental rather than direct.
Moreover, in order to require security of Park House's interest as
tenant and rents from Hamilton House as collateral for payment of
the promissory note to Lattimore, the trial court would have to
require specific performance of the settlement agreement. Specific
performance, as an equitable remedy, acts in personam. See Rose's
Stores, Inc., 270 N.C. at 204, 154 S.E.2d at 322. "To carry out
the idea of a decree acting in personam, it may be necessary to
consider a suit for specific performance as being transitory
instead of local[.]" Id. Accordingly, we reject plaintiff's
contention that his claim affects an interest in land which would
require the present action to be removed as a matter of right under
N.C.G.S. § 1-76.
Plaintiff's appeal of the trial court's denial of his motion
for partial summary judgment is dismissed. The trial court's order
granting defendant's motion for change of venue is affirmed.
Judges LEWIS and JOHN concur.
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