{ "id": 8359114, "name": "JERRY W. WHITEHURST v. HERBERT S. COREY and wife JO ANNE COREY", "name_abbreviation": "Whitehurst v. Corey", "decision_date": "1988-02-16", "docket_number": "No. 873DC177", "first_page": "746", "last_page": "749", "citations": [ { "type": "official", "cite": "88 N.C. App. 746" } ], "court": { "name_abbreviation": "N.C. Ct. App.", "id": 14983, "name": "North Carolina Court of Appeals" }, "jurisdiction": { "id": 5, "name_long": "North Carolina", "name": "N.C." }, "cites_to": [ { "cite": "199 S.E. 2d 414", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1973, "pin_cites": [ { "page": "419-20" } ], "opinion_index": 0 }, { "cite": "284 N.C. 54", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8559879 ], "year": 1973, "pin_cites": [ { "page": "61" } ], "opinion_index": 0, "case_paths": [ "/nc/284/0054-01" ] }, { "cite": "393 U.S. 935", "category": "reporters:federal", "reporter": "U.S.", "case_ids": [ 11382438, 11382571, 11382508, 11382385, 11382323, 11382682 ], "year": 1969, "pin_cites": [ { "parenthetical": "affidavit not conforming to Rule 56(e) is subject to motion to strike, but objection waived absent motion" } ], "opinion_index": 0, "case_paths": [ "/us/393/0935-03", "/us/393/0935-05", "/us/393/0935-04", "/us/393/0935-02", "/us/393/0935-01", "/us/393/0935-06" ] }, { "cite": "400 F. 2d 442", "category": "reporters:federal", "reporter": "F.2d", "case_ids": [ 2137831 ], "year": 1968, "pin_cites": [ { "page": "445" } ], "opinion_index": 0, "case_paths": [ "/f2d/400/0442-01" ] }, { "cite": "296 N.C. 410", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8566628, 8566481, 8566586, 8566555, 8566526 ], "year": 1979, "pin_cites": [ { "parenthetical": "failure to object to form or sufficiency of pleadings and affidavits waives objection on summary judgment" } ], "opinion_index": 0, "case_paths": [ "/nc/296/0410-05", "/nc/296/0410-01", "/nc/296/0410-04", "/nc/296/0410-03", "/nc/296/0410-02" ] }, { "cite": "247 S.E. 2d 720", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1979, "pin_cites": [ { "page": "722", "parenthetical": "failure to object to form or sufficiency of pleadings and affidavits waives objection on summary judgment" } ], "opinion_index": 0 }, { "cite": "38 N.C. App. 190", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8552897 ], "year": 1979, "pin_cites": [ { "page": "192", "parenthetical": "failure to object to form or sufficiency of pleadings and affidavits waives objection on summary judgment" } ], "opinion_index": 0, "case_paths": [ "/nc-app/38/0190-01" ] }, { "cite": "189 S.E. 2d 208", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1972, "pin_cites": [ { "page": "213", "parenthetical": "to extent verified pleadings meet requirements of Rule 56(e), pleadings are \"affidavit\"" } ], "opinion_index": 0 }, { "cite": "281 N.C. 604", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8575723 ], "year": 1972, "pin_cites": [ { "page": "612", "parenthetical": "to extent verified pleadings meet requirements of Rule 56(e), pleadings are \"affidavit\"" } ], "opinion_index": 0, "case_paths": [ "/nc/281/0604-01" ] }, { "cite": "290 S.E. 2d 593", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1982, "pin_cites": [ { "page": "596", "parenthetical": "substantial right to avoid inconsistent determination of same legal issues was prejudiced if appeal delayed" } ], "opinion_index": 0 }, { "cite": "305 N.C. 603", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8572803 ], "year": 1982, "pin_cites": [ { "page": "608", "parenthetical": "substantial right to avoid inconsistent determination of same legal issues was prejudiced if appeal delayed" } ], "opinion_index": 0, "case_paths": [ "/nc/305/0603-01" ] }, { "cite": "362 S.E. 2d 812", "category": "reporters:state_regional", "reporter": "S.E.2d", "weight": 2, "year": 1987, "pin_cites": [ { "page": "815" }, { "page": "817" } ], "opinion_index": 0 }, { "cite": "88 N.C. App. 1", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8357716 ], "weight": 2, "year": 1987, "pin_cites": [ { "page": "9" } ], "opinion_index": 0, "case_paths": [ "/nc-app/88/0001-01" ] } ], "analysis": { "cardinality": 445, "char_count": 7456, "ocr_confidence": 0.81, "pagerank": { "raw": 1.810644018067389e-07, "percentile": 0.7177331574157412 }, "sha256": "c132a470d5454ba78e711119576776a1a38046cf7659896a84a5370349518adb", "simhash": "1:9aecc0567e4bf50e", "word_count": 1157 }, "last_updated": "2023-07-14T22:20:42.285314+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [ "Judges Phillips and Cozort concur." ], "parties": [ "JERRY W. WHITEHURST v. HERBERT S. COREY and wife JO ANNE COREY" ], "opinions": [ { "text": "GREENE, Judge.\nIn his verified complaint, plaintiff alleged defendants had defaulted on a promissory note executed in the original amount of $11,000. Plaintiff attached a copy of the promissory note to his complaint. Having alleged his acceleration of the balance due, plaintiff therefore claimed $8,000, plus interest and attorney\u2019s fees. In response, defendants\u2019 verified answer conceded execution of the note but alleged defendants had relied on plaintiffs performance of certain fiduciary duties in executing the note. Defendants claimed plaintiffs alleged breach of those duties constituted a defense to any action on the note. Defendants also counterclaimed for damages arising from plaintiffs alleged breach of these fiduciary duties. Based upon these verified pleadings, the trial court entered partial summary judgment for plaintiff on his promissory note claim. Defendants appealed, arguing their verified pleadings raised material issues of fact precluding the court\u2019s partial summary judgment.\nThese facts present the following issues: I) whether the partial summary judgment against defendants affected a \u201csubstantial right\u201d such that the interlocutory appeal is allowable under N.C.G.S. Sec. l-277(a) (1983) and N.C.G.S. Sec. 7A-27(d)(l) (1986); and II) if so, whether defendants\u2019 pleadings have raised a genuine issue of material fact precluding the trial court\u2019s entry of partial summary judgment under N.C.G.S. Sec. 1A-1, Rule 56 (1983).\nI\nAs the trial court failed to adjudicate defendants\u2019 counterclaims, we note the court failed to determine there was no just reason for delay of the appeal under N.C.G.S. Sec. 1A-1, Rule 54(b) (1983). The court\u2019s summary judgment is therefore interlocutory and not otherwise appealable except under Section 7A-27 and Section 1-277. See J & B Slurry Seal Co. v. Mid-South Aviation, Inc., 88 N.C. App. 1, 362 S.E. 2d 812, 815 (1987). Section 7A-27(d) and Section l-277(a) both provide for the appeal of any order which affects a \u201csubstantial right.\u201d\nDefendants\u2019 defense to the promissory note claim and their counterclaims are both founded on proving plaintiffs breach of a fiduciary relationship with defendants. A party has a \u201csubstantial right\u201d to avoid separate trials of the same legal issues. See Green v. Duke Power Co., 305 N.C. 603, 608, 290 S.E. 2d 593, 596 (1982) (substantial right to avoid inconsistent determination of same legal issues was prejudiced if appeal delayed). Given the allegation of plaintiffs breach of a fiduciary relationship in both the original claim and counterclaim, we conclude defendants\u2019 substantial right will be prejudiced absent our immediate review. See generally Slurry, 88 N.C. App. at 9, 362 S.E. 2d at 817.\nRule 56(e) states in part:\nWhen a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denials of his pleading, but his response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue for trial. If he does not so respond, summary judgment, if appropriate, shall be entered against him. [Emphasis added.]\nPlaintiff argues defendants\u2019 failure to present \u201cspecific facts\u201d in opposition to plaintiffs verified pleadings demonstrates there is no genuine issue of material fact in the case.\nWe disagree. Defendants\u2019 verified answer and counterclaim constitute an \u201caffidavit\u201d for purposes of determining either party\u2019s right to summary judgment. See Schoolfield v. Collins, 281 N.C. 604, 612, 189 S.E. 2d 208, 213 (1972) (to extent verified pleadings meet requirements of Rule 56(e), pleadings are \u201caffidavit\u201d). It is true that Rule 56(e) also requires that \u201copposing affidavits shall be made on personal knowledge, shall set forth such facts as would be admissible in evidence, and shall show affirmatively that the affiant is competent to testify to the matters stated [t]herein.\u201d However, while defendants\u2019 verified pleadings arguably do not conform to the formal requirements of Rule 56(e), plaintiffs failure to move to strike these allegations waives any objection to their formal defects. See North Carolina Nat\u2019l Bank v. Harwell, 38 N.C. App. 190, 192, 247 S.E. 2d 720, 722, disc. rev. denied, 296 N.C. 410 (1979) (failure to object to form or sufficiency of pleadings and affidavits waives objection on summary judgment); Noblett v. General Electric Credit Corp., 400 F. 2d 442, 445 (10th Cir. 1968), cert. denied, 393 U.S. 935 (1969) (affidavit not conforming to Rule 56(e) is subject to motion to strike, but objection waived absent motion); see also 10A C. Wright & A. Miller, Federal Practice and Procedure Sec. 2738 at 507-09 (1983) (party must move to strike affidavit not conforming with Rule 56(e) before appeal).\nTherefore, although plaintiff objects to the admissibility of any allegation of a parol stock sale agreement, plaintiff has waived such objection. The promissory note itself states that the note was given in exchange for plaintiffs stock. Furthermore, we note \u201cit is rather common for a promissory note to be intended as only a partial integration of the agreement in pursuance of which it was given, and parol evidence as between the original parties may well be admissible so far as it is not inconsistent with the express terms of the note.\u201d Borden, Inc. v. Brower, 284 N.C. 54, 61, 199 S.E. 2d 414, 419-20 (1973).\nConstruing defendants\u2019 verified pleadings in their favor as non-movant reveals a material fact dispute concerning the alleged existence and effect of a fiduciary relationship between plaintiff and defendants. These alleged facts are clearly \u201cmaterial\u201d since plaintiff s performance of the alleged fiduciary duties was allegedly part of the consideration for defendants\u2019 execution of the promissory note. We also reject plaintiffs argument that defendants have alleged no facts showing detrimental reliance in support of their apparent fraud claim. Defendants\u2019 purchase of plaintiffs stock may well evidence their detrimental reliance on plaintiffs alleged representations concerning his intended fiduciary obligations.\nAccordingly, we must conclude that defendants have raised material issues of fact precluding entry of summary judgment. We reverse the trial court\u2019s partial summary judgment and remand the case for further proceedings consistent with this opinion.\nReversed and remanded.\nJudges Phillips and Cozort concur.", "type": "majority", "author": "GREENE, Judge." } ], "attorneys": [ "Charles L. McLawhom, Jr. for plaintiff-appellee.", "Hugh D. Cox for defendant-appellants." ], "corrections": "", "head_matter": "JERRY W. WHITEHURST v. HERBERT S. COREY and wife JO ANNE COREY\nNo. 873DC177\n(Filed 16 February 1988)\nBills and Notes \u00a7 20\u2014 material fact dispute as to fiduciary relationship \u2014 performance of fiduciary duties as part of consideration for execution of note \u2014 entry of partial summary judgment erroneous\nThe trial court erred in entering partial summary judgment for plaintiff on his claim on a promissory note where defendants\u2019 verified pleadings revealed a material fact dispute concerning the alleged existence and effect of a fiduciary relationship between the parties, and these alleged facts were clearly material since plaintiffs performance of the alleged fiduciary duties was allegedly part of the consideration for defendants\u2019 execution of the promissory note.\nAppeal by defendants from E. Burt Aycock, Judge. Partial summary judgment entered 2 September 1986 in District Court, PITT County. Heard in the Court of Appeals 23 September 1987.\nCharles L. McLawhom, Jr. for plaintiff-appellee.\nHugh D. Cox for defendant-appellants." }, "file_name": "0746-01", "first_page_order": 774, "last_page_order": 777 }