WILLIAM T. SANDERS v. NORTH CAROLINA DEPARTMENT OF TRANSPORTATION
No. 87PA24
IN THE SUPREME COURT OF NORTH CAROLINA
Filed 12 December 2025
386 N.C. 384
ALLEN, Justice.
Cranfill Sumner LLP, by George B. Autry Jr., Stephanie H. Autry, and Jeremy H. Hopkins, for plaintiff-appellee.
Howard B. Rhodes, Matthew W. Skidmore, and Jeff Jackson, Attorney General, by J. Aldean Webster III, Special Deputy Attorney General, for defendant-appellant.
Matthew H. Bryant for Beroth Oil Company and James & Carol Deans, amici curiae.
ALLEN, Justice.
“Both the [United States] Constitution and the North Carolina Constitution require due process and just compensation when a public entity uses its eminent domain power to take property.” Dep‘t of Transp. v. Bloomsbury Ests., LLC, 386 N.C. 384, 392 (2024) (first citing
I.
The North Carolina General Assembly enacted the now-repealed Map Act in 1987. Act of Aug. 7, 1987, ch. 747, sec. 19, 1987 N.C. Sess. Laws 1520, 1538-42 (repealed 21 June 2019). While the Map Act remained in effect, “once NCDOT file[d] a highway corridor map
The corridor maps effectively functioned as cost-cutting mechanisms for NCDOT by limiting the ability of property owners to improve their parcels and alerting potential buyers to the рossibility that the land could be taken for roadway projects. “By recording a corridor map, [NC]DOT [was] able to foreshadow which properties [would] eventually be taken for roadway projects and in turn, decrease the future price the State [would have to] pay to obtain those affected parcels.” Beroth Oil Co. v. N.C. Dep‘t of Transp., 367 N.C. 333, 349 (2014) (Newby, J., dissenting in part and concurring in part). But see Kirby, 368 N.C. at 852 (acknowledging NCDOT‘s assertion “that ‘cost-cutting’ is not the only underlying purpose of the Map Act“).
On 29 October 1992, NCDOT recorded a corridor map (1992 mаp) for the Fayetteville Outer Loop project. At the time, plaintiff owned a tract of land in Cumberland County totaling nearly 650 acres. This 1992 map covered 92.969 acres of plaintiff‘s property.
Ten years later, on 23 December 2002, NCDOT filed a complaint and declaration of taking (2002 direct action) to acquire 9.280 acres of plaintiff‘s property in fee simple and easements on a further 6.169 acres. Although unrelated to the Fayetteville Outer Loop project, this taking included some of plaintiff‘s property covered by the 1992 map. The complaint and declaration made no reference to the Map Act restrictions on plaintiff‘s property, but plaintiff was clearly aware of them. Plaintiff‘s attorney sent a letter to NCDOT in March 2004 describing plaintiff‘s inability to develop his property due to Map Act encumbrances as “an extraordinary hardship.”
The parties settled the 2002 direct action for $192,630. In an order filed on 29 November 2004, the trial court incorporated the settlement into a consent judgment (2004 consent judgment).
On 6 June 2006, NCDOT filed a second corridor map (2006 map) for the Fayetteville Outer Loop project. The 2006 map covered another 20.135 acres of plaintiff‘s land.
In December 2008, plaintiff‘s attorney sent NCDOT another letter, this one making a public records request for the appraisal of a portion of plaintiff‘s land related to the Fayetteville Outer Loop project. The letter explained that plaintiff needed the appraisal to obtain a loan so that he could “survive until [NCDOT] is able to proceed with the acquisition.”
On 5 August 2010, NCDOT filed a second complaint and declaration of taking (2010 direct action), this time to acquire 101.763 acres of plaintiff‘s property in fee simple and easements on another 3.613 acres. About sixty acres of the fee simple taking had been included in the 1992 map. NCDOT also obtained
The parties settled the 2010 direct action for $15,800,000 on 1 November 2011 (2011 consent judgment). After the 2011 consent judgment, 28.041 acres of plaintiff‘s property remained subject to Map Act restrictions under the 1992 map. The restrictions ceased when the Generаl Assembly repealed both the 1992 map and the 2006 map in 2016.
The repeal of the 1992 and 2006 maps occurred a few months after this Court issued its decision in Kirby. We held that the restrictions imposed by the corridor maps at issue in that case “constitute[d] a taking of [the Kirby] plaintiffs’ elemental property rights by eminent domain,” thus triggering the constitutional right of those plaintiffs to just compensation. Kirby, 368 N.C. at 848; see also Town of Morganton v. Hutton & Bourbonnais Co., 251 N.C. 531, 533 (1960) (“The power of eminent domain, that is, the right to take private property for public use, is inherеnt in sovereignty. Our Constitution . . . requires payment of fair compensation for the property so taken.“).
On 13 December 2018, plaintiff instituted the current action by filing his complaint for inverse condemnation under
In his complaint, plaintiff alleged that the 2004 and 2011 consent judgments did not compensate him for the Map Act restrictions on his land. Consequently, according to the complaint, NCDOT still owed plaintiff just compensation for the restrictions placed on his property by the 1992 and 2006 maps.2
NCDOT filed a motion to dismiss pursuant to
On 28 December 2021, after a hearing on both parties’ motions, the trial court entered an order dismissing some but not all of plaintiff‘s claims. In the first place, the court determined that plaintiff could have—“but was not required to“—assert his Map Act takings claims in either the 2002 direct action or the 2010 direct action.
Turning to NCDOT‘s res judicata defense, the court agreed with NCDOT that res judicata
Finally, in rejecting NCDOT‘s statute-of-limitations defense, the trial court relied on the text of
Both parties appealed the trial court‘s order to the Court of Appeals. In part, NCDOT argued that the twenty-four-month statute of limitations in
On 6 February 2024, a unanimous panel of the Court of Appeals affirmed the trial court‘s order in an unpublished opinion. Id. at 2. In so doing, the appellate court disagreed with NCDOT‘s application of
NCDOT petitioned this Court for discretionary review of the decision of the Court of Appeals. Plaintiff responded by asking us to deny NCDOT‘s petition or, in the alternative, to allow his conditional petition for discretionary review of additional issues. We allowed both petitions.
II.
A trial court‘s order disposing of a
Similarly, “[w]e review a lower court‘s interpretation of statutes de novo.” Morris v. Rodeberg, 385 N.C. 405, 409 (2023). “When reviewing a matter de novo, this Court considers the matter anew and freely substitutes its own judgment for that of the lower courts.” Town of Midland v. Harrell, 385 N.C. 365, 370 (2023) (cleaned up).
III.
In its primary brief to this Court, NCDOT argues that
“The primary aim of statutory construction ‘is to accomplish the legislative intent.’ ” N.C. Dep‘t of Env‘t Quality v. N.C. Farm Bureau Fed‘n, Inc., No. 338PA23, slip op. at 12 (N.C. Oct. 17, 2025) (quoting Lenox, Inc. v. Tolson, 353 N.C. 659, 664 (2001)). In pursuit of that intent, a court “must begin with an examination of the relevant statutory language.” Wilkie v. City of Boiling Spring Lakes, 370 N.C. 540, 547 (2018).
As explained above, both the trial court and the Court of Appeals concluded that the statute of limitations in
The text of the statute aligns with its title:
Any person whose land or compensable interest therein has been taken by an intentional or unintentional act or omission of the Department of Transportation and no complaint and declaration of taking has been filed by said Department of Transportation may, within 24 months of the date of the taking of the affеcted property or interest therein or the completion of the project involving the taking, whichever shall occur later, file a complaint in the superior court . . . .
By the plain terms of its title and text,
In NCDOT‘s view, “[t]he ‘affected property’ identified in the statute is the landowner‘s entire tract, not merely the specific portion [NC]DOT identified for right-of-way purposes in its complaint.” Plaintiff insists that “[t]he obvious import of the language in
In the context of this case, NCDOT‘s reading of
If the property owner disagrees with NCDOT‘s estimate of just compensation, he may file an answer to the complaint pursuant to
At this point, the question becomes whether for purposes of
We think that the plain language of
- Where only a part of a tract is taken, the measure of damages for said taking shall be the difference between the fair market value of the entire tract immediately prior to said taking and the fair market value of the remainder immediatеly after said taking, with consideration being given to any special or general benefits resulting from the utilization of the part taken for highway purposes.
- Where the entire tract is taken the measure of damages for said taking shall be the fair market value of the property at the time of taking.
Subsection (1) of section 136-112 addresses partial takings. Basically, subsection (1) provides that the damages for a partial taking equal the difference between the fair mаrket value of the entire tract immediately before the taking and the fair market value of the remainder immediately after the taking.
Here, of course, the 2010 direct action resulted in a partial taking of plaintiff‘s property, so subsection (1) would have governed the calculation of plaintiff‘s damages. Map Act restrictions encumbered part of plaintiff‘s property immediately before the 2010 direct action and continued to encumber 28.041 acrеs of plaintiff‘s remaining property immediately after the 2010 condemnation. In his complaint, plaintiff alleged that the restrictions damaged his property by “severely impact[ing] [its] use, marketability, and value.” When accepted as true, as the allegations in a complaint must be when a court reviews a
Indeed, it may well be that
Inasmuch as he had to include the Map Act restrictions in an answer filed pursuant to
For instance, plaintiff interprets Lea Company v. North Carolina Board of Transportation, 308 N.C. 603 (1983), to show that “an owner may bring a separate inverse condemnation when [NCDOT] takes additional property interests, even if a direct condemnation is proceeding.” In Lea Company, NCDOT filed a complaint and declaration of taking for a part of the plaintiff company‘s property to be used for a highway improvement project. 308 N.C. at 607-08. After the parties signed a settlement agreement but a few days before the trial judge incorporated the agreement into a consent judgment, the company‘s remaining property flooded. See id. at 608. Several months later, the company filed an inverse condemnation action alleging that the highway improvement project had caused the flooding and had resulted in a separate taking of the company‘s property. Id. at 609. NCDOT argued in response that the company should have sought compensation for the flooding in the condemnation action pursuant to
We do not see how Lea Company helps plaintiff. There, we expressly based our holding on the fact that the flooding occurred after NCDOT condemned a part of the company‘s land for a highway improvement project. In this case, the Map Act restrictions over which plaintiff filed his inverse condemnation claims were imposed and well known to plaintiff years before NCDOT initiated the 2010 direct action. He was thus well positioned to raise them in that proceeding.
Similarly, this Court‘s decision in City of Charlotte v. Spratt, 263 N.C. 656 (1965), does little, if anything, to strengthen plaintiff‘s position. That case preceded the enactment of
IV.
Section 136-106 mandated that plaintiff raise the issue of Map Act restrictions in NCDOT‘s 2010 direct action condemning part of his property. His failure to do so prevents him from pursuing damages for those restrictions through an inverse cоndemnation action under
REVERSED; DISCRETIONARY REVIEW IMPROVIDENTLY ALLOWED IN PART.
Notes
Kirby, 368 N.C. at 849-50 (cleaned up).Owners whose properties [were] located within the highway corridor [could] seek administrative relief from the[ ] restrictions by applying for a building permit or subdivision plat approval,
[N.C.G.S.] § 136-44.51(a) -(c), a variance,id. § 136-44.52 , or an “advanced acquisition” of the property “due to an imposеd hardship,”id. § 136-44.53 . In the first instance, if after three years a property owner‘s application for a building permit or subdivision plat ha[d] not been approved, the “entity that adopted the transportation corridor official map” [had to] either approve the application or initiate acquisition proceedings, or else the applicant “[could] treat the real property as unencumbered.”Id. § 136-44.51(b) . In the second instance, “a variance [could] be granted upon a showing that: (1) Even with the tax benefits authorized by this Article, no reasonable return [could] be earned from the land; and (2) The requirements of [N.C.]G.S. 136-44.51 result[ed] in practical difficulties or unnecessary hardships.”Id. § 136-44.52(d) . In the third instance, an “advanced acquisition” [could] be made upon establishing “an undue hardship on the affected property owner.”Id. § 136-44.53(a) . Property approved under the hardship category [had to] be acquired within three years or “the restrictions of the map [had to] be removed from the property.”Id.
