DEPARTMENT OF TRANSPORTATION
v.
JOE C. ROWE and wife, SHARON B. ROWE; HOWARD L. PRUITT, JR., and
wife, GEORGIA PRUITT; ROBERT W. ADAMS, Trustee; ALINE D. BOWMAN;
FRANCES BOWMAN BOLLINGER; LOIS BOWMAN MOOSE; DOROTHY BOWMAN
ABERNETHY and husband, KENNETH H. ABERNETHY; MARTHA BOWMAN
CAUDILL and husband, JACK CAUDILL; APPALACHIAN OUTDOOR
ADVERTISING CO., INC. (formerly Appalachian Poster Advertising
Company, Inc.), Lessee; and FLORENCE BOWMAN BOLICK
On discretionary review pursuant to N.C.G.S. § 7A-31 of a
unanimous decision of the Court of Appeals, 131 N.C. App. 206,
505 S.E.2d 911 (1998), holding that defendants Rowe and Pruitt's
appeal of preliminary orders entered by Baker, J., on 8 May 1997
and 16 May 1997 in Superior Court, Catawba County, following a
hearing pursuant to N.C.G.S. § 136-108, was not timely filed;
finding error in a judgment entered 17 June 1997 by Hyatt, J., in
Superior Court, Catawba County; and ordering a new trial. Heard
in the Supreme Court 13 September 1999.
Michael F. Easley, Attorney General, by J. Bruce McKinney,
Assistant Attorney General, for plaintiff-appellee.
Lewis & Daggett, by Michael Lewis; and Bell, Davis & Pitt,
P.A., by Stephen M. Russell, for defendant-appellants Joe
and Sharon Rowe and Howard and Georgia Pruitt.
PARKER, Justice.
The issue in this case is whether defendants Joe C. Rowe,
Sharon B. Rowe, Howard L. Pruitt, and Georgia M. Pruitt
(defendants)
(See footnote 1)
were required to immediately appeal the trialcourt's orders from a condemnation hearing unifying their four
remaining tracts of land. We hold that the interlocutory orders
did not affect a substantial right of defendants and that
defendants were not required to immediately appeal the trial
court's orders.
Defendants owned 18.123 acres of land located in Catawba
County, North Carolina. On 26 June 1995 plaintiff North Carolina
Department of Transportation (DOT) filed a complaint and
declaration of taking in Superior Court, Catawba County,
condemning 11.411 acres of defendants' land for a highway project
and leaving them with 6.712 acres. DOT concluded that the
resulting benefits to defendants' property outweighed any loss
suffered by the taking. Therefore, DOT did not make a deposit of
estimated compensation for the taking.
On 17 May 1996 defendants filed an answer contending that
the special and general benefits provision of the condemnation
statute, N.C.G.S. § 136-112(1) (1993), denied them equal
protection in violation of the North Carolina and United States
Constitutions. Defendants also challenged DOT's claim that all
of defendants' remaining tracts of land should be considered in
comparing the benefits of the taking to defendants' resulting
loss.
A pretrial hearing was conducted pursuant to N.C.G.S. §
136-108 to settle issues arising from the pleadings other than
the amount of damages. The evidence showed that, after the
taking, defendants were left with four separate tracts of land
identified as tracts A, B, C, and D. The right-of-way taken byDOT ran between tracts A and B, with tract A lying to the
southeast and tract B lying to the northwest. Street rights-of-
way deeded to the City of Hickory divided tract B from tract C
and tract C from tract D. Neither of these rights-of-way was an
existing street at the time of the taking.
On 8 May 1997 the trial court filed an order concluding that
the four remaining tracts of land formed a physically unified
parcel affected by the taking. On 16 May 1997 the trial court
entered a second order denying defendants' constitutional
challenge to N.C.G.S. § 136-112(1). Following a jury trial on
the issue of just compensation, the trial court entered a final
judgment on 17 June 1997 decreeing that defendants were not
entitled to any compensation for the 11.411 acres of land taken
by the DOT.
On appeal the Court of Appeals reversed the trial court and
awarded a new trial based on the trial court's erroneous
exclusion of impeachment evidence. However, the Court of Appeals
also concluded that the trial court's rulings on the
constitutionality of the special and general benefits provision
of the condemnation statute and the unity of the tracts were
interlocutory orders that prejudiced a substantial right of
defendants. The Court of Appeals held that N.C. State Highway
Comm'n v. Nuckles, 271 N.C. 1, 14, 155 S.E.2d 772, 784 (1967),
required defendants to immediately appeal those preliminary
orders before proceeding to the damages trial. Thus, the rulings
were not timely appealed; and the Court of Appeals refused to
consider the rulings on their merits. For the reasons which
follow, we reverse the decision of the Court of Appeals. A ruling is interlocutory if it does not determine the
issues but directs some further proceeding preliminary to final
decree. Greene v. Charlotte Chem. Lab., Inc., 254 N.C. 680,
693, 120 S.E.2d 82, 91 (1961). In this case, the trial court's
orders were clearly interlocutory. The trial court did not
completely resolve the entire case. Instead, the court, pursuant
to N.C.G.S. § 136-108, determined all relevant issues other than
damages in anticipation of a jury trial on the issue of just
compensation. Under Article 9, Chapter 136 of the General
Statutes, either party to a condemnation action shall have a
right of appeal in the same manner as in any other civil
actions. N.C.G.S. § 136-119 (1993).
In general, a party may not seek immediate appeal of an
interlocutory order. See Veazey v. City of Durham, 231 N.C. 357,
362, 57 S.E.2d 377, 381 (1950). A party may appeal an
interlocutory order under two circumstances. First, the trial
court may certify that there is no just reason to delay the
appeal after it enters a final judgment as to fewer than all of
the claims or parties in an action. N.C.G.S. § 1A-1, Rule 54(b)
(1990). Second, a party may appeal an interlocutory order that
affects some substantial right claimed by the appellant and will
work an injury to him if not corrected before an appeal from the
final judgment. Veazey, 231 N.C. at 362, 57 S.E.2d at 381; seealso N.C.G.S. § 1-277 (1996); N.C.G.S. § 7A-27 (1995); Tridyn
Indus. Inc. v. American Mut. Ins. Co., 296 N.C. 486, 251 S.E.2d
443 (1979).
Defendants argue that the trial court's unification of
the four remaining tracts did not affect a substantial right of
defendants and that defendants were not required to immediately
appeal that interlocutory order. We agree.
Whether an interlocutory ruling affects a substantial
right requires consideration of the particular facts of that
case and the procedural context in which the order from which
appeal is sought was entered. Waters v. Qualified Personnel,
Inc., 294 N.C. 200, 208, 240 S.E.2d 338, 343 (1978). This Court
has previously determined those issues that affect a substantial
right in the context of a condemnation proceeding. See Nuckles,
271 N.C. at 14, 155 S.E.2d at 784.
Parties to a condemnation proceeding must resolve all
issues other than damages at a hearing pursuant to N.C.G.S. §
136-108. As now written N.C.G.S. § 136-108 provides:
After the filing of the plat, the judge, upon
motion and 10 days' notice by either the
Department of Transportation or the owner,
shall, either in or out of term, hear and
determine any and all issues raised by the
pleadings other than the issue of damages,
including, but not limited to, if
controverted, questions of necessary and
proper parties, title to the land, interest
taken, and area taken.
N.C.G.S. § 136-108 (1993). At the condemnation hearing in
Nuckles, the parties contested the area of land being taken by
the State Highway Commission (Commission) based on the
Commission's assertion that it had previously acquired a right-of-way over a portion of defendants' land. See Nuckles, 271 N.C.
at 6, 155 S.E.2d at 778. This Court explained that the purpose
of the N.C.G.S. § 136-108 condemnation hearing is to eliminate
from the jury trial any question as to what land the State
Highway Commission is condemning and any question as to its
title. Id. at 14, 155 S.E.2d at 784. The Court recognized that
orders from a condemnation hearing concerning title and area
taken are vital preliminary issues that must be immediately
appealed pursuant to N.C.G.S. § 1-277, which permits
interlocutory appeals of determinations affecting substantial
rights. See id.
In contrast, defendants here are the undisputed owners
of the land DOT is seeking to condemn. Defendants contest only
the unification of the four remaining tracts, not what parcel of
land is being taken or to whom that land belongs. Thus, we hold
that the trial court's interlocutory order does not affect any
substantial right of these defendants. To the extent that
Nuckles has been expanded to other issues arising from
condemnation hearings, we now limit that holding to questions of
title and area taken.
Even assuming that the unification order affected some
substantial right, defendants were not required to immediately
appeal the trial court's determination. The appeals process is
designed to eliminate the unnecessary delay and expense of
repeated fragmentary appeals, and to present the whole case for
determination in a single appeal from the final judgment. City
of Raleigh v. Edwards, 234 N.C. 528, 529, 67 S.E.2d 669, 671(1951). As a result, interlocutory appeals are discouraged
except in limited circumstances. See N.C.G.S. §§ 1-277, 7A-27.
The language of N.C.G.S. § 1-277 is permissive not mandatory.
Thus, where a party is entitled to an interlocutory appeal based
on a substantial right, that party may appeal but is not required
to do so. To the extent language in Charles Vernon Floyd, Jr. &
Sons, Inc. v. Cape Fear Farm Credit, 350 N.C. 47, 51, 510 S.E.2d
156, 159 (1999), suggests otherwise, it is hereby disavowed.
Although the parties to a condemnation hearing must
resolve all issues other than damages at the N.C.G.S. § 136-108
hearing, that statute does not require the parties to appeal
those issues before proceeding to the damages trial. In N.C.
State Highway Comm'n v. Nuckles, this Court required an
interlocutory appeal of ownership issues pursuant to N.C.G.S. §
1-277, not N.C.G.S. § 136-108. 271 N.C. at 14, 155 S.E.2d at
784. The Court held that an immediate appeal following a
condemnation hearing was mandatory based on the futility of
proceeding with a damages trial when questions linger about what
land is being taken and to whom that land belongs. See id.
In this case defendants' appeal was unrelated to title
or area taken. Defendants did not waive their right to appeal
after the final judgment by foregoing an interlocutory appeal.
In a condemnation proceeding, an interlocutory appeal is
permissive, not mandatory, except in the limited circumstances
that existed in Nuckles. Therefore, we hold that defendants were
not required to immediately appeal the trial court's order
unifying the four remaining tracts. Further, to the extent thatIngle v. Allen, 71 N.C. App. 20, 23, 321 S.E.2d 588, 592 (1984),
suggests that Nuckles was overruled by the enactment of Rule 54
of the North Carolina Rules of Civil Procedure, Ingle and its
progeny are hereby overruled.
For the reasons stated herein, the decision of the
Court of Appeals is reversed and remanded to that court for
determination of the issues on the merits.
REVERSED AND REMANDED.
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