Ferrell v. Department of Transportation

407 S.E.2d 601, 104 N.C. App. 42, 1991 N.C. App. LEXIS 971
CourtCourt of Appeals of North Carolina
DecidedSeptember 3, 1991
DocketNo. 9021SC1154
StatusPublished
Cited by4 cases

This text of 407 S.E.2d 601 (Ferrell v. Department of Transportation) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferrell v. Department of Transportation, 407 S.E.2d 601, 104 N.C. App. 42, 1991 N.C. App. LEXIS 971 (N.C. Ct. App. 1991).

Opinions

LEWIS, Judge.

This is a declaratory judgment action also seeking injunctive relief. On 17 April 1972 the Department of Transportation, [DOT], acquired by eminent domain 34.93 acres of an 86.08 acre tract in Forsyth County owned in fee simple by E. V. Ferrell, Jr. and J. C. Smith. By consent judgment dated 14 October 1975 the DOT paid Ferrell and Smith a total of $303,500.00 in compensation. An additional 5.84 acres was claimed by DOT in 1986. The DOT acquired this property for the construction of a portion of Corporation Freeway, which was later incorporated into Interstate 40 bypass. Due to changes in plans and designs, 29.107 acres of the acquired property has not been and will not be used by the DOT.

Since the time of the acquisition of the subject property in 1972 by the DOT, the ownership of the adjacent property has changed. Smith conveyed his 20% undivided interest in fee simple in the 45.31 remaining acres to the plaintiffs Dillard on 31 December 1987. Included, were all rights under N.C.G.S. § 13649, which states in part:

[44]*44If any parcel is acquired in fee simple as authorized by this section and the Department of Transportation later determines that the parcel is not needed for highway purposes, first consideration shall be given to any offer to repurchase made by the owner from whom said parcel was acquired or the heirs or assigns of such owner.

Plaintiffs contacted the Board of Transportation on or about 25 August 1988 for the purpose of re-acquiring the unused 29.107 acres. In response to these inquiries the DOT had two appraisals made of the property. W. R. Weir, Jr., a fee appraiser hired by DOT, valued the property at $1,819,175.00 in November 1988, and Max Loflin, a staff appraiser in DOT’s Winston-Salem office, valued the property at $2,294,500.00 during the same month. The DOT’s Right of Way Branch determined the lower figure to be more accurate and DOT wrote to plaintiff Ferrell on 6 January 1989 that the appraised value was $1,819,175.00. Mr. Ferrell objected to the value and cited an appraisal he had made of the property reflecting a value of $1,018,750.00. Attorneys from both sides met to reach a settlement on 12 September 1989. No agreement was reached.

On 17 October 1989 DOT informed plaintiff Ferrell, by letter, that it had reevaluated its position and would not be willing to sell the property for less than $2,294,500.00, and that this offer would be held open only until 8 November 1989.

Plaintiffs instituted this action on 6 November 1989 seeking declaratory and injunctive relief pursuant to N.C.G.S. § 136-19. Plaintiffs contend that N.C.G.S. § 136-19 and accompanying departmental rules dictate that the DOT must sell the subject property to the plaintiffs at the same price DOT paid for it seventeen years earlier, plus interest at the legal rate.

After a hearing on 30 July 1990, the court granted plaintiffs’ summary judgment motion and denied defendant’s motion to dismiss and for summary judgment. The trial court interpreted N.C.G.S. § 136-19 to require DOT to reconvey the property to plaintiffs at the original purchase price of $252,905.18 plus interest at the legal rate compounded annually, amounting to $821,938.25. The trial court enjoined the DOT from disposing of the property to anyone other than the plaintiffs and stated that the injunction would be dissolved if plaintiffs did not tender the amount within the time frame set forth in the judgment.

[45]*45The DOT contends that the trial court erred in denying its motion to dismiss pursuant to North Carolina Rule of Procedure 12(b)(1) and (2). The defendant maintains that the trial court lacked jurisdiction over the DOT because DOT has not consented to be sued or otherwise waived its sovereign immunity.

As an agency of the state, the DOT is entitled to absolute immunity in the absence of consent or statutory waiver, Schloss v. State Highway and Public Works Commission, 230 N.C. 489, 491-92, 53 S.E.2d 517, 518 (1949), with two exceptions: (1) when public officers whose duty it is to supervise and direct a state agency attempt to invade or threaten to invade the personal or property rights of a citizen in disregard of law, or (2) where plaintiffs as taxpayers attempt to prevent an expenditure of money that is either unauthorized by statute or in disregard of the law. Orange County v. Department of Transportation, 46 N.C. App. 350, 378, 265 S.E.2d 890, 909 (1980).

Plaintiffs’ complaint clearly alleges that public officials of the DOT have invaded the property rights of the plaintiffs by refusing to sell the surplus land back to the plaintiffs at the original purchase price. This case thus falls within the first of the two exceptions enumerated by this Court in Orange County v. Department of Transportation, id., insofar as the plaintiffs allege that public officials have interfered with their property rights under N.C.G.S. § 136-19.

Defendant next argues that the trial court erred in denying defendant’s motion for summary judgment because the complaint does not allege a justiciable controversy and is not ripe for adjudication. In an action for declaratory judgment under N.C.G.S. § 1-253, two factors to be considered in determining whether or not a justiciable controversy exists are whether some actual controversy exists beyond a mere difference of opinion between the parties and whether or not litigation appears to be unavoidable. Gaston Board of Realtors v. Harrison, 311 N.C. 230, 235, 316 S.E.2d 59, 61-62 (1984). Appellant argues that this case is not a justiciable controversy because negotiations are still under way, the DOT has not yet declared the property to be surplus, and the Board of Transportation, Council of State and Governor have not approved the disposition of the property.

We hold that an actual and justiciable controversy does exist. Id. The DOT has effectively declared the property surplus by offer[46]*46ing it to the plaintiffs at a stated price. The DOT required an answer by 8 November 1989 conditioning plaintiffs’ rights under N.C.G.S. § 136-19 on assent to the Department’s offered price. The plaintiffs were placed in a position where their statutory rights under N.C.G.S. § 136-19 were placed in peril. The declaratory action is therefore a justiciable controversy insofar as litigation is unavoidable, and the dispute involves more than a mere disagreement about the rights of the parties. Id. Where the Board of Transportation, the Council of State and the Governor approve the disposition only after a price is agreed to and the terms of a sale arranged, and where the plaintiffs contend that they are being deprived of their statutory rights with respect to the terms of the sale, it is unreasonable to require plaintiffs to wait until the Board, the Council of State and the Governor approve of the disposition of the property before taking action.

The appellant contends the trial court erred in interpreting N.C.G.S. § 136-19 to require that the State sell the land back to the original landowner at the original purchase price where the statute states only that “first consideration” should be given to any offer made by the landowner. Statutes are to be construed consistently with other statutes treating the same subject matter,

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Cite This Page — Counsel Stack

Bluebook (online)
407 S.E.2d 601, 104 N.C. App. 42, 1991 N.C. App. LEXIS 971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferrell-v-department-of-transportation-ncctapp-1991.