Dreamstreet Investments, Inc. v. MidCountry Bank

Dreamstreet sold a vacant lot for home construction and MidCountry financed the lot's purchase by a third party. This case arose from the "seller holdback" agreement between Dreamstreet and MidCountry, where part of the purchase price owed to Dreamstreet instead would be retained by MidCountry, pending completion of the home and subject to certain conditions. Dreamstreet alleged that MidCountry fraudulently induced it to enter into the seller holdback agreement, in violation of North Carolina’s Unfair and Deceptive Trade Practices Act (UDTPA). Dreamstreet also alleged a claim under the common-law doctrine of constructive fraud. The district court granted summary judgment to MidCountry. With respect to the UDTPA claim, the court concluded that the district court properly granted summary judgment to MidCountry on statute of limitation grounds. The court also concluded that the undisputed facts of this case reveal an ordinary contractual relationship, with nothing that could give rise to a special fiduciary relationship. Because the existence of a fiduciary relationship is a necessary element of constructive fraud, the district court properly granted summary judgment to MidCountry on this claim. Accordingly, the court affirmed the judgment. View "Dreamstreet Investments, Inc. v. MidCountry Bank" on Justia Law