SPECIALTIES, INC., Plaintiff, v. JAMES J. AUTRY d/b/a AUTRY
DRYWALL & CONSTRUCTION; SIGMA CONSTRUCTION COMPANY, INC.; and THE
AMERICAN INSURANCE COMPANY, as surety, Defendants.
BET PLANT SERVICES INC., d/b/a BPS EQUIPMENT RENTAL & SALES,
Plaintiff, v. JAMES J. AUTRY, d/b/a AUTRY DRYWALL & CONSTRUCTION
and also d/b/a AUTRY CONSTRUCTION, INC; SIGMA CONSTRUCTION
COMPANY, INC.; DAVID A. MARTIN, COUNTY OF CUMBERLAND, NORTH
CAROLINA; and THE AMERICAN INSURANCE COMPANY, as surety,
Defendants.
COLONIAL MATERIALS OF FAYETTEVILLE, INC., Plaintiff, v. JAMES J.
AUTRY d/b/a AUTRY DRYWALL & CONSTRUCTION, INC; SIGMA CONSTRUCTION
COMPANY, INC.; and THE AMERICAN INSURANCE COMPANY, as surety,
Defendants.
Appeal and Error--appealability--orders allowing plaintiffs to proceed in their actions--
interlocutory orders--no substantial right
Defendants' appeal from the orders allowing plaintiffs to proceed in their actions against
defendants Sigma, American, and Martin to recover payment for materials and rental equipment
supplied for the Cumberland County Coliseum project, after the bankruptcy court terminated the
automatic stay entered when defendant Autry went into Chapter 11 bankruptcy, is dismissed as
interlocutory because: (1) the orders do not dispose of any issue in any case; and (2) the
avoidance of a rehearing or trial is not a substantial right entitling a party to an immediate appeal.
Vann & Sheridan, LLP, by Paul A. Sheridan and Nan E. Hannah,
for plaintiff-appellees.
Safran Law Offices, by Perry R. Safran, for defendant-
appellants Sigma Construction Company, Inc., The American
Insurance Company, and David A. Martin.
SMITH, Judge.
Defendant Sigma Construction Company, Inc. (Sigma) entered
into a contract with the State of North Carolina through its
political subdivision Cumberland County for construction of the
Cumberland County Coliseum (the project). In December 1995, Sigma,
as general contractor, entered into a Payment Bond Agreement with
defendant The American Insurance Company (American) for
$12,349,010.00. See N.C. Gen. Stat. § 44A-27 (1995). The Bond
Agreement listed Sigma as the Principal and Cumberland County as
the Owner. On or about 22 February 1996, Sigma entered into a subcontract
agreement with defendant James J. Autry (Autry) d/b/a Autry Drywall
& Construction Company, whereby Autry would provide labor andmaterials for drywall work on the project. Between August 1996 and
May 1997, Autry entered into contracts with plaintiffs Interior
Distributors, Inc. (Interior Distributors); Specialties, Inc.
(Specialties); BET Plant Services Inc., d/b/a BPS Equipment Rental
& Sales (BET); and Colonial Materials of Fayetteville, Inc.
(Colonial) to supply materials and rental equipment for the
project. Autry's contract with Sigma was terminated. Autry failed
to fully pay plaintiffs, and in September and October 1997, each of
the plaintiffs filed complaints against Autry, Sigma, and American.
BET also joined as a defendant David Martin as guarantor for Sigma.
On 1 December 1997, defendants Sigma and American answered, made
motions to dismiss, and raised affirmative defenses against
Interior Distributors and Specialties and asserted cross-claims
against Autry. On 8 December 1997, Autry filed for Chapter 11
bankruptcy. Thereafter, on 31 December 1997, defendants Sigma,
Martin, and American answered, made a motion to dismiss, and raised
affirmative defenses against BET and asserted cross-claims against
Autry. On 5 January 1998, defendants Sigma and American answered,
made a motion to dismiss, and raised affirmative defenses against
Colonial and asserted cross-claims against Autry.
On 16 March 1998, the trial court, citing Autry's proceedings
in bankruptcy, sua sponte entered Judgments of Discontinuance in
Interior Distributors' and Specialties' cases. Those cases were
thus closed "with leave to any party to reinstitute the same by
motion in the cause if the said claims are not fully adjudicated."
Similarly, on 20 April 1998, the trial court, again citing thebankruptcy proceeding, sua sponte entered Administrative Orders
discontinuing the BET and Colonial suits. Those cases likewise
were closed "with leave to any party to reinstitute the same by
motion in the cause if the said claims are not fully adjudicated."
On 23 September 1998, plaintiffs made "Motion[s] for Determination
of Applicability of Stay and for Relief From Stay" in the United
States Bankruptcy Court for the Eastern District of North Carolina.
Autry's Chapter 11 plan was confirmed on 20 October 1998, and on 28
October 1998 the bankruptcy court entered an order stating that the
automatic stay had terminated and that plaintiffs' claims against
defendants Sigma, American, and Martin could be pursued.
On 13 January 1999, defendants voluntarily dismissed with
prejudice their cross-claims against Autry in all four cases.
Plaintiffs each filed notices and motions for reinstatement on 29
January 1999. Plaintiffs' motions were consolidated for hearing,
and on 6 May 1999, the trial court entered orders allowing
plaintiffs' motions. Defendants Sigma and American appeal from all
four orders; defendant Martin joins in the appeal from the order
for BET.
The initial matter to be determined is whether defendants'
appeal from these orders is interlocutory.
"An order or judgment is interlocutory if it
is made during the pendency of an action and
does not dispose of the case but requires
further action by the trial court in order to
finally determine the entire controversy."
N.C. Dept. of Transportation v. Page, 119 N.C.
App. 730, 733, 460 S.E.2d 332, 334 (1995).
The rule against interlocutory appeals seeks
to prevent fragmentary, premature and
unnecessary appeals by allowing the trialcourt to bring a case to final judgment before
its presentation to the appellate courts.
Waters v. Personnel, Inc., 294 N.C. 200, 240
S.E.2d 338 (1978).
Turner v. Norfolk Southern Corp., 137 N.C. App. 138, ---, 526
S.E.2d 666, 669 (2000).
The orders from which defendants now appeal do not entirely
dispose of the cases. In fact, the orders do not dispose of any
issue in any case; they merely allow plaintiffs to proceed in their
actions against defendants. The orders are therefore
interlocutory.
Although there is generally no right to
immediate appeal from an interlocutory order,
an interlocutory order is appealable in two
instances. First, pursuant to N.C. Gen. Stat.
§ 1-277 and N.C. Gen. Stat. § 7A-27(d), an
interlocutory order is appealable if the order
"affects a substantial right." "A substantial
right is a right which will be lost or
irremediably adversely affected if the order
is not reviewable before the final judgment."
Second, pursuant to N.C. Gen. Stat. § 1A-1,
Rule 54(b), an interlocutory order is
appealable in an action with multiple parties
and multiple claims "if the trial court enters
a final judgment as to a party or a claim and
certifies there is no just reason for delay."
When an interlocutory order is appealed, "it
is the appellant's burden to present argument
in his brief to this Court to support
acceptance of the appeal."
Lee v. Mutual Community Savings Bank, 136 N.C. App. 808, ---, 525
S.E.2d 854, 856 (2000) (internal citations omitted).
The whole of defendants' argument supporting their contention
that they are properly before this Court is as follows: "The
granting of Plaintiffs-Appellees motions affects Defendants-
Appellants' substantial rights and unfairly punishes them if theyare forced to continue the defense of this action." This attempt
at persuading this Court that a substantial right of defendants
will be adversely affected absent immediate review fails to satisfy
defendant's "'burden to present argument in [their] brief to this
Court to support acceptance of the appeal.'" Id. at ---, 525
S.E.2d at 856 (citation omitted).
Regardless, it has long been the law in this state that "the
'avoidance of a rehearing or trial is not a "substantial right"
entitling a party to an immediate appeal.'" Banner v. Hatcher, 124
N.C. App. 439, 442, 477 S.E.2d 249, 251 (1996) (quoting
Blackwelder v. Dept. of Human Resources, 60 N.C. App. 331, 335, 299
S.E.2d 777, 780 (1983)). Accordingly, this appeal is dismissed as
interlocutory.
Dismissed.
Judges TIMMONS-GOODSON and FULLER concur.
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