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By Ed Boltz, 18 April, 2012

N.C. Court of Appeals: Finch v. Campus Habitat- No Attorneys’ Fees without Five Days Notice of Intent to Seek Attorneys’ Fees

 Summary:

Finch leased a room from Campus Habitat and asserted that Campus Habitat breached their lease, causing her to move out.  Campus Habitat responded and counterclaimed, receiving judgment for damages and, pursuant to the lease, attorneys’ fees.

By Ed Boltz, 18 April, 2012

N.C. Court of Appeals: In re Pugh- Arbitration Cannot Be Ordered in Foreclosure Proceeding

Summary: At the foreclosure hearing before the New Hanover County Clerk of Court, the Pughes filed an Election of Arbitration.  The Clerk of Court did not act on this, instead finding that the Substitute Trustee had meet the six statutory requirements to proceed with foreclosure.  The Pughes appealed to Superior Court, where the judge again found that the requirements for foreclosure had been met and declined to rule on the request for arbitration. The Court of Appeals affirmed, finding that both the Clerk of Court and, on appeal, the Superior Court had scope only
By Ed Boltz, 17 April, 2012

N.C. Court of Appeals: BB&T v. Teague & Glover- Priority of Reformed Deed of Trust against Bona Fide Purchaser

Summary: While working as a bookkeeper for Teague & Glover, P.A., (T&G) Ms.  Gibbs embezzled substantial amounts.  In addition to criminal prosecution and imprisonment, in 2010, T&G obtained a civil judgment against Mr.  and Mrs.  Gibbs for $800,000.  T&G subsequently agreed to accept all of the Gibbses real and personal property in exchange for a reduction in the amount of the judgment. The property at issue in the present dispute consists of Tract A (0.6 acres) and Tract B (0.7 acres and the Gibbses primary residence).  In 1999
By Ed Boltz, 17 April, 2012

N.C. Court of Appeals: Songwooyarn Trading Company v. Sox Eleven- Restriction of Transfer of Property Pending Determination of Exemptions

Summary: Songwooyarn Trading Company (STC) obtained a judgment against Defendant Ahn, among others.  Ahn filed a Motion to Claim Exempt Property, to which STC objected, specifically contending that Ahn had failed to list all non-exempt property, had undervalued property, and attempted to exempt property beyond that allowed by North Carolina law.  The trial court held that Ahn had failed to comply with the statutory requirements for claiming exempt property, but allowed Ahn the opportunity to refile his claimed exemptions.  STC again objected and subpoenaed docu
By Ed Boltz, 17 April, 2012

N.C. Court of Appeals: TD Bank v. Mirabella- Judicial Notice Inappropriate to Show Merger as Basis for Establishing Holder of a Note

Summary: TD Bank filed suit against Mirabella (rather than foreclosing) for amounts owed on a promissory note, originally entered into by Mirabella and Carolina First Bank (CFB).  TD Bank contended that, following its merger with CFB, it stood in the place of CFB.  No evidence, however, was presented at trial of the merger, instead TD Bank argued that the court should take judicial notice of the merger. The Court of Appeals rejected this argument, finding that judicial notice is appropriate for "facts generally known with the territorial jurisdiction."  While
By Ed Boltz, 7 February, 2012

N.C. Court of Appeals: Blue Ridge Savings Bank v. Mitchell- Foreclosure Auction Price not "Substantially Less" than True Value

Summary: The Debtor’s house was sold at a foreclosure auction for $100,000, with Blue Ridge, the mortgage holder, the highest bidder.  Blue Ridge then sold the house at a private sale five months later for $110,000.  Blue Ridge subsequently sued the Debtors for the outstanding balance on the note, roughly $30,000.  The Debtors argued that Blue Ridge violated N.C.G.S.
By Ed Boltz, 20 December, 2011

N.C. Court of Appeals: In re Yopp- Holder of the Note through Corporate Merger; Evidence Allowable in a Foreclosure

Summary: Capital One commenced a foreclosure against the Debtors on a Deed of Trust, originally granted to Chevy Chase Bank, which later merged with Capital One.  The foreclosure was allowed in part based on, among other documents, an Affidavit from James Cox, Vice President of Capital One.  This Affidavit stated that "to the best of [his] knowledge" Capital One was the servicer and holder of the mortgage note. The Debtors objected to this affidavit, arguing that it denoted only Mr.  Cox’s personal opinion and was not made upon personal knowledge as required b
By Ed Boltz, 13 December, 2011

NC Court of Appeals: Citibank v. Graudin- Credit Card Collection as an "Open Account", contrasted with an "Account Stated"

Summary: Citibank brought suit against the Debtor seeking to recover $5,108.89, which it  alleged was owed on a credit card, originally issued by AT&T Universal Card in 1995 and acquired by Citibank in 2002.  The Debtor disputed the amount owed, alleging that Citibank had changed the interest rate on the credit card without notifying him.  Citibank did not respond to the Debtor’s discovery seeking a copy of the original credit card agreement, asserting that the request sough "documents previously provided to ...
By Ed Boltz, 13 December, 2011

NC Court of Appeals: GMAC Mortgage v. Miller- Ambiguous and/or Conflicting Description of Real Property in a Deed of Trust

Summary: William Miller, Russell Grogan and Stephanie Grogan purchased a 21.394 acre tract (Tract I) in 1997 and subsequently a 0.15 acre tract (Tract II) to provide access to a road.  In 2003, the owners granted a Deed of Trust to GMAC.  The Deed of Trust included a tax parcel number that encompassed both Tract I and Tract II, but the legal description only referenced Tract II.  In 2005, the owners subdivided Tract I into Tract IA, consisting of 10.932 acres owned by all three,  and Tract IB, consisting of 10.389 acres which was henceforth to be owned solely by the Grogan
By Ed Boltz, 6 December, 2011

N.C. Court of Appeals: In re Carver Pond- Merger Documents are Sufficient to show that a Party is the Holder of a Note

Summary:

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