Cameron Hospitality, Inc. v. Cline Design Associates, PA
Cameron Hospitality, Inc. v. Cline Design Associates, PA
Opinion of the Court
Procedural History and Factual Background
This construction defect action arises from the 2004 — 2006 renovation of a restaurant operated by Plaintiff Cameron Hospitality, Inc., (“Cameron”). Cameron’s remodeling project included, inter alia, renovation of the property’s HVAC system. Cameron hired Cline Design Associates, P.A., (“Cline”) as architect and Inland Construction Company (“Inland”) as general contractor. In turn, Cline hired Appellant-
On 12 February 2009, Cameron filed a verified amended complaint against Cline and other parties involved with the renovation, including, inter alia, Inland, Saber and R&W. On 10 August 2009, Cameron filed a notice of voluntary dismissal with prejudice of all claims against Inland. On 8 November 2010, Cameron filed a notice of voluntary dismissal with prejudice of all claims against Cline. On 1 and 24 August 2011, R&W and Saber, respectively, filed motions for summary judgment.
Following a hearing on the motions, on 29 September 2011, the trial court entered an order denying summary judgment to Saber and R&W. On 25 October 2011, Saber and R&W gave notice of appeal from the order denying summary judgment. Saber and R&W also sought a hearing in the trial court as to whether the summary judgment order was immediately appealable. On 5 April 2012, Cameron filed a motion and affidavit for dismissal of the appeal. Following a hearing, the trial court entered an order on 25 April 2012 denying Cameron’s motion to dismiss the appeal and concluding that the interlocutory appeal by Saber and R&W affected a substantial right and was thus immediately appealable. On 26 June 2012, Cameron moved this Court to dismiss the appeal, contending that it is interlocutory and does not affect a substantial right of either Saber or R&W. We agree and dismiss.
Discussion
As noted supra, during discovery, Cameron voluntarily dismissed with prejudice Cline and Inland. The subsequent motions for summary judgment by Saber and R&W were based upon an assertion that Saber and R&W were agents of Cline and Inland, respectively, and that Cameron’s dismissal of the principals (Cline and Inland) acted as res judicata and/or collateral estoppel as to Cameron’s claims against Saber and R&W.
This appeal, arising from the denial of motions for summary judgment, is interlocutory. McCallum v. North Carolina Co-op. Extension Serv. of N.C. State University, 142 N.C. App. 48, 50, 542 S.E.2d 227, 230 (citation omitted), appeal dismissed and disc. review
In some cases, “the denial of a motion for summary judgment based on the defense of res judicata may affect a substantial right, making the order immediately appealable.” Bockweg, 333 N.C. at 491, 428 S.E.2d at 161 (emphasis added). In Bockweg, our Supreme Court noted:
Under the doctrine of res judicata, a final judgment on the merits in a prior action in a court of competent jurisdiction precludes a second suit involving the same claim between the same parties or those in privity with them. Thus, a motion for summary judgment based on res judicata is directed at preventing the possibility that a successful defendant, or one in privity with that defendant, will twice have to defend against the same claim by the same plaintiff, or one in privity with that plaintiff. Denial of the motion could lead to a second trial in frustration of the underlying principles of the doctrine of res judicata.
Id. (citation omitted). Relying on this reasoning, this Court has recently reaffirmed that “the denial of a motion for summary judgment based upon the defense of res judicata may involve a substantial right so as to permit immediate appeal only where a possibility of inconsistent verdicts exists if the case proceeds to trial.” Heritage Operating, L.P. v. N.C. Propane Exch., LLC,_N.C. App._,_, 727 S.E.2d 311, 314 (2012) (citations and quotation marks omitted) (emphasis added).
Here, Cameron dismissed with prejudice all claims against Cline and Inland, and a voluntary dismissal with prejudice is a final adjudication on the merits. See Caswell Realty Assocs. I, L.P. v. Andrews Co., 128 N.C. App. 716, 721, 496 S.E.2d 607, 611 (1998). Saber and R&W contend that, under the doctrine of respondeat superior, these dismissals serve as res judicata as to Cameron’s claims against them as well. We are not persuaded.
Further, we note that while the doctrine of respondeat superior is commonly applied to impute liability for torts committed by an employee to his employer, McGee, 21 N.C. App. at 289, 204 S.E.2d at 205, “[t]he general rule is that a company is not liable for the torts of an independent contractor committed in the performance of the contracted work.” Coastal Plains Utils., Inc. v. New Hanover Cnty, 166 N.C. App. 333, 344, 601 S.E.2d 915, 923 (2004). While
the principal must have the right to control both the means and the details of the process by which the agent is to accomplish his*227 task in order for an agency relationship to exist[,] . . .[a]n independent contractor ... is one who exercises an independent employment and contracts to do certain work according to his own judgment and method, without being subject to his employer except as to the result of hiis work.
Id. at 344-45, 601 S.E.2d at 923 (citations, quotation marks, and emphasis omitted). Cameron’s complaint alleges that Saber and R&W were subcontractors of Cline and Inland, respectively, not the agents of those entities.
For the reasons discussed supra, the doctrine of respondeat superior is inapplicable here. Because the denial of their motions for summary judgment does not affect a substantial right, Saber and R&W have failed to establish grounds for immediate appellate review of that interlocutory order. See Bockweg, 333 N.C. at 490, 428 S.E.2d at 160. Accordingly, this appeal is
DISMISSED.
. We acknowledge that the Supreme Court in Whitehurst stated that, “[w]here the relation between two parties is analogous to that of principal and agent, or master and servant, or employer and employee, the rale is that a judgment in favor of either, in an action brought by a third party, rendered upon a ground equally applicable to both, should be accepted as conclusive against [the] plaintiff’s right of action against the other.” 212 N.C. at 98, 192 S.E. at 851. We note, however, that this statement was dicta as to the effect of a judgment in favor of a principal on the plaintiff’s right of action against an agent as that circumstance was not presented in the case before the Court. Id. at 97, 192 S.E. at 850. There is no case in this State holding that the dismissal of the principal requires release of claims against the agent.
. The liability of an agent may be entirely independent of his principal’s liability; for example, the agent may have acted outside the scope of his employment. See Parker v. Erixon, 123 N.C. App. 383, 391, 473 S.E.2d 421, 426 (1996). In such situations, unlike in the respondeat superior cases, there is no risk of an “inconsistent” verdict.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.