DEPARTMENT OF TRANSPORTATION,
Plaintiff,
v.
JOE S. BYERLY and wife, BETSY BYERLY,
Defendants.
Appeal by defendants from order entered 17 May 2001 by Judge
Catherine C. Eagles, Superior Court, Guilford County. Heard in the
Court of Appeals 8 October 2002.
Brooks, Pierce, McLendon, Humphrey and Leonard, L.L.P., by
George W. House and Brian J. McMillan for defendants-
appellants.
Attorney General Roy Cooper, by Assistant Attorney General
David R. Minges and Hilda Burnett-Baker for plaintiff-
appellee.
WYNN, Judge.
In this appeal from a condemnation order, defendants present
two issues: (I) Did the trial court err by concluding that
defendants failed to establish a claim of adverse possession to a
tract adjoining their condemned property?; and (II) Did the trial
court err by failing to classify the going concern value and/or
goodwill of defendants' business as property taken or damaged by
the Department of Transportation? We hold that the trial court's
mixed findings of fact and conclusion of law fail to provide an
adequate basis for the review of whether there was sufficient
evidence to establish a claim of adverse possession. Accordingly,
we remand this case for adequate findings of fact and conclusions
of law in which to assess defendants' adverse possession claim;
and, we dismiss defendants' second issue as interlocutory. The underlying facts of this matter tend to show that in 1998,
the North Carolina Department of Transportation (DOT) commenced
condemnation proceedings against defendants' property and building
for construction of the Greensboro Urban Loop. DOT estimated just
compensation as $1,817,850, whereas defendants estimated the amount
to be more than $5,000,000. Defendants contend the property was
uniquely well-suited for their family antique business and that
there were not any other suitable locations for relocation.
Therefore, defendants argued lost profits and the damage to the
going concern value and/or goodwill of the business should be
included in the just compensation figure. The trial court rejected
their argument.
Defendants also claimed ownership of an adjoining tract of
land condemned by DOT. In 1958, defendants' predecessors in
interest relocated their antique business to land near I-85. In
1975, defendants began using an adjacent 0.4 acre tract for
additional parking and continued this use until the property was
condemned in 1999. In addition to defendants' gravel parking lot,
a billboard was located on the land which was used by another
entity for the entire period the defendants used the land for a
parking lot. During the condemnation proceedings, defendants
claimed they owned the adjacent tract by adverse possession.
However, the trial court found that defendants use of the 04 acre
tract had been neither exclusive nor hostile and, therefore,
rejected defendants' claim of title by adverse possession.
Defendants appeal. Initially, we address, sua sponte, the interlocutory nature of
defendants' North Carolina constitutional argument that the state
is required to compensate them for damage to their business.
Pursuant to N.C. Gen. Stat. § 136-108, upon motion, the trial
court in a condemnation proceeding is to hear and determine any
and all issues raised by the pleadings other than the issue of
damages . . ., with the damages issue to be determined later in a
jury trial. Because G.S. 136-108 hearings do not finally resolve
all issues, an appeal from a trial court's order rendered in such
hearings is interlocutory.
N.C. Gen. Stat. § 136-119 provides that either party shall
have a right to appeal to the Supreme Court for errors of law
committed in any proceedings provided for in this Article in the
same manner as in any other civil actions. Defendants contend
this Court should grant an interlocutory appeal because they have
a substantial right in avoiding the possibility of two trials on
the issue of just compensation, which would be the result if the
Court dismisses this appeal and they are forced to appeal the
business damages issue after final resolution of just compensation
in the trial court. We disagree.
Ordinarily the possibility of undergoing a second trial
affects a substantial right only when the same issues are present
in both trials, creating the possibility that a party will be
prejudiced by different juries in separate trials rendering
inconsistent verdicts on the same factual issue. Turner v.
Norfolk Southern Corp., 137 N.C. App. 138, 142, 526 S.E.2d 666(2000). Defendants are not faced with this situation.
In this case, the trial court found defendants were not
entitled to recover for business damages under the law as
interpreted by the Supreme Court of North Carolina. Defendants'
argument on appeal is aimed at persuading this Court to change the
law such that business damages would be recoverable. Only if
defendants are successful in their appeal would they be able to
recover business damages.
Defendants are not faced with the possibility of inconsistent
verdicts. In this case, one jury will hear evidence to determine
just compensation in accordance with the law as it now stands.
After final judgment is rendered, if defendants are successful in
their appeal, a jury will hear completely different evidence
regarding business damages and will determine just compensation
based upon that evidence only. Accordingly, we find defendants'
arguments regarding the inclusion of business damages in a just
compensation award is interlocutory.
Next, we address defendants' concerns regarding the trial
court's finding that they do not own an adjoining tract of land via
adverse possession. Initially we note defendants' claim of
ownership of the 0.4 acre triangular tract via adverse possession
may be addressed in a N.C. Gen. Stat. § 136-108 condemnation
hearing.
(See footnote 1)
See Department of Transportation v. Wolfe, 116 N.C. App.655, 449 S.E.2d 11, 12 (1994). In hearings pursuant to N.C. Gen.
Stat. § 136-108, the trial court, after resolving any motions and
preliminary matters, conducts a bench trial on the disputed issues
except for damages. See Taylor v. North Carolina Department of
Transportation, 86 N.C. App. 299, 302, 357 S.E.2d 439, 440 (1987)
(parties conceded the trial court properly conducted a non-jury
136-108 hearing); Ramsey v. Department of Transportation and
Highway Safety, 67 N.C. App. 716, 313 S.E.2d 909 (1984) (discussing
why the trial judge, sitting as a jury, properly denied defendant's
motion to dismiss at the close of all evidence). Accordingly, the
trial judge must make adequate findings of fact which support the
conclusions of law. See N.C. Gen. Stat. § 1A-1, Rule
52(a)(1)(2001).
In this case, the trial court's order contained only one mixed
finding of fact and conclusion of law regarding defendants' adverse
possession claim:
That Joe Byerly's parents began using part of
the .401 acre triangular tract between Wiley
Davis Road, the right-of-way line of
Interstate 85, and the Byerly property in 1975
for additional parking for their business,
Byerly Antiques. Around 1980 Joe Byerly began
landscaping efforts in part of the tract and
placed gravel in the parking area. For almost
all of the time since at least 1980, there has
been a large billboard on the property facing
I-85. The billboard is not owned by the
Byerlys and has been maintained and used by
others without permission from the Byerlys.
The Defendants have failed to establish
adverse possession to the disputed .401acreage area shown on the Court plat. The
Byerlys have not shown exclusive and hostile
possession of a tract with known and visible
boundaries for the necessary time period and
do not own the .401 acre tract by adverse
possession.
N.C. Gen. Stat. § 1A-1, Rule 52(a)(1) (2001) provides in all
actions tried upon the facts without a jury or with an advisory
jury, the court shall find the facts specially and state separately
its conclusions of law thereon and direct the entry of the
appropriate judgment. On appeal, this Court's task in reviewing
the decision in a nonjury trial is to determine whether there was
competent evidence to support the trial court's findings of fact
and whether its conclusions of law were proper in light of such
facts. Pineda-Lopez v. North Carolina Growers Association, Inc.,
_____ N.C. App. _____, _____, 566 S.E.2d 162, 164 (2002).
In this case, the trial court issued one mixed finding of fact
and conclusion of law regarding defendant's adverse possession
claim, which not only fails to comply with Rule 52(a)(1), but also
forms an inadequate basis for this Court to conduct a review and
assess appellant's contentions.
(See footnote 2)
Accordingly, we remand this case
to the trial court for additional and adequate findings of fact and
conclusions of law, compliant with Rule 52(a)(1).
Remanded in part; dismissed in part. Judge McGEE concurs.
Judge GREENE dissents.
GREENE, Judge, dissenting in part.
While I concur in the majority opinion as to the issue of
defendants' business damages, I disagree that the trial court's
mixed finding of fact and conclusion of law . . . forms an
inadequate basis for this Court to conduct a review and assess
appellants' contentions.
A trial court's duty pursuant to N.C. Gen. Stat. § 1A-1, Rule
52 to find facts and state its conclusions separately merely
[serves] to provide a basis for appellate review. Winston-Salem
Wrecker Ass'n v. Barker, 148 N.C. App. 114, 119, 557 S.E.2d 614,
618 (2001) (citing Mashburn v. First Investors Corp., 111 N.C. App.
398, 432 S.E.2d 869 (1993)). The appellate review this Court must
be able to conduct consists of a determination of whether (1) the
trial court's findings of fact are supported by competent evidence
and (2) the trial court's conclusions of law are supported by its
findings of fact. Creech v. Ranmar Props., 146 N.C. App. 97, 100,
551 S.E.2d 224, 227 (2001), cert. denied, 356 N.C. 160, 568 S.E.2d
191 (2002).
In this case, the trial court found defendants had used part
of the 0.4 acre tract they claimed by adverse possession as a
parking lot. The trial court further found that since at least
1980, there ha[d] been a large billboard on the property facingI-85. The billboard [was] not owned by [defendants] and ha[d] been
maintained and used by others without permission from
[defendants]. Based on these findings, the trial court concluded
defendants had failed to show exclusive and hostile possession of
the disputed property and therefore could not establish adverse
possession to any portion of the 0.4 acre tract.
Because the trial court's findings and conclusion, although
commingled, are clear, they do not foreclose meaningful judicial
review and should therefore be considered by this Court. See
Barker, 148 N.C. App. at 119, 557 S.E.2d at 618. Because, however,
the trial court's conclusion is not supported by its findings, I
would reverse and remand the issue of adverse possession. The
billboard, the existence of which was determinative to the trial
court in reaching its conclusion, occupied only a portion of the
tract claimed by defendants, leaving the trial court to consider
whether defendants could assert a right by adverse possession to
the remaining portion of the tract. As the trial court failed to
do so, this case must be remanded for a determination of whether
defendants have a right by adverse possession to the remaining
portion of the tract.
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