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Hicks v. Clegg's Termite & Pest Control, Inc.
Citations: 512 S.E.2d 85; 132 N.C. App. 383; 1999 N.C. App. LEXIS 108Docket: COA98-616
Court: Court of Appeals of North Carolina; February 16, 1999; North Carolina; State Appellate Court
Jimmie B. Hicks, Jr. and Beth B. Hicks filed a lawsuit against Clegg's Termite and Pest Control, Inc. in Craven County Superior Court, claiming breach of contract, negligence, and other related allegations after their home suffered termite damage. The jury found in favor of the plaintiffs, determining that the defendant breached the contract and awarding $2,030 in damages. The plaintiffs sought attorney's fees under N.C. Gen. Stat. § 6-21.1, but the trial court denied this request, stating it lacked discretion to award fees in breach of contract cases involving property damage. The court noted that even if it had discretion, it would have awarded $9,750. On appeal, the plaintiffs argued that the statute should apply to their case since it involved property damage. The statute allows for attorney's fees in personal injury or property damage suits where damages awarded are $10,000 or less. The court analyzed the statute's language and its legislative history, noting the absence of breach of contract cases from its provisions, despite amendments made since its inception in 1959. The court concluded that attorney's fees are typically recoverable only when explicitly authorized by statute, reaffirming that breach of contract claims do not qualify under the current version of § 6-21.1. Plaintiffs sought consumer relief under Chapter 75 of North Carolina statutes, specifically N.C. Gen. Stat. section 75-16.1, which allows for attorney's fees in unfair trade practices cases. However, their claim did not go to the jury, and they did not appeal the trial court's focus on breach of contract issues. The case is fundamentally about contract law, and extending attorney's fees to property damages related to termite damage would unjustifiably expand the statute's application to all contract cases. Despite legislative opportunities to broaden the statute’s provisions, including past amendments for insurance cases, no such extension has been made for breach of contract claims. The court upheld the trial court's decision to deny attorney's fees based on the plaintiffs' cited statute. Judge Walker concurred but expressed concern regarding the restrictive nature of N.C. Gen. Stat. 6-21.1, which currently allows for attorney fees primarily in negligence cases, and advocated for a legislative extension to include cases like the one at hand.