{"attribution":{"source":"legal.exploreworldai.com","canonical":"https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ncctapp-25-238-2025-12-03","cite_as":"NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ncctapp-25-238-2025-12-03)","license":"https://legal.exploreworldai.com/revision","version":"legal-2026-11-02","fingerprint":"ewai:us:840ec5","proof":"sha256:241cbb7527d62a521d38697068a2e8ba602789f80253ab707e09c84c21f1e122","jurisdiction":"us","lang":"en","publisher":"NovaCopilot by ExploreWorld Legal","terms":"https://legal.exploreworldai.com/om"},"brand_source":"Source: NovaCopilot","item":{"schema_version":"1.0.0","id":"us:ncctapp-25-238-2025-12-03","jurisdiction":"us","lang":"en","brand_source":"Source: NovaCopilot","brand":{"product":"NovaCopilot","platform":"ExploreWorldAI","infrastructure":"ExploreWorld Legal","infrastructure_url":"legal.exploreworldai.com","legal_entity":"Valkiv Ventures 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matter","paragraphs":["para_1","para_2","para_3","para_4","para_5","para_6","para_7","para_8","para_9","para_10","para_11","para_12","para_13","para_14","para_15","para_16","para_17","para_18","para_19","para_20","para_21","para_22","para_23","para_24","para_25","para_26","para_27","para_28","para_29","para_30","para_31","para_32","para_33","para_34","para_35","para_36","para_37","para_38","para_39","para_40","para_41","para_42","para_43","para_44","para_45","para_46","para_47","para_48","para_49","para_50","para_51","para_52","para_53","para_54","para_55","para_56","para_57","para_58","para_59","para_60","para_61","para_62","para_63","para_64","para_65","para_66","para_67","para_68","para_69","para_70","para_71","para_72","para_73","para_74","para_75","para_76","para_77","para_78","para_79","para_80","para_81","para_82","para_83","para_84","para_85","para_86","para_87","para_88","para_89","para_90","para_91","para_92","para_93","para_94","para_95","para_96","para_97","para_98","para_99","para_100","para_101","para_102","para_103","para_104","para_105","para_106","para_107","para_108","para_109","para_110","para_111","para_112","para_113","para_114","para_115","para_116","para_117","para_118","para_119","para_120","para_121","para_122","para_123","para_124","para_125","para_126","para_127","para_128","para_129","para_130","para_131","para_132","para_133","para_134","para_135","para_136","para_137","para_138","para_139","para_140","para_141","para_142","para_143","para_144","para_145","para_146","para_147","para_148","para_149","para_150","para_151","para_152","para_153","para_154","para_155","para_156","para_157","para_158","para_159","para_160","para_161","para_162","para_163","para_164","para_165","para_166","para_167","para_168","para_169","para_170","para_171","para_172","para_173","para_174","para_175","para_176","para_177","para_178","para_179","para_180","para_181","para_182","para_183","para_184","para_185","para_186","para_187","para_188","para_189","para_190","para_191","para_192","para_193","para_194","para_195","para_196","para_197","para_198","para_199","para_200","para_201","para_202","para_203","para_204","para_205","para_206","para_207","para_208","para_209","para_210","para_211","para_212","para_213","para_214","para_215","para_216","para_217","para_218","para_219","para_220","para_221","para_222","para_223","para_224","para_225","para_226","para_227","para_228","para_229","para_230","para_231","para_232","para_233","para_234","para_235","para_236","para_237","para_238","para_239","para_240","para_241","para_242","para_243","para_244","para_245","para_246","para_247","para_248","para_249","para_250","para_251","para_252","para_253","para_254","para_255","para_256","para_257","para_258","para_259","para_260","para_261","para_262","para_263","para_264","para_265","para_266","para_267","para_268","para_269","para_270","para_271","para_272","para_273","para_274","para_275","para_276","para_277","para_278","para_279","para_280","para_281","para_282","para_283","para_284","para_285","para_286","para_287","para_288","para_289","para_290","para_291","para_292","para_293","para_294","para_295","para_296","para_297","para_298","para_299","para_300","para_301","para_302","para_303","para_304","para_305","para_306","para_307","para_308","para_309","para_310","para_311","para_312","para_313","para_314","para_315","para_316","para_317","para_318","para_319","para_320","para_321","para_322","para_323","para_324","para_325","para_326","para_327","para_328","para_329","para_330","para_331","para_332","para_333","para_334","para_335","para_336","para_337","para_338","para_339","para_340","para_341","para_342","para_343","para_344","para_345"],"kind":"front_matter"}],"paragraphs":[{"text":"IN THE COURT OF APPEALS OF NORTH CAROLINA","paragraph_id":"para_1"},{"text":"No. COA25-238","paragraph_id":"para_2"},{"text":"Filed 3 December 2025","paragraph_id":"para_3"},{"text":"Mecklenburg County, No. 23CVS003482-590","paragraph_id":"para_4"},{"text":"BRIAN HORNE, Plaintiff,","paragraph_id":"para_5"},{"text":"v.","paragraph_id":"para_6"},{"text":"GINKGO AURORA LLC & GINKGO OBC LLC, Defendants.","paragraph_id":"para_7"},{"text":"Appeal by Plaintiff from judgment entered 3 July 2024 by Judge Bradley B.","paragraph_id":"para_8"},{"text":"Letts in Mecklenburg County Superior Court. Heard in the Court of Appeals 9","paragraph_id":"para_9"},{"text":"September 2025.","paragraph_id":"para_10"},{"text":"The Law Offices of Andrew L. Gordon, PLLC, by Andrew Gordon, for Plaintiff-","paragraph_id":"para_11"},{"text":"Appellant.","paragraph_id":"para_12"},{"text":"Higgins & Owens, PLLC, by Sara W. Higgins, for Defendants-Appellees.","paragraph_id":"para_13"},{"text":"COLLINS, Judge.","paragraph_id":"para_14"},{"text":"This action arises from a dispute over the habitability of an apartment.","paragraph_id":"para_15"},{"text":"Plaintiff, Brian Horne, appeals the trial court’s entry of judgment in favor of","paragraph_id":"para_16"},{"text":"Defendants, Ginkgo Aurora LLC and Ginkgo OBC LLC. Plaintiff argues that the","paragraph_id":"para_17"},{"text":"trial court erred by entering judgment for Defendants on Plaintiff’s claims for breach","paragraph_id":"para_18"},{"text":"of contract, breach of implied warranty of habitability and violation of the Residential","paragraph_id":"para_19"},{"text":"Rental Agreements Act, imminently dangerous conditions, unfair and deceptive trade","paragraph_id":"para_20"},{"text":"practices, wrongful eviction, and violation of prohibited acts by debt collectors.","paragraph_id":"para_21"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_22"},{"text":"Opinion of the Court","paragraph_id":"para_23"},{"text":"- 2 -","paragraph_id":"para_24"},{"text":"Plaintiff further argues that the trial court erred by entering judgment for","paragraph_id":"para_25"},{"text":"Defendants for $7,251.21 in past-due rent and related fees. For the reasons discussed","paragraph_id":"para_26"},{"text":"below, we affirm the trial court’s judgment.","paragraph_id":"para_27"},{"text":"I. Background","paragraph_id":"para_28"},{"text":"Plaintiff filed a complaint in February 2023 against Defendants for breach of","paragraph_id":"para_29"},{"text":"contract, breach of implied warranty of habitability and violation of the Residential","paragraph_id":"para_30"},{"text":"Rental Agreements Act, imminently dangerous conditions, unfair and deceptive trade","paragraph_id":"para_31"},{"text":"practices, wrongful eviction, and violation of prohibited acts by debt collectors.","paragraph_id":"para_32"},{"text":"Defendants answered and counterclaimed for $9,339.21 in past-due rent and fees.","paragraph_id":"para_33"},{"text":"A bench trial was held in March 2024 where the evidence presented tended to","paragraph_id":"para_34"},{"text":"show the following: Plaintiff entered into an apartment lease with Ginkgo OBC LLC","paragraph_id":"para_35"},{"text":"for February 2021 until March 2022. Plaintiff entered into a lease with Ginkgo","paragraph_id":"para_36"},{"text":"Aurora LLC for March 2022 until March 2023. Plaintiff resided in the apartment","paragraph_id":"para_37"},{"text":"from February 2021 until approximately February 2023, when he voluntarily vacated","paragraph_id":"para_38"},{"text":"the apartment and filed the current action.","paragraph_id":"para_39"},{"text":"After Plaintiff vacated the apartment and filed his complaint, Plaintiff received","paragraph_id":"para_40"},{"text":"letters from a collection agency attempting to collect $9,339.21 allegedly owed to","paragraph_id":"para_41"},{"text":"Defendants. At trial, Defendants acknowledged that this amount included an","paragraph_id":"para_42"},{"text":"improper charge for rent when the apartment was being renovated after Plaintiff had","paragraph_id":"para_43"},{"text":"moved out and could not have been re-rented.","paragraph_id":"para_44"},{"text":"Both apartment leases required Plaintiff to send maintenance requests to","paragraph_id":"para_45"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_46"},{"text":"Opinion of the Court","paragraph_id":"para_47"},{"text":"- 3 -","paragraph_id":"para_48"},{"text":"Defendants in writing or through Defendants’ online portal. During his tenancy,","paragraph_id":"para_49"},{"text":"Plaintiff submitted a number of service requests regarding various issues with the","paragraph_id":"para_50"},{"text":"apartment.","paragraph_id":"para_51"},{"text":"Plaintiff reported a water stain on the ceiling of his bedroom. Although the","paragraph_id":"para_52"},{"text":"report did not indicate that there was an active leak, Plaintiff testified at trial that","paragraph_id":"para_53"},{"text":"there was an active leak and that he had notified management of it.","paragraph_id":"para_54"},{"text":"Plaintiff requested maintenance of the apartment’s thermostat and heater on","paragraph_id":"para_55"},{"text":"two consecutive days. Both requests were marked as “Resolved” in the online","paragraph_id":"para_56"},{"text":"maintenance portal on the same day Plaintiff submitted them.","paragraph_id":"para_57"},{"text":"Plaintiff twice reported mold in the bathroom. The bathroom was treated after","paragraph_id":"para_58"},{"text":"each report. Plaintiff reported mold in the washing machine. The issue was marked","paragraph_id":"para_59"},{"text":"as “Resolved” in the online maintenance portal.","paragraph_id":"para_60"},{"text":"Plaintiff hired a certified mold inspector, Ron Yountz, to inspect and test the","paragraph_id":"para_61"},{"text":"apartment for mold. Yountz generated three reports based on three different surveys","paragraph_id":"para_62"},{"text":"of the apartment. Although Yountz’s reports identified mold in the apartment and","paragraph_id":"para_63"},{"text":"recommended remediation measures, none of the three reports identified dangerous","paragraph_id":"para_64"},{"text":"or uninhabitable conditions. At trial, Yountz testified that if dangerous or","paragraph_id":"para_65"},{"text":"uninhabitable conditions had existed on the premises, he would have noted this in","paragraph_id":"para_66"},{"text":"his reports.","paragraph_id":"para_67"},{"text":"After the trial, judgment was entered in favor of Defendants on all claims. The","paragraph_id":"para_68"},{"text":"trial court found that Plaintiff’s apartment was not uninhabitable or imminently","paragraph_id":"para_69"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_70"},{"text":"Opinion of the Court","paragraph_id":"para_71"},{"text":"- 4 -","paragraph_id":"para_72"},{"text":"dangerous and thus concluded that Defendants did not commit unfair or deceptive","paragraph_id":"para_73"},{"text":"trade practices and did not constructively evict Plaintiff. The trial court further found","paragraph_id":"para_74"},{"text":"and concluded that Defendants did not violate the Debt Collector’s Act and entered","paragraph_id":"para_75"},{"text":"judgment in Defendants’ favor for $7,251.21 in unpaid rent and related fees. Plaintiff","paragraph_id":"para_76"},{"text":"appeals.","paragraph_id":"para_77"},{"text":"II. Discussion","paragraph_id":"para_78"},{"text":"Plaintiff argues that the trial court erred by entering judgment for Defendants","paragraph_id":"para_79"},{"text":"on Plaintiff’s claims. Plaintiff further argues that the trial court erred by entering","paragraph_id":"para_80"},{"text":"judgment for Defendants for $7,251.21 in past-due rent and related fees.","paragraph_id":"para_81"},{"text":"A. Standard of Review","paragraph_id":"para_82"},{"text":"“The standard of review on appeal from a judgment entered after a non-jury","paragraph_id":"para_83"},{"text":"trial is whether there is competent evidence to support the trial court’s findings of","paragraph_id":"para_84"},{"text":"fact and whether the findings support the conclusions of law and ensuing judgment.”","paragraph_id":"para_85"},{"text":"Stikeleather Realty & Invs. Co. v. Broadway, 242 N.C. App. 507, 515 (2015) (citation","paragraph_id":"para_86"},{"text":"omitted). “When we review decisions from a bench trial, findings of fact have the","paragraph_id":"para_87"},{"text":"force and effect of a verdict by a jury and are conclusive on appeal if there is evidence","paragraph_id":"para_88"},{"text":"to support them, even though the evidence might sustain a finding to the contrary.”","paragraph_id":"para_89"},{"text":"Onnipauper LLC v. Dunston, 290 N.C. App. 486, 489 (2023) (cleaned up). “But","paragraph_id":"para_90"},{"text":"conclusions of law drawn by the trial court from its findings of fact are reviewable de","paragraph_id":"para_91"},{"text":"novo on appeal.” Id. (citation omitted). “Under a de novo review, the court considers","paragraph_id":"para_92"},{"text":"the matter anew and freely substitutes its own judgment for that of the lower","paragraph_id":"para_93"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_94"},{"text":"Opinion of the Court","paragraph_id":"para_95"},{"text":"- 5 -","paragraph_id":"para_96"},{"text":"tribunal.” Id. (citation omitted).","paragraph_id":"para_97"},{"text":"“The label of fact put upon a conclusion of law will not defeat appellate review.”","paragraph_id":"para_98"},{"text":"Id. (citation omitted). “Thus, findings of fact that are actually conclusions of law will","paragraph_id":"para_99"},{"text":"be reviewed as conclusions of law.” Id. “And determinations reached by application","paragraph_id":"para_100"},{"text":"of legal principles are conclusion of law.” Id. (citation omitted).","paragraph_id":"para_101"},{"text":"Plaintiff has failed to challenge any of the trial court’s findings of fact. The","paragraph_id":"para_102"},{"text":"facts are thus binding on appeal. See Carolina Marlin Club Marina Ass’n v. Preddy,","paragraph_id":"para_103"},{"text":"238 N.C. App. 215, 220 (2014).","paragraph_id":"para_104"},{"text":"B. Implied Warranty of Habitability and Imminently Dangerous","paragraph_id":"para_105"},{"text":"Conditions","paragraph_id":"para_106"},{"text":"Plaintiff first argues that Defendants “breached the implied warranty of","paragraph_id":"para_107"},{"text":"habitability by failing to maintain the heat and roof at the premises and by failing to","paragraph_id":"para_108"},{"text":"repair the imminently dangerous conditions within a reasonable time. . . .” Plaintiff","paragraph_id":"para_109"},{"text":"alleges the following three imminently dangerous conditions existed in the","paragraph_id":"para_110"},{"text":"apartment: (1) “unsafe ceilings or roofs,” (2) “lack of an operable heating facility","paragraph_id":"para_111"},{"text":"during the winter,” and (3) “excessive standing water, sewage, or flooding problems","paragraph_id":"para_112"},{"text":"caused by plumbing leaks or inadequate drainage that contribute to mosquito","paragraph_id":"para_113"},{"text":"infestation or mold.” (internal record citations omitted).","paragraph_id":"para_114"},{"text":"Under the Residential Rental Agreements Act, a landlord must comply with","paragraph_id":"para_115"},{"text":"applicable housing codes, repair imminently dangerous conditions within a","paragraph_id":"para_116"},{"text":"reasonable period of time, and maintain in good working order “all electrical,","paragraph_id":"para_117"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_118"},{"text":"Opinion of the Court","paragraph_id":"para_119"},{"text":"- 6 -","paragraph_id":"para_120"},{"text":"plumbing, sanitary, heating, ventilating, air conditioning, and other facilities and","paragraph_id":"para_121"},{"text":"appliances supplied . . . .” N.C. Gen. Stat. § 42-42(a)(4) (2024). Imminently dangerous","paragraph_id":"para_122"},{"text":"conditions include “[e]xcessive standing water, sewage, or flooding problems caused","paragraph_id":"para_123"},{"text":"by plumbing leaks or inadequate drainage that contribute to mosquito infestation or","paragraph_id":"para_124"},{"text":"mold.” Id. § 42-42(a)(8)(l).","paragraph_id":"para_125"},{"text":"These statutory requirements “create an implied warranty of habitability, such","paragraph_id":"para_126"},{"text":"that a landlord warrants to the tenant that . . . [the] premises are fit for human","paragraph_id":"para_127"},{"text":"habitation.” Creekside Apartments v. Poteat, 116 N.C. App. 26, 34 (1994) (quotation","paragraph_id":"para_128"},{"text":"marks and citation omitted). “The implied warranty of habitability is co-extensive","paragraph_id":"para_129"},{"text":"with the provisions of the [Residential Rental Agreements] Act.” Miller v. C.W.","paragraph_id":"para_130"},{"text":"Meyers Trading Post, Inc., 85 N.C. App. 362, 366 (1987). If a landlord fails to comply","paragraph_id":"para_131"},{"text":"with the statutory requirements, a tenant has an affirmative cause of action for","paragraph_id":"para_132"},{"text":"recovery of rent actually paid. Id. at 368.","paragraph_id":"para_133"},{"text":"The trial court made the following relevant findings of fact:","paragraph_id":"para_134"},{"text":"13. Plaintiff submitted several service requests regarding","paragraph_id":"para_135"},{"text":"various issues in the Premises including a water stain on","paragraph_id":"para_136"},{"text":"the ceiling of his bedroom.","paragraph_id":"para_137"},{"text":". . . .","paragraph_id":"para_138"},{"text":"15. Landlord addressed the service requests submitted by","paragraph_id":"para_139"},{"text":"Plaintiff, although not always to Plaintiff’s satisfaction or","paragraph_id":"para_140"},{"text":"as quickly as would have been ideal.","paragraph_id":"para_141"},{"text":". . . .","paragraph_id":"para_142"},{"text":"21. Deposition evidence establishes that following a","paragraph_id":"para_143"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_144"},{"text":"Opinion of the Court","paragraph_id":"para_145"},{"text":"- 7 -","paragraph_id":"para_146"},{"text":"request by Plaintiff to address mold, remedial efforts were","paragraph_id":"para_147"},{"text":"embarked upon by Defendants in the Premises and[] no","paragraph_id":"para_148"},{"text":"further service requests were forthcoming in the portal or","paragraph_id":"para_149"},{"text":"in writing by Plaintiff after February 2021, related to mold","paragraph_id":"para_150"},{"text":"either on the ceiling or in the washing machine unit until","paragraph_id":"para_151"},{"text":"2022.","paragraph_id":"para_152"},{"text":". . . .","paragraph_id":"para_153"},{"text":"28. On November 28, 2022, Landlord’s assistant property","paragraph_id":"para_154"},{"text":"manager and regional maintenance supervisor both","paragraph_id":"para_155"},{"text":"inspected the areas that Plaintiff contended rendered the","paragraph_id":"para_156"},{"text":"Premises uninhabitable and concluded that they did not","paragraph_id":"para_157"},{"text":"present safety or habitability concerns.","paragraph_id":"para_158"},{"text":". . . .","paragraph_id":"para_159"},{"text":"44. After Plaintiff vacated the Premises, the final","paragraph_id":"para_160"},{"text":"inspection of the Premises did not indicate the presence of","paragraph_id":"para_161"},{"text":"mold or water intrusion. No evidence was adduced at trial","paragraph_id":"para_162"},{"text":"that mold remediation was required in the Premises and","paragraph_id":"para_163"},{"text":"no leak was found associated with the bedroom ceiling","paragraph_id":"para_164"},{"text":"stain.","paragraph_id":"para_165"},{"text":". . . .","paragraph_id":"para_166"},{"text":"52. Ms. Leak was aware of the residential lease used by","paragraph_id":"para_167"},{"text":"Defendants and the Defendants’ policy for management of","paragraph_id":"para_168"},{"text":"the Premises. (Plaintiff’s exhibit #41). Ms. Leak was the","paragraph_id":"para_169"},{"text":"property manager when the Plaintiff resided at the","paragraph_id":"para_170"},{"text":"Premises. No evidence exists that the requests for service","paragraph_id":"para_171"},{"text":"and repairs were ignored or not successfully completed in","paragraph_id":"para_172"},{"text":"the Premises by Defendants on-property maintenance","paragraph_id":"para_173"},{"text":"department. (See also Plaintiff’s exhibit #42).","paragraph_id":"para_174"},{"text":"These unchallenged findings of fact are binding on appeal. See Carolina","paragraph_id":"para_175"},{"text":"Marlin Club Marina Ass’n, 238 N.C. App. at 220. Furthermore, our independent","paragraph_id":"para_176"},{"text":"review of the record reveals that each finding of fact is supported by record evidence.","paragraph_id":"para_177"},{"text":"On these facts, the trial court made the following conclusions of law:","paragraph_id":"para_178"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_179"},{"text":"Opinion of the Court","paragraph_id":"para_180"},{"text":"- 8 -","paragraph_id":"para_181"},{"text":"57. The only provision of N.C. Gen. Stat. § 42-42(8) that is","paragraph_id":"para_182"},{"text":"even potentially implicated by the evidence in this case is","paragraph_id":"para_183"},{"text":"subsection (1): “Excessive standing water, sewage, or","paragraph_id":"para_184"},{"text":"flooding problems caused by plumbing leaks or inadequate","paragraph_id":"para_185"},{"text":"drainage that contribute to mosquito infestation or mold.”","paragraph_id":"para_186"},{"text":"This provision by its express terms does not apply,","paragraph_id":"para_187"},{"text":"however, because there was no evidence of any excessive","paragraph_id":"para_188"},{"text":"standing water, sewage, or flooding problems in the","paragraph_id":"para_189"},{"text":"Premises.[1]","paragraph_id":"para_190"},{"text":". . . .","paragraph_id":"para_191"},{"text":"2. Plaintiff did not meet the burden of proof to show that","paragraph_id":"para_192"},{"text":"Landlord breached any warranty of habitability with","paragraph_id":"para_193"},{"text":"respect to the Premises or that the Premises were","paragraph_id":"para_194"},{"text":"uninhabitable at any time during which he resided at the","paragraph_id":"para_195"},{"text":"Premises.","paragraph_id":"para_196"},{"text":"3. Plaintiff’s second claim for relief alleging an imminently","paragraph_id":"para_197"},{"text":"dangerous condition in the Premises during his tenancy,","paragraph_id":"para_198"},{"text":"pursuant to N.C. Gen. Stat. [§] 42-42(8), does not permit","paragraph_id":"para_199"},{"text":"recovery because there was no evidence of any excessive","paragraph_id":"para_200"},{"text":"standing water, sewage, or flooding problems in the","paragraph_id":"para_201"},{"text":"Premises.","paragraph_id":"para_202"},{"text":"The trial court’s findings of fact support its conclusions that Plaintiff failed to","paragraph_id":"para_203"},{"text":"show that the apartment was uninhabitable because imminently dangerous","paragraph_id":"para_204"},{"text":"conditions existed on the premises. Accordingly, the trial court did not err by entering","paragraph_id":"para_205"},{"text":"judgment for Defendants on this claim.","paragraph_id":"para_206"},{"text":"C. Constructive Eviction and Unfair and Deceptive Trade Practices","paragraph_id":"para_207"},{"text":"1 Here, the trial court made both findings of fact and conclusions of law in a section of the","paragraph_id":"para_208"},{"text":"judgment labeled “Legal Analysis.” Assertion 57, and later 61, require the application of legal","paragraph_id":"para_209"},{"text":"principles. “Because we are not bound by the trial court’s labels, we will review these ‘findings of facts’","paragraph_id":"para_210"},{"text":"as conclusions of law, as they were reached by an application of legal principles.” Onnipauper, 290","paragraph_id":"para_211"},{"text":"N.C. App. at 489.","paragraph_id":"para_212"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_213"},{"text":"Opinion of the Court","paragraph_id":"para_214"},{"text":"- 9 -","paragraph_id":"para_215"},{"text":"Plaintiff also argues that Defendants’ failure to maintain the apartment in a","paragraph_id":"para_216"},{"text":"habitable condition and subsequent demands for rent payment constitute a","paragraph_id":"para_217"},{"text":"constructive eviction and unfair and deceptive trade practices.","paragraph_id":"para_218"},{"text":"Constructive eviction is a breach of the lease by the landlord which makes the","paragraph_id":"para_219"},{"text":"property untenable, causing the tenant to abandon the property. Taha v. Thompson,","paragraph_id":"para_220"},{"text":"120 N.C. App. 697, 705 (1995). Collecting rent for a residence while knowing that the","paragraph_id":"para_221"},{"text":"residence is uninhabitable can constitute an unfair or deceptive trade practice under","paragraph_id":"para_222"},{"text":"N.C. Gen. Stat. § 75-1.1(a). Pierce v. Reichard, 163 N.C. App. 294, 301-02 (2004).","paragraph_id":"para_223"},{"text":"Plaintiff’s constructive eviction and unfair and deceptive trade practices claims","paragraph_id":"para_224"},{"text":"are predicated on his claim of breach of the implied warranty of habitability. Because","paragraph_id":"para_225"},{"text":"Plaintiff failed to show that the apartment was uninhabitable, the trial court did not","paragraph_id":"para_226"},{"text":"err by entering judgment in favor of Defendants on Plaintiff’s constructive eviction","paragraph_id":"para_227"},{"text":"and unfair and deceptive trade practices claims.","paragraph_id":"para_228"},{"text":"D. Prohibited Acts by Debt Collectors","paragraph_id":"para_229"},{"text":"Plaintiff next argues that the trial court erred by concluding that Defendants","paragraph_id":"para_230"},{"text":"did not violate the North Carolina Debt Collection Act. Plaintiff argues specifically","paragraph_id":"para_231"},{"text":"that Defendants falsely represented to the trial court the amount of Plaintiff’s debt,","paragraph_id":"para_232"},{"text":"in violation of N.C. Gen. Stat. § 75-54(4), in the following three ways: (1) demanding","paragraph_id":"para_233"},{"text":"full rent for an uninhabitable property; (2) improperly claiming in their counterclaim","paragraph_id":"para_234"},{"text":"that Plaintiff owed $9,339.21, rather than $7,251.21; and (3) improperly charging","paragraph_id":"para_235"},{"text":"Plaintiff multiple administrative fees in excess of the “highest administrative fee","paragraph_id":"para_236"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_237"},{"text":"Opinion of the Court","paragraph_id":"para_238"},{"text":"- 10 -","paragraph_id":"para_239"},{"text":"authorized by” N.C. Gen. Stat. § 42-46.","paragraph_id":"para_240"},{"text":"Under North Carolina’s Debt Collection Act, “[n]o debt collector shall collect or","paragraph_id":"para_241"},{"text":"attempt to collect a debt . . . by any fraudulent, deceptive or misleading","paragraph_id":"para_242"},{"text":"representation.” N.C. Gen. Stat. § 75-54 (2024).","paragraph_id":"para_243"},{"text":"1. Rent","paragraph_id":"para_244"},{"text":"Plaintiff claims that Defendants falsely represented the amount of Plaintiff’s","paragraph_id":"para_245"},{"text":"debt to the trial court by demanding full rent when the apartment was uninhabitable.","paragraph_id":"para_246"},{"text":"Plaintiff’s claim is predicated on his claims of breach of the implied warranty","paragraph_id":"para_247"},{"text":"of habitability and constructive eviction. Because Plaintiff failed to show that the","paragraph_id":"para_248"},{"text":"apartment was uninhabitable, the trial court did not err by concluding that","paragraph_id":"para_249"},{"text":"Defendants did not violate the Act by demanding full rent for the apartment.","paragraph_id":"para_250"},{"text":"2. Incorrect Counterclaim Amount","paragraph_id":"para_251"},{"text":"Plaintiff next contends that Defendants falsely represented to the trial court","paragraph_id":"para_252"},{"text":"the amount of Plaintiff’s debt by incorrectly alleging in their counterclaim that","paragraph_id":"para_253"},{"text":"Plaintiff owed $9,339.21 in past-due rent and related fees.","paragraph_id":"para_254"},{"text":"“Falsely representing the character, extent, or amount of a debt against a","paragraph_id":"para_255"},{"text":"consumer or of its status in any legal proceeding” is a fraudulent, deceptive, or","paragraph_id":"para_256"},{"text":"misleading representation. Id. § 75-54(4). “To prevail on a claim for violation of","paragraph_id":"para_257"},{"text":"[section 75-54], one need not show deliberate acts of deceit or bad faith, but must","paragraph_id":"para_258"},{"text":"nevertheless demonstrate that the act complained of possessed the tendency or","paragraph_id":"para_259"},{"text":"capacity to mislead, or created the likelihood of deception.” Forsyth Mem’l Hosp., Inc.","paragraph_id":"para_260"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_261"},{"text":"Opinion of the Court","paragraph_id":"para_262"},{"text":"- 11 -","paragraph_id":"para_263"},{"text":"v. Contreras, 107 N.C. App. 611, 614 (1992) (quotation marks and citation omitted).","paragraph_id":"para_264"},{"text":"A Debt Collection Act claim requires the following threshold elements: “the obligation","paragraph_id":"para_265"},{"text":"owed must be a ‘debt’”; “the one owing the obligation must be a ‘consumer’”; and “the","paragraph_id":"para_266"},{"text":"one trying to collect the obligation must be a ‘debt collector.’” Reid v. Ayers, 138 N.C.","paragraph_id":"para_267"},{"text":"App. 261, 263 (2000). Once the threshold requirements are met, a Debt Collection","paragraph_id":"para_268"},{"text":"Act claim “must then meet the three generalized requirements found in section 75-","paragraph_id":"para_269"},{"text":"1.1: (1) an unfair act (2) in or affecting commerce (3) proximately causing injury.” Id.","paragraph_id":"para_270"},{"text":"at 266. “For efficiency’s sake, we will start with the proximate-injury element.”","paragraph_id":"para_271"},{"text":"Onnipauper, 290 N.C. App. at 495 (citation omitted).","paragraph_id":"para_272"},{"text":"In this case, after Plaintiff vacated the apartment, Defendants attempted to","paragraph_id":"para_273"},{"text":"charge Plaintiff rent for the time period between 8 February 2023 and 8 April 2023.","paragraph_id":"para_274"},{"text":"However, during that time period, the apartment was being renovated and no effort","paragraph_id":"para_275"},{"text":"was made to re-rent it. Accordingly, Defendants should have represented that","paragraph_id":"para_276"},{"text":"Plaintiff owed $7,251.21 instead of $9,339.21.","paragraph_id":"para_277"},{"text":"Nonetheless, Plaintiff has failed to show he suffered injury. Plaintiff never","paragraph_id":"para_278"},{"text":"overpaid because of Defendants’ error. Indeed, Plaintiff did not feel he owed any","paragraph_id":"para_279"},{"text":"outstanding rent and failed to pay rent for five months. Nor did Defendants’ error","paragraph_id":"para_280"},{"text":"deceive. See id. at 496 (concluding no Debt Collection Act violation occurred because","paragraph_id":"para_281"},{"text":"defendant failed to show injury).","paragraph_id":"para_282"},{"text":"Plaintiff argues he was harmed by Defendants’ false representation because","paragraph_id":"para_283"},{"text":"Defendants’ debt was reported to the credit bureaus and his credit score was","paragraph_id":"para_284"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_285"},{"text":"Opinion of the Court","paragraph_id":"para_286"},{"text":"- 12 -","paragraph_id":"para_287"},{"text":"“adversely affected.” There is no record evidence, however, that any harm to","paragraph_id":"para_288"},{"text":"Plaintiff’s credit was caused by the fact that Defendants counterclaimed for an unpaid","paragraph_id":"para_289"},{"text":"debt of $9,339.21 as opposed to $7,251.21. Further, Plaintiff failed to show any","paragraph_id":"para_290"},{"text":"adverse impact on any specific attempt to open a new line of credit.","paragraph_id":"para_291"},{"text":"Accordingly, the trial court did not err by concluding that Defendants did not","paragraph_id":"para_292"},{"text":"violate N.C. Gen. Stat. § 75-54(4) by misrepresenting the amount Plaintiff owed in","paragraph_id":"para_293"},{"text":"their counterclaim.","paragraph_id":"para_294"},{"text":"3. Fees","paragraph_id":"para_295"},{"text":"Finally, Plaintiff argues that Defendants falsely represented to the trial court","paragraph_id":"para_296"},{"text":"the amount of Plaintiff’s debt by improperly charging him three fees, labeled “Court","paragraph_id":"para_297"},{"text":"Fees” on the resident ledger, in excess of the “highest administrative fee authorized","paragraph_id":"para_298"},{"text":"by” N.C. Gen. Stat. § 42-46.","paragraph_id":"para_299"},{"text":"N.C. Gen. Stat. § 42-46 governs the fees, costs, and expenses authorized in","paragraph_id":"para_300"},{"text":"residential rental agreements. Under this statute, a landlord is permitted to charge","paragraph_id":"para_301"},{"text":"the following administrative fees: a complaint filing fee, a court appearance fee, and","paragraph_id":"para_302"},{"text":"a second trial fee. N.C. Gen. Stat. § 42-46(a)-(g) (2024). Additionally, a landlord is","paragraph_id":"para_303"},{"text":"permitted to charge a tenant for out-of-pocket expenses for filing fees charged by the","paragraph_id":"para_304"},{"text":"court, costs for service of process, and reasonable attorney’s fees actually paid and","paragraph_id":"para_305"},{"text":"not exceeding fifteen percent of the monthly rent stated in the lease. N.C. Gen. Stat.","paragraph_id":"para_306"},{"text":"§ 42-46(h)-(i) (2024). These out-of-pocket expenses may be included in the amount a","paragraph_id":"para_307"},{"text":"landlord charges a tenant to cure a default. N.C. Gen. Stat. § 42-46(j) (2024).","paragraph_id":"para_308"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_309"},{"text":"Opinion of the Court","paragraph_id":"para_310"},{"text":"- 13 -","paragraph_id":"para_311"},{"text":"The trial court made the following relevant findings of fact:","paragraph_id":"para_312"},{"text":"47. The last payment [to Defendants] in the amount of","paragraph_id":"para_313"},{"text":"$3,484.11 was made by Plaintiff on August 16, 2022. No","paragraph_id":"para_314"},{"text":"more payments were made by Plaintiff after August 2022.","paragraph_id":"para_315"},{"text":"48. [Defendants’] evidence which is uncontroverted is that","paragraph_id":"para_316"},{"text":"Plaintiff failed to pay to Ginkgo Aurora LLC rent and","paragraph_id":"para_317"},{"text":"related charges in the total amount of $7,251.21. [emphasis","paragraph_id":"para_318"},{"text":"added].","paragraph_id":"para_319"},{"text":"These unchallenged findings of fact are binding on appeal. See Carolina","paragraph_id":"para_320"},{"text":"Marlin Club Marina Ass’n, 238 N.C. App. at 220. Furthermore, the record evidence","paragraph_id":"para_321"},{"text":"supports each finding of fact. On these facts, the trial court made the following","paragraph_id":"para_322"},{"text":"conclusions of law:","paragraph_id":"para_323"},{"text":"6. Defendants did not violate the Prohibited Acts in the","paragraph_id":"para_324"},{"text":"Debt Collectors Act, N.C. Gen. Stat. § 75-50, et seq. since","paragraph_id":"para_325"},{"text":"Defendants were entitled to recover the rent sought from","paragraph_id":"para_326"},{"text":"Plaintiff under the leases.","paragraph_id":"para_327"},{"text":"7. Defendants have proven their counterclaim by the","paragraph_id":"para_328"},{"text":"greater weight of the evidence and the Plaintiff is liable to","paragraph_id":"para_329"},{"text":"Ginkgo Aurora LLC for unpaid rent and related charges in","paragraph_id":"para_330"},{"text":"the total amount of $7,251.21. [emphasis added].","paragraph_id":"para_331"},{"text":"As Defendants are entitled to recover “all litigation costs to the extent","paragraph_id":"para_332"},{"text":"permitted by law” under the lease agreements, the fees Plaintiff alleges are improper","paragraph_id":"para_333"},{"text":"are recoverable as out-of-pocket expenses under N.C. Gen. Stat. § 42-46(h)-(i).","paragraph_id":"para_334"},{"text":"The trial court’s findings of fact support its conclusion that Plaintiff failed to","paragraph_id":"para_335"},{"text":"show that Defendants improperly charged him fees in excess of what is authorized by","paragraph_id":"para_336"},{"text":"N.C. Gen. Stat. § 42-46. Accordingly, the trial court did not err by entering judgment","paragraph_id":"para_337"},{"text":"HORNE V. GINKGO AURORA LLC","paragraph_id":"para_338"},{"text":"Opinion of the Court","paragraph_id":"para_339"},{"text":"- 14 -","paragraph_id":"para_340"},{"text":"for Defendants on this claim.","paragraph_id":"para_341"},{"text":"III. Conclusion","paragraph_id":"para_342"},{"text":"For the reasons stated above, we affirm the trial court’s judgment.","paragraph_id":"para_343"},{"text":"AFFIRMED.","paragraph_id":"para_344"},{"text":"Judges CARPENTER and FLOOD concur.","paragraph_id":"para_345"}],"word_count":3262,"cites":[],"cited_by":[],"sha256":"b466d8f26dfbc598dd48cb7dcb23170c3d179c5d4af6dca29ead8e6cd17ba872","source_url":"https://appellate.nccourts.org/opinions/?c=2&pdf=44950","fetched_at":"2026-10-17T17:10:56.129+00:00","canonical":"https://legal.exploreworldai.com/ai/judgments/us/ncctapp-25-238-2025-12-03","risk_graph":"https://legal.exploreworldai.com/api/public/v1/risk?id=us:ncctapp-25-238-2025-12-03","relations_graph":"https://legal.exploreworldai.com/api/public/v1/relations?id=us:ncctapp-25-238-2025-12-03","changes":"https://legal.exploreworldai.com/api/public/v1/us-praxis/changes","agent":"https://legal.exploreworldai.com/api/public/v1/us-praxis/agent?id=us:ncctapp-25-238-2025-12-03","neighbors":[{"id":"us:mdctspecapp-0284-24-2026-10-05","name":"3919 NEH v. 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