City of Charlotte v. Univ. Fin. Props., LLC
City of Charlotte v. Univ. Fin. Props., LLC
Opinion
*136
Defendant University Financial Properties, LLC ("defendant") appeals from the trial court's order entered 29 September 2016 granting plaintiff's motion to amend its "Complaint, Declaration of Taking and Notice of Deposit and Service of Plat." On appeal, defendant argues that the trial court erred by ruling that defendant's voluntary dismissal had no effect to end the case and in granting plaintiff's motions to amend its complaint. We reverse the trial court's order because after defendant filed its notice of voluntary dismissal, the trial court no longer had authority to rule on plaintiff's motion to amend its complaint, declaration of taking, and deposit. Under
*119
N.C. Gen. Stat. § § 136-105 and 136-107 (2017), defendant was in the position of the claimant and had the right to elect to accept the deposit or to go to trial, and plaintiff had no right to force defendant to proceed to trial after defendant elected to dismiss its claim for determination of just compensation. We reverse and remand for entry of a final judgment in accord with
Plaintiff filed its complaint, declaration of taking, notice of deposit, and service of plat in April 2013. Plaintiff estimated the sum of $570.425.00 to be just compensation for the taking. Plaintiff deposited that sum with the superior court and stated that defendant could "apply to the Court for disbursement of the money as full compensation, or as a credit against just compensation, to be determined in this action." Defendant applied for disbursement of the deposit on 22 July 2013. An order granting the disbursement request was entered the next day, 23 July 2013.
Defendant filed its answer on 9 April 2014, requesting a jury trial to determine just compensation for the taking. On 24 October 2014, plaintiff filed a motion for determination of issues other than damages under
On 5 April 2016, this Court reversed the trial court, holding that the loss of visibility due to the bridge is not a compensable taking and remanded the case for further proceedings consistent with its opinion.
City of Charlotte v. Financial Properties
,
Plaintiff then filed a motion to amend its complaint on 22 August 2016, asking that the complaint be amended to state the lesser sum of $174,475.00 as its estimate of just compensation for the taking. Plaintiff asserted that it is entitled to a jury trial on the amount of compensation and under
On 1 September 2016, defendant filed a notice of voluntary dismissal without prejudice under Rule 41(a) of the North Carolina Rules of Civil Procedure. A corrected notice of voluntary dismissal without prejudice was filed one day later, 2 September 2016, to correct a clerical error regarding the file number. The notice stated:
Defendant, University Financial Properties, LLC, through the undersigned counsel, pursuant to Rule 41(a) of the North Carolina Rules of Civil Procedure hereby gives notice of voluntary dismissal without prejudice of all pending claims against Plaintiff, including claims for additional compensation and attorney's fees, said Defendant accepting the amount of deposit in the above-entitled action. Each party shall bear its own costs and attorneys' fees.
In addition, on 6 September 2016, defendant filed a motion for judgment on the pleadings, alleging that defendant "is entitled to final judgment as a matter of law against Plaintiff in the amount deposited."
*120 On 29 September 2016, the trial court entered an order granting plaintiff's motions to amend its complaint, declaration of taking, and notice of deposit and service of plat. The trial court made findings of fact regarding the procedural history of the case, generally as described above, and then addressed the pending motions as follows:
9. On August 22, 2016, the City filed a Motion to Amend Its Complaint in order to decrease the Complaint's estimate of just compensation to One Hundred Seventy-Four Thousand Four Hundred Seventy-Five Dollars ($174,475.00). This decrease would remove from the Complaint's estimate of just compensation any compensation for the bridge to be built within North Tryon Street, which the Court of Appeals has held is not a part of this condemnation.
10. The North Carolina Court of Appeals later issued an Order formally certifying to this Court that University Financial's Petition for Discretionary Review had been *139 denied. That Order was received by this Court on August 25, 2016. Later that day, the City filed with this Court its Second Motion to Amend its Complaint, which was identical to its first Motion to Amend its Complaint.
11. On September 1, 2016, University Financial filed a "Notice of Voluntary Dismissal Without Prejudice," which purported to dismiss, under North Carolina Rule of Civil Procedure 41(a), the demand for additional compensation in University Financial's Answer.
12. On September 6, 2016, University Financial filed a Motion for Judgment on the Pleadings requesting that this Court enter final judgment awarding University Financial compensation of $570,425.00, the estimated just compensation in the City's un-amended Complaint.
13. This action has not been scheduled for trial, nor have any other deadlines been set in this case. As a result, granting the City's request to amend its Complaint would not delay or disrupt any proceeding already scheduled in this action.
14. Good cause exists to allow the City to amend its Complaint as requested by the City's two motions to amend.
Based on these findings, the Court concludes as follows:
1. University Financial's "Notice of Voluntary Dismissal Without Prejudice" was not a proper or valid dismissal under North Carolina Rule of Civil Procedure 41. The voluntary dismissal was a nullity and did not have the effect of concluding this case by acknowledging satisfaction with the amount of the deposit and waiving further proceedings to determine just compensation as contended by University Financial. To conclude otherwise would be to fail to follow the Court of Appeals' mandate in this case.
2. University Financial's voluntary dismissal does not prevent this Court from considering the City's motions to amend or from allowing the City to amend its Complaint.
*140 3. The Court is mandated by the Court of Appeals' ruling in this case to allow the City's timely motions to amend and give no impact whatsoever to University Financial's voluntary dismissal.
4. The Court concludes that this Order is a final ruling as to the meaning and effect of University Financial's voluntary dismissal because it has cut off some of University Financial's claim for the full amount of the deposit. See N.C. R. Civ. P. 54(b).
5. Given the uniqueness of the facts and applicable law in this case, the Court certifies that there is no just reason to delay an appeal of this matter. A trial would be a waste of the Court's time and resources at this point in time given this Order, and the prior Court of Appeals' mandate. Whereas, if [University] Financial is correct in its interpretation of the effect of its filing a voluntary dismissal, then a trial would be presented in a significantly different manner.
IT IS THEREFORE ORDERED as follows:
1. For good cause shown, the City of Charlotte's Motion to Amend its Complaint, Declaration *121 of Taking and Notice of Deposit and Service of Plat and Second Motion to Amend its Complaint, Declaration of Taking and Notice of Deposit and Service of Plat are hereby granted. The City may file an Amended Complaint, Declaration of Taking and Notice of Deposit and Service of Plat within fourteen (14) days after entry of this Order.
2. University Financial may file an answer or otherwise plead in response to the Amended Complaint, Declaration of Taking and Notice of Deposit and Service of Plat within thirty (30) days after being served with that pleading.
3. University Financial's voluntary dismissal had no effect to end this case and does not limit University Financial's ability to answer or otherwise plead in response to the Amended Complaint or its ability to seek compensation beyond that estimated in the Amended Complaint.
*141 4. At the hearing, University Financial withdrew its Motion for Judgment on the Pleadings, and consequently the Court is not ruling on that Motion.
5. Pursuant to North Carolina Rule of Civil Procedure 54(b), this matter is certified for immediate appeal as there is no just reason for delay.
6. Pursuant to the provisions ofN.C. Gen. Stat. § 1-270 , et. seq. , and N.C. Rule of Appellate Procedure 8(a), all further proceedings in this action shall be stayed upon University Financial's filing of a Notice of Appeal until further order of this Court. The Clerk is directed to enter this Stay on the docket.
Defendant timely appealed to this Court.
Discussion
I. Interlocutory Order
The order on appeal is not a final resolution of all issues as to all parties, so it is an interlocutory order.
See, e.g.,
Wilfong v. North Carolina Dept. of Transp.
,
It is well established that interlocutory orders, which are made during the pendency of an action, are generally not immediately appealable. If, however, the order implicates a substantial right that will be lost absent our review prior to the entry of a final judgment, an immediate appeal is permissible.
In condemnation proceedings, our appellate courts have identified certain "vital preliminary issues," such as the trial court's determination of the title or area taken, which affect a substantial right and are subject to immediate appeal. In its order pursuant to *142N.C. Gen. Stat. § 136-108 , the trial court concluded that the City's construction of the Bridge was "part of the taking in this action." Because this ruling concerns the area encompassed by the taking, we have jurisdiction over the City's appeal with regard to the trial court's determination of this issue.
City of Charlotte v. Univ. Fin. Properties, LLC
,
In this appeal, defendant argues that it has a substantial right which would be lost without an immediate appeal of the trial court's order, because the order "deprives [defendant] University of its ability to end the litigation short of trial for the initial deposit in which it has a vested right." Defendant contends that
Plaintiff argues that defendant has not shown a substantial right which would entitle it to an interlocutory appeal because avoiding a trial is not a substantial right and motions to amend under Rule 15(a) of the North Carolina Rules of Civil Procedure should be freely granted in the trial court's discretion. Plaintiff's arguments are based on generally correct statements of law but ignore the substantive and procedural rights set forth in North Carolina General Statutes Chapter 136, Article 9 regarding condemnation cases. We must view this issue in the context of those procedures and rights.
We addressed the extent of the compensable taking in
University Financial I
,
This appeal presents issues similar to those in an order addressing the title or area taken, because it raises an issue other than determining just compensation, but it is not one of the issues which must be appealed
*143
immediately. In eminent domain cases, interlocutory orders concerning title or area taken must be appealed immediately or the right to appeal is lost.
See, e.g.,
Stanford v. Paris
,
Plaintiff argues that the
only
issues in a condemnation action which affect a substantial right and are immediately appealable are issues relating to ownership of land or what parcel is being taken, quoting from
N.C. Dep't of Transp. v. Stagecoach Village
,
Plaintiff also argues that an order granting a motion to amend a complaint does not affect a substantial right and there is no right of immediate appeal, citing to
LendingTree, LLC v. Anderson
,
Here, as addressed in more detail below, plaintiff did not have the right to amend the complaint to reduce the deposit, and the trial court's order granting the amendment and refusing to recognize the effect of the voluntary dismissal has the effect of taking away defendant's right under
We also accord deference to the trial court's certification there is no just reason for delay under Rule 54(b). The trial court certified there was no just reason for delay of this appeal and included in the order detailed findings of fact supporting its determination that an immediate appeal is proper. The trial court concluded:
Given the uniqueness of the facts and applicable law in this case, the Court certifies that there is no just reason to delay an appeal of this matter. A trial would be a waste of the Court's time and resources at this point in time given this Order, and the prior Court of Appeals' mandate. Whereas, if [University] Financial is correct in its interpretation of the effect of its filing a voluntary dismissal, then a trial would be presented in a different manner.
"Initially, we note with approval that the trial court's order sets forth the basis upon which it determined there existed 'no just reason to delay,' thus facilitating appellate review."
First Atl. Mgmt. Corp. v. Dunlea Realty Co.
,
In condemnation actions, the statutes set forth specific procedures and rights of the parties, and some of these procedures are unique to condemnation cases. Had the trial court ruled in the opposite way and granted defendant's voluntary dismissal, this matter would have been completely resolved. As the landowner, defendant has a substantial
*146
right to accept the deposit of just compensation plaintiff made pursuant to
III. Voluntary Dismissal
The trial court's order concluded that defendant's voluntary dismissal "had no effect to end this case[.]" Defendant argues that the filing of a notice of voluntary dismissal by a defendant in a condemnation case abandons any claims for a greater recovery and serves as an admission that the deposit tendered is just compensation.
Under Rule 41(a) of the Rules of Civil Procedure, it is well established that if a plaintiff takes a voluntary dismissal of a claim, it strips the trial court of its authority to enter further orders in the case, other than orders taxing costs or attorney fees.
See
Brisson v. Kathy A. Santoriello, M.D., P.A.
,
But in civil proceedings other than condemnation, the plaintiff is the party who brought the claim, not the defendant. Condemnation proceedings differ from other types of cases due to the detailed statutes giving authority to take property for a public purpose:
Article 9 sets forth the procedure for acquiring land by condemnation. These proceedings commence when DOT files a complaint and declaration of taking accompanied by a deposit of the estimated just compensation in the superior court in the county where the land is located. DOT must include in its complaint, inter alia, a prayer for determination of just compensation. Upon filing and deposit, title to the land vests in DOT. The right to just compensation vests in the landowner, who may apply to *147 the court for disbursement of the deposit, file an answer requesting a determination of just compensation, or both.
The statutes provide that just compensation includes damages for the taking of property rights plus interest on the amount by which the damages exceed DOT's deposit.
Department of Transp. v. M.M. Fowler, Inc.
,
The condemnor's only "claim" in a condemnation action is to acquire title to the real property. When the condemner files the condemnation action, notice of taking, and deposit, title to the land immediately vests in the condemnor.
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Chapter 136 does not expressly address the effect of the filing of a voluntary dismissal, but it does recognize the need to reconcile the procedures for condemnation with the Rules of Civil Procedure to accomplish the stated intent to make "the practice in [actions under Chapter 136] ... conform as near as may be to the practice in other civil actions in said courts."
*148 In all cases of procedure under this Article where the mode or manner of conducting the action is not expressly provided for in this Article or by the statute governing civil procedure or where said civil procedure statutes are inapplicable the judge before whom such proceeding may be pending shall have the power to make all the necessary orders and rules of procedure necessary to carry into effect the object and intent of this Chapter and the practice in such cases shall conform as near as may be to the practice in other civil actions in said courts.
We are required to address the effect of a Rule 41(a) dismissal in a way which make the practice in a condemnation case "conform as near as may be to the practice in other civil actions in said courts."
Id
. Only one published
1
case has addressed the effect of a voluntary dismissal by a defendant-landowner in a condemnation case, and that case is somewhat confusing, since it said that the dismissal had no effect because defendants cannot take voluntary dismissals, but then the Court held that the attempted dismissal had the effect of a voluntary dismissal under Rule 41 and ended the case entirely.
See generally
Dept. of Transportation v. Combs
,
Our research has failed to disclose any rule, statute, or case which grants a defendant the right to take a voluntary dismissal, whether with or without prejudice, unless the party-defendant taking the dismissal has a pleading which contains a *126 counterclaim, crossclaim, or third party claim. Since the rules contain no provision which would *149 permit a defendant to take the action done in this case by Attorney Smith, and since ordinarily such action would be held a nullity, we are constrained to hold that the filing of the voluntary dismissal by Attorney Smith constituted an abandonment of the case by the defendants and also constituted an acknowledgment of satisfaction with the amount of the deposit as being full and just compensation for the quantity of property taken for the project[.]"
Id
. at 375,
In other types of civil proceedings, a plaintiff would have a right to re-file an action once after taking a voluntary dismissal under Rule 41(a). Because the landowner-defendant who had filed the dismissal was the appellant, challenging the entry of judgment for the amount of the deposit on appeal, the
Combs
Court was essentially holding that the defendant-landowner could not take advantage of this benefit of Rule 41 since the defendant was not the party who filed the action.
Id
. This distinction makes sense in the context of condemnation, since title to the land has already vested in the condemnor-plaintiff, and the defendant-landowner's dismissal has no effect upon the ownership of the land. The only claim in dispute (once any issues under
Failure to answer [12 months from service of complaint] shall constitute an admission that the amount deposited is just compensation and shall be waiver of any further proceeding to determine just compensation;
*150 in such event the judge shall enter final judgment in the amount deposited and order disbursement of the money deposited to the owner.
(Emphasis added). If a voluntary dismissal has the effect of making the case as though a suit was never filed-or in this case, an answer was never filed-then under
Plaintiff claims this Court previously determined that defendant "is not entitled to compensation for the loss of visibility from University Financial's remaining property that would result from the Bridge" and argues that the trial court's order granting the motion to amend plaintiff's complaint was simply following the mandate this Court set out in its first opinion. The trial court's order also concluded this result was dictated by the prior opinion. But this Court's prior opinion resulted from plaintiff's request for a hearing under
This analysis reconciles the rights and procedures established under Chapter 136 with the usual effect of voluntary dismissals under Rule 41. If the defendant-landowner is deprived of the option of taking a voluntary dismissal under Rule 41, condemnors would have the ability
*151
to force a property owner to proceed to a jury trial on just compensation if the landowner has filed an answer with this request. If we were to rule as plaintiff urges, a defendant-landowner would not have the right to take a voluntary dismissal to end the case, even if he is satisfied with the deposit and does not wish to proceed to trial. This is inconsistent with
The fact that plaintiff filed its motion to amend first does not change the result. It is well-established that if there is no counterclaim, the plaintiff-here the landowner-may take a voluntary dismissal under Rule 41(a) at any time until it rests its case.
See, e.g.,
Williams v. Poland
,
*152
We conclude that a defendant does have the right to take a voluntary dismissal of its claim for determination of just compensation, as this result is consistent with the practice under Rule 41(a) and in compliance with
But one additional twist in this case is that the plaintiff also moved to amend the deposit. Deposits do not exist in other civil proceedings, so we must consider if Chapter 136 *128 could allow amendment of the deposit despite the filing of the voluntary dismissal.
The statute is quite clear that although a complaint or declaration of taking may be amended, a deposit may only be increased , not reduced. N.C. Gen. Stat. § § 136-103(d) provides as follows:
(d) The filing of said complaint and said declaration of taking shall be accompanied by the deposit of the sum of money estimated by said Department of Transportation to be just compensation for said taking and upon the filing of said complaint and said declaration of taking and deposit of said sum, summons shall be issued and together with a copy of said complaint and said declaration of taking and notice of the deposit be served upon the person named therein in the manner now provided for the service of process in civil actions. The Department of Transportation may amend the complaint and declaration of taking and may increase the amount of its deposit with the court at any time while the proceeding is pending, and the owner shall have the same rights of withdrawal of this additional amount as set forth in G.S. 136-105 of this Chapter.
(Emphasis added).
Although amendment of a complaint is allowed more freely under North Carolina Rules of Civil Procedure 15(a),
Questions of statutory interpretation are ultimately questions of law for the courts and are reviewed de novo. The principal goal of statutory construction is *153 to accomplish the legislative intent. The best indicia of that intent are the language of the statute, the spirit of the act and what the act seeks to accomplish. The process of construing a statutory provision must begin with an examination of the relevant statutory language. It is well settled that where the language of a statute is clear and unambiguous, there is no room for judicial construction and the courts must construe the statute using its plain meaning. In other words, if the statutory language is clear and unambiguous, the court eschews statutory construction in favor of giving the words their plain and definite meaning.
Wilkie v. City of Boiling Spring Lakes
,
The language in the statute is clear-the condemnor may amend its complaint and notice of taking and may increase the deposit, but it may not amend a deposit to
decrease
the amount. We cannot read the word "increase" to mean "change" since a change could include a "decrease." Increase is the opposite of decrease. We construe the statute using its plain meaning.
See
Wilkie
,
The amount of the deposit is not competent evidence during a jury trial, so the jury never sees that number in making its determination of just compensation.
See
Here, defendant's voluntary dismissal ended the case, and the trial court had no authority to rule on plaintiff's pending motion to amend. We need not address the trial court's ruling on the motion to amend any further, since it had no authority to rule on that motion. Once the dispute as to determination of just compensation ended with the dismissal, the trial court must enter final judgment "in the amount deposited. ..."
*155
Conclusion
The trial court's order is reversed, and this matter is remanded to the trial court for entry of a final judgment.
REVERSED AND REMANDED.
Judges MURPHY and ARROWOOD concur.
There is also one unpublished case,
Department of Transp. v. Ashcroft Development, LLC
, --- N.C. App. ----,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.