Storey v. Hailey

441 S.E.2d 602, 114 N.C. App. 173, 1994 N.C. App. LEXIS 305
CourtCourt of Appeals of North Carolina
DecidedApril 5, 1994
Docket926SC1188
StatusPublished
Cited by9 cases

This text of 441 S.E.2d 602 (Storey v. Hailey) 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
Storey v. Hailey, 441 S.E.2d 602, 114 N.C. App. 173, 1994 N.C. App. LEXIS 305 (N.C. Ct. App. 1994).

Opinion

COZORT, Judge.

In this appeal, plaintiff alleges the trial court erred by granting the defendant’s motions to dismiss for insufficiency of process, in *175 sufficiency of service of process, lack of personal jurisdiction, and failure to state a claim upon which relief can be granted. We have reviewed each of the grounds for dismissal and find that the trial court erred in granting defendant’s motions. Accordingly, we reverse.

Plaintiff Ruby C. Storey commenced this action on 16 January 1992 to recover compensation from Bernard M. Hailey’s estate for services rendered to the decedent. Plaintiff’s claim had previously been rejected by defendant Charles A. Hailey, the executor of the decedent’s estate, on 17 October 1991. Plaintiff’s complaint also contained a claim for $5,000.00, the amount of a check issued by decedent to plaintiff, but which had been returned unpaid because the account upon which it was drawn had been closed.

Because defendant is not a resident of North Carolina, defendant appointed Thomas H. Wellman, an attorney, as his resident process agent to receive service in all actions against the estate. A deputy sheriff of the Halifax County Sheriff’s- Department made service by leaving a copy of the summons and complaint with William 0. White, Jr., Mr. Wellman’s law partner, at the offices of Wellman and White in Weldon, North Carolina. The title of the cause as set out in the summons named Charles A. Hailey, 606 Wexwood Court, Richmond, Virginia, as the defendant. The summons was directed to Thomas H. Wellman, “Process Agent for Charles A. Hailey.”

On 5 March 1992, Mr. Wellman appeared as counsel of record for defendant. He filed a motion for extension of time to plead, and an order granting the motion was entered by the Northampton County Clerk of Superior Court. The order extended the time for filing an answer up to and including 7 April 1992. By stipulation of counsel, Mr. Wellman obtained a second extension of time for filing an answer on 6 April 1992. The second extension lengthened the time for responding up to and including 7 May 1992. On 4 May 1992, counsel for both parties signed another written stipulation further extending the time for responding to the complaint up to and including 8 June 1992.

On 8 June 1992, defendant, through new counsel, filed and served motions to dismiss the action asserting that plaintiff’s claims should be dismissed due to insufficiency of process, insufficiency of service of process, lack of personal jurisdiction, and the expiration of the statute of limitations. The hearing on the motions was conducted in chambers on 10 July 1992; the trial court filed an *176 order on 28 July 1992 dismissing plaintiff’s action based on all grounds asserted by defendant.

Plaintiff first argues on appeal that defendant waived his defenses of insufficiency of process, insufficiency of service of process, and lack of personal jurisdiction by obtaining two extensions of time to file a responsive pleading through written stipulation of counsel. Plaintiff maintains that she was “lured into a false sense of security” in that “[defendant's initial trial counsel, regardless of his intent, manifestly lead [sic] Plaintiffs trial counsel to believe that there would be no need to continue further process in existence . .' . .”

We agree with plaintiff and find that defendant is estopped from asserting the defenses of insufficiency of process, insufficiency of service of process, and lack of personal jurisdiction. Defendant contends that plaintiff has raised the issues of waiver and estoppel for the first time on appeal without a prior objection. As we have no record of any objection or lack thereof since the motions were heard in chambers, we have decided in our discretion pursuant to N.C.R. App. P. 2, to review the issue of whether defendant was estopped from asserting the defenses.

The law in North Carolina provides us with little guidance to resolve the estoppel issue. Cases from other jurisdictions are instructive. For example, in Tresway Aero, Inc. v. Superior Court of Los Angeles County, 5 Cal.3d 431, 487 P.2d 1211 (1971), the court refused to grant the defendant’s motion to dismiss for insufficiency of service of process where the defendant had received an extension of time in which to make an appearance, but failed to notify the plaintiff of a defect in service. The defendant’s action in receiving the extension resulted in plaintiff’s failure to serve the summons within the period required by the California statute. In denying the defendant’s motion to dismiss, the court explained:

By requesting that extension, defendant led plaintiff to believe that further service of process on defendant would be duplicatory and redundant.
Defendant’s conduct in the present case lulled plaintiff into such a “false sense of security,” and probably prevented plaintiff from discovering her error and effecting valid service within the statutory period.
*177 We conclude that since the responsibility for plaintiffs failure to effect valid service within the period of [the statute] rests upon defendant, “the ends of substantial justice” . . . will best be served by estopping defendant from moving to dismiss under that section.

Id. at 441-42, 487 P.2d at 1218-19.

Similarly, in the case below, plaintiff was deprived of any opportunity to cure any defects in the process or in the service of process, because defendant’s counsel led plaintiff’s counsel to believe it was unnecessary to continue further process. Defendant, absent the additional extension of time stipulated to by plaintiff’s counsel, would have been subject to entry of default following the expiration of the second extension on 7 May 1992. The defendant’s conduct in securing extensions of time, through opposing counsel’s professional courtesy, to 54 days past the date when plaintiff could have procured endorsement of the original summons or issuance of an alias and pluries summons, acts to estop defendant from asserting these defenses. Any other result would serve only to stifle professional courtesy among members of the bar during a time when legal etiquette and professionalism are becoming more rare.

Even had we decided to find that defendant was not estopped from asserting these defenses, plaintiff’s action should not have been subject to dismissal for insufficiency of process, insufficiency of service of process, and the resulting lack of personal jurisdiction. The trial court dismissed the case for insufficiency of process because: (1) the caption on the summons was directed to “Charles A. Hailey, 606 Wexwood Court, Richmond, Virginia 28236,” rather than “Charles A. Hailey, Executor of the Estate of Bernard M. Hailey,”; (2) the summons was directed to “Thomas H. Wellman, Process Agent for Charles A. Hailey,” rather than to “Charles A. Hailey, Executor of the Estate of Bernard M. Hailey, c/o Thomas H. Wellman, Resident Process Agent for Charles A. Hailey, Executor of the Estate of Bernard M. Hailey,”; and (3) the summons did not notify Mr. Hailey to appear and answer within 30 days after service.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pro-Tops, Inc. v. Maksimenko
2025 NCBC 4 (North Carolina Business Court, 2025)
Stewart v. Shipley
825 S.E.2d 684 (Court of Appeals of North Carolina, 2019)
Washington v. Cline
761 S.E.2d 650 (Court of Appeals of North Carolina, 2014)
Boyd v. SANDLING
708 S.E.2d 311 (Court of Appeals of North Carolina, 2011)
Morris v. Dixon
671 S.E.2d 377 (Court of Appeals of North Carolina, 2008)
Fender v. Deaton
503 S.E.2d 707 (Court of Appeals of North Carolina, 1998)
Hazelwood v. Bailey
453 S.E.2d 522 (Supreme Court of North Carolina, 1995)
Larson v. New Richland Care Center
520 N.W.2d 480 (Court of Appeals of Minnesota, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
441 S.E.2d 602, 114 N.C. App. 173, 1994 N.C. App. LEXIS 305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/storey-v-hailey-ncctapp-1994.