1. Divorce--equitable distribution--counterclaim in divorce
complaint--claim pending at time of divorce
Plaintiff-former wife had a valid equitable distribution
claim pending at the time of the divorce of the parties pursuant
to the trial court's order denying defendant-former husband's
motion to dismiss plaintiff's claim for equitable distribution on
the ground that the parties were not separated at the time the
claim was filed where defendant alleged a claim for equitable
distribution when he asserted in his divorce complaint that such
a claim was pending, and plaintiff joined in that claim by
admitting the allegations of the complaint.
2. Estoppel--counterclaim for equitable distribution--denial of
claim prohibited
Defendant was equitably estopped to deny the existence of an
equitable distribution claim by plaintiff when he asserted a
counterclaim for equitable distribution in his divorce complaint
and plaintiff joined in this claim by her reply.
3. Judges--overruling of another judge--same issue--no material
change in circumstances
The trial judge had no authority to deny plaintiff's post-
divorce claim for equitable distribution and to overrule
plaintiff's objection to the dismissal of defendant's
counterclaim for equitable distribution in his divorce complaint
where the trial judge was reconsidering the same issue that had
previously been decided in favor of plaintiff by a different
superior court judge, and intervening circumstances enumerated
by the trial judge were not material changes in circumstances
permitting him to overrule the other judge.
4. Divorce--equitable distribution--claim pending at time of
divorce--voluntary dismissal--refiling
Where plaintiff wife had a valid equitable distribution
claim pending at the time the parties were divorced, she couldthereafter take a voluntary dismissal of her equitable
distribution claim under Rule 41(a)(1) and subsequently refile
her action within one year.
Judge GREENE dissenting.
Appeal by plaintiff from judgment entered 15 July 1997 by
Judge John W. Smith in New Hanover County District Court. Heard
in the Court of Appeals 20 October 1998.
Lea, Clyburn & Rhine, by J. Albert Clyburn and James W. Lea,
III, for plaintiff-appellant.
Edward P. Hausle, P.A., by Edward P. Hausle, for defendant-
appellee.
WALKER, Judge.
Plaintiff and defendant were married on 25 September 1967.
On 31 May 1990, plaintiff filed a complaint against defendant
seeking, among other things, equitable distribution of property
pursuant to N.C. Gen. Stat. § 50-20. The defendant filed an
answer and counterclaim in which he asked the court for an
equitable distribution of the marital property. The plaintiff
filed a reply to defendant's counterclaim and admitted that the
parties were entitled to equitable distribution of their marital
property. An order was entered 14 September 1990 in which the
trial judge found that plaintiff and defendant were living
together and not separated and declined to rule on both parties'
motions.
On 4 August 1992, defendant filed a separate action for
divorce in 92 CVD 2215 in which he alleged, all pending claimsarising out of the parties' marriage including both the
plaintiff's and defendant's claims for an equitable distribution
of marital property, are pending in. . . 90 CVD 1708. On 8
September 1992, plaintiff answered defendant's complaint by
stating the allegations contained in the complaint are admitted
and joined the request that a divorce be granted. In the present
appeal, the trial judge noted there is no reference to equitable
distribution in the answer. This is incorrect in view of
plaintiff's admission. On 25 September 1992, the divorce was
granted and the trial judge stated in his order that all pending
claims arising out of the parties' marriage, including both the
plaintiff's and defendant's claims for an equitable distribution
of marital property, are pending in New Hanover County Case File
No. 90 CVD 1708. On 26 October 1992, in 90 CVD 1708 defendant
filed a voluntary dismissal of his counterclaim for equitable
distribution stating the reason for the dismissal was the same
having been filed before the parties separated.
On 24 November 1992, defendant filed a motion pursuant to
Rule 12(b)(1) and (6) and N.C. Gen. Stat. § 50-21 to dismiss
plaintiff's claim for equitable distribution alleging the parties
were not separated at the time the claim was asserted. On 28
January 1993, Judge Allen Cobb held a hearing on defendant's
motion and in his order concluded: . . . the Court having reviewed the record in
this matter and having additionally reviewed
the pleadings and judgment in the case styled
David E. Atkinson v. Margaret Atkinson,
case number 92 CVD 2215 and heard the
arguments of counsel and the Court being of
the opinion that the ends of justice would
best be served by the denial of the
Defendant's motion to dismiss.
From that order the defendant appealed to this Court which
dismissed the appeal as being interlocutory. On 4 April 1994,
plaintiff voluntarily dismissed her action without prejudice in
90 CVD 1708.
On 3 April 1995, plaintiff filed an action, 95 CVD 985,
seeking equitable distribution of the marital property. The
defendant answered admitting that marital property existed, but
asserted the divorce in 92 CVD 2215 terminated a right of action
for equitable distribution. On 28 June 1996, the trial judge
placed 95 CVD 985 on Inactive Status. The following entry was
made on the record: Last activity 5/22/95. Discovery pending.
Settlement negotiation ongoing. Continuance Order issued
2/5/96.
On 17 March 1997, plaintiff moved in 90 CVD 1708 to set
aside the dismissal and/or strike the dismissal on the grounds
that the Plaintiff had admitted to allegations of the Defendant's
action for equitable distribution and joined in the Defendant's
prayers for relief for equitable distribution. On 15 July 1997, the trial judge held a hearing on the
defendant's motion to dismiss plaintiff's claim for equitable
distribution. In his order, the trial judge combined both cases
90 CVD 1708 and 95 CVD 985, overruled plaintiff's objection to
defendant's voluntary dismissal of his counterclaim, and
dismissed plaintiff's claim for equitable distribution.
In the order, the trial judge found:
9. . . . The court would refer the issue
back to Judge Cobb were he still presiding,
and Judge Cobb would clearly be empowered to
reconsider his ruling based upon the
intervening circumstances. . . . This court,
in such a review, will defer to the findings
and conclusions of Judge Cobb, and this court
believes it lacks jurisdiction to reverse his
decision absent some intervening new
circumstances which by clear and cogent
circumstances justify a different result.
This court would not reconsider or reverse
the ruling entered by Judge Cobb, and would
consider itself bound by his ruling, but for
the intervening circumstances.
10. The intervening circumstances justify a
reconsideration of the earlier motion to
dismiss. Although not intended as an
exhaustive listing of the circumstances
justifying a reconsideration, the following
are enumerated by the court as relevant to
the decision:
10.1 The failure of the wife to
proceed diligently and in a timely
fashion after having been given the
opportunity to [do] so by Judge Cobb;
10.2 A hearing at this late date will
require a consideration of seven yearsof postseparation transactions and
difficult valuations;
10.3 Discovery is still pending, and
neither party, as of the time of this
hearing, is prepared to present a
proposed property inventory as required
either by the general statutes (50-21)
or the local rules;
10.4 In the pre-trial discussions, both
parties have raised the need for expert
valuations of businesses and real
estate, including a shopping center the
mortgage which has been discharged by
Husband since separation;
10.5 The decision of the wife to allow
her attorney to dismiss her action
rather than proceed to trial in April
1994 when it was calendared for trial.
The trial judge then concluded that due to these factors a
change of circumstances had occurred which now permitted him to
reconsider the earlier denial of defendant's motion to dismiss
plaintiff's equitable distribution claim. Further, plaintiff had
failed to preserve her right to equitable distribution of the
marital property prior to the divorce and plaintiff could not
rely upon defendant's original invalid request for equitable
distribution asserted in his counterclaim. Also, the only
requests of record for equitable distribution were fatally
defective and plaintiff's reasserted claim filed one year after
her voluntary dismissal was also fatally defective. In addition,plaintiff had previously been permitted to pursue her claim on
equitable instead of legal grounds and the ends of justice would
no longer be served by denying defendant's motion to dismiss
plaintiff's claim for equitable distribution.
Plaintiff contends the trial judge erred in dismissing her
claim for equitable distribution and in overruling her objection
to defendant's voluntary dismissal of his counterclaim for
equitable distribution. Defendant contends that the trial judge
properly dismissed plaintiff's claim for equitable distribution
and properly overruled her objection to defendant's motion to
dismiss his claim for equitable distribution.
[1]In examining the record before us it reveals Judge Cobb
reviewed the files in 90 CVD 1708 and in 92 CVD 2215 before
concluding that defendant's motion to dismiss the equitable
distribution claim should be denied. The trial court is required
to review the pleadings in accordance with Rule 8 which provides
in part:
(a) Claims for relief. - A pleading which
sets forth a claim for relief, whether an
original claim, counterclaim, crossclaim, or
third-party claim shall contain
(1) A short and plain statement of the
claim sufficiently particular to give
the court and the parties notice of the
transactions, occurrences, or series of
transactions or occurrences, intended to
be proved showing that the pleader is
entitled to relief, and (2) A demand for judgment for the relief
to which he deems himself entitled.
Relief in the alternative or of several
different types may be demanded . . . .
. . .
(e) Pleading to be concise and direct;
consistency. -
(1) Each averment of a pleading shall be
simple, concise, and direct. No
technical forms of pleading or motions
are required.
. . .
(f) Construction of pleadings. - All
pleadings shall be so construed as to do
substantial justice.
N.C. Gen. Stat. § 1A-1, Rule 8 (1990).
In his divorce complaint, 92 CVD 2215, the defendant clearly
alleges a claim for equitable distribution of the marital
property when he asserts that such a claim is pending. For what
other reason would he include a reference to this matter in his
complaint? The plaintiff answered and admitted the parties have
a claim for equitable distribution of the marital property.
Thus, it is apparent that when Judge Cobb considered all of the
pleadings in these cases, he determined a claim had been made for
equitable distribution of the marital property and that he was
bound to construe the pleadings in accordance with Rule 8 so as
to do substantial justice.
The defendant appealed from the denial of his motion todismiss his equitable distribution claim by Judge Cobb. This
Court was presented with the issue of whether or not there
remained existing claims between the parties in Atkinson v.
Atkinson, 113 N.C. App. 201, 438 S.E.2d 759 (1993)(unpublished).
Our Court found the appeal to be interlocutory as the denial of
his motion was not a final determination of all claims.
Therefore, this Court found there were other matters still to be
adjudicated. The only matter left to be determined was the
equitable distribution claim.
[2]In addition, we find defendant should be equitably
estopped to deny existence of an equitable distribution claim.
Similarly, in Hunt v. Hunt, 117 N.C. App. 280, 283-84, 450 S.E.2d
558, 561 (1994), the defendant asserted a counterclaim for
equitable distribution of the marital property in which the
plaintiff joined by her reply. Without objection, the trial
court then preserved the issue of equitable distribution for
further proceedings prior to its granting the divorce. Id. The
defendant then moved for a voluntary dismissal of his
counterclaim for equitable distribution. Id. This Court held
that the defendant was precluded, by principles of equitable
estoppel, from defeating plaintiff's right to equitable
distribution by submitting to a voluntary dismissal of his
counterclaim. Id. Likewise, defendant's actions in allegingthe existence of an equitable distribution claim now preclude him
from denying the same.
[3]Also, it is well established that no appeal lies from
one Superior Court judge to another; that one Superior Court
judge may not correct another's errors of law; and that
ordinarily one judge may not modify, overrule, or change the
judgment of another Superior Court judge made in the same
action. Smithwick v. Crutchfield, 87 N.C. App. 374, 376, 361
S.E.2d 111, 113 (1987)(quoting Calloway v. Motor Co., 281 N.C.
496, 501, 189 S.E.2d 484, 488 (1972)). In Madry v. Madry, 106
N.C. App. 34, 38, 415 S.E.2d 74, 77 (1992), this Court held that
even though a subsequent trial judge may rehear an issue and
enter a ruling if there has been a material change in the
circumstances of the parties and the initial ruling was one which
was addressed to the discretion of the trial judge, one district
court judge may not overrule another judge as was attempted here.
When the trial judge entered the order denying plaintiff's claim
for equitable distribution and overruling her objection to the
dismissal of defendant's counterclaim, he was reconsidering the
same issue that had previously been decided in favor of plaintiff
by Judge Cobb in 1993. The trial judge stated that the
intervening circumstances enabled him to reconsider the order
entered by Judge Cobb. However, we conclude these enumeratedintervening circumstances were not material changes in
circumstances permitting the trial judge to overrule Judge Cobb.
[4]Having determined that plaintiff has a valid equitable
distribution claim pending pursuant to Judge Cobb's order, the
plaintiff could take a voluntary dismissal under Rule 41(a)(1)
and subsequently refile her action within one year, which she did
in 95 CVD 985. Our Supreme Court has held under factually
similar circumstances that if an equitable distribution claim is
pending and not voluntarily dismissed under Rule 40(a)(1) until
after a divorce is entered, a new action based on that claim may
be filed within the one-year period as provided by the rule.
Stegall v. Stegall, 336 N.C. 473, 479, 444 S.E.2d 177, 181
(1994). In Stegall, the plaintiff filed an action for divorce
which included claims for alimony and equitable distribution.
Id. at 474, 444 S.E.2d at 178. The defendant then filed an
action for divorce which was granted. Id. Subsequently, the
plaintiff dismissed her action and then refiled her equitable
distribution claim within the one-year period permitted under
Rule 41(a)(1). Id. The Court held that her claim survived and
we likewise hold that plaintiff's equitable distribution claim
survives in this case.
Finally, we note that in his order the trial judge set out
the history of proceedings between these parties. This review bythe trial judge reveals that both parties had been represented by
multiple attorneys during the course of this litigation; however,
the trial judge only noted that plaintiff's present counsel was
her fourth attorney of record. We also note that from the time
the original complaint was filed, five different district court
judges have heard various matters in these cases. Furthermore,
it would appear that the delays in concluding these proceedings
can be attributed to both parties.
Therefore, the order of the trial judge is reversed and the
case is remanded for further proceedings to effect an equitable
distribution of the parties' marital property.
Reversed and remanded.
Judge SMITH concurs.
Judge GREENE dissents.
The majority also relies in part on equitable estoppel to prevent the dismissal of plaintiff's ED claim. I, however, do not believe equitable estoppel applies in this case. The Hunt v. Hunt case, 117 N.C. App. 280, 450 S.E.2d 558 (1994), relied upon by the majority, is distinguishable. In Hunt, the wife filed a reply joining in the husband's request in his counterclaim for an equitable distribution of their marital property. The Hunt trial court, in granting the parties a divorce, included language in the divorce judgment noting that a valid ED claim had been asserted in the counterclaim and that the ED claim would be preserved for further proceedings. This Court subsequently held that the husband, based on the facts in that case, was equitably estopped from defeating the wife's ED claim by taking a voluntary dismissal of his counterclaim. In this case, however, defendant asserted an ED claim in his counterclaim, but plaintiff did not join in that claim. Instead, her reply alleges "that defendant go without relief on his counterclaim." Furthermore, in this case, the divorce judgment only acknowledged that ED claims were pending. In any event, any party seeking to assert equitable estoppel isrequired to present themselves to the court with clean hands, see Hinson v. Hinson, 80 N.C. App. 561, 573, 343 S.E.2d 266, 273 (1986), and as acknowledged by the majority, plaintiff is partially to blame for the long delays and confusion in this case and thus is not entitled to assert equitable estoppel.
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