Ward v. WardÂ
252 N.C. App. 253
N.C. Ct. App.2017Background
- Alonza and Laura Ward bought a house as tenants by the entirety in 1973; they separated in 2000 and divorced in 2006, becoming tenants in common.
- After separation Laura lived in the house, paid maintenance and property taxes, and her attorneys sent three proposed separation agreements (2001, 2002, 2005) asking that Alonza convey his interest; Alonza never signed or responded.
- Laura sought unequal equitable distribution in divorce (arguing she bore maintenance costs and Alonza abandoned the marriage); her equitable distribution claim was dismissed for failure to comply with court deadlines and the dismissal was affirmed on appeal.
- In 2015 Alonza and his new wife Marie petitioned for partition by sale; Laura counterclaimed, asserting an implied-in-fact contract (or estoppel) that waived Alonza’s right to partition and sought offsets for expenses.
- The clerk ordered sale and equal division; on de novo superior-court hearing the trial court likewise ordered partition by sale, concluded no implied-in-fact contract or waiver of partition existed, and awarded Laura reimbursement of one-half of maintenance costs and property taxes since the divorce.
Issues
| Issue | Plaintiff's Argument (Laura) | Defendant's Argument (Alonza) | Held |
|---|---|---|---|
| Whether an implied-in-fact contract or waiver arose that transferred Alonza's interest or waived his right to partition | The parties' conduct over 15 years (Laura's performance maintaining the house, attorney letters, statements by Alonza) show assent and a meeting of minds creating an implied contract | No written transfer, no assent: Alonza never signed or accepted the proposed agreements and testified no agreement on disposition was reached | Court held no implied-in-fact contract or waiver existed; competent evidence supports trial court findings that there was no meeting of the minds and no conduct sufficient to form a contract |
| Whether equitable principles (unclean hands or other equitable defenses) preclude partition by sale | Alonza had unclean hands (adultery and cohabitation with Marie), so equity should restrict his ability to obtain partition | Alleged misconduct is irrelevant to the equitable partition analysis; partition is allowed unless barred by agreement or impossibility to honor an agreement | Court rejected the unclean-hands argument; partition by sale was proper though the court adjusted equities by awarding Laura reimbursement for half of taxes/maintenance |
| Whether Laura is entitled to offset/reimbursement for taxes and maintenance she paid after divorce | Laura sought offsets for expenses she paid keeping the property | Alonza did not dispute liability for equitable adjustment where appropriate | Court awarded Laura reimbursement of one-half of maintenance costs and property taxes since 6 July 2006 as an equitable adjustment |
Key Cases Cited
- Cartin v. Harrison, 151 N.C. App. 697 (standard of review for non-jury trial findings)
- Forehand v. Forehand, 238 N.C. App. 270 (competent evidence definition)
- Hensgen v. Hensgen, 53 N.C. App. 331 (appellate deference to trial court findings)
- Kayann Props., Inc. v. Cox, 268 N.C. 14 (partition is an equitable remedy; right to partition may be waived)
- Dillingham v. Dillingham, 202 N.C. App. 196 (estoppel doctrine in partition contexts)
- Creech v. Melnik, 347 N.C. 520 (requirements for implied-in-fact contracts: mutual assent and conduct showing offer and acceptance)
- G.R. Little Agency, Inc. v. Jennings, 88 N.C. App. 107 (judge resolves conflicting evidence in non-jury trial)
- Williams v. Pilot Life Ins. Co., 288 N.C. 338 (trial court's role in weighing evidence and drawing inferences)
- Dep’t of Transp. v. Elm Land Co., 163 N.C. App. 257 (trial court discretion to evaluate credibility and weight of testimony)
- Henson v. Henson, 236 N.C. 429 (equitable jurisdiction in partition matters)
- Holt v. Couch, 125 N.C. 456 (equitable adjustments for improvements/expenses in partition)