ELEANOR S. MACFADDEN,
PLAINTIFF
v
.
Craven County
No. 04 CVS 741
DOROTHEA S. LOUF, HOME
INSPECTION SERVICES OF
NEW BERN, INC., and
JOHN G. AUDILET,
DEFENDANTS.
Harvell and Collins, P.A., by Wesley A. Collins and Amy C.
Shea, for Plaintiff-appellant.
Harris, Creech, Ward and Blackerby, P.A., by Thomas M. Ward,
Charles E. Simpson, Jr., and Jay C. Salsman, for Defendant-
appellee.
WYNN, Judge.
This is a companion appeal to MacFadden v. Louf, ___ N.C. App.
___, ____ S.E.2d. __ (April 17, 2007)(No. 06-647). In that decision,
we addressed the issues arising from an action by home buyer,
Eleanor MacFadden (Plaintiff), against the home seller, Dorothea
S. Louf (Defendant), for alleged undisclosed defects in the
property. After careful review of the record, we upheld the trial
court summary judgment against Plaintiff's claims of unfair and
deceptive trade practices, fraud and negligent misrepresentation.
This appeal arises from the trial court's determination thatDefendant Louf's Motion for Summary Judgment on Counterclaim should
be and is GRANTED and Motion for Sanctions is GRANTED. The trial
court made findings of fact and concluded that,
4. Pursuant to N.C.G.S. § 75-16.1, this Court
has the discretionary authority to allow a
reasonable attorney fee for the attorneys
representing Defendant Louf as Plaintiff
MacFadden instituted an action for unfair and
deceptive trade practices pursuant to N.C.G.S.
§ 75-1.1 when Plaintiff MacFadden knew or
should have known the action was frivolous and
malicious.
5. Plaintiff MacFadden knew or should have
known as a matter of law that Defendant Louf
was selling her residence and therefore not
subject to the provisions of North Carolina's
Unfair and Deceptive Trade Practices Act at the
time Plaintiff MacFadden filed her Complaint.
Accordingly, the trial court, after considering evidence that
Defendant incurred attorney fees in the amount of $32,822.75,
ordered Plaintiff to pay counsel for Defendant a sanction of
$7,500.00.
Plaintiff appeals contending that the trial court erred by (I)
finding that her claim for unfair and deceptive trade practices were
frivolous and malicious; and (II) granting Ms. Louf's motion for
sanctions and awarding attorney's fees.
It is well established in North Carolina that
. . .private homeowners selling their private
residences are not subject to unfair and
deceptive practice liability. Davis v.
Sellers, 115 N.C. App. 1, 7, 443 S.E.2d 879,
883 (1994); see also
Stolfo v. Kernodle, 118
N.C. App. 580, 455 S.E.2d 869 (1995);
Robertson
v. Boyd, 88 N.C. App. 437, 363 S.E.2d 672
(1988); Rosenthal v. Perkins, 42 N.C. App. 449,
257 S.E.2d 63 (1979). Here, the undisputed
evidence shows that the house sold to Plaintiff
was Defendant's private residence.
The record on appeal shows that Ms. MacFadden knew that the
home was Defendant's private residence because she lived with
Defendant from approximately 25 August 2002 until the home closed
on approximately 16 September 2002. Moreover, Plaintiff presented
no evidence to support her contention that Ms. Louf was in the
business of buying and fixing houses as a commercial business or
realtor. Under Plaintiff's reasoning, vast number of home sellers
would be subject to the application of the unfair and deceptive
trade practices statute. We do not believe the trial court abused
its discretion in determining that Plaintiff did not pose a good
faith argument for the extension of existing law. Accordingly, we
reject this assignment of error.
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