Roberson v. Dale

• Decision Date: 31 January 1979
• Docket Number: No. C-78-345-D.,C-78-345-D.
• Citation: 464 F. Supp. 680
• Court: U.S. District Court — Middle District of North Carolina
• Parties: Sherman L. ROBERSON, Plaintiff, v. William N. DALE, Individually, Sonja H. Stone, Individually and in her official capacity as director of Afro-American Studies and Southeastern Black Press Institute, the University of North Carolina at Chapel Hill, Samuel R. Williamson, Jr., Individually and in his official capacity as Dean of the College of Arts and Sciences, the University of North Carolina at Chapel Hill, N. Ferebee Taylor, in his official capacity as Chancellor, the University of North Carolina at Chapel Hill, William C. Friday, in his official capacity as President of the University of North Carolina, Thomas W. Lambeth, in his official capacity as Chairman of the Board of Trustees, the University of North Carolina at Chapel Hill, William A. Johnson, in his official capacity as Chairman of the Board of Governors of the University of North Carolina, and the University of North Carolina at Chapel Hill, Defendants.

464 F. Supp. 680

Sherman L. ROBERSON, Plaintiff, v. William N. DALE, Individually, Sonja H. Stone, Individually and in her official capacity as director of Afro-American Studies and Southeastern Black Press Institute, the University of North Carolina at Chapel Hill, Samuel R. Williamson, Jr., Individually and in his official capacity as Dean of the College of Arts and Sciences, the University of North Carolina at Chapel Hill, N. Ferebee Taylor, in his official capacity as Chancellor, the University of North Carolina at Chapel Hill, William C. Friday, in his official capacity as President of the University of North Carolina, Thomas W. Lambeth, in his official capacity as Chairman of the Board of Trustees, the University of North Carolina at Chapel Hill, William A. Johnson, in his official capacity as Chairman of the Board of Governors of the University of North Carolina, and the University of North Carolina at Chapel Hill, Defendants.

No. C-78-345-D.

United States District Court, M. D. North Carolina, Durham Division.

January 31, 1979.

COPYRIGHT MATERIAL OMITTED

Charles R. Coleman of Lee & Lee, High Point, N. C., for plaintiff.

Marvin Schiller, Asst. Atty. Gen., Edwin M. Speas, Jr., Special Deputy Atty. Gen., Raleigh, N. C., for Dale.

Sheila R. Benninger, Cooper & Williams, P. A., Chapel Hill, N. C., for other defendants.

MEMORANDUM OPINION AND ORDER

HIRAM H. WARD, District Judge.

This case is before the Court on the defendants' motions to dismiss, Rule 12(b), Federal Rules of Civil Procedure. For the reasons set out below, the motions will be granted.

Plaintiff Sherman L. Roberson alleges in his complaint that in May 1978 agents of the University of North Carolina at Chapel Hill (UNC-CH) offered him a job as the Director of UNC-CH's Afro-American Studies and Southeastern Black Press Institute; that he accepted the offer; and that UNC-CH then reneged on its offer. He also alleges that, after accepting UNC-CH's offer, he leased a house from defendant William Dale, and that Dale then leased the house to a third party. Dale is not employed by or otherwise connected with UNC-CH, and it is not alleged that he participated in UNC-CH's breach of the employment contract. Roberson has apparently joined him as a matter of convenience.¹ See Rule 20(a), Federal Rules of Civil Procedure.

Roberson has sued eight defendants: Dale, UNC-CH, and six individuals employed by either UNC-CH or UNC-CH's parent, the University of North Carolina (UNC).²See N.C.Gen.Stat. § 116-1 et seq. He contends Dale is liable for breach of the lease agreement. He further contends the other defendants are liable for (1) breach of the employment contract; (2) violation of "Plaintiff's state created rights in . . . tort;" (3) restraint of commerce, in violation of Article I of the United States Constitution; (4) interference with plaintiff's right to travel, in violation of the Fifth Amendment to the United States Constitution; and (5) impairing the obligation of contracts, in violation of Article I of the United States Constitution.³ Roberson, who is a New York resident, asserts that this Court has jurisdiction over his claim against Dale, who is a North Carolina resident, by virtue of 28 U.S.C. § 1332 (diversity of citizenship). He contends the Court has jurisdiction over his suit against the other defendants under 28 U.S.C. § 1331 (federal question), 28 U.S.C. § 1332, and 28 U.S.C. § 1337 (Acts of Congress regulating commerce).

Dale's Motion to Dismiss

Defendant William Dale has moved to dismiss Roberson's breach of contract claim on the ground that this Court lacks subject matter jurisdiction, Rule 12(b)(1), Federal Rules of Civil Procedure. Dale contends that, although there is diversity of citizenship between the parties, there is not $10,000 in controversy, as required by 28 U.S.C. § 1332.

Ordinarily, a diversity plaintiff's statement of the amount in controversy is accepted at face value. Gibbs v. Buck, 307 U.S. 66, 72, 59 S.Ct. 725, 729, 83 L.Ed. 1111, 1115 (1939). When, however, the defendant challenges the plaintiff's statement, the plaintiff must show that it does not "appear to a legal certainty that his claim is really for less than the jurisdictional amount . . .." Saint Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 289, 58 S.Ct. 586, 590, 82 L.Ed. 845, 848 (1938). In judging whether a plaintiff has met this test, a federal district court applies federal standards. Where, as here, an action turns on state law, the federal court also looks "to state law to determine the nature and extent of the right to be enforced." This includes applying the forum state's rules regarding the measure of damages and the availability of special and punitive damages. Horton v. Liberty Mutual Insurance Co., 367 U.S. 348, 352, 81 S.Ct. 1570, 1573, 6 L.Ed.2d 890, 894 (1961). See 14 Wright and Miller, Federal Practice and Procedure § 3702 at 373-76 (1976).

Under North Carolina law, the measure of general damages for breach of contract is that amount which places the injured party in the same monetary condition he would have been in had the contract not been breached. Weyerhaeuser Co. v. Godwin Building Supply Co., Inc., 292 N.C. 557, 560, 234 S.E.2d 605, 607 (1977); Norwood v. Carter, 242 N.C. 152, 155, 87 S.E.2d 2, 4 (1955). Special damages are recoverable if they are foreseeable at the time the contract is formed. Damages are reasonably foreseeable if they arise naturally or according to the usual course of things from the breach of the contract. Troitino v. Goodman, 225 N.C. 406, 412, 35 S.E.2d 277, 281 (1945). Where the breached contract was commercial and not personal,⁴ the plaintiff may not recover special damages for mental anguish. Lamm v. Shingleton, 231 N.C. 10, 12-15, 55 S.E.2d 810, 812-13 (1949). Moreover, punitive damages are not recoverable for breach of contract. King v. Insurance Co. of North America, 273 N.C. 396, 159 S.E.2d 891 (1968); Swinton v. Savoy Realty, 236 N.C. 723, 73 S.E.2d 785 (1953).

Applying these rules here, it is at once apparent to a legal certainty that Roberson cannot recover $10,000 from Dale. Roberson's general damages would be no more than $540: the difference between the contract rental price ($325 per month) and the cost of renting comparable quarters elsewhere ($370 per month)⁵ times 12 (months). Roberson contends that he has suffered special damages in excess of $10,000, but an examination of the alleged damages reveals that most could not be recovered for breach of a non-personal contract to employ in North Carolina.⁶ Giving Roberson the benefit of every doubt, this Court can find no more than $8,721 in special damages that could conceivably be recovered from Dale.⁷ Roberson's total alleged damages therefore fall short of the $10,000 jurisdictional requirement of 28 U.S.C. § 1332.⁸

This Court is therefore without jurisdiction to hear Roberson's contract claim against Dale. He can bring this lawsuit only in state court. Dale's motion to dismiss will be granted.⁹ Rule 12(b)(1), Federal Rules of Civil Procedure.

The Remaining Defendants' Motion to Dismiss

The remaining defendants have moved to dismiss on the grounds that, except for the contract claim, Roberson has not stated a claim for which relief can be granted, Rule 12(b)(6), Federal Rules of Civil Procedure, and that, as to the contract claim, this Court lacks subject matter jurisdiction, Rule 12(b)(1), Federal Rules of Civil Procedure, because the requirements of 28 U.S.C. § 1332 have not been met.

It can be said without discussion that Roberson has not stated a claim for violation of the Constitutional prohibitions of restraining commerce, interference with Roberson's right to travel, and impairing the obligation of contracts. These claims are patently ridiculous; they have served only to waste the Court's time.

Roberson has also failed to state a tort claim under North Carolina law. At various places in his complaint, Roberson says that some or all of the defendants "violated plaintiff's state created rights in . . . tort," "ratified the breach of contract in bad faith," negligently failed to disclose the conditional nature of the offer, and "advanced the contract in bad faith" so as to "misrepresent." These contentions, even when taken in their most favorable light, are mere epithets and do not state a claim for any recognizable tort in North Carolina. See Newton v. Standard Fire Insurance Co., 291 N.C. 105, 113, 229 S.E.2d 297, 302 (1976) (no tort claim stated where plaintiff alleged "heedless, wanton and oppressive conduct" of defendant in failing to pay claim); King v. Insurance Co. of North America, 273 N.C. 396, 397, 159 S.E.2d 891, 893 (1968) (no tort claim stated where plaintiff alleged defendant's refusal to defend was "wilful," "intentional," "wanton," and "calculated . . . to hamper, prevent and impair the plaintiff's legal position"); Smith v. Hefner, 235 N.C. 1, 7, 68 S.E.2d 783, 788 (1952) (defendant officials' conduct had to be "corrupt or malicious" or beyond the scope of their authority); Pue v. Hood, 222 N.C. 310, 315, 22 S.E.2d 896, 900 (1942).

Moreover, under North Carolina law, Roberson cannot state a claim for breach of contract against the individual defendants Stone, Williamson, Taylor, Lambeth, Friday, and Johnson, who, according to the complaint, were acting as "agents, officers and employees" of either UNC-CH or the parent UNC. "When a contract is made with a known agent, acting within the scope of his authority for a disclosed principal, the contract is that of the principal alone. Jenkins v. City of Henderson, 214 N.C. 244, 247, 199 S.E. 37, 39 (1938)." Smith v. State, 289 N.C. 303, 332, 222 S.E.2d 412, 431 (1976).

The Court will therefore grant the defendants' motion to dismiss for failure to state a claim, Rule 12(b)(6), Federal Rules of Civil Procedure, as it relates to all of Roberson's claims except that for breach of contract.

Thus, Roberson's suit is reduced to what it should have begun...