Boone Ford, Inc. v. IME Scheduler, Inc.

• Decision Date: 06 November 2018
• Docket Number: No. COA16-750-2,COA16-750-2
• Citation: 262 N.C.App. 169,822 S.E.2d 95
• Court: North Carolina Court of Appeals
• Parties: BOONE FORD, INC., d/b/a Boone Ford Lincoln Mercury, Inc., a Delaware Corporation, Plaintiff, v. IME SCHEDULER, INC., a New York Corporation, Defendant. Cash for Crash, LLC, a New Jersey Limited Liability Company, Plaintiff, v. Boone Ford, Inc. d/b/a Boone Ford Lincoln Mercury, Inc., a Delaware Corporation, Defendant.

262 N.C.App. 169

822 S.E.2d 95

BOONE FORD, INC., d/b/a Boone Ford Lincoln Mercury, Inc., a Delaware Corporation, Plaintiff,

v.IME SCHEDULER, INC., a New York Corporation, Defendant.

Cash for Crash, LLC, a New Jersey Limited Liability Company, Plaintiff,

v.Boone Ford, Inc. d/b/a Boone Ford Lincoln Mercury, Inc., a Delaware Corporation, Defendant.

No. COA16-750-2

Court of Appeals of North Carolina.

Filed: November 6, 2018

Miller and Johnson, PLLC, Boone, by Nathan A. Miller, for defendant-appellant IME Scheduler, Inc., and plaintiff-appellant Cash for Crash, LLC.

Walker Di’Venere Wright, Boone, by Anné C. Wright, for plaintiff-appellee and defendant-appellee Boone Ford, Inc.

ELMORE, Judge.

Previously, a divided panel of this Court, Boone Ford, Inc. v. IME Scheduler, Inc. , ––– N.C. App. ––––, 800 S.E.2d 94 (2017) (" Boone Ford I "), vacated Judge Hunt’s pretrial consolidation order, which effectively set aside the jury verdict and vacated Judge Coward’s final judgment, and "remand[ed] the cases to superior court[,]" id. at ––––, 800 S.E.2d at 98, for two separate trials. The majority panel thus determined its "holding and disposition render[ed] moot the other issues [as to the propriety of Judge Coward’s judgment] raised on appeal." Id. The dissenting judge reasoned that because Judge Hunt’s pretrial consolidation order was interlocutory, it was not binding when Judge Coward presided over the jury trial, and because neither appellants moved to sever the cases but proceeded with the consolidated trial, they failed to preserve their argument for appellate review and awarding them a new trial was unwarranted. Id. at ––––, 800 S.E.2d at 99 (Dillon, J., dissenting).

On 17 August 2018, our Supreme Court reversed our decision in Boone Ford I and remanded "to consider other issues that [our] decision did not reach." Boone Ford, Inc. v. IME Scheduler, Inc. , ––– N.C. ––––, ––––, 817 S.E.2d 364, 368 (2018). Appellants’ remaining arguments were that (1) "the trial court and the trier of fact erred in denying C[ ]ash for Crash, LLC’s motions in regards to the conversion allegation and in determining that Boone Ford, Inc. had not converted C[ ]ash for C[r]ash, LLC’s money"; (2) "[t]he jury’s finding in paragraph 25(1) of the Judgment and Order for Costs [was] inconsistent with the entirety of paragraph 25 of the Judgment and Order for Costs"; and (3) "[t]he trial court erred in granting ... Boone Ford, Inc.’s motion for a directed verdict denying ... IME Scheduler, Inc.’s negligent misrepresentation claim under N.C. R. Civ. P. 50." After careful review, we affirm Judge Coward’s judgment.

I. Background

The facts and trial procedure of this case are more fully discussed in our prior opinion. Relevant for addressing the remaining issues on remand, after Boone Ford sued IME Scheduler for the failed Raptor transaction, IME Scheduler filed counterclaims against Boone Ford alleging, inter alia , unfair and deceptive trade practices ("UDTP") and negligent misrepresentation. Cash for Crash also sued Boone Ford alleging, inter alia , a claim of conversion.

After IME Scheduler’s case-in-chief, the trial court granted Boone Ford’s motion for a directed verdict on IME Scheduler’s negligent misrepresentation claim. After the presentation of all evidence, the jury rendered a verdict finding that Boone Ford did not convert the money wired from Cash for Crash and thus found Boone Ford not liable on Cash for Crash’s conversion claim. The trial court later denied Cash for Crash’s oral motion for a judgment notwithstanding the verdict ("JNOV") on that claim. In its verdict sheet in response to questions concerning IME Scheduler’s UDTP claim, the jury also found that Boone Ford had wrongfully retained $40,385.50 from IME Scheduler, that this act was in and affecting commerce, but that Boone Ford’s conduct did not proximately cause injury to IME Scheduler. Additionally, in response to the question "[i]n what amount has IME been injured?" the jury answered "$0.00."

Based on the jury’s findings that Boone Ford was entitled to $20,000.00 in compensatory damages from IME Scheduler due to fraud, and that Boone Ford was entitled to $50,000.00 in punitive damages from IME Scheduler due to UDTP, the trial court on 1 March 2016 entered a final judgment and order for costs awarding Boone Ford $70,000.00 in total damages from IME Scheduler.

II. Analysis

In Boone Ford I , appellants raised the following three issues we declined to address based upon our disposition of their first issue: (1) whether the trial court erred by denying Cash for Crash’s motion for JNOV on its conversion claim against Boone Ford, (2) whether the jury’s findings on IME Scheduler’s UDTP claim against Boone Ford were inconsistent, and (3) whether the trial court erred by granting Boone Ford’s directed verdict motion on IME Scheduler’s negligent misrepresentation claim.

A. Cash for Crash’s Motion for JNOV as to its Conversion Claim

Appellants first contend the jury erroneously found that Boone Ford did not unlawfully convert the $206,596.00 wired from Cash for Crash and, on this basis, that the trial court erred by denying Cash for Crash’s motion for JNOV on its conversion claim. This argument is not preserved for appellate review.

North Carolina Civil Procedure Rule 50(b)(1) requires a party to move for a directed verdict at the close of evidence to preserve the right to move for JNOV. N.C. Gen. Stat. § 1A-1, Rule 50(b)(1) (2017) ; see also id. official cmt. ("[M]aking an appropriate motion for a directed verdict is an absolute prerequisite for the motion for judgment NOV." (emphasis added) (citations omitted) ). Stated differently, "a motion for [JNOV] must be preceded by a motion for directed verdict at the close of all the evidence." Graves v. Walston , 302 N.C. 332, 338, 275 S.E.2d 485, 489 (1981) (interpreting N.C. Gen. Stat. § 1A-1, Rule 50(b)(1) (1979) ).

Here, although Cash for Crash made an oral motion for JNOV on its conversion claim immediately after the jury returned its verdict, the transcript reveals it never moved for a directed verdict on that claim and thus waived its right to move for JNOV. See, e.g. , Graves , 302 N.C. at 338, 275 S.E.2d at 489 ("In the present case, plaintiffs did not move for directed verdict at the close of plaintiffs’ evidence or at the close of all the evidence. Plaintiffs thus had no standing after the verdict to move for [JNOV] and for that reason the trial court was without authority to enter [JNOV] for plaintiffs."). Therefore, Cash for Crash’s "JNOV arguments are waived on appeal." Martin v. Pope , ––– N.C. App. ––––, ––––, 811 S.E.2d 191, 195 (2018) ; see also Tatum v. Tatum , 318 N.C. 407, 408, 348 S.E.2d 813, 813 (1986) ("Plaintiff failed to move for a directed verdict at the close of all the evidence. Therefore, plaintiff failed to preserve her right to move for [JNOV]." (citing Graves , 302 N.C. at 338, 275 S.E.2d at 489 ) ).

B. Damage Calculation as to IME Scheduler’s UDTP Claim

Appellants next challenge the jury’s verdict as to IME Scheduler’s UDTP claim against Boone Ford and, relatedly, the amount of compensatory damages awarded to Boone Ford. They argue that because "[t]he jury found that Boone Ford, Inc. had wrongfully retained IME Scheduler’s $40,385.50 and that Boone Ford, Inc.’s act was in and affecting commerce[,]" the jury’s finding that Boone Ford’s conduct was not a proximate cause of injury to IME Scheduler was "inconsistent ... and should be overturned." Appellants contend further that because the jury found Boone Ford was entitled to $32,000.00 in actual damages from IME Scheduler, "the only appropriate judgment would be to award IME Scheduler, Inc. at least the difference between the amount wrongly retained by Boone Ford, Inc. and the amount awarded to Boone Ford, Inc. which at a minimum would be $8,385.50." Thus, appellants request on appeal that this Court

reverse the jury’s conclusion that IME Scheduler, Inc. was damaged as a result of Boone Ford Inc.’s wrongful retention of IME Scheduler Inc.’s money and either make a finding that IME Scheduler, Inc. should be awarded the amount of $8,385.50 or that a new trial limited to the exact amount of damages due to IME Scheduler, Inc. pursuant to IME Scheduler, Inc.’s claim for [UDTP] be held.

Appellants have failed to cite to any relevant legal authority to support these arguments. N.C. R. App. P. 28(b)(6). Nonetheless, we disagree with their contentions and decline their requests for appellate relief.

The challenged portion of the verdict sheet reads as follows:

25. [ ]Did Boone do or commit at least one of the following:

1. [W]rongly retain IME’s $40,385.50 or any portion thereof? (if "yes", answer the following question)

Answer: Yes.

- Was that conduct in commerce or affecting commerce? (if "yes", answer the following question)

Answer: Yes.

? Was that conduct a proximate cause of injury to IME?

Answer: No.

Additionally, in response to the related verdict sheet question on this claim "[i]n what amount has IME been injured?" the jury answered "$0.00."

"Where the jury’s answers to the issues are allegedly contradictory, a motion for a new trial under Rule 59 is the appropriate motion." Walker v. Walker , 143 N.C. App. 414, 421, 546 S.E.2d 625, 630 (2001) (citing Palmer v. Jennette , 227 N.C. 377, 379, 42 S.E.2d 345, 347 (1947) ). Here, because IME Scheduler never moved for a new trial on its UDTP claim, "the question of whether the [jury’s] verdict was inconsistent was not properly preserved for review on appeal." Id. at 422, 546 S.E.2d at 630 ; see also N.C. R. App. P. 10(a)(1). Further, a jury finding that a party committed an UDTP act does not compel a finding that that act proximately caused injury. IME Scheduler does not challenge the trial court’s proximate cause instruction and, as reflected, the jury neither found that Boone Ford’s conduct proximately caused injury to IME Scheduler nor that IME Scheduler suffered any monetary damages as to its UDTP claim. IME Scheduler’s failed...