CHARLES DEXTER JOHNSON, Individually and in his capacity as a
shareholder of DEXTER SPORTS SUPPLEMENTS, INC. and POWERSTAR,
INC., Plaintiff, v. SAMUEL J. WORNOM, III; DEXTER SPORTS
SUPPLEMENTS, INC.; and POWERSTAR, INC. (as nominal corporate
defendants), Defendants
NO. COA04-356
Filed: 4 January 2005
1. Appeal and Error--appealability--interlocutory order--grant of partial summary
judgment--substantial right
The trial court's grant of partial summary judgment in favor of defendant individual is
immediately appealable even though it is an appeal from an interlocutory order, because: (1) a
substantial right is affected and the judgment is immediately appealable when a ruling on a
motion for summary judgment constitutes the final dismissal of a claim; and (2) plaintiff
individual's loan broker claim was dismissed with prejudice upon the trial court's grant of
summary judgment for defendant individual, and all other claims in the action have been
dismissed.
2. Brokers--loan broker_-failure to comply with statutory requirements--summary
judgment
A de novo review revealed that the trial court erred by granting partial summary
judgment in favor of defendant individual on plaintiff individual's claim that defendant acted as
a loan broker as defined by N.C.G.S. § 66-106 and that he failed to comply with the statutory
requirements governing loan brokers because viewed in the light most favorable plaintiff,
defendant failed to show that there is no genuine dispute that defendant did not act as a loan
broker given that defendant promised to, and did, procure a loan from a third party in return for
consideration.
Van Camp, Meacham & Newman, PLLC, by Thomas M. Van Camp, for
Plaintiff-Appellant.
Staton, Perkinson, Doster, Post & Silverman, by Jonathan
Silverman, for Defendant-Appellee.
WYNN, Judge.
Plaintiff Charles Dexter Johnson asserts that the trial court
erred in granting Defendant Samuel J. Wornom, III's motion for
partial summary judgment. Johnson contends that Wornom was a loan
broker as defined by North Carolina General Statute section 66-106
and failed to fulfill his loan broker obligations pursuant to North
Carolina General Statute sections 66-107 et seq. After careful
review, we reverse the trial court's order and remand for further
proceedings.
A brief procedural and factual history of the instant appeal
is as follows: Johnson is the founder of Dexter Sports
Supplements, Inc. and Powerstar, Inc., which sell sports and
nutritional dietary supplements. Wornom is, inter alia, the former
co-owner of convenience and/or variety stores, a land developer,
and a member of the board of directors of Capital Bank. Before
their business dealings, Johnson and Wornom knew one another from
their health club, Sanford Nautilus.
The records tends to show that in July 1998, Johnson sought a
loan line for Dexter Sports Supplements, Inc. and Powerstar, Inc.
from Capital Bank. But Capital Bank would not approve his loan,
suggesting instead that he consult with Wornom regarding financing.
Johnson soon thereafter approached Wornom at the Sanford Nautilus
and inquired into his interest in investing in Johnson'sbusinesses.
Wornom agreed to guarantee a Capital Bank loan of $82,000 for
Dexter Sports Supplements, Inc. and Powerstar, Inc. in exchange
for, inter alia, active involvement in managing the businesses and
an interest in the businesses and certain real estate. Ultimately,
Johnson defaulted on this loan, and Wornom, as guarantor, paid
Capital Bank over $84,000 to satisfy the debt. Nevertheless,
Wornom continued investing in Dexter Sports Supplements, Inc. and
Powerstar, Inc. through 2000, putting up approximately $250,000.
On 2 February 2001, Johnson filed an action alleging, inter
alia, that Wornom acted as a loan broker as defined by North
Carolina General Statute section 66-106 and that he failed to
comply with the statutory requirements governing loan brokers set
forth in North Carolina General Statute sections 66-107 et seq.
The parties moved for partial summary judgment. On 6 October 2003,
the trial court denied Johnson's motion for summary judgment and
granted Wornom's motion, finding that Wornom had not acted as a
loan broker and dismissing Johnson's loan broker claim with
prejudice. Johnson appealed the order, while both parties
voluntarily dismissed the other claims filed in the action.
*** Converted from WordPerfect ***