Court Opinion

ID: 9781160
Source: CourtListenerOpinion
Date Created: 2023-08-30 16:17:42.488219+00
Date Added: 2024-06-11T07:34:18.507525
License: Public Domain

HUNTER, Robert C., Judge,
concurring in part, and dissenting, in part.
I concur with the majority that the trial court did not err in granting Defendants’ motion to change venue. I must, however, respectfully dissent from the majority’s opinion for two reasons. First, I would reverse the trial court’s order denying Plaintiffs’ motion to recuse as I conclude Judge Nobles should have referred the motion to another judge for an independent hearing. Second, apart from the recusal motion, I conclude the trial court erred in granting summary judgment in favor of Defendants.
*74I. Motion to Recuse
Plaintiffs argue that Judge Nobles committed reversible error in denying their motion to recuse as it would be reasonable to question the impartiality of his ruling. The majority concludes this issue is rendered moot by our de novo review of the trial court’s decision to grant summary judgment. However, this Court has recently reviewed a recusal motion under similar circumstances. See Sapp v. Yadkin County, _ N.C. App. _, __, 704 S.E.2d 909, 913-14 (2011) (reviewing the trial court’s denial of a motion to recuse and granting of a motion for summary judgment where both orders were entered by the same judge). I conclude the majority’s position may discourage trial courts from giving proper consideration to recusal motions, including referring the motions to another judge for disposition, when it is apparent a subsequent de novo review by an appellate court may negate an error in denying the motion. Upon reviewing Plaintiffs’ argument, I conclude Judge Nobles should have referred the motion to be decided by another judge.
This Court reviews the denial of a motion to recuse for abuse of discretion. SPX Corp. v. Liberty Mut. Ins. Co., _N.C. App. _, __, 709 S.E.2d 441, 450 (2011). The North Carolina Code of Judicial Conduct provides, in pertinent part, that “[o]n motion of any party, a judge should disqualify himself/herself in a proceeding in which the judge’s impartiality may reasonably be questioned[.]” Code of Judicial Conduct, Canon 3(C)(1), 2012 Ann. R. N.C. 542. The party seeking disqualification bears the burden of producing substantial evidence that the judge would be unable to rule impartially due to personal bias, prejudice, or interest. In re Faircloth, 153 N.C. App. 565, 570, 571 S.E.2d 65, 69 (2002). If the allegations in a recusal motion are of sufficient force “to proceed to find facts, or if a reasonable man knowing all of the circumstances would have doubts about the judge’s ability to rule on the motion to recuse in an impartial manner, the trial judge should either recuse himself or refer the recusal motion to another judge.” Id.
Here, in support of their motion, Plaintiffs’ called opposing counsel, Mr. Wheatly, whose testimony established that, in addition to practicing law together for a number of years, he and Judge Nobles vacationed together multiple times after Plaintiffs filed their complaint and while the case was pending. In response, Judge Nobles questioned whether Plaintiffs had any witnesses to show that in the six years since he ended his practice with Mr. Wheatly there had been *75any favoritism. Plaintiffs’ counsel conceded there had been no indication of favoritism by Judge Nobles. Before denying Plaintiffs’ motion, Judge Nobles concluded, inter alia, that he did not “see where there’s any undue influence by the fact that [he] practiced law with Mr. Wheatly up until six years ago”; that he had not held any pecuniary interest in Mr. Wheatly’s law firm for six years; that, as far as he was aware, all of the cases pending at the time he was practicing at Mr. Wheatley’s law firm had been disposed of; and that he did not possess “any particular feeling of leaning towards one side or the other.”
From my review of the transcript it is apparent that Plaintiffs’ assertions were of sufficient force to prompt the trial court to proceed to find facts on the motion. Consequently, the trial judge should have recused himself or referred the motion to another judge. M; N.C. Nat. Bank v. Gillespie, 291 N.C. 303, 311, 230 S.E.2d 375, 380 (1976) (concluding the trial judge should have recused himself or referred the recusal motion to another judge as “it was not proper for th[e] trial judge to find facts so as to rule on his own qualification to preside when the record contained no evidence to support his findings”). After referring the motion to another judge, Judge Nobles could have filed affidavits or sought to provide oral testimony to address the allegations in the motion. Gillespie, 291 N.C. at 311, 230 S.E.2d at 380.
I do not consider the mere fact that Judge Nobles practiced law with Mr. Wheatly until six years before the hearing to be grounds for recusal or referral of the recusal motion to another judge. However, I conclude Mr. Wheatly’s testimony regarding his vacations with Judge Nobles during the pendency of the action was sufficient to warrant referral of the recusal motion to another judge; this testimony would prompt a reasonable person to doubt the judge’s ability to impartially rule on the motion. Faircloth, 153 N.C. App. at 570, 571 S.E.2d at 69.
In reaching this decision, I do not conclude that Judge Nobles’s ruling on the motion was, in fact, partial to Defendants or that members of the judiciary may not socialize with members of the bar in the jurisdiction where he or she presides. See Code of Judicial Conduct, Canon 5(A), 2012 Ann. R. N.C. 548 (“A judge may . . . engage in the arts, sports, and other social and recreational activities, if such avocational activities do not substantially interfere with the performance of the judge’s judicial duties.”). Nor do I suggest that every motion to recuse should be referred to another judge. Rather, I merely apply *76existing caselaw to the unique facts of this case and conclude that, here, the motion to recuse should have been decided by another judge. Under these facts, failure to refer the recusal motion would not only allow a reasonable person to question the impartiality of the judge’s ruling on the motion, but may also result in a chilling effect on the moving party. Therefore, I would reverse Judge Nobles’s denial of Plaintiffs’ motion to recuse and remand for entry of an order referring the recusal motion to another superior court judge.
II. Summary Judgment
Plaintiffs argue that Judge Nobles committed reversible error in granting Defendants’ motion for summary judgment because the trial court applied a standard that is not the law of North Carolina requiring a showing of fraud, bad faith, or arbitrariness in order to overturn the decision of Crystal Coast Tournament to disqualify the Citation and its catch. I agree with the majority’s adoption of the test set forth in Lough v. Varsity Bowl, Inc., 243 N.E.2d 61, 63 (Ohio 1968) (concluding that the decision by a bowling association to disqualify bowlers would not be disturbed unless the association did not afford the contestants due process or there was a showing of “arbitrariness, fraud, or collusion” on the part of the association). However, I conclude summary judgment was not proper as a genuine issue of material fact exists as to whether the decision to disqualify the Citation and its catch from the Tournament was an arbitrary decision resulting in a breach of the contract between Plaintiffs and Crystal Coast Tournament.
Plaintiffs and Crystal Coast Tournament agree that upon Plaintiffs’ entry into the Tournament they were parties to a contract; Plaintiffs paid an entry fee of $18,025.00 to compete for the Tournament prize money. See Malone v. Topsail Area Jaycees, 113 N.C. App. 498, 504, 439 S.E.2d 192, 195 (1994) (concluding the “plaintiff had essentially contracted for the prize money by entering the [golf] tournament and by hitting the hole in one”). “In order for a breach of contract to be actionable it must be a material breach, one that substantially defeats the purpose of the agreement or goes to the very heart of the agreement, or can be characterized as a substantial failure to perform.” Long v. Long, 160 N.C. App. 664, 668, 588 S.E.2d 1, 4 (2003). If either party to a bilateral contract commits a material breach of its terms, the nonbreaching party is excused from its obligation to perform. Coleman v. Shirlen, 53 N.C. App. 573, 577-78, 281 S.E.2d 431, 434 (1981), superseded on other grounds by N.C. Gen. Stat. § 50-13.2(a) (2011). However,
*77[w]hen there are several terms in a contract, a breach committed by one of the parties may be a breach of a term which the parties have not, upon a reasonable construction of the contract, regarded as vital to its existence. Such a term is said to be subsidiary, and a breach thereof does not discharge the other party.
Statesville Flour Mills Co. v. Wayne Distrib. Co., 171 N.C. 708, 711, 88 S.E. 771, 773 (1916) (citation and quotation marks omitted) (concluding that the plaintiff’s alleged breach of contract, if a breach at all, did not justify the defendant’s failure to perform under the contract). Thus, where nonperformance of one contract condition “does not materially impair the benefit from the performance of the others” and the loss resulting from the breached condition is capable of compensation in damages, the breach is not fatal to performance of the contract. Id. at 712, 88 S.E. at 773 (citation and quotation marks omitted). Here, if Wann’s failure to possess a CRFL was not a significant violation of the Tournament rules, it would not excuse Defendants from their obligations under the contract, which included refraining from arbitrary disqualifications.
Pursuant to the Tournament rules, disqualification is not required when a boat breaches one of the rules. Rather, rule 20 specifies that a boat “may be disqualified” for violating a Tournament rule. Because the Rules Committee and Board of Directors have discretion in reaching their decision, it follows that they must consider whether a violation of the rules is a material violation and what penalty is appropriate. If the violation is significant, disqualification would not be arbitrary; if the violation is not significant, however, some penalty short of disqualification may have been appropriate, such as a monetary penalty.
Here, Plaintiffs’ violation of the Tournament rules did not afford Plaintiffs any competitive advantage. There were no allegations that Plaintiffs had “lines or teasers in the water” before official fishing hours began (rule 3) or outside of the Tournament fishing boundaries (rule 6); engaged in fishing on more than four of the allotted fishing days (rule 3); altered the weight of the fish (rule 16); or used prohibited equipment or a prohibited fishing method (rules 4 and 12). On the contrary, Plaintiffs contacted the Rules Committee and received express permission to hand-line the marlin in order to bring the fish on board the Citation. Assuming, arguendo, that Wann was required to possess a CRFL by state law or by the Tournament rules, the first mate’s failure to possess a CRFL provided no advantage to Plaintiffs over other competitors; other prize winners did not possess individ*78ual CRFLs and instead relied upon their boat’s blanket fishing license. Additionally, Wann acquired a CRFL before reentering state waters with the blue marlin.1 Had Plaintiffs violated a rule that provided them with a competitive advantage, disqualification would not have been arbitrary. See Ahrens v. McDaniel, 336 S.E.2d 505, 506-07 (S.C. Ct. App. 1985) (where the fishing tournament grievance committee disqualified the contestants’ fish upon discovery that their fish had ice in its stomach and where the tournament winner was determined by the weight of the fish and the tournament rules required there be “no foreign matter” inside the fish).
Additionally, the Tournament registration form and official weigh ticket required contestants to provide a HMS permit number, which each boat was required to have pursuant to rule 9. That these Tournament forms do not mention the CRFL is further evidence that the failure to possess a CRFL is not a breach of a material term of the contract. Thus, I conclude that Plaintiffs’ disqualification for the first mate’s failure to possess a CRFL raises a genuine issue of material fact as to whether the decision of the Rules Committee and Board of Directors was arbitrary and therefore a breach of the parties’ contract. Accordingly, I would hold that summary judgment was improper and reverse that part of the trial court’s order.
In sum, I concur with the majority that Judge Cole did not err by granting Defendants’ motion to change venue. I would hold, however, that Judge Nobles erred in deciding Plaintiffs’ motion to recuse instead of referring the motion to another judge. Consequently, I would reverse that part of the trial court’s order and remand for entry of an order referring the motion to another superior court judge. Apart from the denial of the recusal motion, I would also hold that Judge Nobles erred in granting Defendants’ motion for summary judg*79ment as Plaintiffs raised a genuine issue of material fact as to whether their disqualification from the Big Rock Blue Marlin Tournament was arbitrary and thus a material breach of the parties’ contract; I would reverse the portion of the order granting summary judgment in favor of Defendants. Accordingly, I do not reach Plaintiffs’ argument regarding their motion to strike Defendants’ affidavits filed in support of the motion for summary judgment.

. In support of their motion for summary judgment, Defendants submitted a 1998 Advisory Opinion from the North Carolina Attorney General’s Office that stated the MFC’s Marine Patrol could cite state-registered vessels for violations of state fishing laws in the waters of the EEZ, if certain conditions described in the Advisory Opinion were met. In opposition to Defendants’ motion, Plaintiffs submitted a joint press release issued by the North Carolina Wildlife Resources Commission and the Division of Marine Fisheries th-iat stated “[Recreational anglers who catch fish from three miles to 200 miles offshore will be required to have this [Costal Recreational Fishing LJicense in order to transport fish back to the shore.” (Emphasis added.) While I do not conclude whether the Marine Patrol had the authority to issue a citation to Wann for activities in the EEZ, I note that Warm’s citation for fishing without a CRFL was issued for fishing at 6:35 a.m., at which time the boat was in state waters and Wann was preparing bait.