CENTURA BANK, Plaintiff v. LEROY B. MILLER; TERRY LEE BROWN,
Individually and d/b/a ACTION AUTO SALES, INC.; GLORIA R. BROWN;
AUTO QUIK, INC.; ROBERT R. KING, Individually and d/b/a D&B
EQUIPMENT CO., d/b/a D&B EQUIPMENT CO., INC., d/b/a D&B EQUIPMENT
COMPANY, d/b/a D&B EQUIPMENT, d/b/a D&B EQUIPMENT SALES, and
d/b/a D&B EQUIPMENT SALES CO., INC.; LANDMARK LEASING, INC. f/k/a
D&B EQUIPMENT SALES, INC.; and D&B EQUIPMENT SALES, INC.
Defendants
No. COA99-279
Appeal by defendant Leroy B. Miller from order entered 15
December 1998 by Judge Julius A. Rousseau, Jr. in Superior Court,Guilford County. Heard in the Court of Appeals 7 December 1999.
ADAMS KLEEMEIER HAGAN HANNAH & FOUTS, A Professional Limited
Liability Company, by J. Alexander S. Barrett and D. Beth
Langley, for plaintiff-appellee.
GLENN, MILLS & FISHER, P.A., by Robert B. Glenn, Jr. and
Caitlyn T. Fulghum, for defendant-appellant Leroy B. Miller.
TIMMONS-GOODSON, Judge.
Plaintiff, Centura Bank, filed a complaint against defendants,
Leroy B. Miller (hereinafter, Miller), Terry Lee Brown, Gloria R.
Brown, Auto Quik, Inc., Robert B. King, D&B Equipment, Inc., and
Landmark Leasing, Inc., alleging claims for conspiracy, breach of
contract, breach of promissory note, breach of duty of loyalty and
due care, fraud, negligent misrepresentation, unfair and deceptive
trade practices, and violations of the Racketeer Influence Corrupt
Organizations Act of North Carolina. On 19 October 1998, Miller
filed an answer and motion to dismiss plaintiff's action for
improper venue. Additionally, Miller moved to transfer venue from
Guilford County to Durham County as a matter of right or,
alternatively, for the convenience of the witnesses and to promote
the ends of justice. The trial court denied the motions by order
entered 15 December 1998. Miller appeals and petitions this Court
for writ of certiorari.
The question presented on appeal is whether Guilford County is
the appropriate venue in which to hear plaintiff's cause of action
against defendants. Miller contends that the trial court erred in
denying his motion to dismiss, because our venue statutes require
that plaintiff's claims be brought in some forum other than
Guilford County. As a related matter, Miller argues that the court
erred in denying his motion for change of venue as a matter of
right. We address these arguments simultaneously. Initially, we note that although interlocutory, an order
denying a motion to dismiss for improper venue is immediately
appealable.
McClure Estimating Co. v. H.G. Reynolds Co., Inc., 136
N.C. App. 176, 523 S.E.2d 144 (1999). We further note that direct
appeal lies from the denial of a motion for change of venue as a
matter of right.
Snow v. Yates, 99 N.C. App. 317, 392 S.E.2d 767
(1990). Therefore, the issues raised by the present appeal are
properly before us.
Miller contends that plaintiff's action is primarily to
recover personal property, i.e., three automobiles leased to
Miller; therefore, under section 1-76 of the General Statutes, theaction must be tried in Durham County, where two of the vehicles
are located. We cannot agree.
[1]When an action is brought in an improper forum, the trial
court must, upon motion of a party, remove the action to an
appropriate venue.
Travelers Indemnity Co. v. Marshburn, 91 N.C.
App. 271, 371 S.E.2d 310 (1988). Section 1-76 of the North
Carolina General Statutes dictates that certain causes of action
be tried in the county in which the subject of the action, or some
part thereof, is situated. N.C. Gen. Stat. § 1-76 (1999). Such
actions include those for [r]ecovery of personal property when the
recovery of the property itself is the sole or primary relief
demanded. N.C.G.S. § 1-76(4). In determining whether an action
is one governed by section 1-76, the court must look to the
allegations of the complaint and the principal object of the
action.
McCrary Stone Service v. Lyalls, 77 N.C. App. 796, 799,
336 S.E.2d 103, 105 (1985).
Plaintiff's complaint asserts fifteen claims arising out of an
alleged scheme whereby defendants negotiated a series of fraudulent
lease agreements. The complaint states that Miller, a former
leasing officer for plaintiff, and the other named defendants
obtained money and property at plaintiff's expense by
misrepresenting the existence, title, or value of the leased
property. Plaintiff, therefore, seeks to recover a judgment
against defendants for the damages it sustained as a result of the
alleged conspiracy. It is true that plaintiff's prayer for relief
includes a request for an Order that Defendants immediatelysurrender any an all property held pursuant to any lease,
promissory note or deed of trust between Defendants and Centura.
However, this relief is ancillary to the primary purpose of the
complaint, which is to recover monetary damages. Therefore, we
hold that section 1-76(4) does not apply to plaintiff's action.
Miller's contrary argument fails.
[2]Miller argues, in the alternative, that plaintiff's action
is essentially to recover a deficiency owed on a debt and, as
such, falls within the mandate of section 1-76.1 of our General
Statutes. Under section 1-76.1, actions to recover a
deficiency,
which remains owing on a debt after secured personal property has
been sold to partially satisfy the debt, must be brought in the
county in which the debtor . . . resides or in the county where the
loan was negotiated. N.C. Gen. Stat. § 1-76.1 (1999)(emphasis
added). The leased property involved in the instant case, however,
has not yet been sold; therefore, section 1-76.1 does not apply.
See M & J Leasing Corp. v. Habegger, 77 N.C. App. 235, 237, 334
S.E.2d 804, 805 (1985) (finding section 1-76.1 inapplicable,
because the personal property involved ha[d] not yet been sold and
the action [was] not 'to recover a deficiency which remain[ed]
owing on a debt.') This argument also fails.
[3]Next, Miller contends that Guilford County is an improper
forum in which to hear plaintiff's action, because none of the
parties to the lawsuit reside there. Again, we must disagree.
Our residual venue provision, section 1-82 of the General
Statutes, states that [i]n all other cases the action must betried in the county in which the plaintiffs or the defendants, or
any of them, reside at its commencement. N.C. Gen. Stat. § 1-82
(1999). Section 1-79 of our General Statutes provides that for the
purpose of litigation, the residence of a domestic corporation is
as follows:
(1) Where the registered or principal office
of the corporation . . . is located, or
(2) Where the corporation . . . maintains a
place of business, or
(3) If no registered or principal office is in
existence, and no place of business is
currently maintained or can reasonably be
found, the term residence shall include any
place where the corporation . . . is regularly
engaged in carrying on business.
N.C. Gen. Stat. § 1-79(a) (1999).
In the instant case, plaintiff maintains a place of business
in Guilford County, but its principal office is in Nash County.
Miller contends that under section 1-79, plaintiff resides in Nash
County and that for purposes of filing suit and being sued, a
domestic corporation has only one residence. According to Miller,
the legislature's use of the word or, as opposed to the word
and, to connect subsections (1) and (2) suggests that a
corporation resides either in the county where its principal office
is located, or where it maintains a place of business, but not
both. However, had the drafters intended such a result, they
would have used language, as they did in subsection (3), clarifying
that subsection (2) applies only [i]f no registered or principal
office is in existence.
See id. Therefore, we reject Miller's
construction of the statute and hold that plaintiff comes within
the provisions of section 1-79(a)(2) and is a resident of GuilfordCounty. Since Guilford County is a proper venue for plaintiff's
action, the trial court did not err by denying Miller motions to
dismiss for improper venue and to transfer venue as a matter of
right.
[4]In addition to his appeal, Miller petitions this Court for
writ of certiorari to review the court's ruling as to the
discretionary basis upon which Miller seeks transfer of venue. In
the interests of judicial economy and the expeditious
administration of justice,
see Houpe v. City of Statesville, 128
N.C. App. 334, 340, 497 S.E.2d 82, 87 (recognizing elective of this
Court to review interlocutory decision when to do so would be in
the interests of judicial economy or the expeditious
administration of justice),
disc. review denied, 348 N.C. 72, 505
S.E.2d 871 (1998), we grant certiorari and consider Miller's final
argument. Miller contends that the trial court abused its
discretion by denying his motion to transfer venue to Durham County
for convenience of witnesses and to promote the ends of justice.
We disagree.
Section 1-83(2) of the General Statutes provides that [t]he
court may change the place of trial . . . [w]hen the convenience of
witnesses and the ends of justice would be promoted by the change.
N.C. Gen. Stat. § 1-83(2) (1999). Whether to transfer venue for
this reason, however, is a matter firmly within the discretion of
the trial court and will not be overturned unless the court
manifestly abused that discretion.
Roanoke Properties v. Spruill
Oil Co., 110 N.C. App. 443, 429 S.E.2d 752 (1993). An abuse ofdiscretion occurs when the trial court's ruling 'is so arbitrary
that it could not have been the result of a reasoned decision.'
Chicora Country Club, Inc. v. Town of Erwin, 128 N.C. App. 101,
109, 493 S.E.2d 797, 802 (1997),
disc. review denied, 347 N.C. 670,
500 S.E.2d 84 (1998) (quoting
White v. White, 312 N.C. 770, 777,
324 S.E.2d 829, 833 (1985)).
Here, we find no gross improprieties indicating that the court
abused its discretion. We have said that Guilford County is an
appropriate venue in which to bring plaintiff's action. Thus, we
cannot conclude that the court's decision not to transfer venue to
Durham County was an unreasoned one, and Miller's argument to the
contrary fails.
For the foregoing reasons, the order denying Miller's motion
to dismiss and the motions to transfer venue as a matter of right
or, alternatively, for the convenience of witnesses is affirmed.
Affirmed.
Judges GREENE and WALKER concur.
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