North Carolina Court Grants Partial Summary Judgment Against MV Realty for Telemarketing Violations

On January 16, 2026, the North Carolina Business Court (Wake County, case number 23-CVS-6408) issued an Order and Opinion on Plaintiff’s Partial Motion for Summary Judgment and Plaintiff’s Motion to Strike in *State ex rel. Jackson v. MV Realty PBC, LLC*. The State of North Carolina, ex rel. Jeff Jackson, Attorney General, sued MV Realty PBC, LLC; MV Realty of North Carolina, LLC; MV Brokerage of North Carolina, LLC; Amanda Zachman; Antony Mitchell; David Manchester; and Darryl Cook. The State alleged unfair or deceptive trade practices (UDTP) and unlawful telephone solicitation practices, among other claims. The Court granted the State's motion for partial summary judgment on all three UDTP claims, finding that MV Realty committed UDTPs by: (1) recording memoranda that falsely claimed to create covenants running with the land, thereby clouding homeowners' titles; (2) filing notices of *lis pendens* against homeowners' properties based on alleged breaches of personal services contracts; and (3) collecting Early Termination Fees (ETFs) that constituted unenforceable penalties under North Carolina law. The Court also granted summary judgment on the State's Telephone Solicitation Act (TSA) claims. It determined that MV Realty made 149,983 calls to North Carolina phone numbers on the Do Not Call Registry and 344,009 robocalls. The Court rejected MV Realty's arguments that it was not a "telephone solicitor" and that its calls, made using the PhoneBurner platform, were not "robocalls" because of human intervention. MV Realty failed to provide sufficient evidence of consumer consent to receive these calls, a burden it held under North Carolina law. The Court deferred ruling on the State's request for restitution and civil penalties. A preliminary injunction against MV Realty's practices had been issued on September 18, 2023, and upheld by the North Carolina Supreme Court on August 21, 2024.

This development highlights the ongoing scrutiny of telemarketing practices, particularly concerning consent for calls and the enforceability of consumer agreements. The court's findings reinforce that businesses engaged in telephonic solicitations must adhere strictly to Do Not Call regulations and obtain verifiable consent for robocalls. It underscores that attempting to bypass statutory definitions of "telephone solicitor" or "automatic dialing and recorded message player" through arguments of service provision or human intervention will be challenged. Businesses must ensure that all forms of consent, especially those obtained by third-party lead generators, are robust, explicit, and provable.

• Consider reviewing current lead generation agreements to ensure they explicitly detail the method and scope of consent obtained for telemarketing, including for calls to Do Not Call registered numbers and automated calls.

• Consider auditing call records, particularly for automated dialing systems, to verify compliance with state and federal telemarketing laws regarding consent and DNC lists.

• Consider assessing whether any contractual terms related to fees or liens could be interpreted as unenforceable penalties or attempts to cloud title, especially in consumer-facing agreements.

• Consider training sales and compliance teams on the specific definitions of "telephone solicitor" and "automatic dialing and recorded message player" under applicable state laws to avoid mischaracterizing activities.

• Consider reviewing current consent documentation processes to ensure they meet evidentiary standards for proving express invitation or permission, especially when relying on third-party obtained consent.

The source document does not state a compliance or effective date for this action.

• CourtListener / Free Law Project· Primary source· January 16, 2026
  State Ex Rel. Jackson v. Mv Realty Pbc, LLC

  https://www.courtlistener.com/opinion/10775553/state-ex-rel-jackson-v-mv-realty-pbc-llc/

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