KAPLAN COMPANIES, INC., and
GUIDECRAFT USA, INC.,
Plaintiffs
v
.
Forsyth County
No. 01 CVS 3447
STILES MACHINERY, INC., and
ROBERT J. KOSTELNIK,
Defendants
Robinson & Lawing, L.L.P., by Norwood Robinson, C. Ray
Grantham, Jr., and James R. Theuer, for plaintiffs-appellants.
Brooks, Pierce, McLendon, Humphrey, & Leonard, L.L.P., by
James C. Adams, II, and Elizabeth V. LaFollette, and Moss,
Mason & Hill, by Matthew L. Mason, for defendants-appellees.
CALABRIA, Judge.
This case arises from the failure of furniture finishing
equipment to finish furniture satisfactorily. Kaplan Companies,
Inc. (Kaplan), a North Carolina corporation, sells furniture to
schools. Guidecraft USA, Inc. (Guidecraft)
(See footnote 1)
, a New Yorkcorporation, finishes furniture. Stiles Machinery, Inc.
(Stiles), a Michigan corporation, sells equipment. Before June
of 1998, Guidecraft, Kaplan, and Stiles discussed a possible
purchase of furniture finishing equipment by Guidecraft from Stiles
through its representative Robert J. Kostelnik (Kostelnik).
Pursuant to their negotiations, Guidecraft signed and returned
two documents to Stiles entitled Sales Agreement. Sales
agreement 8691 (SA 8691") described a Butfering Wide Belt Sander,
and sales agreement 8692 (SA 8692") described a Cefla Ultra
Violet Spray Line. Both agreements contained a number of standard
terms and conditions, and Guidecraft included the required down
payment.
Guidecraft subsequently entered into a lease with First Union
Commercial Corporation (First Union) guaranteed by Kaplan for the
equipment. Thereafter, First Union sent a letter to Stiles
announcing its intention to fund the purchase and requesting that
Stiles reflect First Union as the owner/purchaser.
In December 1998, the equipment used to finish furniture was
delivered to and installed at Guidecraft's facilities in Minnesota.
Unfortunately, the finishing process resulted in de-lamination and
rendered the furniture unfit for sale. Despite a series of over
fifteen trips by Stiles' employees from North Carolina to the
Guidecraft facility in Minnesota for service between January 1999
and September 2000, efforts to correct the defects were
unsuccessful. On 30 March 2001, Kaplan and Guidecraft (collectively
plaintiffs) filed a complaint against Stiles and Kostelnik
(collectively defendants) in the Superior Court of Forsyth County
alleging breach of express warranty based on the representations of
defendants before the sale and during the period of time the
equipment was being serviced; misrepresentation; fraud; negligent
repair; wrongful interference with contract; and unfair and
deceptive trade practices. Plaintiffs sought punitive, treble, and
special damages. Defendants answered on 1 June 2001, defending on
numerous grounds, including failure to state a claim upon which
relief could be granted and contractual provisions for forum
selection
(See footnote 2)
and disclaimer of warranty. On 21 June 2001, defendants
moved for judgment on the pleadings or to stay the claims on the
grounds that maintenance of the suit in the present forum would
work a substantial injustice pursuant to N.C. Gen. Stat. § 1-75.12.
Defendants also moved for dismissal on the grounds of improper
venue pursuant to North Carolina Rule of Civil Procedure 12(b)(3).
On 2 August 2001, the trial court denied the motion to dismiss and
converted the motion for judgment on the pleadings to a summaryjudgment motion on the following claims: breach of express
warranty, fraud, misrepresentation, and unfair and deceptive trade
practices. Summary judgment was denied without prejudice. The
trial court granted defendants' motion for judgment on the
pleadings as to negligent repair and wrongful interference with
contract. Defendants' motion to stay the claims was continued for
sixty days. On 3 January 2002, the trial court granted summary
judgment for Stiles as to all remaining claims asserted by
Guidecraft based upon the forum selection clause in the agreement
and granted the motion to stay all of Kaplan's remaining claims
against Stiles and all remaining claims of plaintiffs against
Kostelnik based upon the finding that maintenance of the suit in
North Carolina would work a substantial injustice. Plaintiffs
appeal.
The issues presented to this Court are whether the trial court
(I) erred in granting the motion for summary judgment; (II) abused
its discretion by granting the motion to stay the claims; (III)
erred in granting the motion for judgment on the pleadings for the
claims of negligent repair and wrongful interference with contract;
and (IV) erred in granting the motion to dismiss on the grounds of
the forum selection clause.
I. Summary Judgment
Plaintiffs assert the trial court erred in granting summary
judgment to Stiles on Guidecraft's claims of breach of express
warranty, fraud, misrepresentation, and unfair and deceptive tradepractices
(See footnote 3)
because there were material issues of genuine fact as to
whether the parties intended the sales agreements to operate as
contracts. Plaintiffs contend the sales agreements between Stiles
and Guidecraft were merely a means to identify the equipment to be
sold to First Union and leased to Guidecraft. Plaintiffs
alternatively argue Stiles abandoned any contract executed with
Guidecraft. Plaintiffs further argue summary judgment was
inappropriate because the trial court had previously denied summary
judgment on these causes of action.
Summary judgment is appropriate where the pleadings,
depositions, answers to interrogatories, and admissions on file,
together with the affidavits, if any, show that there is no genuine
issue as to any material fact and that any party is entitled to a
judgment as a matter of law. N.C. Gen. Stat. § 1A-1, Rule 56(c)
(2001). The rule is designed to permit penetration of an
unfounded claim or defense in advance of trial and to allow summary
disposition for either party when a fatal weakness in the claim or
defense is exposed. Caldwell v. Deese, 288 N.C. 375, 378, 218
S.E.2d 379, 381 (1975). The party moving for summary judgment has
the burden of showing that there is no genuine issue as to anymaterial fact. Dixie Chemical Corp. v. Edwards, 68 N.C. App. 714,
715, 315 S.E.2d 747, 749 (1984) (citation omitted).
A. Contract Formation
Plaintiffs assert the parties did not intend the sales
agreements to be contracts. Before we determine whether the
parties intended to contract, we must decide which state law
controls the issue of contract formation since three states have an
interest in this transaction. The trial court determined Minnesota
law controlled the issue of contract formation, applied that law,
and concluded the sales agreements were contracts between Stiles
and Guidecraft.
The Uniform Commercial Code (UCC) provides its own choice of
law rule, commonly referred to as the appropriate relation test,
which modifies the traditional place-of-contractor-performance rule
previously applied in this State. Boudreau v. Baughman, 322 N.C.
331, 336, 368 S.E.2d 849, 854 (1988).
[M]any jurisdictions hold that the appropriate
relation test is essentially the same as
modern "interest analysis" or "grouping of
contacts," which requires the forum to
determine which state has the most significant
relationship to the case. This approach is
most consistent with N.C.G.S. § 25-1-105
Official Comment 3, which seems to contemplate
a comparison of "significant contacts" among
jurisdictions connected to the case, and . . .
a shift away from rigid rules toward a more
flexible analysis. We therefore interpret
"appropriate relation" to mean "most
significant relationship."
Id., 322 N.C. at 338, 368 S.E.2d at 855 (citations omitted).
In the case at bar, Guidecraft executed the agreements in
Minnesota. The equipment was delivered, installed, and intended tobe used in Minnesota. The equipment was, in fact, used in
Minnesota at all times. The finishing process and the resulting
damage occurred in Minnesota. While North Carolina and Michigan
have significant contact with the contract and its subject matter,
Minnesota has the most significant contact. Therefore, we
conclude the trial court correctly determined Minnesota law should
be applied to contractual intent at the time of the transaction.
In determining contractual intent, the ultimate test or
standard of construction is the reasonable meaning of the language
used, considered in the light of the surrounding circumstances, and
what the parties must reasonably have contemplated. Hartung v.
Billmeier, 243 Minn. 148, 151, 66 N.W.2d 784, 788 (1954).
A proper administration of justice does not
permit an overzealous quest for subtle
ambiguity to destroy the intent of the parties
when the court, despite some incompleteness
and imperfection of expression, can reasonably
find that intent by applying the words used,
with all their reasonable implications, to the
subject matter as the parties themselves,
under all the surrounding circumstances, must
have applied, used, and understood them.
Id. See also, Cederstrand v. Lutheran Brotherhood, 263 Minn. 520,
533, 117 N.W.2d 213, 222 (1962).
In the present case, the words used and the surrounding
circumstances indicate an intent to form a contract. Pursuant to
previous negotiations, Guidecraft completed and returned two sales
agreements. These agreements bore Stiles' letterhead, contact
information, terms of payment, and a legend stating, YOUR ORDER IS
SUBJECT TO THE TERMS AND CONDITIONS PRINTED ON THE REVERSE SIDE.
The back of both agreements listed a number of clauses entitledSTANDARD TERMS AND CONDITIONS OF SALE, which included offer,
acceptance, agreement, and contract. On SA 8691, both the
billing and shipping portions were filled out with Guidecraft's
information. On the line designated for the customer signature,
Kevin Caldwell, the General Manager for Guidecraft, signed and
dated the agreement. SA 8692 was substantially identical to SA
8691 and was signed by Stuart Nelson, Vice President of Guidecraft.
Handwritten on the face of both agreements were the following
directives: See Notes and See Attached Notes; and Guidecraft
enclosed identical separate notes dated 4 June 1998, entitled
Notes for contracts 8691 and 8692" and referring to the Contract
with Stiles Machinery. These attached notes set out terms
additional to the standard provisions in the agreements for the
equipment negotiated between Stiles and Guidecraft. Guidecraft
mailed the sales agreements and notes to Stiles on 6 June 1998 with
a cover letter signed by Caldwell and Nelson and enclosed a 30%
down payment according to the payment terms contained in the
agreements. Since the expressions and the actions of the parties
are fully consistent with the intent to enter a binding contract,
Guidecraft cannot argue that the sales agreements are anything
other than what they purport to be.
Plaintiffs point to subsequent invoices listing First Union as
the customer; however, those invoices continued to designate
Guidecraft as the customer by using Guidecraft's customer number.
Moreover, complying with a third-party request made months after
the execution of the agreement has no bearing on the intent of theparties at the time of contract formation. The circumstances
surrounding the execution of the sales agreements give sufficient
indicia of an intent to contract.
B. Abandonment
Plaintiffs also argue there was a material issue of genuine
fact as to whether Stiles abandoned the contract either by the
substitution of a contract between Stiles and First Union or by
subsequent agreement or conduct following the execution of the
agreement. Because we find the sales agreements are valid
contracts with terms providing any action arising out of [the
contract] shall be governed by the law of the State of Michigan[,]
the issue of abandonment must be determined by reference to
Michigan law. Under Michigan law, [t]he rights of either party
under a contract of sale may be lost by abandonment and become
extinguished thereby. A relinquishment in writing is not
necessary, as abandonment may be deduced from circumstances or
course of conduct clearly evincing an abandonment thereof, or the
abandonment may be by parol. Nelson v. Hacker, 278 Mich. 383, 270
N.W. 720 (1936) (citation omitted) (emphasis added).
(See footnote 4)
The evidence of abandonment presented by plaintiffs may be
summarized as follows: (1) Stiles substituted First Union forGuidecraft in the Sold to portion of later invoices pursuant to
a letter from First Union to Stiles dated 12 August 1998 announcing
First Union's intent to fund the invoices and requesting the
invoices reflect First Union as the owner and purchaser; (2) a UCC-
1 financing statement filed by First Union stating that Guidecraft
was without the power of sale; and (3) negotiations concerning a
possible lease and inclusion of lease pricing information put
Stiles on notice that First Union was going to purchase the
equipment and lease it to Guidecraft.
Such forecasted evidence does not clearly evinc[e]
abandonment by Stiles of the contracts. While invoices bore First
Union's information in the Sold to portion, Stiles, at all times,
designated Guidecraft as the customer both in their internal
records and on the invoices themselves through the continued use of
Guidecraft's customer number. Moreover, the contract numbers on
all invoices (designating the transaction to which the invoices
pertain), unequivocally reference the sales agreements in which
Guidecraft was the owner and purchaser. In addition, Stiles never
contracted with First Union for the sale of any equipment. The
lease information provided accompanied the purchase information
actually used in the sales agreements. Finally, Guidecraft does
not contend that Stiles leased the equipment to First Union or the
lease pricing information was used by anyone at any point. Any
lease pricing information provided by Stiles would pertain to a
leasing transaction between Stiles and Guidecraft. Why Stiles
would quote lease pricing information for a lease betweenGuidecraft and First Union has not been adequately addressed.
Because there is no genuine issue concerning the lack of evidence
clearly evincing abandonment of the contracts, this assignment of
error is overruled.
C. Previous Summary Judgment Ruling
Plaintiffs assert the trial court was prohibited from granting
summary judgment on claims already considered and denied in a
previous summary judgment proceeding by the same judge. An order
denying summary judgment is not res judicata and a judge is clearly
within his rights in vacating such denial. Miller v. Miller, 34
N.C. App. 209, 212, 237 S.E.2d 552, 555 (1977). Miller presented
the question whether a judge who rules on a motion for summary
judgment may thereafter strike the order, rehear the motion for
summary judgment, and allow the motion. Such procedure does not
involve one judge overruling another, and is proper. Carr v.
Carbon Corp., 49 N.C. App. 631, 635, 272 S.E.2d 374, 377 (1980).
Accordingly, this assignment of error is overruled.
(See footnote 5)
II. Motion to Stay
After granting summary judgment for all remaining claims of
Guidecraft as against Stiles on the basis of the forum selection
clause, the trial court then stayed all other remaining claims of
plaintiffs against defendants on the grounds that it would be
substantially unjust to require defendants to litigate the sameissues in two places. In so deciding, the trial court relied on a
number of factors traditionally used in a forum non conveniens
determination. Because we believe the trial court did not abuse
its discretion in reaching this decision, we affirm.
A trial court may stay a proceeding to permit trial in a
foreign jurisdiction:
If, in any action pending in any court of this
State, the judge shall find that it would work
substantial injustice for the action to be
tried in a court of this State, the judge on
motion of any party may enter an order to stay
further proceedings in the action in this
State.
N.C. Gen. Stat. § 1-75.12(a) (2001). Forum non conveniens factors
are used in deciding whether to grant a stay:
[T]he doctrine of forum non conveniens should
be applied with flexibility depending upon the
facts and circumstances of each case, with the
view of achieving substantial justice between
the parties. Relevant facts, among others,
that may be considered are: convenience and
access to another forum; nature of case
involved; relief sought; applicable law;
possibility of jury view; convenience of
witnesses; availability of compulsory process
to produce witnesses; cost of obtaining
attendance of witnesses; relative ease of
access to sources of proof; enforceability of
judgment; burden of litigating matters not of
local concern; desirability of litigating
matters of local concern in local courts;
choice of forum by plaintiff; all other
practical considerations which would make the
trial easy, expeditious and inexpensive.
Management, Inc. v. Development Co., 46 N.C. App. 707, 713, 266
S.E.2d 368, 371 (1980). When the motion is granted, the nonmoving
party has the right of immediate appeal. N.C. Gen. Stat. § 1-
75.12(c) (2001). Entry of an order under G.S. 1-75.12 is a matterwithin the sound discretion of the trial judge and will not be
disturbed on appeal absent an abuse of that discretion. Home
Indemnity Co. v. Hoechst-Celanese Corp., 99 N.C. App. 322, 325, 393
S.E.2d 118, 120 (1990).
In granting the motion to stay the proceedings, the trial
court set forth and applied the appropriate standards. The trial
court then examined the interests of Michigan, North Carolina, and
Minnesota in the litigation and determined correctly that while all
three states have an obvious interest in the litigation, no one
state has a substantially outweighing interest. In considering
witness based factors, the trial court correctly noted the parties
will not be able to compel the attendance of some necessary out-of-
state witnesses regardless of the forum state. Finally, because
the claims asserted all involve a common core [of operative]
facts and because the trial court dismissed the claims against
Stiles by Guidecraft due to the forum selection clause, the trial
court correctly concluded it would be substantially unjust to
require Stiles to continue litigating against Kaplan in North
Carolina while litigating against Guidecraft in Michigan. Further,
since the claims asserted against Kostelnik are identical to those
against Stiles and because those claims require the same evidence,
the trial court held it would be substantially unjust to require
Kostelnik to litigate in North Carolina while identical issues were
being litigated against Stiles elsewhere. We agree. Holding
otherwise would subject the judicial process and the parties to
needless burden, hardship, and expense. The trial court followedthe factors set forth in Management, and granting the stay was not
an abuse of discretion. Accordingly, the order is affirmed.
III. Judgment on the Pleadings
A motion for judgment on the pleadings functions to dispose
of baseless claims or defenses when the formal pleadings reveal
their lack of merit[] and operates as a final judgment. Ragsdale
v. Kennedy, 286 N.C. 130, 137, 209 S.E.2d 494, 499 (1974); N.C.
Gen. Stat. § 1A-1, Rule 12(c) (2001). A trial court must carefully
scrutinize the pleadings, view[ing] the facts and permissible
inferences in the light most favorable to the nonmoving party.
Id. The moving party admits [t]he truth of all well-pleaded facts
in the [non-movant's] pleadings . . . and the untruth of his own
allegations in so far as they are controverted by the [non-
movant's] pleading. Garrett v. Winfree, 120 N.C. App. 689, 691,
463 S.E.2d 411, 413 (1995). A motion for judgment on the
pleadings is the proper procedure when all the material allegations
of fact are admitted in the pleadings and only questions of law
remain. Ragsdale, 286 N.C. at 137, 209 S.E.2d at 499.
A. Negligent Repair
Plaintiffs first assert Stiles negligently performed the
repairs of the equipment and plaintiffs were damaged as a proximate
result of that negligence.
[A] breach of contract does not give rise to
damages based on a negligence method of
recovery even where the breach was due to
negligence or lack of skill. However, such
damages are appropriate for a breach of
contract . . . [, and a] promisee may sue a
promisor for the negligent performance of a
contract where injury (1) occurs to theperson or property of someone other than the
promisee, [or] (2) occurs to property of the
promisee other than the property which was the
subject of the contract, or was a personal
injury to the promisee[.]
Mason v. Yontz, 102 N.C. App. 817, 818, 403 S.E.2d 536, 538 (1991)
(quoting Ports Authority v. Roofing Co., 294 N.C. 73, 240 S.E.2d
345 (1978)). Kaplan claims the first exception, and Guidecraft
claims the second.
The first exception requires the injury resulting from
negligent performance of a contract to be inflicted on the property
of someone other than the promisee. In the instant case, Kaplan
contends defendants' repairs failed to prevent defective
application of the finish, which ruined the furniture. However,
because the injury is the improper adherence of the lamination to
the furniture surface at the time of application and because both
the equipment and the furniture belonged to Guidecraft (the
promisee) at that time, Kaplan cannot claim the first exception.
The second exception requires the property damaged by the
negligent act to be property other than the subject matter of the
contract. Guidecraft claims the second exception because the
subject matter of the contract is the equipment, yet the damage
involved the equipment and the furniture it finished.
The duty to use due care, the breach of
which gives rise to a tort action for
negligence in favor of one injured thereby in
his person or property, may arise out of a
contract. A breach of a contract, nothing
else appearing, does not give rise to an
action in tort.Insurance Co. v. Sprinkler Co., 266 N.C. 134, 141, 146 S.E.2d 53,
60 (1966). [N]o case . . . [however] has held a tort action lies
against a promisor for his simple failure to perform his contract,
even though such failure was due to negligence or lack of skill.
Ports Authority, 294 N.C. 73, 83, 240 S.E.2d 345, 351 (1978). In
the present case, according to the complaint, Stiles had a
contractual duty to Guidecraft (1) to build a system that would
consistently apply a UV finish to the furniture in accordance with
the required characteristics and (2) to repair and properly install
the equipment. If that be true, it is immaterial whether the
failure was due to its negligence or occurred notwithstanding the
exercise of reasonable or even great care because such failure
sounds in contract and not in tort, and Stiles is liable for
damages. Conversely, if the repairs had resulted in the equipment
conforming to produce the required finish, Stiles would not be
liable in damages even if Stiles failed to use the degree of care
customarily used. The allegation of negligent repair by plaintiffs
is surplusage and should be disregarded. The basis for recovery
against Stiles is breach of contract, and the trial court correctly
granted the motion for judgment on the pleadings.
B. Wrongful Interference with Contractual Relations
The tort of interference with contract
has five elements: (1) a valid contract
between the plaintiff and a third person which
confers upon the plaintiff a contractual right
against a third person; (2) the defendant
knows of the contract; (3) the defendant
intentionally induces the third person not to
perform the contract; (4) and in doing so acts
without justification; (5) resulting in actual
damage to plaintiff.
United Laboratories, Inc. v. Kuykendall, 322 N.C. 643, 661, 370
S.E.2d 375, 387 (1988). Justification of the actor's conduct
depends upon the circumstances surrounding the interference, the
actor's motive or conduct, the interests sought to be advanced, the
social interest in protecting the freedom of action of the actor
and the contractual interests of the other party. Peoples
Security Life Ins. Co. v. Hooks, 322 N.C. 216, 221, 367 S.E.2d 647,
650 (1988). [W]here the act is done other than as a reasonable
and bona fide attempt to protect the interest of the [actor] which
is involved[,] the actor's conduct is not justified. Smith v.
Ford Motor Co., 289 N.C. 71, 91, 221 S.E.2d 282, 294 (1976). If
the actor's conduct is done for a legitimate business purpose,
[the act] is privileged. Hooks, 322 N.C. at 221, 367 S.E.2d at
650 (citation omitted).
Kaplan asserts Stiles knew of the contract existing between
Kaplan and Guidecraft and that Stiles intended to induce Guidecraft
to breach and alter the performance of its contract with Kaplan
based on two grounds: (1) that Stiles misrepresented the equipment
would produce the required finish, knowing it would not and (2)
that Stiles misrepresented the equipment had been repaired and
would produce the required finish, knowing it would not. Because
Stiles and Guidecraft jointly tested similar equipment with
favorable results prior to the sale, it is difficult to construe
subsequent representations based thereon as misrepresentations
intended to induce Guidecraft to breach its contract with Kaplan.
No facts pled in the complaint support the inference that Stiles,based on the results of the tests conducted, misrepresented the
expected performance, much less an intent on the part of any party
to induce nonperformance of the contract. Similarly, there is no
evidence that Stiles improperly represented their beliefs as to the
capabilities of the machines after attempts to repair it, and
assuming arguendo there were, no facts pled support construing such
action to be intended to induce nonperformance of the contract
between Kaplan and Guidecraft. The attempted repairs were
reasonable and bona fide attempts to protect Stiles' own interests.
In short, all uncontroverted facts indicate Stiles took precautions
to test similar equipment in similar circumstances and, based on
the favorable results, represented they would be able to furnish
Guidecraft with equipment meeting the required specifications.
Stiles further undertook repairs to bring the equipment to the
level required by the contract. Taking all material allegations of
fact by Guidecraft as true, Stiles' actions do not amount to
tortious interference with contractual relations as a matter of
law, and the holding of the trial court is affirmed.
IV. Motion to Dismiss
Plaintiffs assert the validity of the forum selection clause
in the sales agreements is irrelevant because Stiles waived any
right to assert it by failing to raise improper venue or Rule
12(b)(3) as a defense in their answer. We disagree.
[A] forum selection clause designates the venue[.] Corbin
Russwin, Inc. v. Alexander's Hdwe., Inc., 147 N.C. App. 722, 726,
556 S.E.2d 592, 596 (2001). Improper venue may be raised either inthe responsive pleading (where one is required) or by motion. N.C.
Gen. Stat. § 1A-1, Rule 12(b)(3) (2001). A defense of . . .
improper venue . . . is waived . . . (ii) if it is neither made by
motion under this rule nor included in a responsive pleading or an
amendment thereof permitted by Rule 15(a) to be made as a matter of
course. N.C. Gen. Stat. § 1A-1, Rule 12(h)(1) (2001).
In the answer, Stiles pled the following as their third
defense:
Plaintiffs' claims should be dismissed in
favor of an action to be brought by Plaintiffs
in a state or federal court sitting in the
County of Kent in the State of Michigan
pursuant to a forum selection clause continued
[sic] in the Sales Agreement between Stiles
and [Guidecraft] or stayed, pursuant to N.C.
Gen. Stat. § 1-75.12, in favor of an action to
be brought by Plaintiffs in the courts of
Minnesota or some other state for the
convenience of the parties and witnesses and
because Defendants will suffer substantial
injustice by litigating the case in North
Carolina. Defendants consent to suit in the
state or federal courts encompassing the
County of Kent, Michigan and/or Winthrop,
Minnesota.
Neither the words venue nor Rule 12(b)(3) are talismans
necessary to raise improper venue as a defense. Stiles expressly
raised the forum selection clause in their answer. Because we
reject plaintiffs' formulaic method of raising venue as a defense,
this assignment of error is overruled.
Plaintiffs have also submitted a memorandum of additional
authority concerning the validity of the forum selection clause
itself. The record does not reflect the issue of the validity of
the forum selection clause was raised before the trial court; wasraised as an assignment of error or was addressed either in oral
arguments before or in their brief to this Court. The law on
changing legal theories on appeal is clear: parties [may not]
swap horses between courts in order to get a better mount in the
Supreme Court, nor is [the Court of Appeals] a remount station.
Horton v. New South Ins. Co., 122 N.C. App. 265, 270, 468 S.E.2d
856, 859 (1996) (citations omitted). Therefore, this issue is not
properly before this Court.
Finally, defendants appeal the denial of the motion for
judgment on the pleadings concerning plaintiffs' claims of breach
of express warranty, fraud, and unfair and deceptive trade
practices. Looking at the pleadings and giving all inferences to
the plaintiffs as the non-moving party, the plaintiffs' complaint,
taken as true, contains sufficient allegations as to all elements
of these claims, rendering judgment on the pleadings inappropriate.
We have carefully considered the remaining claims and issues
before this Court and find them to be without merit. The order of
the trial court is affirmed.
Affirmed.
Judges McGEE and HUNTER concur.
Report per Rule 30(e).
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