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Eastway Wrecker Service, Inc. v. City of Charlotte
599 S.E.2d 410
N.C. Ct. App.
2004
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*1 IN THE COURT OF APPEALS SERV., CITY OF CHARLOTTE (2004)]

[165 harmless, harmless). and, We that the error was not as a conclude result, prejudicial disputed the admission of the evidence constituted error trial. requiring a new

New trial. Judge

Chief MARTINand Judge BRYANTconcur. SERVICE, INC., Plaintiff-Appellant CHARLOTTE, EASTWAYWRECKER v. CITY OF Defendant-Appellee

No. COA03-399 (Filed August 2004) 1. Civil state a Procedure— failure claim — consideration complaint’s summary transformed exhibits — not into

judgment summary

A Rule motion was not transformed into a judgment consideration exhibits to the expressly incorporated by which were reference. Quantum government

2. Meruit— contract — court quantum

The trial did not err a meruit against claim for failure to a claim aris- Charlotte state ing provision from the trial towing Although services. by dismissing precluded ground erred by express the claim on the that it was plaintiff had

contract where contract (plaintiff’s ruling was invalid claims are taken as when on a true motion), appropriate Rule 12(b)(6) the dismissal was still sovereign immunity because bars meruit claims Any suggestion prior sovereign immunity the State. cases that arising bars from vires con- claims ultra tracts overruled. has been

3. Fraud— to state —failure negligent misrepresentation against A claim for towing Charlotte for failure dismissed where it was denied allege state did IN THE COURT OF APPEALS OF WRECKER INC. v. CITY CHARLOTTE EASTWAY *2 have learned the investigate or that it could not Moreover, by diligence. estab- facts reasonable by employ- any by plaintiff representations reliance lishes City unjustified. Manager was other than the ees dissenting. Judge McGee by January by Judge

Appeal plaintiff from order entered 6 County. Superior Court, Mecklenburg Diaz Heard Albert Appeals January 2004. Court of Odom, Firm, P.L.L.C., by and Odom T. LaFontine Sr.

The Odom, Jr., plaintiff-appellant. L. Thomas for City Attorney City Attorney's Office, by Senior Assistant White, defendant-appellee. Cynthia for GEER, Judge.

n appeals Eastway Service, (“Eastway”) from Plaintiff Wrecker Inc. of Charlotte an order claims defendant misrepresentation. quantum negligent We hold based on quantum meruit cause of action barred misrepresentation negligent while cause of action failed We, necessary for to include all the to state claim relief. therefore, affirm.

Factual Background agreement providing into with defendant Plaintiff entered tow, dispose vehicles, as plaintiff store, and motor would specified area police, geographical directed for a known annually $2,000.00 pay was to defendant for the Zone C. Plaintiff specifications and right agreed Zone C and to various to service documentation, hours, and facil- regarding storage service conditions rendered and the sale of ities, as well as a fee schedule services unclaimed motor vehicles. August 2002, complaint filed 28 2002 and amended in

In a March plaintiff agreement failing to alleged that breached the defendant pay provided agreement. In its plaintiff for services under complaint, added alternative claims for dam- amended supplied; (2) for ages in meruit for labor and materials with the defendant connection faith fair agreement; good breach of the covenant of IN THE OF COURT APPEALS v. CITY OF CHARLOTTE dealing. Defendant filed a motion to dismiss the alternative claims pursuant 12(b)(6). hearing, to Rule Following the trial court entered January an order on granting defendant’s dismiss as plaintiffs misrepresentation meruit and claims, denying but it as implied to the claim for breach good covenant of faith dealing. plaintiffs and fair As result, claims for breach of implied contract and breach of the good covenant of faith dealing and fair remain pending. appeals Plaintiff from the 6 January 2003 order.

Discussion *3 Because the trial granting court’s order defendant’s motion to dispose plaintiff’s dismiss did not of all defendant, claims against interlocutory. Corp. the order is DKH v. Rankin-Patterson Oil Co., 583, 584, 666, 348 N.C. court, 500 S.E.2d 667 (1998).The trial how- ever, included a plaintiff’s certification that the dismissal of claims for meruit and was a “final dispositive judgment[] and as to these claims is no and there reason delay to appeal.” multiple parties an In an multiple action with or claims, provides 54(b) “if the trial court enters a final judgment party just as to a or a claim certifies no there is reason delay, judgment immediately appealable.” for the Id. at 500 agree S.E.2d at with 668. We the trial court that the dismissal order properly and, therefore, was 54(b) certified under Rule address the plaintiff’s appeal. merits of

[1] To determine if a complaint is sufficient to withstand a Rule 12(b)(6) dismiss, motion to the trial court must “ascertain ‘whether, law, complaint, as a matter treated true, upon as are sufficient to state a claim relief which ” granted legal theory.’ Community under some Plummer v. Gen. Hosp. Thomasville, Inc., 155 N.C. 598 Shell (quoting Tomlinson, Island Homeowners Ass’n v. 217, 225, 134 App. N.C. 517 (1999)), S.E.2d disc. review (2003). matter, 357 N.C. 579 S.E.2d 392 As an initial we address the dissent’s conclusion that the trial court mat considered ters pleadings, thereby outside the converting the motion to dismiss summary into “If, a motion judgment 12(b): for under Rule on a asserting (6), the defense numbered dismiss failure of the pleading granted, to state a claim which relief can be mat ters pleading presented outside the are to and not excluded court, summary judgment the motion shall be treated one for as OF APPEALS IN THE COURT CHARLOTTE CITY OF parties given all shall be rea- provided in Rule

disposed of as pertinent to such present all material made sonable 56.” motion Rule record, carefully appears it that the doc- reviewing

After were trial court in pleadings than before the uments other plaintiff’s exhibits to to dismiss were the connection with motion expressly complaint complaint. to the were Since the exhibits the incorporated complaint, they were con- reference part plead- with the motion dismiss sidered connection Slavin, 52, 60-61, Capital, L.P. v. ings. See Oberlin subject agreement is loan (2001) (“Here, S.E.2d complaint. specifically referred to in the [plaintiffs] and is reviewing agreement Therefore, did not err loan the trial court motions.”). ruling the Rule when Quantum, Meruit [2] Plaintiff first contends trial court erred in recovery grounds meruit on the alternative claim for express recovery by the an precluded existence of that such was express While it is true that an con parties. between the Whitfield, quantum meruit, L. P.A. precludes recovery in Paul tract Gilchrist, express presence improper for the trial court assume *4 Rule North Rules 8(a)(2) in case. Carolina contract this Under forms of Procedure, is entitled seek alternative of Civil 1A-1, 8(a)(2) (2003) (“Relief alter relief. N.C. Gen. Stat. Rule § may Here, plain types demanded.”). be different native or several quantum in meruit does not claim for relief tiff’s alternative parties’ exists, contract is but rather that allege a contract performance. in its When invalid because of defects formation dismiss, trial must a motion to ruling on Rule true, support allegations, if taken as plaintiff’s whether the determine Duke, 277 N.C. granted. which Sutton a relief 1A-1, 161, Stat. 98-99, (1970); § S.E.2d 163 Gen. 94, 176 plaintiff’s claim are If in its alternative 12(b)(6) (2003). quantum accepted true, no meruit as contract exists precluded remedy per Accordingly, it was error for trial se. quantum recovery in plaintiff’s alternative court to dismiss precluded express contract ground that was meruit parties. between

IN THE COURT OF APPEALS INC. v. CITY OP CHARLOTTE Nonetheless, quantum dismissal of the meruit claim was still appropriate brought because such a claim when against an arm of the immunity. State is barred sovereign Carolina, In North the State sovereign immunity waives expressly when it enters into a valid con- State, tract. Smith v. 303, 320, 289 N.C. 412, S.E.2d 423-24(1976). Sovereign immunity quantum bars State, meruit actions however, remedy quantum because the is based on an implied implied contract and an support contract cannot the infer- express ence of an Whitfield, waiver. 42, 348 N.C. at 497 S.E.2d at 415. Supreme Our Court held in implied “[a] Whitfield opposed express law—as simply to an valid will not form a contract — sufficient basis for a court to a reasonable inference that make State has intended to sovereign immunity.” waive its Id. at S.E.2d at 416. This Court applied has since and held: “[O]ur Whitfield

Supreme imply Court declined to a contract in law in derogation of sovereign immunity party to allow a theory to recover under a quantum meruit, and we decline to Corp. do so here.” Data Gen. County Durham, 143N.C. 545 S.E.2d 248 (2001). Coop. See also Moore v. N.C. Serv., Extension 146 N.C. (citation omitted) (“In Whitfield, Supreme Court held that the immunity only State’s waiver of sovereign applies express implied contracts and that law, contracts such aas claim meruit, are insufficient to constitute waiver of the State’s sovereign immunity.”), denied, disc. review 354 N.C.

S.E.2d 180 (2001). Rockingham County, Archer v. App. 550, 144 N.C. 792 (2001), disc. review upon by plaintiff, S.E.2d 796 relied did not address a claim quantum meruit, based on but rather a claim arising out of a valid employment It, therefore, contract. did not—indeed could not—over rule Whitfield. argues, however, Plaintiff bar Whitfield’s

only applies in cases where contract fails because it is ultra vires. urges Plaintiff that if a reason, contract fails for some other such as a formation, defect in sovereign immunity then protect does not State from Indeed, meruit claims. certain cases decided *5 prior support plaintiff’s See, argument. e.g., Hawkins Whitfield Dallas, Town N.C. (1948); of Rockingham Square Shopping Center, Madison, Inc. v. Town (1980). Further, Whitfield itself involved a contract that was invalid because it was ulta vires. Whitfield, 43-44, atN.C. 497 S.E.2d at 415-16. IN THE OF APPEALS COURT WRECKER CITY OF CHARLOTTE

EASTWAY not, however, sup- reasoning The and does language Whitfield validity Supreme The Court port continuing of such distinction. specifically held: imply first a contract in law where none exists will not

[W]e implication fact, implication support that the further then use intentionally sovereign immunity and that has waived its the State damages consented to be sued for for breach the contract Only implicitly in fact. when the State has waived never entered immunity by expressly entering into a contract sovereign valid expressly authorized law to enter through agent the State proceed may plaintiff against with a into such contract upon breach. State State’s original). both an 42-43, (emphasis Id. at 497 S.E.2d at 415 Without express contract, its and a valid the State has not waived necessarily precludes any sovereign immunity. requirement This dual recovery regardless the State of the rea- meruit why prior suggested son contract fails. To extent cases immunity only sovereign bars meruit claims where they vires, were alleged contract is ulta overruled Whitfield. alleges in a engaged Plaintiffs also that the issue, proprietary entering ministerial when into the contract at or act immunity The arguably avoiding sovereign a basis for defense. not, theory appeal and, however, argued this on there- has quan- fore, question. we on do not reach that Plaintiffs based was, tum is barred and dismissal reason, proper. Misrepresentation Negligent [3] Plaintiff has also appealed from dismissal of claim for neg (1) misrepresen on ligent misrepresentation. Plaintiff based its claim Eastway 4 of and Amendments tations “in Item the Contract compensated per Wrecker the attached fee schedule shall be completion City’spayment towing Contract[,]” (2) some employees storage charges, statements within the course scope employment regarding payment, the failure of their “respond any charges with denial that had not accrued owing.” or there were no amounts misrep- Supreme

The Court has held that tort of “[t]he party justifiably to his resentation when a relies detriment occurs *6 IN THE COURT OF APPEALS 645 EASTWAY WRECKER v. CHARLOTTE CITY OF App. (2004)] N.C. 639 [165 prepared by information without reasonable care one who owed the relying party duty of care.” Raritan River Cherry, Steel Co. v. Holland, 200, Bekaert & 322 206, 609, N.C. 367 (1988). S.E.2d 612 properly Plaintiffs claim could pur- be dismissed the trial court suant to Rule if law support claim, no exists to if the complaint allege fails to claim, sufficient facts to assert a viable or if complaint alleges necessarily facts that will defeat the claim. Capital, App. Oberlin 147 61, N.C. at Here, S.E.2d at 847. the trial dismissed the claim for failure allege required to all the complaint facts and because the necessarily includes facts that defeat the claim. alleged

Plaintiff complaint duty that owed “[defendant Eastway care to provide Wrecker to accurate information Contract and Amendments and other actions and omissions set forth above.” “reasonably further that justifiably Plaintiff upon misrepresentations relied above to its detriment entering into the Contract tow, and Amendments dispose store and of ve- hicles for the July 5, Defendant from 1994 until October 2001 and by actually towing, storing and disposing of the vehicles.” appears

It part is at least alleging that City failed legal import to disclose the prop of the contract or to erly parties’ memorialize agreement. questionable While it is contention, alone, such a standing could form a negli basis for a gent misrepresentation claim, see International Harvester Credit Corp. Bowman, App. 217, N.C. (internal omitted) (“[a] person citations who executes written instrument ordinarily charged knowledge contents, with of its not base an ignorance action for fraud on legal provisions”), effect of its c. review N.C. 322 S.E.2d 556 dis question. Court need reach that This Court has held that if “the complaint fails allege plaintiff] opportu was denied the [the nity to investigate plaintiff] or that could not have learned the [the true facts diligence, complaint exercise of reasonable fails to state causes of action for fraudulent concealment and mis representation.” Capital, Oberlin at 554 S.E.2d at 847. Corp. Beemer, See also Hudson-Cole Dev. App. 341, party 313 (1999) (“[W]hen relying on the false representation or misleading could have discovered the truth inquiry, complaint allege must that he was denied the investigate or that he could not have learned the true facts diligence.”). plaintiffs exercise of reasonable Because fails OF APPEALS IN THE COURT SERV., INC. v. OF CHARLOTTE CITY negli- required allegation, it fails to state a claim include this misrepresentation. gent *7 complaint of

Further, to the the based its cause action extent City and employees regarding of the the contract representations any amendments, plain- reliance complaint the establishes that the unjustified. original The contract states: tiff and, together with the Invitation to Bid Instructions This contract Sheet-Specifications Bidder, and the Bid Continuation to agreement the between the Special Conditions constitutes entire subject acceptance by City and its the and the Contractor on this vary City Manager City, of and no one is authorized same the proposed brought or are the substitution variations unless City Manager. the before contract,

(Emphasis added.) of the amendments to the extend- Each agreement, specifically provided that the term of the terms of ing the in As a original contract remain force and effect.” result the “shall rely upon provisions, plaintiff was entitled to state- of these personnel, Manager, regarding than the ments of other the contract the of the contract. Since variation terms incorporated complaint, amendments were reference necessarily complaint plaintiff’s defeat claim. See discloses facts that Capital, App. (language at 554 S.E.2d at 847 Oberlin any and, reliance was not reasonable agreement loan established therefore, neg- “the trial not err court did granted The trial thus the motion dismiss ligence”). misrepresentation claim. Affirmed.

Judge HUNTERconcurs. separate opinion.

Judge McGEE in a dissents McGEE, Judge, dissenting. majority following respectfully opinion for the

I dissent from complaint is to withstand a To determine if a sufficient reasons. 1A-1, pursuant 12(b)(6) N.C. Gen. Rule § to dismiss Stat. ‘whether, law, trial court “ascertain as a matter (2003), must true, complaint, treated are sufficient state APPEALS IN THE COURT OF v. CITY OF CHARLOTTE WRECKER EASTWAY App. (2004)1 ” theory.’ legal under some granted which relief Thomasville, Inc., Hosp. 155 N.C. Community Gen. Plummer v. disc. (citation omitted), 573 S.E.2d considering (2003). “When denied, 357 N.C. 579 S.E.2d review dismiss, trial court need look to motion to face it reveals an insurmountable to determine whether University, recovery.” Fayetteville State plaintiffs Locus v. bar to 522, 527, (1991). 402 S.E.2d 1A-1, pursuant purpose § of a motion to N.C.G.S. The sole sufficiency pleading against legal test the 12(b)(6) is “to Dingfelder, 71 N.C. is directed.” Azzolino v. which [the motion] part (1984), rev’d. aff’d. cert. 479 U.S. part, 315 N.C. 377 S.E.2d 528 asserts, pursuant to Rule a defendant (1986). 93 L. Ed. 2d 75 Where *8 a claim for plaintiffs complaint has failed to state 12(b)(6), that a available and where the trial court considers which relief is by the pleading ... not excluded matters outside the were] [which summary judgment court, shall be treated as one for the motion provided by parties Rule and all shall be disposed of as perti- present all material made given reasonable a motion Rule 56. nent to such 1A-1, 12(b). Rule §

N.C.G.S. Court, in its order dis- this the trial court stated In the case before 12(b)(6), that it “considered the plaintiffs claims under Rule missing Dismiss, to Reconsider And/Or the Motion pleadings, the Motion parties Certify, arguments of the Request to Amend, Plaintiffs solely plain- at Defendant’s motion was directed applicable law.” pleadings is to consider other complaint and for the trial court tiff’s court’s Based on the trial contrary 12(b)(6). function of Rule to the matters in addition to the trial court considered order, I conclude the dismiss was complaint and defendant’s motion to 1A-1, summary thereby judgment. § N.C.G.S. into one for converted 12(b). Rule of the motion from provided, upon conversion

Plaintiff was not summary motion, a “reasonable judgment motion to a a mo- pertinent to such present all material made opportunity to plaintiff 1A-1, 12(b). Because N.C.G.S. § tion Rule 56.” summary oppose the opportunity afforded a reasonable was not Locus, the case to the trial motion, I would remand judgment IN THE COURT OF APPEALS

STATE v. DYSON permitted present court in order that evidence in summary opposition judgment. Locus, to the motion for 102N.C. at 402 S.E.2d at 866.

STATE NORTH CAROLINA v. JOSEPH II OF ALOYSIUS DYSON,

No. COA03-1046 (Filed August 2004) testimony protective 1. Evidence— services worker— —child sexual assault — corroboration plain The trial court did not commit error in a first-degree testimony protective admitting sexual offense case of a child regarding services worker statements made to her the child testimony beyond victim, because: while the witness’s went single testified, act of oral sex to which the child victim testimony depart testimony witness’s did not from the child’s oral sex occurred between defendant and the victim thus corrob- testimony orating although variation; there was some jury probably defendant is unable to show error such that the would have reached different result absent the error. hearsay opinion testimony plain 2. Evidence— error — — analysis *9 plain The trial court did not commit error in a first-degree hearsay opinion testimony admitting sexual offense case qualified expert, (1) of a witness who had not been as an because: objection, when admitted without otherwise inadmissible hearsay may given be considered with all the other evidence and evidentiary may possess; pertinent such value (2) as it testi- mony vague opinion testimony; was too to amount to nei- pertinent prejudiced ther of the witness’s statements would have jury and tilted the scales favor of conviction. first-degree 3. Sexual Offenses— sexual offense —failure instruct on indecent liberties with a minor first-degree

The trial court did not err in a sexual offense case jury failing minor, to instruct the as to indecent liberties with a because: indecent liberties with a minor is not a lesser-

Case Details

Case Name: Eastway Wrecker Service, Inc. v. City of Charlotte
Court Name: Court of Appeals of North Carolina
Date Published: Aug 3, 2004
Citation: 599 S.E.2d 410
Docket Number: COA03-399
Court Abbreviation: N.C. Ct. App.
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