266 N.C. App. 353
N.C. Ct. App.2019Background
- The Nances owned the Heart of Albemarle Hotel property since 2012; police responded to complaints of criminal activity near the property many times between 2014–2017.
- On March 24, 2017 Albemarle's Chief of Police sent notice letters accusing the property of being used as a public nuisance; no notice letter was sent to defendant Charlene Smith.
- The City filed a civil public-nuisance complaint on August 4, 2017—after the hotel had closed in April 2017 and after the Nances say they had evicted patrons, fired Smith, and ceased operations.
- Smith moved to dismiss under Rule 12(b)(6); the Nances moved to dismiss under Rule 12(b)(1) arguing the City lacked authority to initiate the action because the city council never adopted a resolution authorizing the suit.
- The trial court granted Smith's dismissal for failure to state a claim and granted the Nances' dismissal for lack of subject-matter jurisdiction; the City appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Appeal of trial court order compelling discovery | City attempted to appeal the motion-to-compel order | Nances argued City did not brief the issue on appeal | Abandoned for failure to brief; trial court order is final |
| Sufficiency of complaint against Smith (12(b)(6)) | City sought injunctive abatement against Smith as a manager involved in the nuisance | Smith argued she was no longer employed or on the premises when suit was filed and thus cannot be subject to the requested relief | Dismissed—City failed to state a claim; Smith could not obtain the relief sought |
| Subject-matter jurisdiction / standing to bring nuisance action (12(b)(1)) | City argued public-nuisance actions can be brought by municipality and its retained outside counsel; council discussion and hiring outside counsel sufficed | Nances argued no city-council resolution or ordinance authorized filing; ordinances require council resolution to employ outside counsel to sue | Dismissed—City failed to prove council adopted required resolution; no standing and court lacked jurisdiction |
Key Cases Cited
- Leary v. N.C. Forest Prods., 157 N.C. App. 396, 580 S.E.2d 1 (N.C. Ct. App.) (de novo review on motion to dismiss)
- State Emps. Ass'n of N.C., Inc. v. N.C. Dep't of State Treasurer, 364 N.C. 205, 695 S.E.2d 91 (N.C.) (standard for Rule 12(b)(6) dismissal)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (standing burden and proof throughout litigation stages)
- Neuse River Found., Inc. v. Smithfield Foods, Inc., 155 N.C. App. 110, 574 S.E.2d 48 (N.C. Ct. App.) (standing burden)
- Fuller v. Easley, 145 N.C. App. 391, 553 S.E.2d 43 (N.C. Ct. App.) (standing and Rule 12(b)(1) motions)
- Peninsula Prop. Owners Ass'n, Inc. v. Crescent Res., LLC, 171 N.C. App. 89, 614 S.E.2d 351 (N.C. Ct. App.) (municipal authority to commence litigation requires proper council action)
- Town of Kenansville v. Summerlin, 70 N.C. App. 601, 320 S.E.2d 428 (N.C. Ct. App.) (municipality must follow its own ordinance procedures)
