Bohn v. Black
| Decision Date | 04 June 2019 |
| Docket Number | 17 CVS 228 |
| Citation | 2019 NCBC 34 |
| Court | Superior Court of North Carolina |
| Parties | MATT BOHN and wife, LAURIE BOHN, Plaintiffs, v. JUDITH BLACK; NANCY BLACK; SCOTT HATTER; JEANNE HATTER; BLACK FOREST FAMILY CAMPING RESORT, INC.; and a certain unnamed De Facto North Carolina General Partnership, a/k/a the BLACK FOREST PARTNERSHIP, Defendants. |
Whitfield-Cargile Law, PLLC, by Davis A. Whitfield-Cargile and Ramsey & Pratt, PA, by Michael K. Pratt, for Plaintiffs Matt Bohn and Laurie Bohn.
Fisher Stark, P.A., by W. Perry Fisher, II, Brad A. Stark, and Megan N. Silver, for Defendants Judith Black, Nancy Black, Scott Hatter, Jeanne Hatter, Black Forest Family Camping Resort Inc., and a certain unnamed De Facto North Carolina General Partnership, a/k/a Black Forest Partnership.
ORDER AND OPINION ON MOTIONS FOR PARTIAL SUMMARY JUDGMENT
1. The Black family has operated a campground in the mountains of western North Carolina for over 20 years. When family ties frayed in late 2016, Laurie Bohn (one of three Black daughters) and her husband, Matt Bohn, refused to support the campground any longer. Laurie's mother, Judith Black then threatened to cut off the Bohns' access to their home, which sits on the campground property. This lawsuit followed.
2. The Bohns, both plaintiffs here, allege that they worked at the campground without pay for more than two decades, while also contributing substantial funds from outside jobs along the way. They further allege that Judith induced them to do so with promises of home ownership and, for Laurie, co-ownership of the campground business. The amended complaint contains twelve claims against Judith, including claims for de facto partnership, breach of fiduciary duty, unjust enrichment, and others. Laurie's two sisters (Jeanne Hatter and Nancy Black) and her brother-in-law (Scott Hatter) are named as additional defendants on the theory that they, too, have an ownership interest in the campground business that could be affected by the asserted claims.
3. Discovery is complete. Defendants have moved for summary judgment as to most but not all asserted claims, and the Bohns have cross-moved for summary judgment as to some of their own claims as well as Defendants' affirmative defenses. For the following reasons, the Court DENIES the Bohns' motion and GRANTS in part and DENIES in part Defendants' motion.
4. The Court does not make findings of fact in ruling on motions for summary judgment. The following background, describing the evidence and noting relevant disputes, is therefore intended only to provide context for the Court's analysis and ruling.
5. In 1992, Judith and her late husband[1] moved to North Carolina, where they purchased two tracts of land in Transylvania County. (Dep. J. Black 9:5-7; J. Black Aff. ¶ 2, ECF No. 17.1.)[2] Their aim was to open a campground as a family business. (See Dep. J. Black 11:4-13; M. Bohn Aff. 1, ECF No. 67.7.) Campgrounds need campsites, picnic tables, and fire pits, among other things-none of which existed at the time the Blacks bought the property. (Dep. J. Black 9:21-10:20.) It was nearly three years before they opened to the public. (Dep. J. Black 15:12-13.)
6. Judith invited her daughters-Jeanne, Nancy, and Laurie-to join the endeavor. (Dep. L. Bohn 205:11-206:1.) Laurie contends, and Judith denies, that Judith did so with the promise that all three would co-own the business with her. (See Dep. L. Bohn 18:10-17, 19:17-21:24; Dep. J. Black 103:1-11.) Jeanne and Nancy helped get the campground ready to open, and Jeanne's husband, Scott, also decided to live and work at the campground. (Dep. J. Black 14:25-16:3, 264:5-13.) At the time, Laurie was attending college in New York, where she met her future husband, Matt. (Dep. M. Bohn 6:25-7:9.) After earning their degrees, Laurie and Matt moved in with the rest of the family. (L. Bohn Aff. 2, ECF No. 67.6.) By 1995, the whole family-including Matt and Scott-worked at the campground in some capacity. (See Dep. J. Black 16:13-17:6, 18:22-19:4, 264:14-23.)
7. The campground operated as an unincorporated business until 2004, when Judith incorporated it as Black Forest Family Camping Resort, Inc. (J. Black Aff. ¶ 11.) She is the corporation's only officer and shareholder; no shares, stock certificates, or other ownership documents have ever been issued to any other member of the family. (J. Black Aff. ¶ 11; Dep. J. Black 120:20-121:11; Dep. L. Bohn 67:9-68:7; Dep. M. Bohn 115:2-24.) The corporation apparently owns some campground assets, but the real property on which it sits remains in Judith's name. (See Dep. J. Black 329:11-20; J. Black Aff. ¶ 11; L. Bohn Aff. 2.)
8. It seems that money was tight in the years before and after the campground opened. Early on, Matt lent Judith $20, 000 from his own savings to cover debts incurred in building the campground. (Dep. M. Bohn 32:4-12; M. Bohn Aff. 1.) And when Matt and Laurie married in 1995, they lent Judith another $15, 000 from money received as wedding gifts. (Dep. M. Bohn 42:10-15; M. Bohn Aff. 2.) This second loan went toward a swimming pool at the campground, all to attract more campers. (See M. Bohn Aff. 2.) Judith admits that she never repaid either loan. (See Dep. J. Black 286:18-287:1.)
9. During those lean years, the family also began pooling their resources. Everyone worked at the campground without receiving wages. (See Dep. J. Black 17:7-12, 172:14-20, 315:17-20.) Laurie, Matt, Jeanne, Scott, and Nancy also handed over all income earned from outside jobs. (See Dep. J. Black 262:19-263:24.) Together with the campground's revenue and Judith's Social Security benefits and inheritance money, these earnings were pooled in a common or general fund controlled by Judith. (Dep. J. Black 31:19-23, 39:7-24, 123:23-124:7.) She used the general fund to pay the campground's bills and to pay for most, if not all, day-to-day expenses of the Black family members. (Dep. J. Black 20:14-21:24, 173:21-174:7; L. Bohn Aff. 2; M. Bohn Aff. 1-2.) Judith also gave an allowance to each individual- including her grandchildren in later years-in an amount that she set and adjusted over time. (See Dep. J. Black 142:1-146:3; Dep. J. Hatter 116:2-117:4.) Everyone knew that Judith controlled the family purse; they contributed without knowledge of how the money was spent or what amount was in the fund at any given time. (See Dep. L. Bohn 95:2-4; Dep. J. Hatter 171:8-12, 183:24-184:5; Dep. J. Black 135:8-16.)
10. Tracking what went into and out of the general fund is difficult, perhaps impossible. No accounting ever seems to have been done. (See Dep. J. Black 135:8- 136:4.) Jeanne denies knowing what she put in or received from it. (See, e.g., Dep. J. Hatter 45:13-46:23, 104:11-105:22.) And the manner of collecting and distributing money appears to have changed over time. (See Dep. J. Black 142:20-146:9, 168:14- 171:16.) Indeed, the fund itself is spread over Judith's personal checking account, the corporation's checking account, and cash on hand at the campground. (Dep. J. Black 33:1-3, 51:15-53:20.)
11. Over time, this communal arrangement would become a source of friction. After a few years, the Bohns moved off the campground property to an apartment of their own, and each found new jobs. (Dep. L. Bohn 44:20-45:18.) Laurie continued to give her paychecks to Judith, but Matt decided to keep his. (Dep. L. Bohn 46:25- 47:10; Dep. M. Bohn 50:5-12.) Both worked at the campground on nights and weekends, still without pay. (Dep. L. Bohn 47: 9-13; L. Bohn Aff. 3.) When marital strain led to a brief separation, Laurie returned to the campground. (Dep. L. Bohn 44:3-44:12, 55:7-11; Dep. M. Bohn 54:11-25.) The couple reconciled in late 2001, but as a condition of returning to the campground, Matt would not contribute his outside salary to the general fund. (M. Bohn Aff. 2, 4; J. Black Aff. ¶ 10.) Matt believes the rest of the family resented him for it. (M. Bohn Aff. 3-4.)
12. At some point around this time, the campground seems to have turned the corner. There was enough money to build a house for Jeanne and Scott in 2004. (See M. Bohn Aff. 2.) A modular home for Laurie and Matt, now with three children, followed in 2006. (J. Black Aff. ¶ 14; Dep. M. Bohn 91:8-14; Pls.' Br. in Opp'n Defs.' Mot. Partial Summ. J. Ex. K, ECF No. 67.11.) According to Laurie, having a home on campground property was one of the promises that Judith made to induce her to live and work there. (L. Bohn Aff. 2-3; Dep. J. Black 173:4-7.) How the modular home was paid for is unclear. Laurie states that she used her income to obtain a line of credit, but did not make direct payments toward the house. (L. Bohn Aff. 3; Dep. L. Bohn 213:11-16.) Judith, on the other hand, claims the payments toward Laurie's line of credit and to the building company came from either the campground's business funds or Judith's inheritance money. (J. Black Aff. ¶ 15; Dep. J. Black 68:15-21.)
13. The next decade or so passed uneventfully. Judith's daughters and their husbands continued to work for the campground without receiving wages. (See Dep. J. Black 34:18-25, 315:4-20.) At some point, Nancy and Scott decided to work exclusively at the campground, but Laurie and Jeanne continued to work other jobs and contribute their wages to the general fund. (Dep. J. Black 35:1-11.) Matt, too, worked an outside job but did not contribute his wages to the general fund. (See Dep. M. Bohn 9:4-12; Dep. L. Bohn 58:5-17.)
14. In late 2016, the Bohns had a sudden falling out with Judith and the rest of the family. As Laurie and Matt tell it, the family issued an ultimatum out of the blue: either Matt would agree to turn over his expected Social Security benefits to the general fund (apparently...
To continue reading
Request your trial