Millis Constr. Co. v. Fairfield Sapphire Valley, Inc., 358 S.E.2d 566 (N.C. Ct. App. 1987). · Go Syfert
Millis Constr. Co. v. Fairfield Sapphire Valley, Inc., 358 S.E.2d 566 (N.C. Ct. App. 1987). Cases Citing This Book View Copy Cite
“the general rule governing bilateral contracts requires that if either party commits a material breach of the contract, the other party should be excused from the obligation to further perform.”
91 citation events (57 in the last 25 years) across 6 distinct courts.
Strongest positive: Howard v. Iomaxis, LLC (ncbizct, 2022-12-05)
Treatment trajectory · 1989 → 2026 · click a year to view as-of
1989 2007 2026
Top citers, strongest first. 33 distinct citers. How cited ↗
discussed Cited as authority (verbatim quote) Howard v. Iomaxis, LLC
N.C. Bus. Ct. · 2022 · quote attribution · 1 verbatim quote · confidence high
the general rule governing bilateral contracts requires that if either party commits a material breach of the contract, the other party should be excused from the obligation to further perform.
discussed Cited as authority (rule) Soelect Inc. v. Redex SAS (2×) also: Cited "see"
M.D.N.C. · 2026 · confidence medium
App. 506 , 358 S.E.2d 566, 569 (1987) (emphasis omitted).
discussed Cited as authority (rule) Maldon v. Scott
N.C. Ct. App. · 2026 · confidence medium
App. 506, 512 , 358 S.E.2d 566, 570 (1987) (citation omitted) (“The general rule governing bilateral contracts requires that if either party commits a material breach of the contract, the other party should be excused from the obligation to further perform.”); see also Restatement (Second) of Contracts § 237 - 11 - MALDON V.
cited Cited as authority (rule) Auto Provisions, LLC v. G1.34 Holdings, LLC
N.C. Bus. Ct. · 2026 · confidence medium
Co. v. Fairfield Sapphire Valley, Inc., 86 N.C.
discussed Cited as authority (rule) INMAR BRAND SOLUTIONS, INC. V. INFINITY SALES GROUP, LLC
M.D.N.C. · 2019 · confidence medium
App. 506, 511 , 358 S.E.2d 566, 569 (1987) (noting that “if a party to the contract states that he cannot perform except on some condition which goes outside the terms of his contract then the statement will constitute a repudiation”). “[T]o result in a breach of contract, the refusal to perform must be of the whole contract or of a covenant going to the whole consideration.” D.G.
cited Cited as authority (rule) Crescent Univ. City Venture, LLC v. Ap Atl., Inc.
N.C. Bus. Ct. · 2019 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987) (citation omitted).
cited Cited as authority (rule) Chisum v. Campagna
N.C. Bus. Ct. · 2019 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987) (citations and brackets omitted)). 112.
cited Cited as authority (rule) Swift Beef Company v. Alex Lee, Inc.
4th Cir. · 2019 · confidence medium
Co. v. Fairfield Sapphire Valley, Inc., 358 S.E.2d 566, 569 (N.C.
cited Cited as authority (rule) Sitelink Software, LLC v. Red Nova Labs, Inc.
N.C. Bus. Ct. · 2016 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987). {95} Red Nova’s anticipatory-repudiation claim is unclear.
cited Cited as authority (rule) Christenbury Eye Ctr., P.A. v. Medflow, Inc.
N.C. Bus. Ct. · 2015 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987)).
discussed Cited as authority (rule) Tai Sports, Inc. v. Hall
N.C. Bus. Ct. · 2012 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987)). {88} Based upon the evidence presented at trial, the Court concludes that Plaintiff has failed to show a meeting of the minds on any essential aspect of Plaintiff and Hall’s business relationship sufficient for the Court to find the existence of a mutual understanding between those parties.
cited Cited as authority (rule) Williams v. Habul
N.C. Ct. App. · 2012 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987).
cited Cited as authority (rule) Sirsi Corp. v. Craven-Pamlico-Carteret Regional Library System
E.D.N.C. · 2011 · confidence medium
Co. v. Fairfield Sapphire Valley, Inc., 86 N.C.App. 506 , 358 S.E.2d 566, 569 (1987).
cited Cited as authority (rule) D.G. II, LLC v. Nix
N.C. Ct. App. · 2011 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987) (citations and brackets omitted)).
cited Cited as authority (rule) Profile Investments No. 25, LLC v. Ammons East Corp.
N.C. Ct. App. · 2010 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987) (citations and brackets omitted).
cited Cited as authority (rule) Broadbent v. Allison
N.C. Ct. App. · 2006 · confidence medium
App. 506, 509-10 , 358 S.E.2d 566, 568 (1987).
cited Cited as authority (rule) Oakes v. Wooten
N.C. Ct. App. · 2005 · confidence medium
App. 506, 509-10 , 358 S.E.2d 566, 568 (1987).
discussed Cited as authority (rule) VF Jeanswear Ltd. Partnership v. Molina
M.D.N.C. · 2004 · confidence medium
VF Jeanswear’s Breach of Contract Claim “[A] breach of contract occurs when a party fails to perform a contractual duty that has become absolute.” Salvaggio v. New Breed Transfer Corp., 150 N.C.App. 688, 692 , 564 S.E.2d 641, 644 (2002); Millis Constr., Co. v. Fairfield Sapphire Valley, Inc., 86 N.C.App. 506, 510 , 358 S.E.2d 566, 569 (1987).
cited Cited as authority (rule) Sports Quest, Inc. v. Dale Earnhardt, Inc.
N.C. Bus. Ct. · 2004 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987).
cited Cited as authority (rule) Jaffer v. National Caucus & Center on Black Aged, Inc.
M.D.N.C. · 2003 · confidence medium
Co. v. Fairfield Sapphire Valley, Inc., 86 N.CApp. 506, 510, 358 S.E.2d 566, 569 (1987).
cited Cited as authority (rule) McClure Lumber Co. v. Helmsman Construction, Inc.
N.C. Ct. App. · 2003 · confidence medium
App. 506, 512 , 358 S.E.2d 566, 570 (1987).
discussed Cited as authority (rule) Salvaggio v. New Breed Transfer Corp. (2×) also: Cited "see"
N.C. Ct. App. · 2002 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987).
cited Cited as authority (rule) Dockery v. Quality Plastic Custom Molding, Inc.
N.C. Ct. App. · 2001 · confidence medium
App. 506, 509 , 358 S.E.2d 566, 568 (1987).
discussed Cited as authority (rule) Greensboro Masonic Temple v. McMillan
N.C. Ct. App. · 2001 · confidence medium
App. 506, 512 , 358 S.E.2d 566, 570 (1987) (holding that if either party commits a material breach of contract, the other party should be excused from the obligation to further perform).
cited Cited as authority (rule) Barnard v. Rowland
N.C. Ct. App. · 1999 · confidence medium
App. 506, 509 , 358 S.E.2d 566, 568 (1987).
examined Cited as authority (rule) Conner v. Continental Industrial Chemicals, Inc. (3×) also: Cited "see"
N.C. Ct. App. · 1996 · confidence medium
App. 506, 509-10 , 358 S.E.2d 566, 568 (1987). *75 In the instant case, defendants requested that the trial court instruct the jury that plaintiff was contributorily negligent because he did not choose a safer method to do his job which would have been to stand on the dock beside the truck.
discussed Cited as authority (rule) Hurley v. Miller (2×)
N.C. Ct. App. · 1994 · confidence medium
App. 506, 509-10 , 358 S.E.2d 566, 568 (1987), this Court stated: It is the duty of the trial judge without any special requests to instruct the jury on the law as it applies to the substantive features of the case arising on the evidence.
discussed Cited as authority (rule) Berrier v. Thrift (2×) also: Cited "see"
N.C. Ct. App. · 1992 · confidence medium
App. 506, 509 , 358 S.E.2d 566, 568 (1987).
cited Cited as authority (rule) City of Statesville v. Cloaninger
N.C. Ct. App. · 1992 · confidence medium
App. 506, 509-10 , 358 S.E.2d 566, 568 (1987).
discussed Cited as authority (rule) First Union National Bank of North Carolina v. Naylor (2×) also: Cited "see"
N.C. Ct. App. · 1991 · confidence medium
App. 506, 510 , 358 S.E.2d 566, 569 (1987) (anticipatory breach discharges non-breaching party’s remaining duties to perform); Pee Dee, 80 N.C.
cited Cited as authority (rule) Stimpson Hosiery Mills, Inc. v. PAM Trading Corp.
N.C. Ct. App. · 1990 · confidence medium
App. 506, 509-10 , 358 S.E.2d 566, 568 (1987); see N.C.G.S. § 1A-1, Rule 51(b) (Cum.
cited Cited as authority (rule) Bare v. Barrington
N.C. Ct. App. · 1990 · confidence medium
App. 506, 509 , 358 S.E.2d 566, 568 (1987).
cited Cited as authority (rule) Stutts v. Adair
N.C. Ct. App. · 1989 · confidence medium
App. 506, 509 , 358 S.E. 2d 566, 568 (1987) (emphasis added and citation omitted).
Retrieving the full opinion text from the archive…
Millis Construction Company
v.
Fairfield Sapphire Valley, Inc.
8630SC1209.
Court of Appeals of North Carolina.
Aug 4, 1987.
358 S.E.2d 566
Smith, Bonfoey & Queen by Frank G. Queen for plaintiff-ap-pellee. , Coward, Cabler, Sossomon & Hicks by J. K. Coward, Jr. for defendant-appellant.
Eagles, Hedrick, Parker.
Cited by 40 opinions  |  Published
EAGLES, Judge.

Defendant assigns error to the trial judge’s refusal to charge the jury on the issue of anticipatory breach as requested by the defendant pursuant to G.S. 1A-1, Rule 51(b).

It is the duty of the trial judge without any special requests to instruct the jury on the law as it applies to the substantive features of the case arising on the evidence. Faeber v. E.C.T. Corp., 16 N.C. App. 429, 192 S.E. 2d 1 (1972). When a party ap[*510] propriately tenders a written request for a special instruction which is correct in itself and supported by the evidence, the failure of the trial judge to give the instruction, at least in substance, constitutes reversible error. Bass v. Hocutt, 221 N.C. 218, 19 S.E. 2d 871 (1942); Faeber v. E.C.T. Corp., supra. Here, we believe the trial court improperly refused to give the requested instruction on anticipatory breach.

The trial court submitted two issues to the jury on breach of contract: Did the defendant breach its contract with the plaintiff and did the plaintiff breach its contract with the defendant? Breach of contract occurs when a party fails to perform a contractual duty which has become absolute. J. Calamari and J. Perillo, The Law of Contracts section 12-1, at 513 (3d ed. 1987). As explained by the Restatement when performance of a duty under contract is presently due any nonperformance constitutes a breach. Restatement (Second) of Contracts section 235(2) (1981). Breach may also occur by repudiation. Id. at section 236 comment a. Repudiation is a positive statement by one party to the other party indicating that he will not or cannot substantially perform his contractual duties. Calamari and Perillo, section 12-4, at 524; Restatement (Second) of Contracts at section 250 comment a. When a party repudiates his obligations under the contract before the time for performance under the terms of the contract, the issue of anticipatory breach or breach by anticipatory repudiation arises. Calamari and Perillo, section 12-3, at 521. One effect of the anticipatory breach is to discharge the non-repudiating party from his remaining duties to render performance under the contract. Restatement (Second) of Contracts at section 253(2).

[W]hen a party to a contract gives notice that he will not honor the contract, the other party to the contract is no longer required to make a tender or otherwise to perform under the contract because of the anticipatory breach of the first party.

Dixon v. Kinser and Kinser v. Dixon, 54 N.C. App. 94, 101, 282 S.E. 2d 529, 534 (1981), disc. rev. denied, 304 N.C. 725, 288 S.E. 2d 805 (1982).

Here there was sufficient evidence to support an instruction that the plaintiff’s statements during the November 16 meeting constituted a repudiation. In order to constitute a repudiation, a[*511] party’s statement “must be sufficiently positive to be reasonably interpreted that a party will not or cannot substantially perform.” Calamari and Perillo, section 12-4, at 525 (quoting Restatement (Second) of Contracts at section 250 comment b). For example, if a party to a contract states “I doubt I will perform,” his statement, alone, is not sufficiently positive to be reasonably interpreted by the other party to mean that he will not perform. Id. at 524. However, if a party to the contract states that he cannot perform except on some condition which goes outside the terms of his contract then the statement will constitute a repudiation. Id. at 525. Applying these rules to the facts here, we hold that plaintiffs statements on November 16 could have constituted a repudiation. According to defendant’s evidence, at the meeting between Coker and Millis, Millis stated that he was “busted,” “belly-up” and would be unable to complete the contract unless he received re-tainage on building number 7. However, according to the terms of the contract, plaintiff was not entitled to retainage until 30 days after building number 7 was completed. At the time of the November 16 meeting building number 7 was not yet completed. Clearly at the time of the November 16 meeting, plaintiff was not yet entitled to any retainage under the terms of the contract. In essence, his statement was that he could not perform the remaining contracts except on some condition outside the terms of the contracts, i.e. that he be paid the retainage before he was entitled to it under the contract.

If the repudiation occurs before the time of performance arises under the contract, the repudiation is anticipatory and the issue of anticipatory breach arises. Here plaintiffs statements were made on November 16, at least one month before completion of buildings 8, 9 and 10 was required under the terms of plaintiffs contracts. The effect of breach by anticipatory repudiation is to relieve the non-repudiating party from further performance under the contract. Dixon v. Kinser, supra. We agree with defendant’s argument that had the jury been given the opportunity to consider the issue of anticipatory breach, it could have found that the defendant did not breach its contract with plaintiff but was no longer required to perform under the contract due to plaintiffs anticipatory breach or breach by anticipatory repudiation. Dixon v. Kinser, supra. Accordingly, the trial court erred in refusing to[*512] instruct the jury on the issue of anticipatory breach as requested by defendant.

The issue of anticipatory breach does not affect defendant’s obligation under its contracts to pay for work performed, invoiced and approved as of the date of the November 16 meeting, where defendant alleges plaintiff anticipatorily breached its contracts with defendant. Up until that date plaintiff had fully performed. The evidence suggests that plaintiff was owed money for work performed, invoiced and approved by defendant as of 16 November 1984 and that defendant without justification refused to pay for that work. Plaintiffs exhibit number four sets out the following amounts as being owed for invoices not paid: $3,064.50 for building number 8; $5,172.75 for building number 9; and $2,034.00 for building number 10. In addition, plaintiffs exhibit number four indicates that plaintiff was overpaid in the amount of $1,675.95 for work completed, invoiced and approved on building number 7. Plaintiff also claims retainage on buildings 8, 9 and 10 in the amounts of $1,276.89, $2,548.98 and $1,588.00 respectively. However, plaintiff never satisfactorily completed buildings 8, 9 and 10 and consequently would only be entitled to retainage on these buildings if it is found by the trier of the fact that defendant materially breached its contract with plaintiff. The general rule governing bilateral contracts requires that if either party commits a material breach of the contract, the other party should be excused from the obligation to further perform. Coleman v. Shirlen, 53 N.C. App. 573, 281 S.E. 2d 431 (1981). The question of whether a breach is material or immaterial is ordinarily a question of fact. Id. If the breach is material, the aggrieved party may cancel the contract and sue for total breach if he can show that he was ready, willing and able to perform but for the breach. See Calamari and Perillo, section 11-18, at 458. As a result, he may recover all of his damages under the contract. Id. If the breach is immaterial the aggrieved party may not cancel the contract but may sue for partial breach. When a party sues for partial breach, the contract continues and the aggrieved party may only recover those damages actually caused by the breach. Id. at 458-59.

In summary, we conclude that the evidence of record raises several questions. Did the defendant breach its contracts with plaintiff by failing to pay plaintiff money owed as of 16 November 1984 for work performed by plaintiff? If so, was the breach ma[*513] terial, thereby entitling plaintiff to recover for all damages under his contracts with defendant, or was the breach immaterial, thereby entitling plaintiff only to recover those damages actually caused by the breach? If the defendant did not materially breach its contract with plaintiff, then did plaintiff anticipatorily breach its contract with defendant by statements made by Millis at the 16 November 1984 meeting thereby excusing defendant from further performance under its contracts with plaintiff? If so, then defendant was justified in mitigating its damages by securing other contractors when it became obvious that plaintiff would not perform.

We note from the verdict in this case that the jury found that the defendant breached its contract with plaintiff. However, on this record it is not clear whether the jury in answering this issue relied on evidence that defendant failed to pay money due to plaintiff on 16 November or on evidence that defendant on 19 November sent the letter giving plaintiff its 48-hour notice of termination. Here the issues of breach and anticipatory breach are so intertwined that we cannot say, even given the jury’s verdict, that the trial court’s error in refusing to instruct the jury on anticipatory breach was harmless. Consequently, there must be a new trial.

New trial.

Chief Judge HEDRICK and Judge PARKER concur.