## Facts

- Jackie L. Eley financed a 1995 Ford F-150 truck through Mid/East Acceptance Corporation of N.C., Inc., which held a security interest in the truck.
- After Eley fell about two months behind on payments, Mid/East arranged for repossession.
- Around 4:00 a.m. on July 29, 2002, Mid/East’s agent repossessed the truck from Eley’s residence while approximately 130 watermelons were in the truck bed; Eley had purchased them the prior day for resale.
- Eley did not object to the repossession of the truck but asked to remove her personal property, including the watermelons; the agent refused and also refused Eley’s proposal to surrender the truck later that morning after unloading.
- Eley attempted the same morning to retrieve the watermelons through Mid/East and also filed a small-claims action alleging conversion.
- Over the next several days, Mid/East made efforts to contact Eley about removing the watermelons, including calls and a letter that was returned undelivered; by Thursday, Eley stated she no longer wanted the watermelons because they had spoiled.
- The watermelons spoiled in summer heat while left in the truck and became worthless.

## Issues

1. Whether Mid/East committed conversion by denying Eley a reasonable opportunity to remove the watermelons and thereby exercising unauthorized control over her personal property.
2. Whether Mid/East’s conduct in connection with the repossession constituted an unfair or deceptive act or practice in or affecting commerce under N.C. Gen. Stat. § 75-1.1.
3. Whether the evidence supported the damages calculation for the watermelons and whether attorney’s fees (including for the appeal) were properly awarded under Chapter 75.

## Decision

- The Court of Appeals affirmed the district court’s judgment that Mid/East was liable for conversion of the watermelons.
- The Court of Appeals affirmed the determination that Mid/East’s conduct constituted an unfair and deceptive trade practice under N.C. Gen. Stat. § 75-1.1.
- The Court of Appeals upheld the damages proof based on Eley’s testimony regarding the watermelons’ purchase price and affirmed treble damages under N.C. Gen. Stat. § 75-16.
- The Court of Appeals affirmed the trial-level award of attorney’s fees under N.C. Gen. Stat. § 75-16.1.
- The Court of Appeals held Eley was entitled to attorney’s fees for appellate work but remanded for findings to determine reasonable hours and a reasonable hourly rate.

## Legal Principles

- Conversion is an unauthorized assumption and exercise of ownership or control over another’s personal property to the exclusion of the owner’s rights; a creditor may commit conversion of non-collateral property found with repossessed collateral by denying a reasonable opportunity for retrieval.
- A lawful repossession of collateral may still support liability under N.C. Gen. Stat. § 75-1.1 when the method or circumstances of repossession are unfair or deceptive in the creditor–debtor context.
- For conversion damages, an owner’s testimony about purchase price may be sufficient evidence of value when the loss occurs shortly after purchase and no contrary valuation evidence is shown.
- Under N.C. Gen. Stat. § 75-16.1, a prevailing Chapter 75 plaintiff may recover reasonable attorney’s fees, and may also recover reasonable fees for appellate work subject to adequate findings supporting the amount.

## Conclusion

The court held that a secured creditor’s refusal to provide a meaningful, reasonable chance to remove personal property from a repossessed vehicle supported both conversion and Chapter 75 liability, justifying treble damages and attorney’s fees; the judgment was affirmed with a remand limited to determining reasonable appellate fees.


Eley v. Mid/East Acceptance Corp. of N.C., Inc., 171 N.C. App. 368, 614 S.E.2d 555 (2005)