Attorneys – Rule 11 – Sanctions Denied – Fact Investigation – Real Property – Promissory Note

Ancelmo v. Oliver (Lawyers Weekly No. 11-16-0687, 7 pp.) (Robert C. Hunter, J.) Appealed from Greene County Superior Court. (Arnold Jones, J.) N.C. App. Unpub. Click here for the full-text opinion.

Holding: Plaintiffs told their attorney that they had made all the payments required by an installment sale agreement for a tract of real property, yet defendants refused to release the deed of trust encumbering the property. Plaintiffs said there was no promissory note, and plaintiffs’ attorney made oral and written requests that defendants produce any such promissory note. Defendants failed to produce a promissory note until more than a year after plaintiffs filed this lawsuit for breach of contract, specific performance, and “failure to extinguish proof of indebtedness.”

The trial court did not err in determining that plaintiffs’ attorney acted in good faith when he filed the complaint on behalf of plaintiffs and that the attorney did not violate N.C. R. Civ. P. 11. We affirm the denial of defendants’ motion for sanctions.