Appeal by plaintiff from an order entered 30 August 2005 by
Judge Henry W. Hight, Jr. in Durham County Superior Court. Heard
in the Court of Appeals 16 August 2006.
Moore & Van Allen PLLC, by Edward L. Embree and Catherine
Crowell Pavur, for plaintiff-appellant.
Hedrick Murray & Cheek PLLC, by Josiah S. Murray, III, for
defendant-appellee Karen Leigh Virgin.
Lewis, Anderson, Phillips, Greene & Hinkle, PLLC, by J.
Dickson Phillips, III, for defendant-appellees Edrya Ruth and
Donald Ruth.
BRYANT, Judge.
Herbert W. Virgin (Dr. Virgin), acting as guardian of the
estate of Jean Elder Anlyan (Ms. Anlyan), appeals from an order
entered 30 August 2005, granting the motions to dismiss of both
Karen Leigh Virgin (Ms. Virgin) and Edrya and Donald Ruth (the
Ruths) pursuant to Rule 12(b)(1) of the North Carolina Rules of
Civil Procedure and additionally holding plaintiff's motion to
amend his complaint as moot. After review of the record beforethis Court, the order of the trial court is affirmed in part and
reversed in part.
Facts
Jean Elder Anlyan is over seventy years old, having been born
on 21 September 1935; plaintiff Herbert Virgin and defendant Karen
Virgin are her son and daughter. Until approximately August 2004,
Ms. Anlyan lived in a house that she owned in Durham, North
Carolina. Her only residence away from Durham was her vacation
home in Beech Mountain, North Carolina, which she owned. Since 27
May 1998, Ms. Anlyan also owned a house and lot located at 3638 St.
Gauden's Road, Miami, Florida (the Florida Property). Ms. Virgin
has resided with her mother for extended periods in her life,
including the spring and summer of 2004. Ms. Virgin has also lived
on the Florida Property at various times since its purchase. Ms.
Anlyan furnished substantial funds to Ms. Virgin to remodel the
Florida Property, and has refinanced the mortgage on the property
four times between 1998 and 2003 in order to obtain additional
remodeling funds.
In 2002, Ms. Anlyan was diagnosed as suffering from a mild
form of dementia resulting in cognitive impairment which was
progressive and irreversible. Dr. Virgin initiated an incompetency
proceeding involving Ms. Anlyan in Durham County on 12 July 2004,
and a guardian ad litem was appointed to represent her interests.
An initial hearing on Ms. Anlyan's incompetency was held on 26
August 2004 before the Durham County Clerk of Court, at which Ms.
Virgin, and the Ruths were present. On 31 August 2004, the Durham County Clerk of Court entered an
order finding that Ms. Anlyan was likely incompetent and in need of
guardianship. The Clerk appointed Dr. Virgin and Ms. Anlyan's
brother as interim guardians of her person and appointed Dr. Virgin
as interim guardian of her estate. Dr. Virgin had previously been
appointed Ms. Anlyan's attorney in fact in a power of attorney
dated 24 June 1998, and recorded with the Durham County Register of
Deeds on 7 July 1998.
The final incompetency hearing was held on 12 January 2005.
Ms. Virgin appeared at that hearing and testified. Following the
close of the evidence, the Clerk stated his finding that Ms. Anlyan
had been incompetent as of 12 July 2004 and at all times since
then, and subsequently entered an order containing these terms.
Immediately following the 12 January 2005 hearing, Dr. Virgin
learned for the first time of a deed that Ms. Anlyan had signed on
25 August 2004 (the Deed). The Deed transferred an interest in the
Florida Property to Ms. Virgin for and in consideration of the sum
of TEN DOLLARS and other good and valuable considerations [sic] to
the grantor . . . . The Deed was prepared by Ms. Ruth, witnessed
by the Ruths and signed by Ms. Anlyan before a Durham County
notary. The Deed was subsequently recorded in Miami-Dade County,
Florida on 30 September 2004. When Ms. Virgin took Ms. Anlyan to
have the Deed notarized, Ms. Virgin told the notary that they
needed the deed signed urgently because Ms. Anlyan was scheduled to
enter the hospital the next day for possible surgery.
Procedural History
Plaintiff filed his Complaint in this action on 3 February
2005, seeking the following relief: (1) an order to set aside the
challenged deed; (2) damages equal to the value of the transferred
property; (3) damages for fraud; (4) reimbursement for expenses and
attorney fees; (5) interest on the value of the transferred
property; (6) a restraining order preventing contact between
defendants and Ms. Anlyan and preventing defendants from
interfering with the actions of Ms. Anlyan's general guardian; (7)
an accounting for the use of the funds entrusted to defendant-
Virgin; (8) damages for unfair and deceptive trade practices; and
(9) a temporary restraining order and preliminary injunction
limiting further unsupervised contact between defendants and Ms.
Anlyan. On 19 April 2005, defendant-Virgin filed an Answer
incorporating motions to dismiss pursuant to Rules 12(b)(1),
12(b)(2) and 12(b)(6) of the North Carolina Rules of Civil
Procedure. On 19 April 2005, the Ruths filed a Motion to Dismiss
pursuant to Rules 9(b), 12(b)(1), 12(b)(2), 12(b)(6), and for
failure to allege justiciable claims. On 3 August 2005, plaintiff
filed a motion to amend his complaint to modify the claims raised
in the original complaint, to add additional claims based on the
same conduct, and to modify the relief sought.
Defendants' motions to dismiss and plaintiff's motion to amend
his complaint were heard on 11 August 2005, in Durham County
Superior Court before the Honorable Henry W. Hight, Jr. The trial
court subsequently entered an order on 30 August 2005, granting
defendants' motions to dismiss pursuant to Rule 12(b)(1) of theNorth Carolina Rules of Civil Procedure and holding plaintiff's
motion to amend his complaint as moot. Plaintiff appeals.
_________________________
Plaintiff raises the issues of whether the trial court erred
in: (I) granting defendants' motions to dismiss for lack of
subject matter jurisdiction pursuant to Rule 12(b)(1); (II)
granting defendants' motions to dismiss for lack of personal
jurisdiction pursuant to Rule 12(b)(2); (III) granting defendants'
motions pursuant to Rule 12(b)(6) for failure to state a claim upon
which relief can be granted; (IV) granting the Ruths' motion to
dismiss pursuant to Rule 9(b) for failure to allege fraud with
particularity; (V) granting the Ruths' motion to dismiss for
failure to allege justiciable claims; and (VI) denying plaintiff's
motion to amend complaint pursuant to Rule 15. For the reasons
below, we affirm in part and reverse and remand in part the order
of the trial court.
I
Plaintiff first argues the trial court erred in granting
defendants' motions to dismiss for lack of subject matter
jurisdiction. Subject matter jurisdiction refers to the power of
the court to deal with the kind of action in question[, and] . . .
is conferred upon the courts by either the North Carolina
Constitution or by statute.
Harris v. Pembaur, 84 N.C. App. 666,
667, 353 S.E.2d 673, 675 (1987) (citation omitted). Unless our
Legislature has specifically placed jurisdiction elsewhere, subject
matter jurisdiction over civil actions generally rests in the trialcourts of this state. N.C. Const. art. IV, § 12(3) (Except as
otherwise provided by the General Assembly, the Superior Court
shall have original general jurisdiction throughout the State.);
N.C. Gen. Stat. § 7A-240 (2005) ([O]riginal general jurisdiction
of all justiciable matters of a civil nature cognizable in the
General Court of Justice is vested in the aggregate in the superior
court division and the district court division . . . .). The
appellate court reviews
de novo an order of the trial court
allowing a motion to dismiss for lack of subject matter
jurisdiction, but the trial court's findings of fact are binding on
appeal if supported by competent evidence.
Cooke v. Faulkner, 137
N.C. App. 755, 757, 529 S.E.2d 512, 513-14 (2000) (citation
omitted). We review whether the trial court has subject matter
jurisdiction to hear each of plaintiff's claims in turn below.
Setting Aside the Deed Due to Undue Influence
Plaintiff first claims Ms. Anlyan is entitled to an order to
set aside the challenged deed granting Ms. Virgin a one-half
interest in the Florida Property as tenants in common with Ms.
Anlyan. Our Supreme Court has held that where the jurisdiction
acquired over the parties is only
in personam, the judgment of a
trial court cannot have any extraterritorial force
in rem.
McRary
v. McRary, 228 N.C. 714, 718, 47 S.E.2d 27, 30 (1948).
See also
Noble v. Pittman, 241 N.C. 601, 605, 86 S.E.2d 89, 91 (1955)
(holding a Michigan trial court was without power to enter any
decree affecting title to land in North Carolina and to the extent
the decree attempted to do so, it is void);
Green v. Wilson, 163N.C. App. 186, 189, 592 S.E.2d 579, 581, (holding North Carolina
courts alone have
in rem jurisdiction to determine title disputes
over property situated within North Carolina)
disc. review
improvidently allowed, 359 N.C. 186, 606 S.E.2d 117 (2004). Here,
plaintiff is asking the trial court to enter an order affecting
title to real property located in Florida, which the trial court is
without power to do. Thus the trial court properly found it did
not have subject matter jurisdiction over this claim.
Monetary Damages Arising from the Challenged Transfer
Plaintiff next argues that, due to the invalidity of the
disputed deed, Ms. Anlyan is entitled to: damages equal to the
value of the transferred property; damages for fraud; reimbursement
for expenses and attorney fees; and interest on the value of the
transferred property. Each of these civil claims does not operate
directly on the property or affect its title, but are for monetary
damages allegedly arising out of the actions of defendants. Our
Supreme Court has held that [t]he superior courts have 'general
jurisdiction of all justiciable matters of a civil nature' whose
jurisdiction is not specifically placed elsewhere.
Simeon v.
Hardin, 339 N.C. 358, 368, 451 S.E.2d 858, 865 (1994) (quoting N.C.
Gen. Stat. § 7A-240 (1989)). Thus the trial court erred in finding
it lacked subject matter jurisdiction over plaintiff's claims for
monetary damages arising out of the allegedly invalid deed.
Restraining Orders
Plaintiff also claims the trial court should enter a
restraining order preventing contact between defendants and Ms.Anlyan and preventing defendants from interfering with the actions
of Ms. Anlyan's general guardian, and a temporary restraining order
and preliminary injunction limiting further unsupervised contact
between defendants and Ms. Anlyan. Defendants argue the terms and
provisions of N.C. Gen. Stat. § 1-301.2(g)(1) and N.C. Gen. Stat.
§ 35A-1207(a) vest the exclusive jurisdiction to hear these claims
in the Office of Durham County Clerk of Superior Court. However,
[a]ll judges of the superior court . . . have jurisdiction to
grant injunctions and issue restraining orders in all civil actions
and proceedings pending in their respective divisions. N.C. Gen.
Stat. § 1-493 (2005). Here, plaintiff has a pending civil action
seeking,
inter alia, damages resulting from contact between
defendants and Ms. Anlyan. Thus the trial court erred in finding
it lacked subject matter jurisdiction over plaintiff's requests for
injunctions and restraining orders against defendants.
Accounting of Funds
Plaintiff next claims the trial court should order an
accounting for the use of the funds entrusted to Ms. Virgin for the
remodeling of the Florida Property and award damages for any loss
of those funds. This Court has previously held that the Superior
Courts of this state have subject matter jurisdiction over civil
actions in the nature of an account.
Balcon, Inc. v. Sadler, 36
N.C. App. 322, 324, 244 S.E.2d 164, 165-66 (1978). Thus the trial
court erred in finding it lacked subject matter jurisdiction over
plaintiff's claim for an accounting of funds given to Ms. Virgin
purportedly for the remodeling of the Florida Property.
Unfair and Deceptive Trade Practices
Plaintiff lastly claims the trial court should award Ms.
Anlyan damages for defendants' unfair and deceptive trade practices
pursuant to N.C. Gen. Stat. § 75-1.1. Article I of Chapter 75 of
the North Carolina General Statutes provides that it is unlawful to
engage in unfair or deceptive acts or practices in or affecting
commerce and grants a person injured by such acts or practices a
right of action. N.C. Gen. Stat. §§ 75-1.1, 16 (2005). As this
statute focuses on the acts of the parties involved and provides
money damages for any injuries sustained, this claim is within the
subject matter jurisdiction of the trial court. Thus the trial
court erred in finding it lacked subject matter jurisdiction over
plaintiff's claim for damages resulting from defendants' unfair and
deceptive trade practices.
Conclusion - Issue I
The trial court did not err in concluding it could not
exercise subject matter jurisdiction over plaintiff's claim that
Ms. Anlyan is entitled to an order to set aside the challenged
deed. However, as the remainder of plaintiff's claims do not
require the trial court to enter a decree affecting title to the
Florida Property, they cannot be dismissed on the same grounds. As
discussed above, the trial court does have subject matter
jurisdiction over plaintiff's remaining claims and it erred in
dismissing plaintiff's entire civil action.
II - V
Plaintiff also raises the issues of whether the trial court
erred in: granting defendants' motions to dismiss for lack of
personal jurisdiction over defendants pursuant to Rule 12(b)(2);
granting defendants' motions to dismiss for failure to state a
claim upon which relief can be granted pursuant to Rule 12(b)(6);
granting defendant Edrya and Donald Ruths' motion to dismiss
pursuant to Rule 9(b); and for failure to allege justiciable
claims. However, the Order and Judgment of the trial court did not
grant defendants' motions to dismiss on any of these grounds, but
rather only pursuant to Rule 12(b)(1) after finding it lacked
subject matter jurisdiction over plaintiff's claims.
In order to preserve a question for appellate review, the
complaining party must obtain a ruling upon the request, objection
or motion at issue. N.C. R. App. P. 10(b)(1). As plaintiff has
not obtained a ruling from the trial court on defendants' motions
to dismiss pursuant to Rule 9(b), 12(b)(2), 12(b)(6), or for a
failure to allege justiciable claims, these arguments are not
properly before this Court.
Childs v. Johnson, 155 N.C. App. 381,
390, 573 S.E.2d 662, 668 (2002) (If a party desires for this Court
to review a decision by a trial court, it is the responsibility of
that party to obtain a ruling from the trial court for this court
to review.);
see also Purvis v. Moses H. Cone Mem'l Hosp. Serv.
Corp., __ N.C. App. __, __, 624 S.E.2d 380, 386-87 (2006) (where
this Court refused to address the merits of the plaintiffs'
substitution motion because the trial court entered no ruling on
that motion). These assignments of error are overruled.
VI
Plaintiff lastly argues the trial court erred in holding
plaintiff's motion to amend his complaint as moot once it granted
defendant's motions to dismiss. We have held it was error for the
trial court to dismiss plaintiff's entire civil action pursuant to
Rule 12(b)(1) of the North Carolina Rules of Civil Procedure, see
Issue I,
supra. Thus it was error for the trial court to hold
plaintiff's motion to amend his complaint as moot based on the
trial court's finding it lacked subject matter jurisdiction over
all of plaintiff's claims. Upon remand for the trial court's
reconsideration of plaintiff's remaining claims, the trial court
shall also rehear plaintiff's motion to amend his complaint.
Affirmed in part, reversed and remanded in part.
Judges McGEE and ELMORE concur.
Report per Rule 30(e).
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