Huntley v. Huntley

538 S.E.2d 239, 140 N.C. App. 749, 2000 N.C. App. LEXIS 1269
CourtCourt of Appeals of North Carolina
DecidedDecember 5, 2000
DocketCOA99-1404
StatusPublished
Cited by5 cases

This text of 538 S.E.2d 239 (Huntley v. Huntley) 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
Huntley v. Huntley, 538 S.E.2d 239, 140 N.C. App. 749, 2000 N.C. App. LEXIS 1269 (N.C. Ct. App. 2000).

Opinion

WYNN, Judge.

Plaintiff and Defendant were married on 3 December 1994 and lived together until they separated on 1 January 1996. No children were bom of the marriage, but the parties did acquire marital property during the course of the marriage. However, this appeal concerns the disposition of the marital residence, owned by the husband before the parties married. After separating, the husband moved out and the wife continued living in the marital residence.

In November 1996, the husband brought an equitable distribution action and further sought an order of interim allocation of the marital residence and its contents to him. The wife answered and counterclaimed alleging the existence of a valid written Premarital Agreement executed 28 November 1994. The Agreement, signed by both parties and notarized, provided in part relevant to the marital home the following clause:

7. Home at 3905 Henderson Road in Greensboro. Husband and Wife plan to live in the home now owned by Husband at 3905 Henderson Road. Shortly after the marriage, Husband will convey to Wife a !4 undivided interest, as tenant in common, in this real estate. In addition, he will convey to her the right to live in the home after the death of the Husband, as long as she chooses to make it her home.

The wife alleged by counterclaim that the husband had breached the Agreement by failing to convey the property interest as agreed; so, she sought specific performance. The Agreement also contained a waiver by each party of their equitable distribution rights.

The husband replied to his wife’s counterclaim admitting the existence of the Agreement, admitting his failure to convey to his wife the agreed upon property interest as stipulated in the Agreement, and asserting defenses of (1) waiver by laches, (2) a subsequent contrary oral agreement, (3) unjust enrichment, and (4) nonperformance of the Agreement.

*751 Both parties moved for summary judgment on the issue of specific performance of the Agreement. The trial court, per District Court Judge Charles L. White, denied both motions. The husband then brought on for hearing his motion for interim allocation of the marital property, which was heard on 11 June 1997 before Judge White. By order entered 25 August 1997, nunc pro tunc 11 June 1997, Judge White found that the parties had rescinded the Agreement by their conduct, declared the Agreement null and void, ruled that the husband was entitled to proceed on his claim for equitable distribution of the marital property, and granted the husband’s motion for interim allocation of the marital property.

The wife appealed to this Court from that order; but, we held that her appeal was interlocutory, and remanded the matter to the trial court for disposition of the equitable distribution action. Following judgment in that action entered by District Court Judge Susan E. Bray favoring the husband, the wife then properly appealed to this Court from the order entered by Judge White which declared the Agreement to be rescinded, null and void, and from the equitable distribution judgment favoring the husband entered by Judge Bray.

In her appeal, the wife asserts five assignments of error: (1) that under N.C. Gen. Stat. § 52B-6, the trial court erred in rescinding the Agreement based on the parties’ conduct following the execution of the Agreement, (2) that, alternatively, the facts do not support the trial court’s finding that the Agreement was rescinded under general contract law principles, (3) that the trial court erred in allowing the admission of parol evidence to alter the terms of the Agreement, which led to its rescission, (4) that the trial court erred in allowing equitable distribution under the judgment entered by Judge Bray, as the Agreement, which waived any equitable distribution rights, remained valid and enforceable, and (5) that the trial court erred in granting judgment to the husband reimbursing him for payment of debts incurred after the date of separation. We conclude that the trial court committed reversible error.

We first consider the wife’s claims regarding the order entered by Judge White. She contends that the trial court committed error in finding that the Agreement was rescinded by the conduct of the parties subsequent to its execution. We agree.

The wife alleges that she waived her equitable distribution rights in the Agreement in exchange for the husband’s written promise to convey to her the property interest as provided in paragraph 7 of the *752 Agreement. The husband argues that there were sporadic discussions between the parties following their wedding concerning the conveyance, but that no interest was ever conveyed, and that the wife never made a demand for performance prior to their separation. The trial court determined that the parties, by their conduct after the execution of the Agreement, had rescinded paragraph 7 of the Agreement, which was an essential term thereof. The trial court thus determined that the entire Agreement, as a result of the rescission of paragraph 7, was null and void.

The North Carolina Uniform Premarital Agreement Act governs premarital agreements. N.C. Gen. Stat. §§ 52B-1 et seq. (1999). That Act became effective on 1 July 1987 and is applicable to premarital agreements executed on or after that date. 1987 N.C. Sess. Laws ch. 473, § 3. The Agreement in this case is therefore governed by the Uniform Premarital Agreement Act.

Under the Uniform Premarital Agreement Act, N.C. Gen. Stat. § 52B-6 provides in part that “[ajfter marriage, a premarital agreement may be amended or revoked only by a written agreement signed by the parties.” N.C. Gen. Stat. § 52B-6 (1999). N.C. Gen. Stat. § 52B-7 sets forth the conditions which must be proven by a party seeking to avoid the enforcement of a premarital agreement, but generally concerns inequitable conditions surrounding the execution of the agreement, such as voluntariness and unconscionability. See N.C. Gen. Stat. § 52B-7 (1999). N.C. Gen. Stat. § 52B-9 addresses the limitation of actions related to such agreements, stating that “[a]ny statute of limitations applicable to an action asserting a claim for relief under a premarital agreement is tolled during the marriage of the parties to the agreement. However, equitable defenses limiting the time for enforcement, including laches and estoppel, are available to either party.” N.C. Gen. Stat. § 52B-9 (1999).

In general, “principles of construction applicable to contracts also apply to premarital agreements.” Howell v. Landry, 96 N.C. App. 516, 525, 386 S.E.2d 610, 615 (1989) (citing Turner v. Turner, 242 N.C. 533, 539, 89 S.E.2d 245, 249 (1955)), disc. review denied, 326 N.C. 482, 392 S.E.2d 90 (1990). Our Supreme Court has held that premarital agreements may be amended or rescinded after marriage if the parties fully and freely consent thereto. Turner, 242 N.C. at 538, 89 S.E.2d at 249. In construing premarital agreements executed after 1 July 1987, however, we must bear in mind, in addition to general contract principles, the strict requirements of the Uniform Premarital *753

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Cite This Page — Counsel Stack

Bluebook (online)
538 S.E.2d 239, 140 N.C. App. 749, 2000 N.C. App. LEXIS 1269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huntley-v-huntley-ncctapp-2000.