The North Carolina Court of Appeals affirmed dismissal of a complaint against our client, a community association management company, for failure to state a claim upon which relief can be granted. The plaintiffs alleged that the community association management company violated the North Carolina transfer fee covenant statute by charging a fee for statements of unpaid assessments when homes in a subdivision were sold. The trial court dismissed the complaint with prejudice. The Court of Appeals, on review, affirmed. It ruled that the charge did not amount to an unlawful “transfer fee” under Chapter 39A. Because the fee did not violate the statute, the Court of Appeals affirmed dismissal with prejudice of the remaining claims for a violation of the unfair and deceptive trade practices act, declaratory judgment, and negligent misrepresentation. Last, the Court of Appeals ruled that the trial court did not err in denying the plaintiffs’ motion for leave to amend the complaint.
Fleming and Garland v. Cedar Management Group, LLC, No. COA21-213. Read the opinion HERE.
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