Preservation of issues—expert testimony—adequacy of objections—by operation of law—In a prosecution of a father and his daughter who were accused of killing the daughter's husband during an altercation, a challenge to a portion of expert testimony on bloodstain patterns (spatters which were never tested to confirm they were the victim's blood) was properly preserved for appellate review. Despite defendants' failure to object to the challenged portion, their objections to the expert's report containing the same conclusions and other portions of the expert testimony were sufficient to preserve the issue for review. Further, the issue was preserved by operation of law pursuant to N.C.G.S. § 15A-1446(d)(10) where the Court of Appeals determined that the blood spatter evidence was improperly admitted and that issue was not appealed to the Supreme Court. State v. Corbett , 376 N.C. 799 (2021) (Author: Justice Anita Earls)

Preservation of issues—waiver of appellate review—complex business case—distribution of punitive damages award—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), plaintiff waived appellate review of his argument that any distributions defendants receive following the LLCs' judicial dissolution should be calculated by excluding the punitive damages the LLCs received from defendants in the case, where plaintiff neither objected to the trial court's jury instructions nor proposed alternative instructions on how to distribute a punitive damages award to the LLCs. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

City's authority to levy fees—session law amending city's charter—plain language analysis—In a case involving a challenge by residential subdivision developers (plaintiffs) to defendant-city's authority to levy water and wastewater connection fees for services to be furnished, the plain language of a session law amending the city's charter–which superseded prior session laws that had given a city board the authority to assess fees and charges for services and facilities to be furnished–stated that all powers of the board "shall become powers and duties of the City." This language was unambiguous and transferred the powers held by the board (including the authority to levy water and sewer fees for services to be furnished) to the city, and the simultaneous dissolution of the board by the same session law did not affect the transfer of the board's powers. Therefore, the trial court properly granted summary judgment to the city where there was no genuine issue of material fact regarding the city's authority to charge the challenged fees. JVC Enters., LLC v. City of Concord , 376 N.C. 782 (2021) (Author: Justice Robin Hudson)

Individual claims—breach of fiduciary duty—constructive fraud—showing of injury—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), the trial court properly dismissed plaintiff's individual claims for breach of fiduciary duty and constructive fraud where, although plaintiff alleged facts describing the specific steps defendants took to deprive him of his ownership interests in the LLCs, plaintiff failed to show he suffered a legally cognizable injury as a result of defendants' conduct. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Judicial dissolution—appointment of receiver—sufficiency of evidence and findings—notice and opportunity to be heard—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), the trial court did not err in ordering that two of the LLCs be judicially dissolved and a receiver appointed to oversee the process without first giving defendants the opportunity to buy plaintiff's membership interests. The record evidence and the court's findings of fact supported dissolution under clause (i) of N.C.G.S. § 57D-6-02(2) (allowing judicial dissolution where it is not practicable to conduct an LLC's business); the allegations in plaintiff's complaint, the evidence at trial, and the court's statement during jury deliberations that it would likely order dissolution gave defendants sufficient notice that judicial dissolution was an issue; and the trial afforded defendants ample opportunity to be heard on the issue. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Compensatory damages—identical awards against individual defendants—no fatal ambiguity in verdict—After a complex business trial against two defendants where the jury awarded compensatory damages to a limited liability company against each defendant on a derivative claim for constructive fraud, the trial court did not abuse its discretion in declining to amend the judgment because the verdict was not fatally ambiguous as to damages. Defendants were not held to be jointly and severally liable, and therefore could be found to each be independently liable, and although plaintiff's counsel told the jury during closing arguments that the trial court would prevent a double recovery, which defendants argued could have made the jury think its award would be split in half between the two defendants, juries are presumed to follow trial courts' instructions. In this case, both the instructions and the verdict sheet were clear and did not contain confusing language regarding the effect of any damage award. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Constructive fraud—breach of fiduciary duty—proof of nominal damages—sufficient—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), the trial court properly entered judgment in plaintiff's favor on his claims for breach of fiduciary duty and constructive fraud, which included an award of punitive damages, even though plaintiff presented no evidence that he suffered actual damages as a result of defendants' conduct. Under North Carolina law, a showing of nominal damages is sufficient to support claims for breach of fiduciary duty and constructive fraud. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Hearsay—child witnesses—medical treatment exception—indices of reliability—In a prosecution of a father and his daughter who were accused of killing the daughter's husband during an altercation, the trial court erred by excluding statements made by the victim's two children during medical evaluations conducted a few days after the victim was killed. Objective circumstances, including that trained professionals explained to the children the importance of being truthful and that the evaluation was conducted in close proximity in time and space to a physical examination by a doctor, sufficiently demonstrated that the statements were made for the purpose of obtaining a medical diagnosis and met the reliability standards required by Evidence Rule 803(4). State v. Corbett , 376 N.C. 799 (2021) (Author: Justice Anita Earls)

Hearsay—child witnesses—residual hearsay exception—guarantees of trustworthiness—In a prosecution of a father and his daughter who were accused of killing the daughter's husband during an altercation, the trial court abused its discretion by excluding statements from the victim's two children made to a social worker because its findings–that the children did not have personal knowledge of their statements, that the children lacked motivation for telling the truth, and that the statements were specifically recanted–were overly broad and not fully supported by the evidence. Neither these findings, nor the record evidence, supported the court's conclusion that the children's statements were not sufficiently trustworthy to be admitted under the residual hearsay exception in Evidence Rule 803(4). State v. Corbett , 376 N.C. 799 (2021) (Author: Justice Anita Earls)

Murder trial—one defendant's testimony—co-defendant's out-of-court statement—non-hearsay—In a prosecution of a father and his daughter who were accused of killing the daughter's husband during an altercation, the trial court erred by excluding testimony by the father that he heard his daughter say "Don't hurt my dad" during the altercation, because the statement did not constitute hearsay where it was offered not to prove the truth of the matter asserted, but to illustrate the father's state of mind, and was relevant to whether his subjective fear of the victim was reasonable for purposes of his claims of self-defense and defense of another. State v. Corbett , 376 N.C. 799 (2021) (Author: Justice Anita Earls)

Constructive—breach of fiduciary duty—jury verdicts—not fatally inconsistent—consideration of different time periods—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), the trial court did not err by allowing the jury to find one of the defendants liable for constructive fraud but not liable for breach of fiduciary duty. Although elements of the two claims overlap (namely, a breach of a relationship of trust and confidence), different statutes of limitations apply to each claim, and therefore the jury–evaluating defendant's conduct over two different periods of time–could find that defendant's actions satisfied those elements within the ten-year limitations period for constructive fraud but not within the three-year limitations period for breach of fiduciary duty. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Constructive—jury instruction—no reference to rebuttable presumption—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), the trial court did not err by declining to give defendants' requested jury instruction that a finding that defendants had acted openly, fairly, and honestly in their dealings with the LLCs would defeat plaintiff's constructive fraud claim. The requested instruction did not accurately state the applicable law because it did not explain that, even if evidence of defendants' open, fair, and honest conduct sufficed to rebut the presumption of constructive fraud, plaintiff could still be entitled to recovery if the jury found proof of actual fraud. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Evidentiary errors—prejudice—new trial—In a prosecution of a father and his daughter for the unlawful killing of the daughter's husband during an altercation, where the trial court committed multiple evidentiary errors, defendants were entitled to a new trial because they were deprived of an opportunity to fully present their claims of self-defense and defense of another. Defendants were primarily prejudiced by the court's exclusion of statements made by the victim's children, which would have corroborated defendants' version of events and provided context, and there was a reasonable possibility that the admission of those statements would have resulted in a different outcome at trial. State v. Corbett , 376 N.C. 799 (2021) (Author: Justice Anita Earls)

Public housing—notice of lease termination—federal requirement to state specific grounds—In a summary ejectment case, plaintiff public housing authority's notice of lease termination to defendant tenant failed to "state specific grounds for termination," pursuant to 24 C.F.R. § 966.4 (l)(3)(ii), where the notice quoted the lease provision defendant allegedly violated but neither identified specific conduct by defendant that violated the provision nor clearly identified the factors forming the basis for terminating the lease. Consequently, the Supreme Court reversed the Court of Appeals' decision holding that the notice complied with federal regulations. Raleigh Hous. Auth. v. Winston , 376 N.C. 790 (2021) (Author: Justice Tamara Barringer)

Felony obstruction of justice—deceit and intent to defraud—sufficiency of the evidence—In a case involving the sexual abuse of a child by the child's adoptive father where defendant (the child's mother) engaged in acts to obstruct the abuse investigation by denying investigators access to the child, the record contained sufficient evidence of deceit and intent to defraud to support defendant's conviction of felonious obstruction of justice. The evidence, in the light most favorable to the State, showed defendant knew the child's accusations against her husband were probably true–and later discovered him having sex with the child– and had motives other than a desire for truthfulness in seeking to interfere with the investigation. State v. Ditenhafer , 376 N.C. 846 (2021) (Author: Justice Sam Ervin, IV)

Secret peeping—sex offender registration—danger to the community—After defendant's conviction for felony secret peeping, the trial court did not err in finding as an ultimate fact that defendant was a danger to the community and ordering him to register as a sex offender where the evidentiary facts showed defendant took advantage of a close personal relationship, used a sophisticated scheme to avoid detection, deployed a hidden camera and obtained images of the victim over an extended period of time, repeatedly invaded the victim's privacy, caused significant and long lasting emotional harm to the victim, and could easily commit similar crimes in the future. State v. Fuller , 376 N.C. 862 (2021) (Author: Justice Phil Berger, Jr.)

Declaratory judgment claims—based on breach of contract—applicable limitations period—triable issue of fact—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), the three-year limitations period for breach of contract claims applied to plaintiff's declaratory judgment claims regarding one of the LLCs, where plaintiff based those claims on a theory that defendants breached the LLC operating agreement by diluting his membership interest and assuming total control of the LLC. On appeal, the trial court's order directing a verdict in defendants' favor on these claims was reversed and remanded because a triable issue of fact existed regarding the date the limitations period began to run (the date when plaintiff knew or should have known about defendants' alleged breach). Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Declaratory judgment claims—based on breach of contract—limitations period—date of notice of breach—In a legal dispute concerning plaintiff's membership status in the parties' three limited liability companies (LLCs), the three-year limitations period applicable to plaintiff's declaratory judgment claims (based on breach of contract) began to run at the time he became aware or should have become aware of defendants' breach of the LLC operating agreements. Therefore, rather than dismissing the claims as time-barred, the trial court properly submitted to the jury the issue of when plaintiff had notice of defendants' breach where the record showed it was a triable issue of fact. Chisum v. Campagna , 376 N.C. 680 (2021) (Author: Justice Sam Ervin, IV)

Adjudicatory findings of fact—sufficiency of evidence—improperly based on dispositional evidence—Where several of the trial court's findings of fact, made in the adjudication phase of a termination of parental rights hearing, lacked evidentiary support or were improperly based on testimony from the dispositional phase, the Supreme Court disregarded those portions of the findings made in error when evaluating the trial court's determination that respondent-father's parental rights to his daughter should be terminated on the basis of neglect and willful abandonment. In re Z.J.W. , 376 N.C. 760 (2021) (Author: Justice Sam Ervin, IV)

Grounds for termination—neglect—insufficient findings—evidence from which determination could be made—The trial court's determination that respondent-father's parental rights to his daughter were subject to termination on the basis of neglect was vacated. The court's conclusion that respondent neglected his child by abandonment was not supported by its findings, which established that respondent paid child support, attended hearings, emailed his daughter's caregiver, and complied with his case plan requirements. Although the court also concluded that grounds for neglect existed based on a prior adjudication of neglect and a likelihood of future neglect, the court's findings did not address the possibility of a repetition of neglect, despite record evidence from which sufficient findings could be made. The matter was remanded for entry of a new order addressing future neglect and best interests. In re Z.J.W. , 376 N.C. 760 (2021) (Author: Justice Sam Ervin, IV)

Grounds for termination—willful abandonment—sufficiency of findings—In a termination of parental rights proceeding, the trial court's conclusion that respondent-father willfully abandoned his daughter was reversed where the unchallenged findings established that respondent made child support payments, sent emails to the relative caring for his daughter, and completed certain aspects of his case plan during the determinative six-month period prior to the filing of the termination petition. Respondent's failure to visit with his daughter was not voluntary where a prior order precluded visitation absent a recommendation from the child's therapist, which had not been given. In re Z.J.W. , 376 N.C. 760 (2021) (Author: Justice Sam Ervin, IV)

Grounds for termination—willful failure to make reasonable progress—lack of participation in case plan—The trial court properly terminated respondent-mother's parental rights on the basis of willful failure to make reasonable progress where the findings established that respondent, whose pregnancy at thirteen resulted from a crime perpetrated against her and who was placed in foster care with her baby until aging out when she reached the age of majority, discontinued participation in and failed to comply with multiple aspects of her case plan despite having the ability to comply. The case plan had a sufficient nexus to the reason the child was removed from respondent's care because it included activities designed to foster stability and the acquisition of sufficient parenting skills. In re Q.P.W. , 376 N.C. 738 (2021) (Author: Justice Robin Hudson)

Subject matter jurisdiction—non-resident parents—residence of the child—The trial court had subject matter jurisdiction in a termination of parental rights case because–even though the parents were not and had not been residents of North Carolina–jurisdiction depends on the residence of the child, not the parents. Since the child was born in North Carolina and had lived her entire life in this state, she was a resident of North Carolina. In re N.P. , 376 N.C. 729 (2021) (Author: Justice Michael Morgan)