Plaintiffs’ single assignment of error is directed to the entry of summary judgment dismissing their complaint. They argue first that the affirmative defense of the statute of limitations, having never been properly pleaded, was not before the trial court and could not, therefore, provide a basis for summary judgment. Secondly, they argue that even if defendants had properly asserted the statute of limitations as a defense, genuine issues of fact exist as to whether defendants are precluded by the doctrine of equitable estoppel from relying on the defense. We reject plaintiffs’ first argument; however, because we find merit in their second argument, we must reverse.
The principles of law pertaining to summary judgment are well established. A party moving for summary judgment must demonstrate that there is no genuine issue of material fact and that he is entitled to judgment as a matter of law. N.C. Gen. Stat. § 1A-1, Rule 56;
Hagler v. Hagler,
Plaintiffs argue first that defendants’ failure to formally amend their answer to affirmatively plead the statute of limitations constitutes a waiver of that defense. It is true that the statute of limitations is an affirmative defense required by G.S. § 1A-1, Rule 8(c) to be set forth affirmatively in a responsive pleading. However, while the failure to plead an affirmative defense ordinarily results in a waiver of the defense, the issue may still be raised by express or implied consent.
Nationwide Mut. Insur. Co. v. Edwards,
Although neither defendants’ answer nor their motion for summary judgment referred to the affirmative defense of the statute of limitations, the record reflects that the issue was clearly before the trial court. In the order granting defendants leave to amend their answer, entered more than a year before summary judgment was granted, the court ordered that “defendants’ Answer be amended to plead the defense of Statute of Limitations in bar to the trial of this cause.” Plaintiffs were not surprised by the limitations defense and made no argument that they were prejudiced. The various depositions and affidavits offered in support of, and in opposition to, defendants’ motion indicate that the limitations issue was before the court. Plaintiffs’ affidavits also raised the issue of equitable estoppel indicating that they perceived that a limitations defense was before the court. Thus, the statute of limitations was before the court by implied consent, and the pleadings are deemed amended.
Plaintiffs argue next that the doctrine of equitable estoppel raises genuine issues of material fact as • to whether defendants should be permitted to rely upon a statute of limitations defense. We agree.
The doctrine of equitable estoppel may be invoked to bar a defendant from relying upon the statute of limitations.
Duke University v. Stainback,
In their deposition testimony and in their affidavits offered in opposition to defendants’ motion for summary judgment, plaintiffs asserted that defendants repeatedly promised to remedy the surface water drainage problems, that plaintiffs believed that defendants would keep their word and fix the problems, and in reliance on defendants’ promises, plaintiffs delayed instituting legal action. If a jury were to believe the plaintiffs’ evidence concerning these promises, defendants’ assertion of
Reversed.
