M Series Rebuild, LLC, (“plaintiff’) appeals from a trial court’s order granting the Town of Mount Pleasant’s (“defendant”) motion and dismissing plaintiff’s claims. For the foregoing reasons, we affirm the trial court’s order.
I. Background
Plaintiff filed a complaint on 17 August 2011 alleging the following: In early 2011, plaintiff contacted Chief Chris Honeycutt
Prior to delivery of the truck to plaintiff, plaintiff received a call from “a representative of the Mt. Pleasant Volunteer Fire Department” requesting plaintiff to also do some minor repairs to the truck: to fix the left front axle seal, a broken u-bolt, and a door latch. In the course of installing the steering system, plaintiff found a number of other repairs that needed to be done. Plaintiff got approval from Chief Honeycutt to make repairs to the radiator. Plaintiff also discovered other additional repairs, including “rotted and cracked, damaged hoses, oil and fuel leaking around the filter canisters, and fuel leaking from several sections of the injector return line assembly” and notified “Sean,” a “representative” of the fire department. “Sean” approved the additional repairs and requested that plaintiff perform a routine service on the fire truck. These repairs were completed and the truck returned. Plaintiff sent an invoice to defendant for the work done, not including work installing the power steering system, totaling $7,911.16. Plaintiff requested immediate payment, but defendant refused to pay. Based on these allegations, plaintiff raised claims for breach of contract and unjust enrichment. Plaintiff also included a copy of the invoice with its complaint.
Defendant filed its answer on 24 October 2011. Defendant admitted that plaintiff contacted Chief Honeycutt with an offer to install a hydraulic steering system on the fire truck and that Chief Honeycutt accepted. Defendant also admitted that plaintiff was asked to repair the left front axle seal, the broken u-bolt, and the door latch. Defendant further admitted that Chief Honeycutt gave plaintiff permission to fix the radiator. Defendant admitted to receipt of an invoice from plaintiff which it refused to pay in full but claims it offered to pay for the repairs it agreed to have done. However, defendant denied agreeing to any other additional repairs. Defendant asserted several defenses, inter alia, that plaintiffs complaint failed “to state a claim upon which relief can be granted.” It also stated that “[t]he alleged contract upon which this action is based is illegal in that it does not comply with the pre[-] audit certificate requirements contained in N.C. Gen. Stat. § 159-28, as required by law. The alleged contract is thus invalid and unenforceable and this action is barred.”
Following a hearing on defendant’s motion, the trial court on 24 January 2012 entered an order dismissing plaintiff’s claims. Plaintiff filed timely written notice of appeal on 25 January 2012. Plaintiff makes three arguments on appeal challenging the trial court’s ruling regarding its claim for unjust enrichment: (1) the trial court erred in applying a summary judgment standard to defendant’s motion to dismiss, (2) the trial court erred in dismissing plaintiff’s unjust enrichment claim, and (3) the trial court erred in applying sovereign immunity.
II. Standard of Review
Plaintiff argues that the trial court “apparently considered Defendant’s Motion to Dismiss under Rule 12(b)(6)” but in error it also utilized a summary judgment standard in making its conclusions. Plaintiff concludes that “this Court should remand for the trial court to apply the appropriate motion to dismiss standard.” Defendant counters that the trial court “did not err in considering this matter under a summary judgment standard as opposed to a motion to dismiss standard” because plaintiff’s claims would fail under either standard.
In its answer, defendant raised as its “second defense” that “Plaintiff’s Complaint fails to state a claim upon which relief can be granted, and it should therefore be dismissed.” This is similar to the language of N.C. Gen. Stat. § 1A-1, Rule 12(b)(6) (2011) (permitting a motion to dismiss for “[fjailure to state a claim upon which relief can be granted.”). Although the parties in their briefs before this Court treat the motion to dismiss as arising under Rule 12(b)(6), actually neither the defendant’s motion nor the trial court’s order as noted above cite any particular rule other than N.C. Gen. Stat. § 159-28.
This Motion to Dismiss shall be determined in the same manner as a Motion for Summary Judgment where, as here, the pleadings and admissions of the parties show that there is no issue as to any material fact, and the factual allegations are considered in the light most favorable to the non-moving party.
(Emphasis added). Although the language of this statement is similar to the standard for summary judgment, see Belcher v. Fleetwood Enters., Inc.,
N.C. Gen. Stat. § 1A-1, Rule 12(b)(1) permits a party to move for dismissal based on “[l]ack of jurisdiction over the subject matter[,]” and Rule 12(b)(2) permits dismissal based on “[l]ack of jurisdiction over the personf.]”
“Our review of a motion to dismiss under Rule 12(b)(1) of the North Carolina Rules of Civil Procedure is de novo .... Under a de novo review, the court considers the matter anew and freely substitutes its own judgment for that of the [trial court].” Peninsula Prop. Owners Ass’n v. Crescent Res., LLC,171 N.C. App. 89 , 92,614 S.E.2d 351 , 353 (2005) (citations and quotation marks omitted). The standard of review of the trial court’s decision to grant a motion to dismiss under Rule 12(b)(2) is whether the record contains evidence that would support the court’s determination that the exercise of jurisdiction over defendants would be inappropriate. See Stann v. Levine,180 N.C. App. 1 , 22,636 S.E.2d 214 , 227 (2006).
Stacy v. Merrill,
III. Trial Court’s Dismissal
Plaintiff argues that the trial court erred in dismissing the complaint because North Carolina law provides for recovery against a municipality on a claim for unjust enrichment.
N.C. Gen. Stat. § 159-28(a) (2011) outlines requirements to enter into a valid contract with a local government or corporate municipality:
No obligation may be incurred in a program, function, or activity accounted for in a fund included in the budget ordinance unless the budget ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. ... If an obligation is evidenced by a contract or agreement requiring the payment of money.
. . the contract [or] agreement. . . shall include on its face a certificate stating that the instrument has been preaudited .... The certificate . .. shall be signed by the finance officer or any deputy finance officer approved for this purpose by the governing board .... An obligation incurred in violation of this subsection is invalid and may not be enforced. . . .
Therefore, if there is no pre-audit certificate, or if that certificate is not signed by the appropriate individual, then the local government has not entered into a valid contract. See Id. “The language of [N.C. Gen. Stat. § 159-28(a)] makes the pre-audit certificate a requirement when a town will have to satisfy an obligation in the fiscal year in which a contract is formed.” Myers v. Town of Plymouth,
This Court in Data General addressed the issues of whether the plaintiff had followed the requirements of N.C. Gen. Stat. § 159-28 to show that the defendant had entered into a contract, waiving its sovereign immunity, and whether waiver of immunity could be established by a quasi or implied contract claim. In that case, the plaintiff, Data General
[i]n [Smith v. State,289 N.C. 303 ,222 S.E.2d 412 (1976)], our Supreme Court held that “whenever the State of North Carolina, through its authorized officers and agencies, enters into a valid contract, the State implicitly consents to be sued for damages on the contract in the event it breaches the contract.” Id. at 320,222 S.E.2d at 423-24 (Emphasis added.) That is, in the absence of a valid contract, a state entity may not be subjected to contractual liability. See id. at 310,222 S.E.2d at 417 (citing 72 Am. Jur. 2d States, Etc. § 88 (1974)).
“N.C. Gen. Stat. § 159-28(a) sets forth the requirements and obligations that must be met before a county may incur contractual obligations.” Cincinnati Thermal Spray, Inc. v. Pender County,101 N.C. App. 405 , 407,399 S.E.2d 758 , 759 (1991); N.C. Gen. Stat. § 159-28 (1994). N.C. Gen. Stat. § 159-28(a) requires in part that for any county obligation “evidenced by a contract or agreement requiring the payment of money . . . for supplies and materials,” such contract or agreement “shall include on its face a certificate stating that the instrument has been preaudited to assure compliance with this subsection.” N.C. Gen. Stat. § 159-28(a). The statute further provides a form certificate with which the required preaudit certificate must substantially conform, and states that “an obligation incurred in violation of this subsection is invalid and may not be enforced.” Id. Where a plaintiff fails to show that the requirements of N.C. Gen. Stat. § 159-28(a) have been met, there is no valid contract, and any claim by plaintiff based upon such contract must fail. See Cincinnati Thermal Spray,101 N.C. App. at 408 ,399 S.E.2d at 759 .
Data General,
there is insufficient evidence in the record that the requirements of N.C. Gen. Stat. § 159-28(a) have been met, we conclude that no valid contract was formed between Data General and Durham County, and Durham County therefore has not waived its sovereign immunity to be sued (and Data General may not maintain a suit) for contract damages.
Id. at 103,
This Court then considered the defendant’s sovereign immunity as it pertained to the plaintiff’s “quantum meruit and estoppel” claims. Id. at 103,
Quantum meruit operates as an equitable remedy based upon a quasi contract or a contract implied in law, such that a party may recover for the reasonable value of materials and services rendered in order to prevent unjust enrichment. In Whitfield v. Gilchrist,348 N.C. 39 ,497 S.E.2d 412 (1998), our Supreme Court declined to imply a contract in law in derogation of sovereign immunity to allow a party to recoverunder a theory of quantum meruit, and we decline to do so here.
Id. (citation and quotation marks omitted). This Court then explained that because it had already found that there was no valid contract, there was no waiver of sovereign immunity; therefore, this Court stated,
As Durham County enjoys [sovereign] immunity with respect to these claims, the trial court was therefore without... jurisdiction over Durham County as to Data General’s claims based on quantum meruit and estoppel.
Id. at 104,
This Court is unable to distinguish the case at hand from Data General,
Plaintiff urges this Court to follow this Court’s reasoning in Wing. In Wing, the plaintiff, a developer, hired an engineer at a cost of $22,469.00 in early 2001 to complete an application for the extension of the defendant-town’s water service to his development, which was sent to the North Carolina Department of Environmental and Natural Resources (“DENR”) for approval on 14 May 2001.
IV. Affirmative defense
Plaintiff further argues that DeMurry v. Department of Corrections,
The Court does NOT have jurisdiction over the Defendant Town for an equitable claim of quasi-contract, quantum meruit, estoppel or unjust enrichment, since such a claim presupposes that there was no specific valid contract, and therefore no waiver of sovereign immunity by the Defendant Town.
But even were we to assume for purposes of argument that defendant was required to plead a defense of sovereign immunity, contrary to plaintiff’s arguments, defendant did plead sovereign immunity in its answer. In its “fourth defense” defendant’s answer states that “[t]he alleged contract upon which this action is based is illegal in that it does not comply with the pre[-] audit certificate requirements contained in N.C. Gen. Stat. § 159-28, as required by law. The alleged contract is thus invalid and unenforceable and this action is barred.” N.C. Gen. Stat. § 1A-1, Rule 8 sets forth the general rules of pleadings, including the requirements for “(a) Claims for relief’ and “(c) Affirmative defenses.” We have stated that
[t]he language in Rule 8(a), dealing with general pleading, and that in Rule 8(c), dealing with pleading affirmative defenses, is largely identical: (such pleading shall contain) “a short and plain statement... sufficiently particular to give the court and the parties notice of the transactions, occurrences, or series of transactions or occurrences, intended to be proved.” Under our new Rules of Civil Procedure, the requirements for pleading an affirmative defense are no more stringent than those for pleading a cause of action.
Bell v. Traders & Mechanics Ins. Co.,
V. Conclusion
For the aforementioned reasons, this Court holds that the trial court properly dismissed plaintiff’s unjust enrichment claim, and affirms the trial court’s order.
AFFIRMED.
Notes
. See Teachy v. Coble Dairies, Inc.,
. While plaintiff admits that it “dismissed its claim for breach of contract at the hearing,” this Court was not provided a transcript of the hearing. Plaintiff makes no argument on appeal challenging the trial court’s dismissal of its claims for breach of contract. Therefore, any argument regarding the dismissal of plaintiff’s breach of contract claim has been abandoned. See N.C.R. App. P. 28(b)(6) (stating that “Issues not presented in a party’s brief, or in support of which no reason or argument is stated, will be taken as abandoned.”). Accordingly, this Court will limit its analysis to plaintiff’s unjust enrichment claim.
. Because we find Data General indistinguishable from the case before us, we need not address the other cases cited by defendant in support of its argument.
