An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority. Citation is disfavored, but may be permitted in accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of Appellate Proced
ure.
NO. COA02-1613
NORTH CAROLINA COURT OF APPEALS
Filed: 18 November 2003
MICHAEL BRUGGEMAN, JACKSON
NEWTON and MARK MCGONIGAL,
Plaintiffs,
v
.
New Hanover County
No. 98 CVS 2857
MEDITRUST COMPANY, LLC and
MEDITRUST GOLF GROUP, II, INC.,
Defendants.
Appeal by defendants from orders entered 12 September 2002 and
10 October 2002 by Judge W. Allen Cobb, Jr. in New Hanover County
Superior Court. Heard in the Court of Appeals 14 October 2003.
Johnson Lambeth & Brown, by Robert White Johnson and Anna
Johnson Averitt for plaintiff-appellees.
Ward & Smith, P.A., by George K. Freeman, Jr. for defendant-
appellants.
ELMORE, Judge.
Plaintiffs Bruggeman, Newton, and McGonigal filed suit for
real estate broker's fees. Defendants Meditrust Acquisition
Company (MAC) and Meditrust Company, LLC (MCLLC) filed a motion to
dismiss, which was denied. Defendants appealed, and this Court
reversed the trial court's order refusing to dismiss with regard to
MAC, but affirmed with regard to MCLLC. Bruggeman v. Meditrust
Acquisition Co., 138 N.C. App. 612, 532 S.E.2d 215 (2000).
Plaintiffs moved to reopen the case. Defendants moved to dismiss
for lack of subject matter jurisdiction, which was denied. Defendants moved to dismiss as to plaintiffs Newton and McGonigal
for lack of standing, which was granted. Defendants moved to amend
the order to be certified as a final judgment as to fewer than all
the parties and that there was no just reason to delay the appeal,
per N.C. Rule of Civil Procedure 54(b). That motion was denied.
Defendants now appeal the denial of certification and the denial of
the motion to dismiss. Plaintiff did not file a notice of appeal,
but attempted to assign error to the dismissal of the other two
plaintiffs.
I.
Defendants first assign error to the trial court's 10 October
2002 order denying their Motion to Certify pursuant to Rule 54(b)
the 12 September 2002 Order which denied their motion to dismiss
for lack of subject matter jurisdiction, and dismissed two of three
plaintiffs, as a final judgment, and that there is no reasonable
ground to delay appeal.
Rule 54(b) provides that when a suit involving multiple claims
or multiple parties has been resolved as to fewer than all of the
parties, then the court may enter a final judgment as to one or
more but fewer than all of the claims or parties only if there is
no just reason for delay and it is so determined in the judgment.
Such judgment shall then be subject to review by appeal . . .
N.C.R. Civ. P. 54(b) (2003). It is within the trial court's
discretion to so certify the judgment or not. If the trial court
does not certify in an order that there is no just reason to delay
an appeal, that does not automatically defeat an interlocutoryappeal, if there is a substantial right implicated. Under section
1-277 of our General Statutes,
(a) An appeal may be taken from every
judicial order or determination of a judge of
a superior or district court, upon or
involving a matter of law or legal inference,
whether made in or out of session, which
affects a substantial right claimed in any
action or proceeding; or which in effect
determines the action, and prevents a judgment
from which an appeal might be taken; or
discontinues the action, or grants or refuses
a new trial.
(b) Any interested party shall have the
right of immediate appeal from an adverse
ruling as to the jurisdiction of the court
over the person or property of the defendant
or such party may preserve his exception for
determination upon any subsequent appeal in
the cause.
N.C. Gen. Stat. § 1-277 (2001). See generally Hudson-Cole Dev.
Corp. v. Beemer, 132 N.C. App. 341, 511 S.E.2d 309 (1999).
It follows that if the defendants had a substantial right
which was affected by delaying the appeal, this Court would hear
the appeal regardless of the trial court's determination to not
certify it under Rule 54(b). However, as will be discussed below,
the order was not immediately appealable. The trial court was
within its discretion in its determination, and the defendants were
not prejudiced by the denial of the motion. We therefore affirm
the trial court's ruling denying the motion to certify the
judgment.
II.
The defendant also assigns error to the trial court's 12
September 2003 order denying their motion to dismiss for lack of
subject matter jurisdiction. Such an order is not immediatelyappealable. Defendants filed a petition for writ of certiorari to
this Court, and it was referred to the panel and denied in an order
signed on 10 September 2003.
Our Supreme Court stated in Teachy v. Coble Dairies, Inc., 306
N.C. 324, 326-27, 293 S.E.2d 182, 184 (1982):
In holding that the denial of a motion under
Rule 12(b)(1) to dismiss for lack of subject
matter jurisdiction is not immediately
appealable, the Court of Appeals relied on
Shaver v. Construction Co., 54 N.C. App. 486,
283 S.E. 2d 526 (1981), wherein it interpreted
G.S. 1-277. That statute provides for
immediate appeal of certain orders and
determinations of trial judges. An order
granting a motion to dismiss for lack of
subject matter jurisdiction is immediately
appealable under G.S. 1-277(a), because it
determines or discontinues the action. G.S.
1-277(b) permits the immediate appeal of a
ruling, whether granting or denying a motion
to dismiss under Rule 12(b)(2), as to the
court's jurisdiction over the defendant's
person or property. The Shaver opinion
acknowledged that, while G.S. 1-277(b) permits
the immediate appeal of an order denying a
motion made pursuant to Rule 12(b)(2) to
dismiss for lack of jurisdiction over the
person, that statute does not apply to orders
denying motions made pursuant to Rule 12(b)(1)
to dismiss for lack of subject matter
jurisdiction. The Court of Appeals held that
such orders, the same as other orders not
determinative of an action, are interlocutory
and therefore not immediately appealable.
Under the principle of inclusio unius est
exclusio alterius, the reasoning of the Court
of Appeals on this point is sound. The
contrary holding in Eller v. Coca-Cola Co., 53
N.C. App. 500, 281 S.E. 2d 81 (1981) and Kilby
v. Dowdle, 4 N.C. App. 450, 166 S.E. 2d 875
(1969) should be disregarded.
Teachy v. Coble Dairies, Inc., 306 N.C. 324, 326-27, 293 S.E.2d
182, 184 (1982). Appeal of a denial of a motion to dismiss for lack of subject
matter jurisdiction is interlocutory. We therefore dismiss this
assignment of error.
III.
Finally, the plaintiff inserted in the record a cross-
assignment of error. Because we have affirmed the trial court in
part and dismissed the second assignment of error, we do not reach
the cross-assignment.
Affirmed in part, dismissed in part.
Judges WYNN and TIMMONS-GOODSON concur.
Report per Rule 30(e).
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