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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Car
olina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
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ered authoritative.
CHESTER M. GOODSON, Petitioner, v. WAYMOND GOODSON and wife,
BETTY GOODSON, ARMADIA GOODSON COBB, and husband, HAROLD COBB,
MARION GOODSON and wife, MILDRED GOODSON, MARJORIE GOODSON POWELL
and husband, ROBERT POWELL, Respondents, v. MARION GOODSON, Third
Party Petitioner, v. J. GREGORY WALLACE, HENRY D. GAMBLE, JOHN T.
FREEMAN, TERESA B. FREEMAN, WADE FREEMAN, SR. MARY H. FREEMAN,
Third Party Respondents
No. COA00-1042
(Filed 7 August 2001)
1. Partition--judicial sale--negligence by commissioners--
relevancy to denial of fees
The trial court's findings when denying a motion to set
aside a partition sale regarding negligence by the commissioners
in failing to send to petitioners an amended notice of sale was
relevant to support the court's decision to deny commissioners'
fees. Moreover, irrelevant findings would not warrant a reversal
of the trial court's decision.
2. Evidence--property owner's opinion of value--not familiar
with nearby land values
There was competent evidence to support the trial court's
finding of the value of a tract of land in a contested partition
sale where a co-owner testified to its value. There is no
requirement that an owner be familiar with nearby land values in
order to testify to the fair market value of his own property.
3. Partition--judicial sale--amended notice not received--
sufficiency of evidence
There was sufficient evidence in a contested partition sale
by commissioners to support the court's finding that petitioners
did not receive an amended notice of sale reflecting a reduced
price where the petitioners testified that they did not receive
the notice and one commissioner testified that he had sent the
notice to them.
4. Judicial Sales--flawed commissioners' sale--innocent
purchasers--deed not set aside
The trial court did not err by refusing to set aside a
commissioners' deed where the current landowners purchased the
tract with no notice of any dispute. An innocent purchaser takes
title free of equities of which he had no actual or constructive
notice. Furthermore, the present owners were not joined as
necessary parties.
5. Judicial Sales--partitition sale--negligence by
commissioners--liability of commissioners
The trial court did not err in a contested partition salearising from the alleged failure of the commissioners to d
eliver
an amended notice of sale to petitioners by not ruling on the
extent of the commissioners' liability and awarding damages. The
findings regarding the commissioners' negligence supported the
decision to deny commissioners' fees, but the extent of the
commissioners' relative liability was not litigated.
Appeal by respondent Mildred Goodson, respondent and third
party petitioner Marion Goodson, and third party respondent J.
Gregory Wallace from judgments entered 3 December 1998 and 10
February 2000 by Judge Wade Barber, Jr., in Wake County Superior
Court. Heard in the Court of Appeals 5 June 2001.
Berman & Associates, by Gary K. Berman, for respondent Mildred
Goodson and respondent and third party petitioner Marion
Goodson.
Bailey & Dixon, L.L.P., by Gary S. Parsons and Warren T.
Savage, for third party respondent J. Gregory Wallace.
Pendergrass Law Firm, by James K. Pendergrass, Jr., for third
party respondents John T. Freeman, Teresa B. Freeman, Wade
Freeman, Sr., and Mary H. Freeman.
TIMMONS-GOODSON, Judge.
On 10 June 1996, Chester M. Goodson petitioned the Wake County
Superior Court for a partition of five parcels of land, including
a certain parcel labeled "Tract C," which he and his relatives
owned as tenants in common. The trial court ordered such sale by
partition and appointed the attorneys representing the parties,
third party respondents J. Gregory Wallace (Mr. Wallace) and Henry
D. Gamble (Mr. Gamble), as co-commissioners of the court to sell
the tracts of land, including Tract C, and to report the sales to
the clerk of court for confirmation.
Pursuant to their duties as co-commissioners, Mr. Wallace and
Mr. Gamble offered Tract C for private sale through variousrealtors. A real estate development company, Pittman-Korbin, Inc.
(Pittman-Korbin), subsequently submitted an offer to purchase Tract
C, and Mr. Wallace negotiated and executed an offer to purchase and
contract with Pittman-Korbin for $172,335.00 on 15 May 1997. The
offer was expressly contingent upon the property's suitability for
residential development. On the same day, Mr. Wallace served upon
all parties to the petition a notice of sale of Tract C to Pittman-
Korbin for the above-stated price. The notice stated that,
pursuant to N.C. Gen. Stat. § 46-28(b), the commissioners would
report the sale of Tract C to the court on 5 June 1997, at which
time there would be a ten-day period during which upset bids could
be submitted.
When Pittman-Korbin conducted soil tests upon Tract C,
however, it discovered that a substantial portion of the land did
not percolate, and was thus unsuitable for residential development.
Pittman-Korbin therefore terminated the offer pursuant to the
contingency. Another party, third party respondent John T.
Freeman, immediately offered $128,310.00 for Tract C with no
contingencies. Mr. Wallace and Mr. Gamble accepted this offer on
2 June 1997. According to Mr. Wallace, he then sent all parties an
amended notice of sale for Tract C, reporting the reduced purchase
price. Two of the parties to the partition, respondents Mildred
Goodson and Marion Goodson (Mr. Goodson) (collectively Mildred and
Marion Goodson), testified they never received such notice.
On 18 June 1997, after the proper ten-day period had elapsed
with no upset bids submitted, the trial court entered an order
confirming the sale of Tract C. The sale closed on 29 August 1997,a final report of sale was filed, and the commissioner's deed to
Tract C was recorded with the Wake County Register of Deeds the
same day.
Immediately upon purchasing Tract C, John Freeman conveyed the
property by general warranty deed to his parents, third party
respondents Wade Freeman, Sr. and Mary Freeman, who subdivided the
tract and properly deeded five lots to another son, Wade Freeman,
Jr., and to his wife, Carol Freeman, on 27 February 1998. Wade
Freeman, Jr., and Carol Freeman, who are not parties to this
action, subsequently constructed houses on each of the five lots.
On 12 March 1998, Mr. Goodson filed a motion to set aside the
commissioner's deed on Tract C, alleging that he had not received
the amended notice of sale of such land, and that the sale price
was inadequate. On 3 December 1998, the trial court denied the
motion to set aside the deed, concluding that, although Marion and
Mildred Goodson had not received notice of the sale, respondents
Freeman were innocent purchasers for value and entitled to rely
upon the public record, and further, that Mr. Goodson had failed to
join Wade Freeman, Jr., and Carol Freeman as necessary parties to
the action. The trial court also made findings of fact regarding
Mr. Gamble's and Mr. Wallace's negligence in serving the amended
notice regarding the sale of Tract C and concluded that both Mr.
Wallace and Mr. Gamble breached their fiduciary duties as
commissioners. The trial court therefore denied any award of
commissioners' fees to Mr. Wallace and Mr. Gamble.
On 18 December 1998, Mr. Goodson filed a motion to amend the
3 December order, seeking to: (1) set a specific amount of damages;(2) determine that the damages incurred were a result of the
negligence of Mr. Wallace and Mr. Gamble; and (3) order that Mr.
Wallace and Mr. Gamble pay such damages owed. The trial court
denied the motion to amend the order, and Mildred and Marion
Goodson, as well as Mr. Wallace now appeal to this Court.
_________________________________
The issues presented by this appeal are whether the trial
court erred in (1) making findings of fact and conclusions of law
regarding the actions of Mr. Wallace and Mr. Gamble as co-
commissioners; (2) finding the fair market value of Tract C to be
in the range of $180,000.00 to $250,000.00; (3) finding that the
Goodsons did not receive the amended notice of the sale of Tract C;
(4) refusing to set aside the commissioner's deed to Tract C; and
(5) denying the Goodsons' motion to amend the 3 December 1998
judgment. We address these issues in turn.
I. Third-Party Respondent Wallace's Appeal
[1]Mr. Wallace argues the trial court erred in making
findings of fact and conclusions of law regarding the co-
commissioners' actions. Mr. Wallace contends such findings were
irrelevant and unnecessary to the trial court's denial of the
motion to reverse the judicial sale. We disagree.
In his
pro se motion to set aside the commissioner's deed, Mr.
Goodson also asked the court to remove Mr. Wallace from his
position as commissioner and to grant "such other and further
relief" as the court deemed proper, in order to prevent Mr.
Wallace's "unjust enrichment." At the hearing on the motion to set
aside the commissioner's deed, the trial court considered testimonyfrom both sides concerning the amended notice and found that, in
failing to give such notice, Mr. Wallace had been negligent in his
duties as a commissioner. The trial court therefore concluded that
Mr. Wallace deserved no compensation for his work as a commissioner
in connection with Tract C.
N.C. Gen. Stat. § 1-339.11(a) states "[i]f the person holding
a sale is a commissioner specially appointed . . . the judge or
clerk of court having jurisdiction shall fix the amount of his
compensation and order the payment thereof out of the proceeds of
the sale." N.C. Gen. Stat. § 1-339.11(a) (1999). A commissioner
appointed by the court is entitled to such compensation as provided
by law and may appeal a decision by a trial court fixing such rate.
See Gravel Co. v. Taylor, 269 N.C. 617, 621, 153 S.E.2d 19, 22
(1967)
; Welch v. Kearns, 259 N.C. 367, 370-71, 130 S.E.2d 634, 636
(1963). It is clear that, as a commissioner, Mr. Wallace would
have normally been entitled to compensation for his work on the
sale of Tract C. Indeed, Mr. Wallace assigns as error the trial
court's conclusion that he is undeserving of compensation for his
efforts surrounding Tract C's sale. The trial court's findings
regarding Mr. Wallace's negligence are therefore not immaterial,
but properly support its decision to deny commissioner's fees to
Mr. Wallace.
Furthermore, it is the duty of the trial judge to make
findings of fact determinative of the issues raised by the
pleadings and the evidence.
See N.C. Gen. Stat. § 1A-1, Rule 52
(1999);
In re Whisnant, 71 N.C. App. 439, 441, 322 S.E.2d 434, 435(1984). In his pleadings and during the hearing on the motion, Mr.
Goodson made numerous allegations against Mr. Wallace and Mr.
Gamble concerning their negligence as co-commissioners and
requested appropriate relief, which the trial court granted by
denying commissioners' fees. Even if the findings of negligence
were irrelevant to the court's refusal to set aside the
commissioner's deed, irrelevant findings in a trial court's
decision do not warrant a reversal of the trial court.
See
Harrington v. Rice, 245 N.C. 640, 644, 97 S.E.2d 239, 242 (1957);
Black Horse Run Ppty. Owners Assoc. v. Kaleel, 88 N.C. App. 83, 86,
362 S.E.2d 619, 622 (1987),
cert. denied, 321 N.C. 742, 366 S.E.2d
856 (1988);
Lyerly v. Malpass, 82 N.C. App. 224, 231, 346 S.E.2d
254, 259 (1986),
disc. review denied, 318 N.C. 695, 351 S.E.2d 748
(1987) (all stating that where there are sufficient findings of
fact based on competent evidence, a judgment will not be disturbed
because of erroneous findings that do not affect the trial court's
conclusions). We therefore overrule this assignment of error.
[2]Mr. Wallace next contends the trial court's finding
regarding Tract C's value was based upon incompetent evidence and
should therefore be reversed. The trial court found that "[t]he
fair market value of Tract C during the applicable time periods .
. . was in the range of $180,000.00 to $250,000.00." "It is well
established that where the trial court sits without a jury, the
court's findings of fact are conclusive if supported by competent
evidence, even though other evidence might sustain contrary
findings."
Barnhardt v. City of Kannapolis
, 116 N.C. App. 215,224-25, 447 S.E.2d 471, 477,
disc. review denied,
338 N.C. 514, 452
S.E.2d 807 (1994).
Further, "[i]n a nonjury trial, in the absence
of words or conduct indicating otherwise, the presumption is that
the judge disregarded incompetent evidence in making his decision."
City of Statesville v. Bowles
, 278 N.C. 497, 502, 180 S.E.2d 111,
114-15 (1971).
In the instant case, co-owner Armadia Goodson Cobb testified
the fair market value of Tract C was "in the range of a hundred--
close to a hundred eighty or two hundred thousand dollars beyond
what . . . had been offered [by Pittman-Korbin]." Pittman-Korbin's
original offer for Tract C was $172,335.00. Ms. Cobb stated that
she based her opinion about the value of the property "on its
location . . . and the type of land that it was," noting further
that the land was "not far" from neighboring towns and cities and
"in an area that's been developed." No objection was made to Ms.
Cobb's testimony, nor did Mr. Wallace offer any evidence concerning
the value of Tract C.
"Unless it affirmatively appears that the owner does not know
the market value of his property, it is generally held that he is
competent to testify as to its value."
Highway Comm. v. Helderman,
285 N.C. 645, 652, 207 S.E.2d 720, 725 (1974). Mr. Wallace argues
that, because Ms. Cobb was unable to state with any certainty the
value of other property in the vicinity of Tract C, she did not
know the market value of Tract C. We disagree. Although the value
of land "similar in nature, location, and condition" to the
property in dispute is admissible as independent evidence of thatproperty's value,
see State v. Johnson, 282 N.C. 1, 21, 191 S.E.2d
641, 655 (1972), there is no requirement that an owner be familiar
with nearby land values in order to testify to the fair market
value of his own property. Rather, an owner "'is deemed to have
sufficient knowledge of the price paid [for his land], the rents or
other income received, and the possibilities of the land for use,
[and] to have a reasonably good idea of what [the land] is worth.'"
Highway Comm., 285 N.C. at 652, 207 S.E.2d at 725 (quoting 5
Nichols,
Law of Eminent Domain, § 18.4(2) (3rd ed. 1969)). As an
owner of Tract C, Ms. Cobb could therefore competently testify as
to its value.
Although the trial court found Tract C to be considerably less
valuable than Ms. Cobb's assertions, "an offer by the owner . . .
to sell his land for a lesser price than he now contends it is
worth, is competent to contradict his present contention [of its
value].
Highway Comm., 285 N.C. at 655, 207 S.E.2d at 727. It is
undisputed that respondents were willing, and indeed, mistakenly
believed they were selling Tract C to Pittman-Korbin for
$172,335.00. We determine there was competent evidence of Tract
C's value before the trial court to support its finding. We
therefore overrule this assignment of error.
[3]Mr. Wallace further argues there was insufficient evidence
that the Goodsons did not receive the amended notice, and that the
trial court erred in finding such. As previously stated, where
there is any competent evidence to support the trial court's
findings, such findings are conclusive and binding upon this Court,even though there is evidence contra to sustain other findings.
See Kirkhart v. Saieed, 98 N.C. App. 49, 54, 389 S.E.2d 837, 840
(1990);
Brooks v. Brooks, 12 N.C. App. 626, 628-27, 184 S.E.2d 417,
419 (1971). "The trial court is in the best position to weigh the
evidence, determine the credibility of witnesses and 'the weight to
be given their testimony.'"
Kirkhart, 98 N.C. App. at 54, 389
S.E.2d at 840 (quoting
Lyerly, 82 N.C. App. at 225-26, 346 S.E.2d
at 256).
Whether or not the Goodsons received proper notice of the sale
of Tract C was a central issue in direct conflict before the trial
court. Both Marion and Mildred Goodson testified they did not
receive the amended notice relating the reduced sale price for
Tract C. Marion Goodson further stated that, although he felt the
original bid submitted by Pittman-Korbin for $172,335.00 was too
low, he had decided against upsetting that particular bid.
According to Mr. Goodson, had he received the amended notice
relating the reduced sale price of $128,310.00, he would have
submitted an upset bid, as he had already done with the sale of
Tract B, another piece of the land partitioned by the court. The
trial court could properly infer from this testimony that the sale
of Tract C was of vital interest to Mr. Goodson, and that had he
received the amended notice, he would have promptly submitted an
upset bid. Upon consideration of Mr. Wallace's testimony that he
personally sent the amended notice to the Goodsons, the trial judge
remarked, "There's probably not a lawyer in this courthouse who's
practiced law as long as most of us have who hasn't certifiedmailing something and there was a page missing out of it. There's
no question about that." The trial court obviously determined
that, under the circumstances, it was more likely for Mr. Wallace
to have neglected to include the amended notice in one of the
mailings than for the Goodsons to have overlooked such notice. As
the question of notice was a factual issue to be resolved by the
trial court, and as there was competent evidence to support its
finding that notice was not given, we must affirm the trial court's
finding. We overrule this assignment of error.
II. The Goodsons' Appeal
[4]The Goodsons argue the trial court erred in refusing to
set aside the commissioner's deed. We disagree.
Because the Freemans purchased Tract C with no notice of any
dispute regarding the legitimacy of the sale, they are innocent
purchasers and as such, are protected in their purchase. A person
is an innocent purchaser for value and without notice when he
purchases without notice, actual or constructive, of any infirmity,
pays valuable consideration, and acts in good faith.
Morehead v.
Harris
, 262 N.C. 330, 338, 137 S.E.2d 174, 182 (1964). In
Morehead, our Supreme Court held that, when there has been a bona
fide purchase for valuable consideration, the deficiencies in the
conveyance must be expressly or by reference set out in the
muniments of record title, or brought to the notice of the
purchaser so as to put him on inquiry.
See id. at 340-41, 137
S.E.2d at 184. In short, an innocent purchaser takes title free ofequities of which he had no actual or constructive notice.
In the instant case, both John Freeman and Wade Freeman, Sr.,
testified they had no notice of any problems regarding the judicial
sale before they purchased Tract C. John Freeman stated: "[W]hen
I sold [Tract C] to my father, I had no idea [Mr. Goodson] was
going to petition anybody. In other words, I was under the
impression that I had bought a farm with a clear title with
commissioner's deed." "[I]t is well settled in North Carolina
that, in the absence of fraud or the knowledge of fraud, one who
purchases at a judicial sale, or who purchased from one who
purchased at such sale, is required only to look to the proceeding
to see if the court had jurisdiction of the parties and of the
subject matter of the proceeding, and that the judgment on its face
authorized the sale."
Cherry v. Woolard, 244 N.C. 603, 610, 94
S.E.2d 562, 566 (1956) (holding the purchaser at a judicial sale
acquired good title, despite contentions of defective service to
minor defendants).
It is undisputed that the Freemans are innocent purchasers
without notice. Moreover, there is no evidence that the Freemans
engaged in any sort of fraud or collusion. Thus, the sale should
be upheld as long as the trial court had proper jurisdiction over
the parties and the subject matter, and the judgment on its face
authorized the sale.
See id. There is no suggestion from any of
the parties that the trial court lacked jurisdiction, or that the
judgment did not authorize the sale.
Furthermore, the Goodsons neglected to join as necessaryparties to the action Wade Freeman, Jr., and Carol Freeman,
the
present owners of five lots on Tract C. "A 'necessary' party is
one whose presence is required for a complete determination of the
claim, and is one whose interest is such that no decree can be
rendered without affecting the party."
Begley v. Employment
Security Comm., 50 N.C. App. 432, 438, 274 S.E.2d 370, 375
(1981)(citation omitted). In order to declare the deed to Tract C
null and void, the trial court needed jurisdiction over all of the
current owners of the property,
see Brown v. Miller, 63 N.C. App.
694, 699, 306 S.E.2d 502, 505 (1983),
disc. review denied, 310 N.C.
476, 312 S.E.2d 882 (1984), which it did not have. Thus, because
the Freemans were innocent purchasers, and because the Goodsons
failed to join all of the necessary parties to the action, the
trial court correctly denied Mr. Goodson's petition to set aside
the deed. We overrule this assignment of error.
[5]The Goodsons also contend the trial court erred in denying
the motion to amend the 3 December 1998 judgment. The Goodsons
argue that, because the trial court made findings regarding Mr.
Wallace's and Mr. Gamble's negligence in their duties as co-
commissioners, it should have definitively ruled on the extent of
Mr. Wallace's and Mr. Gamble's liability and awarded appropriate
damages to the Goodsons based upon such negligence. We disagree.
As stated above, we determine that the trial court's findings
regarding Mr. Wallace's and Mr. Gamble's negligence support its
decision to deny commissioner's fees. Such a decision was
appropriate, given the trial court's finding and conclusion thatthe commissioners had failed to give appropriate notice to the
Goodsons. The extent of Mr. Wallace's and Mr. Gamble's relative
liability, however, was never litigated before the trial court, and
it therefore properly declined to rule upon such issues for which
it lacked competent evidence. We overrule this assignment of
error.
For the reasons set forth herein, the decision of the trial
court is hereby affirmed.
Affirmed.
Judges GREENE and BRYANT concur.
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