82 N.C. App. 729 | N.C. Ct. App. | 1986
Plaintiffs assign error to the trial court’s granting defendant’s motion for a directed verdict made at the close of all the evidence. Plaintiffs contend that in a situation where one borrower has transferred the loan and underlying property securing the loan to a co-borrower the loan officer in charge of the loan transfer has a legal duty to offer credit life insurance to the transferee. We disagree.
A motion for directed verdict under G.S. 1A-1, Rule 50(a) tests the legal sufficiency of the evidence to take the case to the jury. Everhart v. LeBrun, 52 N.C. App. 139, 277 S.E. 2d 816 (1981). In ruling on a defendant’s motion for directed verdict, the trial court must take plaintiffs evidence as true, considering plaintiffs evidence in the light most favorable to him and giving him the benefit of every reasonable inference. Id. Defendant’s motion for a directed verdict should be denied “unless it appears, as a matter of law, that a recovery cannot be had by the plaintiff upon any view of the facts which the evidence reasonably tends to establish.” Graham v. Gas Co., 231 N.C. 680, 683, 58 S.E. 2d 757, 760 (1950). Given these principles it is clear that a defendant in a negligence action is not entitled to a directed verdict unless the plaintiff has failed, as a matter of law, to establish the elements of actionable negligence. Everhart v. LeBrun, supra.
Plaintiffs contend that a legal duty existed at the time of the loan transfer that required the defendant to inform Patricia Gal-yon about credit life insurance. Plaintiffs contend that this legal duty arose out of a fiduciary relationship that existed between Galyon as borrower and defendant as lender. However, plaintiffs’ evidence failed to prove the existence of any fiduciary relationship. A fiduciary relationship exists “where there has been a special confidence reposed in one who in equity and good conscience is bound to act in good faith and with due regard to the interests of the one reposing confidence.” Abbitt v. Gregory, 201 N.C. 577, 598, 160 S.E. 896, 906 (1931). The relationship extends to instances where “there is confidence reposed on one side, and resulting domination and influence on the other.” Id.
There is no evidence that Patricia Galyon reposed a special confidence in Surety Federal in connection with the loan transfer. Plaintiffs’ evidence shows that on 18 March 1975 Charles Galyon by deed conveyed his interest in the marital home to Patricia Galyon. Following the divorce in 1975, Patricia Galyon made all the mortgage payments to defendant which included insurance premium payments on the life of Charles Galyon. In 1977 Surety Federal contacted Mr. and Mrs. Galyon concerning delinquent mortgage payments. Prior to this time Surety Federal had never received any information about the Galyons’ divorce and the resulting conveyance from Charles to Patricia. Mr. Galyon requested that the defendant “transfer the deed to Pat’s name,” and a copy of the 1975 deed from Charles to Patricia was forwarded to the defendant. On 22 March 1977 Charles T. Henson, vice president and secretary of Surety Federal, wrote a letter to Patricia Galyon informing her that the loan account had been changed to her name individually in accordance with the deed and that all future correspondence would be directed to her.
Plaintiffs make much of the existence of defendant’s internal memorandum, a “Loan Transfer Checklist,” which includes among the items to be checked in the loan transfer process the listing “Life Insurance.” Plaintiffs contend that because “Life Insurance” appeared on the checklist defendant was under the legal duty to inform Patricia Galyon as to the availability of credit life insurance. We do not believe that the existence of a provision for life insurance on defendant’s internal checklist memorandum gives rise to a legal duty to provide such information, especially when the subject has not been broached by the bank or inquired about by the borrower/transferee.
Plaintiffs also assign error to the exclusion of Steven Galyon’s testimony about when he and his mother learned she had cancer. Since we have affirmed the trial court’s granting of defendant’s motion for directed verdict on the ground that plaintiffs’ evidence failed to prove the existence of a legal duty, we need not address assignments of error relating to other issues.
Affirmed.