Statutes of Limitation

The North Carolina General Statutes set out different statutes of limitation periods for different types of civil actions.  Some statutes relate directly to inverse condemnation cases. Others govern actions, such as adverse possession, which may be related to an underlying condemnation or inverse condemnation case. Some of these statutes of limitation are set out below.

The Starting Point

N.C. Gen. Stat. § 1‑15 sets out the basic law that civil actions must be filed within limitation periods prescribed either by the statutes of Chapter 1 or, in special cases, by statutes located elsewhere in the General Statutes.  N.C. Gen. Stat. § 1‑15 reads in relevant part,

(a) Civil actions can only be commenced within the periods prescribed in this Chapter, after the cause of action has accrued, except where in special cases a different limitation is prescribed by statute.

Links to N.C. Gen. Stat. § 1‑15:

Condemnation Statutes of Limitation

Inverse Condemnation for Utility Service Lines by Public Utility, Electric or Telephone Cooperative, or a Municipality

N.C. Gen. Stat. 1-52 sets a 3-year statute of limitation for many actions, including

(17) Against a public utility, electric or telephone membership corporation, or a municipality for damages or for compensation for right‑of‑way or use of any lands for a utility service line or lines to serve one or more customers or members unless an inverse condemnation action or proceeding is commenced within three years after the utility service line has been constructed or by October 1, 1984, whichever is later.

But see N.C. Gen. Stat. §40A-51(a) and N.C. Gen. Stat. §136-111, each of which set a 24-month limitation period for bringing an inverse condemnation action under their respective chapters.

Links to N.C. Gen. Stat. 1-52

Inverse Condemnation by Local Public Condemnor under Chapter 40A

N.C. Gen. Stat. §40A-51(a) sets a 24-month statute of limitation for a property owner to file an inverse condemnation case against a local Public Condemnor, such as a city, county or local board of education.  The statute runs from the later of the date of the actual taking or the completion of the project.  The statute reads in relevant part,

(a)  If property has been taken by an act or omission of a condemnor listed in G.S. 40A‑3(b) or (c) and no complaint containing a declaration of taking has been filed the owner of the property, may initiate an action to seek compensation for the taking. The action may be initiated within 24 months of the date of the taking of the affected property or the completion of the project involving the taking, whichever shall occur later….

Links to N.C. Gen. Stat. §40A-51

Inverse Condemnation by NCDOT or other Chapter 136 condemnor

N.C. Gen. Stat. §136-111 provides a 24-month limitation period for Chapter 136 inverse condemnations.  The language of this statute is similar to that of N.C. Gen. Stat. §40A-51, and reads, in relevant part, as follows:

Any person whose land or compensable interest therein has been taken by an intentional or unintentional act or omission of the Department of Transportation and no complaint and declaration of taking has been filed by said Department of Transportation may, within 24 months of the date of the taking of the affected property or interest therein or the completion of the project involving the taking, whichever shall occur later, file a complaint in the superior court….

Links to N.C. Gen. Stat. §136-111

Other Real Property Actions

Adverse Possession

N.C. Gen. Stat. 1-40

No action for the recovery or possession of real property, or the issues and profits thereof, shall be maintained when the person in possession thereof, or defendant in the action, or those under whom he claims, has possessed the property under known and visible lines and boundaries adversely to all other persons for 20 years; and such possession so held gives a title in fee to the possessor, in such property, against all persons not under disability. (C.C.P., s. 23; Code, s. 144; Rev., s. 384; C.S., s. 430.)

But under color of title, 7-years:  Taylor v. Brittain, 76 N.C. App. 574 (1985), modified and aff’d, 317 N.C. 146 (1986).  Also, there is no constructive possession except under color of title. Carswell v. Town of Morganton, 236 N.C. 375 (1952).

Links to N.C. Gen. Stat. 1-40

Trespass

N.C. Gen. Stat. 1-52 sets a 3-year statute of limitation for many actions, including

(3) For trespass upon real property. When the trespass is a continuing one, the action shall be commenced within three years from the original trespass, and not thereafter.

Links to N.C. Gen. Stat. 1-52

Defective or Unsafe Improvement to Real Property

N.C. Gen. Stat. 1-50(a)(5) – six years:

a. No action to recover damages based upon or arising out of the defective or unsafe condition of an improvement to real property shall be brought more than six years from the later of the specific last act or omission of the defendant giving rise to the cause of action or substantial completion of the improvement.

b. For purposes of this subdivision, an action based upon or arising out of the defective or unsafe condition of an improvement to real property includes:

1. Actions to recover damages for breach of a contract to construct or repair an improvement to real property;

2. Actions to recover damages for the negligent construction or repair of an improvement to real property;

3. Actions to recover damages for personal injury, death or damage to property;

4. Actions to recover damages for economic or monetary loss;

5. Actions in contract or in tort or otherwise;

6. Actions for contribution indemnification for damages sustained on account of an action described in this subdivision;

7. Actions against a surety or guarantor of a defendant described in this subdivision;

8. Actions brought against any current or prior owner of the real property or improvement, or against any other person having a current or prior interest therein;

9. Actions against any person furnishing materials, or against any person who develops real property or who performs or furnishes the design, plans, specifications, surveying, supervision, testing or observation of construction, or construction of an improvement to real property, or a repair to an improvement to real property.

c. For purposes of this subdivision, “substantial completion” means that degree of completion of a project, improvement or specified area or portion thereof (in accordance with the contract, as modified by any change orders agreed to by the parties) upon attainment of which the owner can use the same for the purpose for which it was intended. The date of substantial completion may be established by written agreement.

d. The limitation prescribed by this subdivision shall not be asserted as a defense by any person in actual possession or control, as owner, tenant or otherwise, of the improvement at the time the defective or unsafe condition constitutes the proximate cause of the injury or death for which it is proposed to bring an action, in the event such person in actual possession or control either knew, or ought reasonably to have known, of the defective or unsafe condition.

e. The limitation prescribed by this subdivision shall not be asserted as a defense by any person who shall have been guilty of fraud, or willful or wanton negligence in furnishing materials, in developing real property, in performing or furnishing the design, plans, specifications, surveying, supervision, testing or observation of construction, or construction of an improvement to real property, or a repair to an improvement to real property, or to a surety or guarantor of any of the foregoing persons, or to any person who shall wrongfully conceal any such fraud, or willful or wanton negligence.

f. This subdivision prescribes an outside limitation of six years from the later of the specific last act or omission or substantial completion, within which the limitations prescribed by G.S. 1‑52 and 1‑53 continue to run. For purposes of the three‑year limitation prescribed by G.S. 1‑52, a cause of action based upon or arising out of the defective or unsafe condition of an improvement to real property shall not accrue until the injury, loss, defect or damage becomes apparent or ought reasonably to have become apparent to the claimant. However, as provided in this subdivision, no action may be brought more than six years from the later of the specific last act or omission or substantial completion.

g. The limitation prescribed by this subdivision shall apply to the exclusion of G.S. 1‑15(c), G.S. 1‑52(16) and G.S. 1‑47(2).

Links to N.C. Gen. Stat. 1-50(a)(5)

Contracts statutes of limitation

Contracts Generally

N.C. Gen. Stat. 1-52(1) prescribes 3 years:

(1) Upon a contract, obligation or liability arising out of a contract, express or implied, except those mentioned in the preceding sections or in G.S. 1‑53(1).

Links to N.C. Gen. Stat. 1-52(1)

Contracts for the Sale of Goods under UCC

North Carolina’s version of the Uniform Commercial Code begins at N.C. Gen. Stat. 25-1-101. (Westlaw link.) N.C. Gen. Stat. 25-2-725 sets out the standard 4-year statute of limitation for a contract for the sale of goods (as opposed to the 3-year statute of limitation for a services contract under N.C. Gen. Stat. 1-52(1)):

(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.

(2) A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered.

(3) Where an action commenced within the time limited by subsection (1) is so terminated as to leave available a remedy by another action for the same breach such other action may be commenced after the expiration of the time limited and within twelve months after the termination of the first action.

(4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action which have accrued before this chapter becomes effective. (1965, c. 700, s. 1; 1967, c. 562, s. 1.)

Links to N.C. Gen. Stat. 25-2-725

Contract action against a Local Unit of Government

N.C. Gen. Stat. 1-53(1) – two years:

An action against a local unit of government upon a contract, obligation or liability arising out of a contract, express or implied. Unless otherwise provided by law, if the preceding sentence of this subsection would bar commencement of a cause of action arising out of a contract to improve real property: (i) such an action may be brought no later than 90 days after substantial completion, provided proper notice of the claim has been given if required by contract, or (ii) if prior to substantial completion the contract was terminated by either party, such an action may be brought no later than 90 days after the date of termination of the contract. As used in this subdivision, “substantial completion” has the same meaning as in G.S. 1‑50(a)(5)c. This subdivision shall not apply to actions based upon bonds, notes and interest coupons or when a different period of limitation is prescribed by this Article.

Links to N.C. Gen. Stat. 1-53(1)

Catchall Statute of Limitation

N.C. Gen. Stat. 1-56:

“An action for relief not otherwise limited by this subchapter may not be commenced more than 10 years after the cause of action has accrued.”

Links to N.C. Gen. Stat. 1-56

____________________

Christopher J. Simmons, Attorney at LawChristopher J. Simmons is an attorney licensed in North Carolina and Florida and practicing as an associate city attorney with the City of Raleigh, North Carolina.

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