King Fa, LLC v. Ming Xen Chen, 248 N.C. App. 221

In October 2013 Tse and Cheung (tenants) signed a commercial lease for restaurant premises; King Fa, LLC (LLC) was formed five days later and filed suit alleging Chen (landlord) breached the lease and the covenant of quiet enjoyment by failing to repair a leaking roof and by actions leading to a health-department closure.
The complaints were filed in Forsyth County District Court by the LLC, although the lease was signed by the tenants in their individual capacities and no written assignment of the lease to the LLC appears in the record.
Chen moved to dismiss for lack of standing by the LLC and later sought leave to amend/counterclaim for unpaid rent; the tenants/LLC sought substitution of the tenants if the LLC was not the real party in interest.
The trial court entered a final order (May 13, 2015) largely ruling against the tenants and finding they breached the lease, awarding Chen damages; the court later entered an amended findings order (Sept. 8, 2015).
The LLC filed a notice of appeal naming only King Fa, LLC as appellant; Chen also filed a notice of appeal. The Court of Appeals dismissed the appeal for lack of jurisdiction because the LLC was not a party aggrieved and the notice of appeal failed to name the actual aggrieved parties.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the LLC was a real party in interest and had standing to sue in trial court	LLC prosecuted the action and sought substitution if needed; tenants implicitly ratified the suit	LLC never signed the lease and thus lacks contractual rights; tenants are real parties	Trial court had subject-matter jurisdiction because tenants implicitly ratified the action and participated, but LLC was not the real party for lease rights
Whether the LLC is a party aggrieved and entitled to appeal	LLC named itself as plaintiff and appealed the orders	The LLC has no legally protected interest affected by the orders because it was not a party to the lease	LLC is not a party aggrieved; it lacks a right to appeal
Whether the notice of appeal satisfied Rule 3 by identifying the appealing party	Notice identified King Fa, LLC as appellant	Notice failed to name the actual aggrieved tenants	Notice was deficient; appellate court lacked jurisdiction
Appropriate disposition when notice of appeal is defective	LLC sought substitution after appeal filing	Chen argued dismissal is required for jurisdictional defect	Appeal dismissed for lack of jurisdiction; substitution motion denied

Teague v. Bayer AG, 195 N.C. App. 18, 671 S.E.2d 550 (discussing standing and jurisdictional principles)
Mangum v. Raleigh Bd. of Adjustment, 362 N.C. 640, 669 S.E.2d 279 (standing under state constitution)
Accelerated Framing, Inc. v. Eagle Ridge Builders, Inc., 207 N.C. App. 722, 701 S.E.2d 280 (parties who execute contract are real parties in interest)
Burcl v. N.C. Baptist Hosp., Inc., 306 N.C. 214, 293 S.E.2d 85 (Rule 17 ratification doctrine)
Bell Atl. Tricon Leasing Corp. v. DRR, Inc., 114 N.C. App. 771, 443 S.E.2d 374 (ratification may be implied by conduct)
Von Ramm v. Von Ramm, 99 N.C. App. 153, 392 S.E.2d 422 (notice of appeal defects deprive appellate jurisdiction)
Dogwood Dev. & Mgmt. Co., LLC v. White Oak Transp. Co., 362 N.C. 191, 657 S.E.2d 361 (jurisdictional default requires dismissal)
Crowell Constructors, Inc. v. State ex rel. Cobey, 328 N.C. 563, 402 S.E.2d 407 (Rule 3 notice requirements are mandatory)
Selective Ins. Co. v. Mid-Carolina Insulation Co., 126 N.C. App. 217, 484 S.E.2d 443 (definition of party aggrieved)