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LEWIS D. DOCKERY and JAMES L. GUNTER
v.
PAUL E. HOCUTT and wife, CORA J. HOCUTT, and LANE WHITAKER and
wife, DELOIS C. WHITAKER
Appeal pursuant to N.C.G.S. § 7A-30(2) from the
decision of a divided panel of the Court of Appeals, 153 N.C.
App. 744, 571 S.E.2d 81 (2002), affirming an order entered
30 August 2001 by Judge Donald W. Stephens in Superior Court,
Wake County. Heard in the Supreme Court 8 April 2003.
Hatch, Little & Bunn, LLP, by A. Bartlett White and
Tina L. Frazier, for plaintiff-appellant Lewis Dockery.
Douglass & Douglass, by Thomas G. Douglass, for
defendant-appellees.
PARKER, Justice.
Plaintiffs Lewis D. Dockery (plaintiff) and James L.
Gunter instituted this civil action claiming title to certain
lands by adverse possession. Plaintiff Gunter resolved his
dispute with defendants and is no longer a party to this
litigation. The determinative issues before this Court are
whether the Court of Appeals properly affirmed the trial court's
compulsory reference of the case to a referee and whether the Court of Appeals
properly affirmed the trial court's denial of plaintiff's request
for jury trial after an adverse determination by the referee.
For the reasons discussed herein, we modify and affirm the
decision of the Court of Appeals. Plaintiff owns a one-half interest in a home on Gumtree
Circle, located in the Idlewood Village Subdivision in the City
of Raleigh, Wake County, North Carolina. Defendants Hocutt and
Whitaker own adjacent lots on Savannah Drive, located in the
Kingswood Forest Subdivision in the City of Raleigh, Wake County,
North Carolina. The land in dispute was originally part of a
1.43-acre tract located to the rear of and between plaintiff's
parcel and defendants' parcels as shown on Exhibit A to
plaintiff's complaint.
(See footnote 1)
In 1995 the 1.43-acre tract was owned by
a trust; the trustee conveyed the tract to J.J. Allen and
Paulette F. Rogers in 1996. Thereafter, Allen and Rogers
conveyed a .67-acre tract to defendants. This new tract was
divided and combined with defendants' lots as shown on a survey
recorded 14 April 1997 in the Wake County Public Registry, which
is Exhibit B to plaintiff's complaint. This survey divided the
.67-acre tract into two parcels,.30 acre and .37 acre,
respectively, and created a new east boundary line dividing the
.67-acre tract from the remainder of the 1.43-acre tract.
Defendants Hocutts' deed was recorded 10 February 1998 in the
Wake County Public Registry; defendants Whitakers' deed was
recorded 8 February 1998 and re-recorded 12 February 1998 in the
Wake County Public Registry. Plaintiff's complaint alleges the
following:
6. Other than a strip of land 35 feet
wide and 100 feet long which Hocutt has used
as a garden, said strip being to the rear of
and adjacent to the 0.28 acre tract owned byHocutt, and other than a 35 foot wide by
127 foot long strip of land to the rear and
adjacent to the property of Plaintiff Gunter
which Gunter has used as a garden, Plaintiff
Dockery has had exclusive, complete, actual,
open, notorious, hostile and continuous
undisputed possession of the 0.37 acre and
0.30 acre tracts shown on Exhibit B.
7. Plaintiff Dockery's possession of
the 0.37 and 0.30 acre tracts under known and
visible lines (other than the Hocutt garden
and Gunter garden) has been actual, open,
hostile, continuous and exclusive in excess
of 20 years.
Plaintiff attached to his complaint as Exhibit C a copy of the
survey recorded in April 1997 adding lines demarcating the
Hocutt and Gunter garden plots. Plaintiff's ownership claim is
premised upon his clearing, caring for, and using the land in
question for a garden and storage for a disputed amount of time
between January 1978 and March 1998. In their counterclaim
defendants asserted ownership through record title to the land in
question pursuant to the deeds recorded in February 1998.
Defendants moved for summary judgment. The motion was
denied on 27 July 1999 on the basis that genuine issues of
material fact existed. On 20 August 1999 when the case came on
for trial, the trial court, upon reviewing the pleadings, entered
an order of compulsory reference pursuant to N.C.G.S. § 1A-1,
Rule 53. Plaintiff and defendants objected to the order of
reference.
After hearing the evidence, the referee filed his
report of referee in which he made findings of fact and concluded
as a matter of law among other things that [t]here was no
evidence of known and visible lines and boundaries of theproperty existing for 20 years to identify the extent of any
possession claimed; and [t]he plaintiff did not have actual,
open, hostile, exclusive and continuous possession of the
property for 20 years under known and visible lines and
boundaries. The referee denied plaintiff's claim, allowed
defendants' claim to quiet title, and vested title to the
property in defendants as set out in their respective deeds.
Plaintiff filed exceptions to the referee's findings and
conclusions, submitted issues, and demanded a jury trial on all
issues. Defendants moved that the trial court adopt and render
judgment on the referee's report.
The trial court entered an order confirming the
referee's findings and conclusions on 30 August 2001. In that
order the trial court recited that the court had reviewed the
evidence presented to the referee and the exceptions taken by
plaintiff. The trial court stated that [t]he Court, considering
the evidence in the light most favorable to the Plaintiff[],
could find no material facts that would support a claim for
adverse possession of the subject property. The evidence
presented is insufficient to raise controverted issues of fact
that could support Plaintiff['s] claims. The trial court
further concluded that plaintiff failed to offer any evidence
from which a jury could find: (1) the existence for 20 years of
known and visible lines and boundaries of the disputed property
to identify the extent of any possession claimed; and (2) that
Plaintiff['s] possession was actual, open, hostile, exclusive and
continuous for 20 years under known and visible lines andboundaries. The trial court denied plaintiff's motion for jury
trial, allowed defendants' motion for entry of judgment
consistent with the referee's report, adopted the referee's
findings and conclusions, and vested title to the property in
defendants pursuant to their respective deeds.
On appeal to the Court of Appeals, plaintiff contended
that the trial court erred in ordering a compulsory reference,
that the trial court erred in adopting the findings and
conclusions of the referee, and that the trial court erred in
denying plaintiff's demand for jury trial in that genuine issues
of fact existed which were properly for resolution by a jury.
The Court of Appeals held that any error by the trial court in
referring the matter to a referee was cured by Judge Stephens'
Order of Confirmation which indicates that he independently
evaluated the evidence presented by both sides and determined
that as a matter of law, plaintiff had failed to establish a
claim of title by adverse possession. Dockery v. Hocutt, 153
N.C. App. 744, 745-46, 571 S.E.2d 81, 82 (2002). The Court of
Appeals stated that the trial court, by independently reviewing
the evidence, determined that there were no issues of fact and
effectively entered summary judgment on the issue of adverse
possession. Id. at 746, 571 S.E.2d at 82. The majority
analyzed the trial court's action in terms of a motion pursuant
to N.C.G.S. § 1A-1, Rule 12(b)(6) where matters outside the
pleadings are considered and the motion is converted to a motion
for summary judgment under N.C.G.S. § 1A-1, Rule 56. Id. at
746-47, 571 S.E.2d at 83. Based on its review of the record onappeal, the Court of Appeals further upheld the trial court's
order that plaintiff has 'failed to offer any evidence from
which a jury could find[:] (1) the existence for 20 years of known
and visible lines and boundaries of the disputed property to
identify the extent of any possession claimed; and (2) that
Plaintiff['s] possession was actual, open, hostile, exclusive
and continuous for 20 years under known and visible lines and
boundaries.' Id. at 747, 571 S.E.2d at 83.
The dissenting judge in the Court of Appeals was of the
opinion that the pleadings did not require resolution of a
complicated boundary dispute or a personal view of the premises
and that, hence, a compulsory reference was not permitted by
N.C.G.S. § 1A-1, Rule 53(a)(2)(c). Id. at 748, 571 S.E.2d at 84
(Greene, J., dissenting). The dissenting judge also disagreed
that the trial court effectively entered summary judgment for
defendants, noting that on summary judgment defendant would have
had the burden to show that plaintiff was unable to present
substantial evidence; whereas, in the present case the trial
court placed the burden on plaintiff to produce evidence. Id. at
749, 571 S.E.2d at 84 (Greene, J., dissenting). The dissenting
judge also reasoned that even assuming the trial court's order
was tantamount to summary judgment, the order did not cure the
prejudicial error resulting from the improper reference for the
reason that on a motion pursuant to N.C.G.S. § 1A-1, Rule
12(b)(6), the trial court could not have considered the
transcript of the evidence before the referee and would have had
only the pleadings upon which to base its decision. Since thecomplaint sufficiently alleged a claim for adverse possession,
plaintiff would have been entitled to a jury trial. Id. (Greene,
J., dissenting). Finally, the dissenting judge opined that the
evidence raised genuine issues of material fact with respect to
each of the elements of adverse possession. Id. at 749-50, 571
S.E.2d at 84 (Greene, J., dissenting).
On appeal to this Court, plaintiff first argues that
the trial court erred by ordering a compulsory reference. We
disagree. Rule 53(a)(2) of the North Carolina Rules of Civil
Procedure provides that where the parties do not consent to a
reference, a trial court may order a reference on its own motion
[w]here the case involves a complicated question of boundary, or
requires a personal view of the premises. N.C.G.S. § 1A-1, Rule
53(a)(2)(c) (2001).
This Court has held that '[t]he ordering or refusal to
order a compulsory reference in an action which the court has
authority to refer is a matter within the sound discretion of the
court.' Long v. Honeycutt, 268 N.C. 33, 41, 149 S.E.2d 579, 585
(1966)
(See footnote 2)
(quoting Rudisill v. Hoyle, 254 N.C. 33, 46, 118 S.E.2d
145, 154 (1961)). When a decision is discretionary with the
trial court, the standard for appellate review is whether the
trial court abused its discretion. White v. White, 312 N.C. 770,
777, 324 S.E.2d 829, 833 (1985). A trial court may be reversedfor abuse of discretion only upon a showing that its actions are
manifestly unsupported by reason. Id. The pleadings in this
case, including the exhibits to plaintiff's complaint, reveal
that resolution of the issues would require the determination of
the boundaries of an irregularly shaped tract of land surrounded
by no fewer than twelve discrete lots. As in Sledge v. Miller,
249 N.C. 447, 106 S.E.2d 868 (1959), the location of the known
and visible lines and boundaries marking the land plaintiff
adversely possessed was the complicated question of boundary
required by Rule 53(a)(2)(c) that formed the basis for the
reference in this case. Id. at 450, 106 S.E.2d at 872.
Considering the type of evidence necessary to prove the elements
of adverse possession, we cannot say as a matter of law that
plaintiff's claim did not require a reference or that the trial
court could not reasonably conclude from a review of the
pleadings that resolution of the issues would involve a
complicated question of boundary or require a personal view of
the site. We, therefore, hold that the trial court had authority
to order and did not abuse its discretion in ordering the
reference.
Plaintiff's remaining three arguments relate to
plaintiff's contention that the Court of Appeals erred in holding
that the order of confirmation constituted summary judgment.
Plaintiff argues that this holding was error in that
(i) defendants' motion for summary judgment had previously been
denied, and one superior court judge cannot allow a summary
judgment previously denied by another on the same issues;(ii) the complaint was sufficient to state a claim for adverse
possession; and defendants, having the burden of proof as the
moving party, had not shown that plaintiff would be unable to
prove any element of his claim; and (iii) plaintiff had presented
evidence of each element of adverse possession sufficient to take
the case to the jury. We are not persuaded that these arguments
provide plaintiff with a basis for relief.
At the outset we note that defendants' summary judgment
motion; supporting affidavits, if any; and the trial court's
order thereon are not in the record on appeal. Thus, this Court
cannot review plaintiff's contention that the Court of Appeals
erred on the basis that one trial judge cannot allow a summary
judgment previously denied by another on the same issue. See
N.C. R. App. P. 9(a)(1)(j).
The dissenting judge properly noted that when the trial
court entered the order of confirmation, the court had before it
the transcript of the testimony at the hearing before the referee
and the exhibits, heard arguments of counsel, and made an
independent determination from the evidence that plaintiff had
not satisfied his burden of showing evidence of all the elements
of adverse possession. Dockery, 153 N.C. App. at 749, 571 S.E.2d
at 84. On a motion for summary judgment, defendants as movants
would have had the burden to show that plaintiff could not adduce
evidence of an essential element of his claim and that no genuine
issue of material fact existed, thereby entitling defendants to
judgment as a matter of law. See Roumillat v. Simplistic
Enters., Inc., 331 N.C. 57, 62-63, 414 S.E.2d 339, 341-42 (1992). Rule 53(b)(2)(c) provides that [i]f there is a trial
by jury upon any issue referred, the trial shall be only upon the
evidence taken before the referee. N.C.G.S. § 1A-1, Rule
53(b)(2)(c). Thus, when the trial court reviews a referee's
order, the claimant has been put to the full burden of proof; and
the trial court has before it all the testimony, including cross-
examination, not merely a forecast of the evidence. Given the
limitation imposed by Rule 53(b)(2)(c), the trial court in ruling
on a party's demand for jury trial following a compulsory
reference is in a position analogous to that of a trial judge in
ruling on a motion for directed verdict pursuant to Rule 50 of
the North Carolina Rules of Civil Procedure at the close of all
evidence. This Court has stated:
The question raised by [a motion for directed
verdict] is whether the evidence is
sufficient to go to the jury. In passing
upon such motion the court must consider the
evidence in the light most favorable to the
non-movant. That is, the evidence in favor
of the non-movant must be deemed true, all
conflicts in the evidence must be resolved in
his favor and he is entitled to the benefit
of every inference reasonably to be drawn in
his favor. Summey v. Cauthen, [283 N.C.
640, 647, 197 S.E.2d 549, 554 (1973)]. It is
only when the evidence is insufficient to
support a verdict in the non-movant's favor
that the motion should be granted.
Rappaport v. Days Inn of America, Inc., 296 N.C. 382, 384, 250
S.E.2d 245, 247 (1979) (citations omitted), overruled in part on
other grounds by Nelson v. Freeland, 349 N.C. 615, 507 S.E.2d 882
(1998). Under the North Carolina Constitution, a party has a
right to a jury trial in all controversies at law respecting
property. N.C. Const. art. I, § 25. This constitutional rightto a jury trial preserved in Rule 53(b)(2) and properly asserted
procedurally by plaintiff in this case is not absolute, however.
N.C. Nat'l Bank v. Burnette, 297 N.C. 524, 537, 256 S.E.2d 388,
396 (1979). The right is premised upon a preliminary
determination by the trial judge that there indeed exist genuine
issues of fact and credibility which require submission to the
jury. Id. Moreover, this Court has recognized in certain cases
credibility is manifest as a matter of law but that no general
rule can be stated to determine whether credibility is manifest
in a particular case. Id. at 536-37, 256 S.E.2d at 395.
Although the opinion predates the current Rules of
Civil Procedure, in Nantahala Power & Light Co. v. Horton, 249
N.C. 300, 106 S.E.2d 461 (1959), this Court applied the Rule 50
standard in reviewing a compulsory reference. The Court held
that the respondents were entitled to a jury trial only if the
evidence taken before the referee supported more than nominal
damages in respect to mineral and water-power rights, thereby
requiring the respondents as the claimants to have produced
evidence to substantiate submission of the contended issue of
fact. Id. at 306, 106 S.E.2d at 465. This standard would also
be applicable if the case were tried without a reference. See
State v. Brooks, 275 N.C. 175, 188, 166 S.E.2d 70, 77 (1969).
Accordingly, we hold that following a compulsory reference, the
test to determine a demand for jury trial is the same as that for
a motion for directed verdict pursuant to Rule 50 of the North
Carolina Rules of Civil Procedure. We now address plaintiff's contention that the Court of
Appeals erred in affirming the order of confirmation for the
reason that plaintiff had presented sufficient evidence of each
element of adverse possession to take the case to the jury. The
law is that
[o]ne may assert title to land embraced
within the bounds of another's deed by
showing adverse possession of the portion
claimed for twenty years under known and
visible lines and boundaries (G.S. 1-40), but
his claim is limited to the area actually
possessed, and the burden is upon the
claimant to establish his title to the land
in that manner.
Wallin v. Rice, 232 N.C. 371, 373, 61 S.E.2d 82, 83 (1950); see
also Carswell v. Town of Morganton, 236 N.C. 375, 377-78, 72
S.E.2d 748, 749 (1952). The adverse nature of the possession was
defined thusly in Locklear v. Savage:
It consists in actual possession, with an
intent to hold solely for the possessor to
the exclusion of others, and is denoted by
the exercise of acts of dominion over the
land, in making the ordinary use and taking
the ordinary profits of which it is
susceptible in its present state, such acts
to be so repeated as to show that they are
done in the character of owner, in opposition
to right or claim of any other person, and
not merely as an occasional trespasser. It
must be decided and notorious as the nature
of the land will permit, affording
unequivocal indication to all persons that he
is exercising thereon the dominion of owner.
159 N.C. 236, 237-38, 74 S.E. 347, 348 (1912). Hence, the
possession must be open, notorious, and adverse. Wilson Cty.
Bd. of Educ. v. Lamm, 276 N.C. 487, 490, 173 S.E.2d 281, 283
(1970). Additionally, the claimant may claim title by adverse
possession only when he has possessed the property under knownand visible lines and boundaries . . . for 20 years. N.C.G.S. §
1-40 (2001).
Measured by this burden of proof, plaintiff's evidence,
when considered in the light most favorable to plaintiff with
every inference drawn in plaintiff's favor, is not sufficient to
take the case to the jury. A review of the record reveals that
it is devoid of evidence of known and visible boundaries as to
six of the twelve lots surrounding the land. Five lots were at
some point marked by fences, and one lot was at some point marked
by a tree line; but even as to these lots the record is devoid of
evidence that these boundaries were known and visible for the
entire, required twenty-year period. Moreover, in his pleadings
plaintiff alleges that the property to which plaintiff now claims
title by adverse possession was originally part of a 1.43-acre
tract shown on Exhibit A to the complaint. The east boundary of
the property to which plaintiff now claims title was not
established until the 0.67 acres was conveyed to defendants in
1998 as shown on Exhibit B to the complaint. According to
Exhibit A the east boundary of the 1.43-acre tract was an
undeterminable number of feet from the east boundary shown on the
1997 survey, Exhibit B. Thus, from the evidence of record, what
east boundary plaintiff claimed prior to 1997 is left to pure
speculation. Plaintiff must adduce evidence demonstrating known
and visible lines and boundaries on the ground. See Scott v.
Lewis, 246 N.C. 298, 302, 98 S.E.2d 294, 297-98 (1957).
Plaintiff must also demonstrate the existence of these boundaries
for the requisite twenty-year period. Id.; N.C.G.S. § 1-40. Inthe record before this Court, nothing identifies the boundaries
as they existed in January 1978, the date, according to his
testimony, that plaintiff's adverse possession of the property
commenced. Plaintiff introduced into evidence a survey prepared
in 1997 to substantiate his claim. However, this map does not
suffice to establish known and visible boundaries for twenty
years. See Brooks, 275 N.C. at 181, 166 S.E.2d at 73. The
location of these boundaries is critical inasmuch as plaintiff
can claim title only to that land he has actually possessed. Id.
at 187, 166 S.E.2d at 77. Plaintiff having failed to satisfy
this element of adverse possession, his claim to title to the
property also fails.
The Court of Appeals additionally concluded as did the
trial court that plaintiff's evidence was not sufficient to show
open, notorious, exclusive, and hostile possession. Having
concluded that plaintiff's claim fails for the above-stated
reason, we decline to address this additional issue.
Finally, we note that the trial court adopted all
findings and conclusions of the referee. On review of a
compulsory reference, this action by the trial court was error.
Under Rule 53(g)(2), the trial court after hearing may adopt,
modify or reject the [referee's] report in whole or in part,
render judgment, or may remand the proceedings to the referee
with instructions. N.C.G.S. § 1A-1, Rule 53(g)(2). Rule 53
does not differentiate between reference by consent and
compulsory reference in authorizing permissible action by the
trial court after a reference. In applying Rule 53 as codifiedin the statute, we must construe the provisions in pari materia
and give effect as nearly as possible to every provision. See
Brown v. Flowe, 349 N.C. 520, 523-24, 507 S.E.2d 894, 896 (1998).
Consistent with this canon of construction and with a party's
right to jury trial following a compulsory reference, we hold
that in the context of a compulsory reference the trial court
cannot adopt in full a referee's report containing findings of
fact requiring assessment of witnesses' credibility. The trial
court must, however, evaluate the evidence to determine if, taken
in the light most favorable to the party demanding jury trial,
the evidence is sufficient to support that party's claim. If the
evidence is insufficient as a matter of law to support the
party's claim, the trial court may modify the report by striking
the offending findings of fact and making its own conclusions,
may adopt the report in part exclusive of those findings of fact
and make its own conclusions, or may reject the report and then
enter judgment.
In this case the trial court's error was not
prejudicial, however, in that the trial court also reviewed the
evidence and concluded that taken in the light most favorable to
plaintiff, the evidence presented was insufficient to raise
controverted issues of fact that would support plaintiff's claim.
In particular, plaintiff failed to offer any evidence from which
a jury could find the existence for twenty years of known and
visible lines and boundaries of the disputed property to identify
the extent of any possession claimed. Adoption by the trial
court of the findings and conclusions of the referee was,therefore, surplusage. See Britt v. Allen, 291 N.C. 630, 635,
231 S.E.2d 607, 612 (1977) (holding that a statement in the order
that the trial court had committed unspecified errors of law was
surplusage and did not effect the trial court's discretionary
ruling).
For the reasons stated herein, the opinion of the Court
of Appeals is affirmed as modified.
MODIFIED AND AFFIRMED.
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