C. WAYNE McDONALD
CONTRACTOR, INC., a North
Carolina Corporation,
Plaintiff-Appellee,
v
.
Davidson County
No. 02 CVS 3158
ALEXANDER M. GENDELMAN,
Individually, and CENTURY
TEXTILE MFG., INC., a
North Carolina Corporation,
Defendants-Appellants.
Law Offices of J. Calvin Cunningham, by J. Calvin Cunningham
and Nicholas D. Wilson, for Plaintiff-Appellee.
Biesecker, Tripp, Sink & Fritts, L.L.P., by Joe E. Biesecker
and Christopher A. Raines, for Defendants-Appellants.
McGEE, Judge.
C. Wayne McDonald Contractor, Inc. (Plaintiff) filed a
complaint in District Court on 31 October 2002 against Alexander M.
Gendelman (Mr. Gendelman) and Century Textile Mfg., Inc. (Century
Textile) (collectively Defendants), alleging claims for trespass.
Plaintiff alleged the following: Plaintiff contracted to sell real
estate (the building) to Mr. Gendelman and, as provided by the
contract, Plaintiff delivered possession of the building to Mr.
Gendelman prior to the closing date. On the date set for closing,Plaintiff demanded that Mr. Gendelman close on the purchase of the
building. However, Mr. Gendelman failed to close, and Plaintiff
alleged that this failure amounted to a breach of the contract.
Mr. Gendelman subsequently forwarded to Plaintiff a rejection of
the building. Plaintiff further alleged in its complaint that Mr.
Gendelman "caused to be moved into [the building] a corporation
named Century Textile" and that Defendants refused to close on the
purchase of the building, or to move Century Textile from the
building.
Plaintiff filed an amendment to its complaint on 5 November
2002, adding claims for breach of contract, unfair and deceptive
trade practices, and a de facto materialman's lien. Mr. Gendelman
filed a verified motion for a temporary restraining order on 7
November 2002, seeking access to the building to remove personal
property belonging to Century Textile. The District Court entered
a preliminary injunction order on 13 November 2002, ordering that
Plaintiff allow Mr. Gendelman to enter the building to remove the
personal property of Century Textile.
Defendants filed motions, an answer, and counterclaims in
District Court on 6 January 2003, including a motion to transfer
the matter to Superior Court and a motion to dismiss Plaintiff's
complaint. Defendants answered Plaintiff's allegations and brought
counterclaims for conversion, breach of contract, and unfair and
deceptive trade practices. Plaintiff filed a reply to Defendants'
counterclaims on 7 March 2003. The District Court entered an order
transferring the matter to the Superior Court on 20 August 2003. Plaintiff filed a motion on 2 December 2005 for partial
summary judgment as to Defendants' damages claim for lost sales and
profits. Plaintiff alleged that "[t]he parties [had] engaged in
substantial discovery, and throughout the discovery process,
. . . Defendants [had] produced no documentary evidence of lost
sales or profits."
Mr. Gendelman filed an affidavit on 9 January 2006 in which he
stated that, as a result of being evicted from the building by
Plaintiff, he lost a contract for the sale of fabric. Mr.
Gendelman alleged that he lost between $70,000.00 and $80,000.00 in
profits, along with the cost of the fabric. The record on appeal
also contains an affidavit of Ronald Watford, who stated that he
worked for Mr. Gendelman and detailed some of the damages allegedly
suffered by Defendants.
Plaintiff filed a second motion on 6 February 2006 for partial
summary judgment as to Defendants' damages claim for a replacement
building. Plaintiff alleged that "[t]he parties [had] engaged in
substantial discovery, and throughout the discovery process,
. . . Defendants [had] produced no documentary evidence of
expending any 'time and/or money to find a replacement building.'"
Plaintiff filed a third motion on 16 February 2006 for partial
summary judgment on Defendants' damages claim for incremental costs
of doing business. Plaintiff alleged that "[t]he parties [had]
engaged in substantial discovery, and throughout the discovery
process, . . . Defendants [had] produced no documentary evidence of
'incremental costs of doing business.'" Plaintiff also filed a fourth motion on 16 February 2006 for
partial summary judgment on Defendants' claim of damages resulting
from the transfer of property to a new building. Plaintiff alleged
that "[t]he parties [had] engaged in substantial discovery, and
throughout the discovery process, . . . Defendants [had] produced
no documentary evidence of damages for 'transferring property to a
new building' or 'incurring substantial expense in hiring trucking
companies.'"
Plaintiff filed a motion on 18 May 2006 seeking to strike
portions of the affidavit testimony of Mr. Gendelman and Ronald
Watford. Plaintiff argued that all of the statements in Mr.
Gendelman's affidavit were unsworn and uncertified. Plaintiff
argued that a substantial number of the statements in Ronald
Watford's affidavit were not based upon personal knowledge.
Plaintiff further argued that Ronald Watford's affidavit made
numerous conclusions. The Superior Court entered an order on 5
June 2006 granting Plaintiff's motion to strike the affidavit
testimony "as to those portions of the Affidavit of Ronald Watford
which are (i) not based upon his personal knowledge, (ii) hearsay,
and (iii) conclusionary, and all un-sworn and uncertified
Affidavits of Alexander Gendelman in their entirety." The Superior
Court entered an order on 26 June 2006 granting Plaintiff's motions
for partial summary judgment as to Defendants' damages claims for
costs to transfer property to a new building, and for the
incremental costs of doing business. In the same order, the
Superior Court denied Plaintiff's motions for partial summaryjudgment as to Defendants' damages claims for lost profits and
sales, and costs for a replacement building. Defendants appeal.
A judgment entered during the pendency of a case which does
not dispose of the case in its entirety is an interlocutory
judgment. Sharpe v. Worland, 351 N.C. 159, 161, 522 S.E.2d 577,
578 (1999). As a general rule, interlocutory judgments are not
immediately appealable. Id. However, immediate review of an
interlocutory judgment is available in two limited circumstances:
(1) where the trial court certifies, pursuant to N.C. Gen. Stat. §
1A-1, Rule 54(b), that there is no just reason for delay of an
appeal from a final judgment as to one or more, but not all, of the
claims; and (2) where the interlocutory judgment affects a
substantial right in accordance with N.C. Gen. Stat. § 1-277(a).
Sharpe, 351 N.C. at 161-62, 522 S.E.2d at 579.
In the present case, Defendants attempt to appeal an order
granting partial summary judgment to Plaintiff and an order
striking certain affidavit testimony. Because these orders do not
dispose of the case in its entirety, they are interlocutory. See
Giles v. First Virginia Credit Servs., Inc., 149 N.C. App. 89, 94,
560 S.E.2d 557, 561 (quoting Liggett Group v. Sunas, 113 N.C. App.
19, 23, 437 S.E.2d 674, 677 (1993)), disc. review denied, 355 N.C.
491, 563 S.E.2d 568 (2002) (recognizing that "'[a] grant of partial
summary judgment, because it does not completely dispose of the
case, is an interlocutory order from which there is ordinarily no
right of appeal.'"); see also Bank v. Olive, 42 N.C. App. 574, 576,
257 S.E.2d 100, 101 (1979) (dismissing, as interlocutory and notaffecting a substantial right, an appeal from various discovery
orders, including an order granting a motion to strike
interrogatories).
In the present case, the Superior Court did not certify this
matter for immediate appeal. Therefore, Defendants argue that the
interlocutory orders affect Defendants' substantial right to avoid
the possibility of two trials on the same factual issues. An
appellant bears the burden of demonstrating that an order will
adversely affect a substantial right. Jeffreys v. Raleigh Oaks
Joint Venture, 115 N.C. App. 377, 379, 444 S.E.2d 252, 253 (1994).
In the present case, Defendants argue in their "Statement of
Grounds for Appellate Authority" that they "face[] the possibility
of multiple trials on the same factual issues if this appeal is not
permitted now." Specifically, Defendants argue that "[their]
claims for expenses in finding a replacement building, the costs of
transferring property to a new building[,] and the incremental
costs of doing business are essentially relocation expenses
incurred by [Mr.] Gendelman and are consequential damages arising
from the breach of contract by [P]laintiff." Defendants further
argue that "[t]he prospect of multiple trials raises the
possibility that one jury will conclude that some of these
relocation expenses were in the reasonable contemplation of the
parties, while another jury could conclude that they were not."
Defendants have failed to meet their burden to demonstrate
how, were we to dismiss this appeal as interlocutory, they would
face the possibility of multiple trials on the same factual issues. While the Superior Court granted partial summary judgment to
Plaintiff on Defendants' damages claims for costs to transfer
property to a new building, and incremental costs, the Superior
Court denied summary judgment as to Defendants' damages claims for
lost profits and sales, and costs for a replacement building. The
damages claims that remain raise different factual issues than the
damages claims on which the Superior Court granted summary
judgment. Therefore, we see no possibility of inconsistent
verdicts. Accordingly, we dismiss this appeal.
Dismissed.
Judges LEVINSON and JACKSON concur.
Report per Rule 30(e).
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