Justia North Carolina Supreme Court Opinion Summaries

Articles Posted in Contracts
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After two decades of marriage, William and Teresa Underwood divorced. The district court entered a consent order requiring William to make monthly alimony payments to Teresa. Ten years later, William asked the trial court to terminate his alimony obligation because Teresa was cohabitating with another man. The trial court terminated the alimony payments. The court of appeals reversed, holding that the trial court lacked the authority to terminate or modify the alimony payments because a reciprocal consideration provision in the consent order demonstrated that the parties unambiguously intended the order to be unmodifiable. The Supreme Court reversed, holding that the trial court did not err because (1) N.C. Gen. Stat. 50-16.9(b) requires the termination of alimony payments to a dependent spouse who engages in cohabitation, and (2) the reciprocal consideration provision was unenforceable. Remanded.View "Underwood v. Underwood" on Justia Law

Posted in: Contracts, Family Law
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Gervis Sadler owned a house that he insured through a limited-peril policy issued by North Carolina Farm Bureau Mutual Insurance Company (Farm Bureau). Farm Bureau adjusters investigated the home on two separate occasions, but Sadler disagreed with the amount of loss and asked for a disinterested appraisal. In the disinterested appraisal, Farm Bureau's appraiser valued the loss at $31,561. The appraisal award calculated by Sadler's appraiser and the umpire valued the loss at $162,500. Farm Bureau filed a complaint for declaratory relief, alleging the appraisal award failed to itemize the damages so Farm Bureau could determine the covered losses. Sadler moved for partial summary judgment on his breach of contract counterclaim. The trial court granted Sadler's request for partial summary judgment. Farm Bureau appealed. The Supreme Court reversed, holding that the trial court erred in granting partial summary judgment in favor of Sadler because genuine issues of material fact needed to be resolved before the loss covered by the policy could be determined. View "N.C. Farm Bureau Mut. Ins. Co., Inc. v. Sadler" on Justia Law