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Case Summary: G. W. Morgan and Wife v. High Penn Oil Company and Southern Oil Transportation Company, Inc.

Factual and Procedural Background

Plaintiffs G. W. Morgan and his wife, Alta Lee Morgan, filed a complaint alleging a private nuisance at the time the summons issued. The complaint alleges the plaintiffs own and occupy a tract of land in Guilford County valued at $25,000; that the defendants operate an oil refinery and an oil distribution center on adjoining premises; and that the defendants' constructions and operations cast noxious fumes and gases onto the plaintiffs' land, causing annoyance, discomfort and substantial damage, and threatening destruction of the land's usefulness and value. The plaintiffs sought a perpetual injunction against continuance of the alleged wrongful acts or, alternatively, damages totaling $25,000.

The defendants filed a timely joint answer admitting ownership and operation of the adjoining facilities but denying that their operations constituted a nuisance or caused injury. At the Superior Court's September Term, 1952, the defendants interposed a demurrer ore tenus, contending the complaint did not state facts sufficient to constitute a cause of action because it alleged a private nuisance and used as the measure of damages the difference in fair market value before and after the alleged acts. Judge H. Hoyle Sink overruled the demurrer ore tenus. The defendants appealed, assigning the overruling as error.

Legal Issues Presented

  1. Is an order overruling a demurrer ore tenus appealable?
  2. Whether, as contended by defendants in their demurrer ore tenus, the complaint states facts sufficient to constitute a cause of action (specifically where the complaint alleges a private nuisance and measures damages as the difference in fair market value before and after the alleged acts).

Arguments of the Parties

Defendants' Arguments

  • The defendants interposed a demurrer ore tenus asserting the complaint did not state facts sufficient to constitute a cause of action because it alleged a private nuisance and alleged damages measured as the difference between the fair market value of the property before and after the alleged acts.

Plaintiffs' Arguments

The opinion does not contain a detailed account of the plaintiffs' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hood, Comr. of Banks v. Motor Co., 209 N.C. 303, 183 S.E. 529 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Cited as one of several authorities establishing that an order overruling a demurrer ore tenus is not appealable.
Griffin v. Bank, 205 N.C. 253, 171 S.E. 71 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Cited in support of the court's rule that such orders are not appealable.
Mountain Park Institute v. Lovill, 198 N.C. 642, 153 S.E. 114 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Included among prior decisions relied on to answer the threshold question.
Chambers v. R. R., 172 N.C. 555, 90 S.E. 590 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Relied on as supporting precedent for the rule applied.
Shelby v. Railway Co., 147 N.C. 537, 61 S.E. 377 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Cited as part of the line of cases establishing the rule.
Hall v. Railroad, 146 N.C. 345, 59 S.E. 879 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Included among supporting precedents.
Burrell v. Hughes, 116 N.C. 430, 21 S.E. 971 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Cited as precedent affirming the rule.
Joyner v. Roberts, 112 N.C. 111, 16 S.E. 917 Articulation of the reasons why an order overruling a demurrer ore tenus is not appealable (including comparison with formal demurrer and potential for delay). Quoted and relied upon for the Court's explanatory reasons: the distinction between formal demurrer and demurrer ore tenus, the lack of immediate remedy on overruling a demurrer ore tenus, the potential for deliberate delay, and the preservation of the objection for review in the Supreme Court under applicable rules.
Sprague v. Bond, 111 N.C. 425, 16 S.E. 412 Authority regarding non-appealability of an order overruling a demurrer ore tenus. Listed among the series of cases supporting the holding.
McIntosh: North Carolina Practice and Procedure in Civil Cases, section 676 Secondary authority discussing the procedural rule concerning demurrers ore tenus and appeals. Cited as an authoritative practice reference corroborating the rule applied by the court.

Court's Reasoning and Analysis

The court confronted the threshold procedural question whether an order overruling a demurrer ore tenus is appealable and answered in the negative. The court relied on a line of prior North Carolina decisions and an authoritative practice treatise to support that rule. The court explained, quoting Joyner v. Roberts, that while an appeal lies from the overruling of a formal demurrer (with protective provisions such as immediate judgment when a demurrer is frivolous under the statute then cited), there is no analogous remedy when a demurrer is made orally (ore tenus). Allowing appeals from overrulings of demurrers ore tenus would, the court explained, permit defendants to procure dilatory stays by asserting jurisdictional or sufficiency objections orally, since the protections that apply to formal demurrers (including immediate judgment for frivolous demurrers) are not available for an oral demurrer. The court further noted that objections to jurisdiction or to the sufficiency of the complaint can be preserved and taken advantage of for the first time in the Supreme Court under the applicable rule (referred to in the opinion as Rule 27 of the Supreme Court, now Rule 21), so defendants incur no prejudice by awaiting final judgment before raising those objections on appeal. The court characterized the rule as settled by reiterated and uniform adjudications and concluded that the appeal could not lie from the order overruling the demurrer ore tenus.

Holding and Implications

APPEAL DISMISSED.

Holding: The Supreme Court of North Carolina held that an order overruling a demurrer ore tenus is not appealable and, applying that rule, dismissed the appeal from the order overruling the demurrer ore tenus.

Implications: As a direct consequence, the appellate court did not address the defendants' substantive contention regarding the sufficiency of the complaint (i.e., whether the allegation of private nuisance and the stated measure of damages stated a cause of action). The court relied on prior decisions and practice authority to treat the non-appealability of such orders as settled law.


Decision filed 10 December 1952; opinion by Ervin, J.; appeal from Sink, J., September Term, 1952, Guilford County.

G. W. MORGAN AND WIFE, ALTA LEE MORGAN, v. HIGH PENN OIL COMPANY AND SOUTHERN OIL TRANSPORTATION COMPANY, INC.

Appeal and Error 2 — An order overruling a demurrer ore tenus is not appealable.

Civil action based on an alleged private nuisance heard upon a demurrer ore tenus to the complaint.

These are the controlling facts in chronological order:

1. The plaintiffs, G. W. Morgan and his wife, Alta Lee Morgan, filed their complaint at the time of the issuance of the summons. The complaint alleges in detail that the plaintiffs own and occupy a tract of land worth $25,000 in Guilford County, North Carolina; that the defendants, High Penn Oil Company and Southern Oil Transportation Company, Inc., operate an oil refinery and an oil distribution center in permanent structures on adjoining premises owned by the defendant, Southern Oil Transportation Company, Inc.; that the oil refinery and the oil distribution center are so constructed and so operated by the defendants as to cast large quantities of noxious fumes and gases onto the neighboring land of the plaintiffs, causing them to suffer great annoyance and discomfort in the enjoyment of their property and inflicting upon such property substantial damage; and that the continued maintenance of the resultant nuisance by the defendants will destroy both the usefulness and value of the land of the plaintiffs. The plaintiffs pray for a perpetual injunction enjoining the continuance of the alleged wrongful acts of the defendants, or for damages totaling $25,000 "in the event such an injunction is not granted."

2. The defendants filed a joint answer within the time appointed by law. The answer admits that the Southern Oil Transportation Company, Inc., owns the lands adjoining the tract claimed by the plaintiffs; that the Southern Oil Transportation Company, Inc., acting alone, maintains an oil distribution center on such premises; and that the High Penn Oil Company, acting alone, operates an oil refinery on such premises. It denies, however, that either of the defendants conducts its business in such a manner as to constitute a nuisance, or to cause injury to neighboring lands or landowners.

3. When the action came on to be heard at the September Term, 1952, of the Superior Court of Guilford County, the defendants interposed a demurrer ore tenus on the theory that the complaint does not state facts sufficient to constitute a cause of action because it "alleges a private nuisance and then alleges as the measure of damages . . . the difference between the fair market value of the property before the alleged acts and the fair market value after the alleged acts." Judge H. Hoyle Sink, who presided, entered an order overruling the demurrer ore tenus, and the defendants appealed, assigning such ruling as error.

ERVIN, J.

This question arises at the threshold of the appeal: Is an order overruling a demurrer ore tenus appealable?

The answer is "No." Hood, Comr. of Banks v. Motor Co., 209 N.C. 303, 183 S.E. 529; Griffin v. Bank, 205 N.C. 253, 171 S.E. 71; Mountain Park Institute v. Lovill, 198 N.C. 642, 153 S.E. 114; Chambers v. R. R. 172 N.C. 555, 90 S.E. 590; Shelby v. Railway Co., 147 N.C. 537, 61 S.E. 377; Hall v. Railroad, 146 N.C. 345, 59 S.E. 879; Burrell v. Hughes, 116 N.C. 430, 21 S.E. 971; Joyner v. Roberts, 112 N.C. 111, 16 S.E. 917; Sprague v. Bond, 111 N.C. 425, 16 S.E. 412; McIntosh: North Carolina Practice and Procedure in Civil Cases, section 676.

The reasons for the rule that an appeal does not lie from an order overruling a demurrer ore tenus were thus stated in Joyner v. Roberts, supra: "It is contended, however, that this is, in effect, a demurrer ore tenus, and that, therefore, an appeal lies. From the overruling of a formal demurrer an appeal does lie. But there is this protection against abuse, that if the demurrer is frivolous, judgment is at once granted the plaintiff. The Code, section 388. (Now G.S. 1-219.) But there is no such remedy on overruling this motion. . . . If an appeal lay in such cases, every defendant in every case could procure six or twelve months' delay by simply objecting to the jurisdiction or to the sufficiency of the complaint, no matter how plain the case or how utterly unfounded the grounds of the objection, since, as has been already said, judgment cannot be entered as when a frivolous demurrer is filed. To rule that an appeal lay in such case would be simply to establish a `stay-law.' There is less excuse for an appeal in this particular respect, since the defendants cannot possibly be damaged by delaying the appeal till the final judgment, because, even though they should fail to note an exception, the objection to the jurisdiction and for failure of the complaint to state a cause of action can still be taken advantage of for the first time in this Court. Rule 27 of the Supreme Court. (Now Rule 21.) Those grounds of objection cannot be waived by proceeding to trial . . . The hardship, if any, is on the other side, who may find (if he has not a cause of action or the Court has not jurisdiction) that his victory is barren, and that he has the costs to pay for his bootless clamor. . . . There are some questions which, by the reiterated and uniform adjudications in regard to them, should be deemed settled. This is one of them."

Appeal dismissed.

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MORGAN v. OIL CO
(Dec 1, 1952)