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Camden County v. Northeastern Community Development Corp.

United States District Court, E.D. North Carolina, Northern Division

October 18, 2017

CAMDEN COUNTY, A BODY POLITIC AND POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA; EAST CAROLINA BEHAVIORAL HEALTH, AN AREA MENTAL HEALTH AUTHORITY AND POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA; and PASQUOTANK COUNTY, A BODY POLLTIC AND POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA, Plaintiffs,
v.
NORTHEASTERN COMMUNITY DEVELOPMENT CORPORATION; UNITED STATES DEPARTMENT OF AGRICULTURE; UNITED STATES INTERNAL REVENUE SERVICE; NORTH CAROLINA DEPARTMENT OF COMMERCE-DIVISION OF EMPLOYMENT SECURITY; SOUTHERN BANK AND TRUST COMPANY, Defendants, CHARLES THOMAS STEELE, JR., TRUSTEE, INTERVENOR/DEFENDANT

          Plaintiffs: Camden County East Carolina Behavioral Health Pasquotank County JohnS. Morrison, Attorney for Plaintiffs

          Defendants: United States Department of Agriculture James K. Pendergrass, Jr., Attorney for USDA and TRUSTEE

          United States Internal Revenue Service C. Michael Anderson, Assistant United States Attorney, Attorney for IRS

          North Carolina Department of Commerce-Division of Employment Security, Timothy Melton, Attorney for North Carolina Department of Commerce

          North Carolina Department of RevenueDavid D. Lennon, Assistant Attorney General, Attorney for NC Dept. of Revenue

          ORDER CONSENT ORDER; ENTRY OF DEFAULT JUDGMENT

          James C. Dever, III Chief United State District Court Judge

         On motion of all parties Plaintiff, and Defendants United States Department of Agriculture, Charles Thomas Steele, Jr., Trustee ("TRUSTEE"), United States Internal Revenue Service, North Carolina Department of Revenue, and the North Carolina Department of Commerce-Division of Employment Security, and after careful review by the Court of the record proper, including Pleadings, Pleading Exhibits, Briefs in support of and in opposition to Defendants United States Department of Agriculture and its Trustee's Motion for Summary Judgment as well as Exhibits tendered with the same, and the stipulations of the parties contained herein, the Court makes the following Findings of Fact, Conclusions of Law, and Entry of Judgment.

         FINDINGS OF FACT

         1. On March 19, 2015, Camden County, East Carolina Behavioral Health, and Pasquotank County (collectively "Plaintiffs") filed an action for declaratory judgment and to quiet title against the United States Department of Agriculture ("USDA"), United States Internal Revenue Service ("IRS"), the Northeastern Community Development Corporation ("NCDC"), The North Carolina Department of Revenue ("NCRev"), The North Carolina Department of Commerce-Division of Employment Security ("Commerce") and Southern Bank and Trust Company ("BANK") in Camden County Superior Court.

         2. On April 16, 2015, the IRS and USDA removed the case to this Court.

         3. The IRS timely answered, denying the relief requested by Plaintiffs and asking that the Court dismiss Plaintiffs' claims.

         4. The USDA and TRUSTEE timely answered, moved to dismiss and asserted counterclaims for a declaration that Plaintiffs' exercise of their possibility of reverter contained in a Deed accepted by USDA as security was an unconstitutional taking by the government; for quiet title to the property at issue, for breach of contract and inverse condemnation, to which Plaintiffs timely replied seeking dismissal of these claims. On all counterclaims excepting breach of contract, USDA moved for summary judgment on September 20, 2016.

         5. After proper service on Defendants NCDC and BANK, neither filed an answer nor made an appearance or otherwise offered a defense. Accordingly, by Motion of Plaintiffs, an entry of default was had on each of the said NCDC and BANK on December 1, 2015 properly entered by the Clerk of this Court.

         6. By Order of May 17, 2017, Chief United States District Court Judge, James C. Dever III, in a written opinion, denied Defendant USDA's ...


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