JPMorgan Chase Bank, National Ass'n v. Browning
230 N.C. App. 537
| N.C. Ct. App. | 2013Background
- Plaintiff JPMorgan Chase seeks to quiet title and unjust enrichment against Defendants over Peachtree Street property.
- Defendants hold a life estate and later conveyed one-third interests; Father held one-third with Defendants as heirs.
- Second Note and Second Deed of Trust were executed in 2005 but Defendants did not sign them; closing was handled by Gordon Lending with limited title examination.
- Funds from the Second Note were used to satisfy the First Deed of Trust; no signatures from Defendants on the Second Deed of Trust or loan termination authorization.
- Administrator notified Washington Mutual that Defendants owned one-third interests and that the Second Deed of Trust encumbered only that share; concerns about attorney involvement were raised.
- Trial court granted summary judgment for Defendants on unjust enrichment and denied Plaintiff’s motion to amend; on appeal, only these issues are contested.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Unjust enrichment elements | JPMorgan asserts a benefit was conferred and is measurable and non-gratuitous. | Defendants did not induce or solicit the action; enrichment was officious or gratuitous. | Summary judgment upheld; no inducement shown; enrichment not unjust. |
| Leave to amend pleadings | Amendment should be allowed to present new equitable theories. | Amendment would be futile and unduly delayed; lacks new evidence of solicitation/inducement. | Affirmed denial of leave to amend; amendment would be futile. |
Key Cases Cited
- Homeq v. Watkins, 154 N.C. App. 731 (2002) (unsolicited payment of a deed of trust alone does not support unjust enrichment)
- Wright v. Wright, 305 N.C. 345 (1982) (beneficiary must have solicited or induced action for unjust enrichment)
- Rhyne v. Sheppard, 224 N.C. 734 (1944) (solicitation or inducement is required for unjust enrichment claims)
- Collins v. Davis, 68 N.C. App. 588 (1984) (elements of unjust enrichment; misused or gratuitous benefits do not create liability)
- Norman v. Nash Johnson & Sons’ Farms, Inc., 140 N.C. App. 390 (2000) (plaintiff must allege benefits conferred under a legal/equitable obligation)
- Dobson v. Harris, 352 N.C. 77 (2000) (summary judgment standard and burden on proponent of motion)