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Smart Summary

Factual and Procedural Background

Plaintiffs (Champ Rice and wife, Sophia Rice) sued to enjoin defendants (Douglas G. Randolph and wife, Janice D. Randolph) from interfering with plaintiffs' user rights in an easement/right of way created by deeds referencing a recorded subdivision plat. Defendants pleaded abandonment, counterclaimed for a declaratory judgment that their deed (which purported to convey fee ownership to a tract consisting of part of Lot 1 and part of the easement) vested them with ownership of that portion of the easement, and asserted title by seven years' adverse possession under color of title and, alternatively, by twenty years' adverse possession. A jury found for defendants on abandonment and adverse possession, and the trial court entered judgment declaring defendants owners of the described property free and clear of plaintiffs' claims and enjoining plaintiffs from interfering. Plaintiffs appealed. The appeal is from a judgment entered 18 February 1988 in Madison County Superior Court (Judge C. Walter Allen); heard on 20 April 1989; opinion filed 17 October 1989.

Legal Issues Presented

  1. Whether the subdivision easement shown on the recorded plat was extinguished by abandonment or by adverse possession.
  2. Whether the dispute over extinguishment of a subdivision easement can be resolved without joinder of the grantor (or his heirs) who retain fee title to the soil and the record owners of lots in the subdivision who have user rights in the easement.
  3. Whether N.C. Gen. Stat. 1-38 is applicable to a claim seeking to extinguish an outstanding easement (as raised by plaintiffs on appeal).

Arguments of the Parties

Plaintiffs' Arguments

  • Sought injunctive relief to protect their user rights in the subdivision easement shown on the plat.
  • On appeal, assigned errors challenging the sufficiency of the evidence to support defendants' theories of abandonment and adverse possession and questioned the applicability of N.C. Gen. Stat. 1-38 to a claim to extinguish an easement.

Defendants' Arguments

  • Asserted abandonment of the easement as a defense to plaintiffs' claim.
  • Counterclaimed for a declaratory judgment of their rights under a deed purporting to convey part of Lot 1 and part of the easement.
  • Claimed ownership of the portion of the easement by seven years' adverse possession under color of title and, alternatively, by twenty years' adverse possession.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ludwig v. Hart, 40 N.C. App. 188, 252 S.E.2d 270, cert. denied, 297 N.C. 454, 256 S.E.2d 807 (1979) Definition and effect of absence of necessary parties; judgment entered without necessary parties is null and void. Used to support that a judgment determinative of a claim is void if necessary parties are not joined.
Wall v. Sneed, 13 N.C. App. 719, 187 S.E.2d 454 (1972) Necessary parties are those who have or claim material interests in the subject matter and whose interests will be directly affected. Applied to identify who must be joined when the easement's extinguishment is adjudicated.
White v. Pate, 308 N.C. 759, 304 S.E.2d 199 (1983) Trial court should correct absence of necessary parties ex mero motu if defect is not properly raised. Referenced as authority that the trial court must address absent necessary parties on its own motion.
Johnson v. Skyline Tel. Membership Corp., 89 N.C. App. 132, 365 S.E.2d 164 (1988) Grantor or heirs retain fee title to the soil. Used to show the grantor/heirs are necessary parties because they retain fee title relevant to extinguishment of the easement.
Cleveland Realty Co. v. Hobbs, 261 N.C. 414, 135 S.E.2d 30 (1964) Record owners of lots in a subdivision have user rights in an easement dedicated by plat. Applied to establish that lot owners are necessary parties because they possess user rights in the easement.
Mykoff v. Rubenfeld, 149 A.D.2d 574, 540 N.Y.S.2d 266 (1989) Owners of interests in an easement have a material interest directly affected by adjudication. Supported the conclusion that owners of interests must be joined as necessary parties.
Van Ettinger v. Pappin, 180 Mont. 1, 588 P.2d 988 (1978) Owners of allegedly servient estate are indispensable parties where the existence of an easement is in dispute. Used by analogy to reinforce that servient estate owners must be joined.
Barren v. Dubas, 295 Pa. Super. 443, 441 A.2d 1315 (1982) Same principle: servient estate owners are indispensable when existence of easement is disputed. Reinforced the necessity of joining all owners affected by an adjudication of the easement.
O'Hara v. Wallace, 83 Misc.2d 383, 371 N.Y.S.2d 570 (1975), modified, 52 A.D.2d 622, 382 N.Y.S.2d 350 (1976) Proof of abandonment by one lot owner, or adverse possession against one lot owner for the statutory period, does not extinguish an easement dedicated by plat and expressly granted to owners of lots in a subdivision. Applied to hold that adverse possession or abandonment affecting one lot owner does not extinguish a subdivision easement; thus additional parties are necessary.

Court's Reasoning and Analysis

The court began from Rule 19, N.C. Gen. Stat. 1A-1, requiring joinder of persons united in interest. It explained that necessary parties are those with material interests that will be directly affected by adjudication and cited authority (Ludwig; Wall). The record showed the easement was created by reference to a recorded plat; plaintiffs owned Lots 6–20, defendants owned part of Lot 1, and Lots 2–5 and the remainder of Lot 1 were owned by third parties. Given that the grantor (or heirs) retain fee title and that record lot owners have user rights, the court concluded those persons have material interests and must be joined (citing Johnson; Cleveland Realty; Mykoff; Van Ettinger; Barren). The court further reasoned that proof of abandonment by one lot owner or adverse possession against one lot owner does not extinguish an easement dedicated by plat and granted to subdivision lot owners (citing O'Hara). Because necessary parties were absent, the court held the existing verdict and judgment were void under the cited authority and thus vacated the judgment and remanded for a new trial with joinder of all necessary parties.

Holding and Implications

VACATED AND REMANDED

Holding: The court vacated the jury verdict and trial-court judgment and remanded for a new trial after joinder of all necessary parties (including the grantor or heirs who retain fee title and the record owners of lots in the subdivision who have user rights in the easement).

Implications: The direct effect is that the prior judgment is nullified and the case must be retried with all necessary parties joined. The opinion does not purport to establish a new legal rule beyond applying existing authorities on necessary parties and on the limited effect of abandonment/adverse possession on easements dedicated by plat.

CHAMP RICE AND WIFE, SOPHIA RICE, PLAINTIFF-APPELLANTS v. DOUGLAS GORDON RANDOLPH AND WIFE, JANICE DIANE RANDOLPH, DEFENDANT-APPELLEES

Easements 11 (NCI3d); Dedication 2.1 (NCI3d) — subdivision easement — dedication by plat — extinguishment of easement — necessary parties A dispute as to the extinguishment of a subdivision easement by abandonment or adverse possession cannot be resolved without the joinder of the grantor, or his heirs, who retain fee title to the soil, and the record owners of lots in the subdivision, who have user rights in the easement; furthermore, proof of abandonment by one lot owner, or proof of possession adverse to one lot owner for the prescribed statutory period, does not extinguish an easement dedicated per plat and expressly granted to owners of lots in a subdivision.

Am Jur 2d, Easements and Licenses 15, 103-105, 110, 116.

COZORT, Judge.

Plaintiffs brought suit to enjoin defendants from interfering with plaintiffs' user rights in an easement or right of way created by deeds referencing a recorded plat of a subdivision in which the parties' land is located. Defendants raised abandonment of the easement as a defense and also counterclaimed for a declaration of their rights to the land described in their deed, which purported to convey fee ownership to a tract of land consisting of a portion of lot 1 in the subdivision as well as a portion of the easement. Defendants claimed ownership of that portion of the easement by virtue of seven years' adverse possession under color of title and, alternatively, by twenty years' adverse possession.

A jury answered the questions of abandonment and adverse possession in favor of defendants, and the trial court entered judgment decreeing defendants owners of the property described in their deed free and clear of any claims of plaintiffs to the right of way shown on the subdivision plat and further enjoining plaintiffs from interfering with or going upon defendants' property.

On appeal, plaintiffs present several assignments of error regarding the sufficiency of the evidence to sustain defendants' theories of abandonment and adverse possession, and the applicability of N.C. Gen. Stat. 1-38 to a claim which seeks to extinguish a valid outstanding easement. We need not address these contentions, however, as we believe that the verdict and judgment must be vacated because necessary parties were absent from the action.

Rule 19 of the North Carolina Rules of Civil Procedure requires that "those who are united in interest must be joined as plaintiffs or defendants." N.C. Gen. Stat. 1A-1, Rule 19 (a) (1988). A person is united in interest with a party when that person's presence is necessary for the court to determine the claim before it without prejudicing the rights of a party or the rights of another who is not before the court. Ludwig v. Hart, 40 N.C. App. 188, 252 S.E.2d 270, cert. denied, 297 N.C. 454, 256 S.E.2d 807 (1979). Necessary parties are those who have or claim material interests in the subject matter of a controversy, and those interests will be directly affected by an adjudication of the controversy. Wall v. Sneed, 13 N.C. App. 719, 187 S.E.2d 454 (1972). When there is an absence of necessary parties, the trial court should correct the defect ex mero motu upon failure of a competent person to make a proper motion. White v. Pate, 308 N.C. 759, 764, 304 S.E.2d 199, 203 (1983). A judgment which is determinative of a claim arising in an action in which necessary parties have not been joined is null and void. Ludwig, 40 N.C. App. at 190, 252 S.E.2d at 272.

The parties in the instant action seek to resolve the question of whether an easement has been extinguished. The record discloses that the easement was created when lots were sold and conveyed by reference to a plat which showed a division of a tract of land into lots with an easement or roadway bordering on the north. The record further discloses that plaintiffs own lots 6 through 20, that defendants own a portion of lot 1, and that the remainder of the lots (lots 2 through 5 and the remainder of lot 1) are owned by a third party or parties.

We believe that a dispute as to the extinguishment of a subdivision easement by abandonment or adverse possession cannot be resolved without the joinder of the grantor, or his heirs, who retain fee title to the soil (see Johnson v. Skyline Tel. Membership Corp., 89 N.C. App. 132, 365 S.E.2d 164 (1988) ), and the record owners of lots in the subdivision, who have user rights in the easement, see Cleveland Realty Co. v. Hobbs, 261 N.C. 414, 135 S.E.2d 30 (1964). Those owners of interests in the easement have a material interest in the subject matter of the controversy, and their interest will be directly affected by the court's decision. See Mykoff v. Rubenfeld, 149 A.D.2d 574, 540 N.Y.S.2d 266 (1989). Cf. Van Ettinger v. Pappin, 180 Mont. 1, 588 P.2d 988 (1978) (owners of allegedly servient estate are indispensable parties to action where existence of easement is in dispute); Barren v. Dubas, 295 Pa. Super. 443, 441 A.2d 1315 (1982) (same). Furthermore, proof of abandonment by one lot owner, or proof of possession adverse to one lot owner for the prescribed statutory period, does not extinguish an easement dedicated per plat and expressly granted to owners of lots in a subdivision. See O'Hara v. Wallace, 83 Misc.2d 383, 371 N.Y.S.2d 570 (1975), modified, 52 A.D.2d 622, 382 N.Y.S.2d 350 (1976).

We therefore vacate the verdict and judgment below and remand so that a new trial may be had upon joinder of all necessary parties.

Vacated and remanded.

Judges PHILLIPS and PARKER concur.

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RICE v. RANDOLPH
(Oct 1, 1989)