2. Process and Service_-in personam jurisdiction--process directed to another party to
action
The trial court did not err by exercising in personam jurisdiction over defendant even
though defendant alleges insufficient service of process based on the fact that she was served
with process directed to another party to the action, because: (1) the only return of service in the
court's file contained certification from the sheriff that defendant was served 14 August 2001;
and (2) defendant failed to meet her burden to make an evidentiary showing or submit affidavits
in support of her allegation.
3. Appeal and Error--preservation of issues--punitive damages--failure to argue--
failure to assign error
Although defendant contends the trial court erred by awarding $95,000 in punitive
damages based on the fact that the award was greater than the statutory limit of three times
actual damages, this assignment of error is deemed abandoned because: (1) in her brief,
defendant argues the court erred by awarding punitive damages for a nominal trespass on a life
estate; and (2) defendant failed to argue this assignment of error and also failed to assign error to
the issue actually argued in her brief. N.C. R. App. 10(a).
4. Costs; Damages and Remedies--attorney fees--punitive damages--election of
remedies
The trial court did not err by awarding $34.381.90 in attorney fees to plaintiff for breach
of fiduciary duty pursuant to N.C.G.S. § 75-16.1 even though plaintiff elected to seek punitive
damages and an equitable remedy, because attorney fees and punitive damages serve different
interests and are not based on the same conduct, there is no double redress for a single wrong,
and plaintiff is not required to elect between them to prevent duplicitous recovery.
Bledsoe & Bledsoe, P.L.L.C., by Louis A. Bledsoe, Jr., for
plaintiff-appellee.
Lawrence U. Davidson, III, for defendant-appellant.
HUDSON, Judge.
Defendant appeals judgments entered after trial by jury, which
awarded $95,000 in punitive damages and $34,381.90 in attorney fees
to plaintiff for breach of fiduciary duty. Defendant argues that
the court erred in failing to dismiss the claims against her, in
exercising in personam jurisdiction over her, and in awarding
punitive damages and attorney fees to plaintiff. For the reasons
discussed below, we disagree and affirm the judgments and awards.
The evidence tended to show that plaintiff Quessie Brown was
born 9 April 1900. Plaintiff's husband and defendant Joyce Davis
King's husband were friends and worked together at Mr. King's
funeral home. After plaintiff's husband died, defendant befriended
plaintiff and provided her assistance with such matters as
transportation to the doctor and errand running. In November 1994,
defendant offered to continue helping to assist plaintiff and to
look after her affairs for the rest of her life in exchange for
plaintiff deeding her Charlotte home to defendant. On 15 November
1994, plaintiff deeded her home to defendant, reserving a life
estate for herself. Plaintiff also executed a power of attorney
naming defendant as her attorney-in-fact.
On 23 August 1995, defendant executed a personal loan note for
$26,000 to Quality Mortgage USA, Inc., and a deed of trust on
plaintiff's home as plaintiff's attorney-in-fact. Defendant used
the proceeds in her funeral home business. Plaintiff did not learnabout these transactions until 18 November 1999, when the sheriff
served her with a Notice to Foreclose.
Defendant moved to dismiss. In denying the motion, the court
found that service of process on defendant was sufficient as matter
of law, and that defendant had made no evidentiary showing and
submitted no affidavits in support of her motion. The jury found
that the action was filed before the expiration of the statute of
limitations, and that defendant took advantage of her position of
trust and confidence to execute the mortgage and loan documents.
The jury further found that defendant did not act openly, fairly
and honestly in executing the transactions and that her conduct was
the proximate cause of plaintiff's injury. Plaintiff elected to
pursue her claim in rescission rather than as a claim for damages.
The jury awarded punitive damages of $95,000 and the court granted
additional equitable relief and attorney fees.
[1] Defendant first argues that the court erred in denying her
motion to dismiss because plaintiff's claims are barred by the
statute of limitations. We disagree.
The applicable statute of limitations for plaintiff's claim is
three years. N.C. Gen. Stat. § 1-52 (2001). For relief on the
ground of fraud or mistake; the cause of action shall not be deemed
to have accrued until the discovery by the aggrieved party of the
facts constituting the fraud or mistake. N.C. Gen. Stat. § 1-52
(9) (2001) (emphasis added); see also Neugent v. Beroth Oil Co.,
149 N.C. App. 38, 54, 560 S.E.2d 829, 839 (2002), cert. denied, 356
N.C. 675, 577 S.E.2d 628 (2003). Here, although the fraudulent
transactions occurred on 25 August 1995, plaintiff offered evidencethat she did not learn of them until she was served with the notice
of foreclosure on 18 November 1999. Plaintiff filed the instant
action on 18 July 2001. The jury specifically found that plaintiff
filed her claim before the statute of limitations expired.
[2] Defendant next argues that the court erred in exercising
in personam jurisdiction over her. Defendant contends that she was
served with process directed to another party to the action, and
therefore, the court never obtained jurisdiction over her. We
disagree.
Defendant contends that she was served with a summons actually
directed upon the registered agent for DLJ Mortgage Accepting
Corporation. However, the only return of service in the court's
file contained certification from the sheriff that Joyce King was
served 14 August 2001. The standard for proving nonservice in this
exact circumstance has been addressed by our Supreme Court:
When the return shows legal service by an
authorized officer, nothing else appearing,
the law presumes service. The service is
deemed established unless, upon motion in the
cause, the legal presumption is rebutted by
evidence upon which a finding of nonservice is
properly based. Upon hearing such motion, the
burden of proof is upon the party who seeks to
set aside the officer's return or the judgment
based thereon to establish nonservice as a
fact; and, notwithstanding positive evidence
of nonservice, the officer's return is
evidence upon which the court may base a
finding that service was made as shown by the
return.
Service of process, and the return thereof,
are serious matters; and the return of a sworn
authorized officer should not be lightly set
aside.
Therefore, this Court has consistently held
that an officer's return or a judgment based
thereon may not be set aside unless theevidence consists of more than a single
contradictory affidavit (the contradictory
testimony of one witness) and is clear and
unequivocal.
Harrington v. Rice, 245 N.C. 640, 642, 97 S.E.2d 239, 241 (1977)
(internal quotation marks and citations omitted).
Here, defendant requested a hearing on her motion to dismiss
based on an alleged insufficiency of process, which was filed with
her unverified answer. The court denied the motion on grounds that
defendant had failed to make an evidentiary showing or submit
affidavits in support of her allegation. Because defendant failed
to meet her burden of proof, the court's denial of her motion to
dismiss was proper.
[3] Defendant next argues that the court erred in awarding
punitive damages of $95,000. Defendant assigned error to [t]he
court's awarding punitive damages greater than the statutory limit
of three times actual damages. In her brief, however, defendant
argues that the court erred in awarding punitive damages for a
nominal trespass on a life estate. Because defendant failed to
argue her third assignment of error, we deem it abandoned. Because
defendant failed to assign error to the issue actually argued in
her brief, it is not properly before this Court. N.C.R. App.
10(a).
[4] Defendant next argues that the court erred in awarding
attorney fees pursuant to N.C. Gen. Stat. § 75-16.1 when the
plaintiff had elected to seek punitive damages and an equitable
remedy. For the reasons discussed below, we disagree.
Since [attorney fees and punitive damages] serve different
interests and are not based on the same conduct, there is no doubleredress for a single wrong, and plaintiff is not required to elect
between them to prevent duplicitous recovery. United Lab. v.
Kuykendall, 335 N.C. 183, 193, 437 S.E.2d 374, 380 (1993). In that
case, our Supreme Court discussed in detail the doctrine of
election as it applies to attorney fees and punitive damages:
One aspect of the doctrine of election of
remedies is that a plaintiff may not recover
inconsistent remedies. Remedies are
inconsistent when one must necessarily
repudiate or be repugnant to the other. Thus,
a party may not sue for rescission of a
contract and for its breach. Since recovering
attorneys fees and punitive damages is not
inconsistent, that aspect of the doctrine of
election of remedies that precludes
inconsistent remedies does not prevent
plaintiff from recovering both.
Another aspect of the doctrine of election of
remedies is to prevent double redress for a
single wrong. . . . To recover punitive
damages at common law a plaintiff must show
that the defendant acted in a willful or
oppressive manner. To recover attorneys fees
for unfair practices, however, the plaintiff
must also show that there was an unwarranted
refusal by [the defendant] to fully resolve
the matter which constitutes the basis of . .
. the suit. N.C.G.S. § 75-16.1(1). Since
recovery of attorneys fees requires proof
different from that which gives rise to
punitive damages, the claims do not arise from
the same course of conduct.
Furthermore, the policies behind recovering
attorneys fees and recovering punitive damages
are wholly different. Punitive damages are
designed to punish willful conduct and to
deter others from committing similar acts.
The purpose of attorneys fees in Chapter 75,
however, is to encourage private enforcement
of Chapter 75.
Id. at 191-92, 379-80. Here, plaintiff was properly awarded both
attorney fees and punitive damages based on the necessary findings
by the court and jury. Affirmed.
Judges GEER and THORNBURG concur.
*** Converted from WordPerfect ***