Short Answer

In North Carolina, a party must attend and participate in court-ordered mediation, but no one is automatically required to hand over bank records during the mediation. If the co-owner will not provide proof of funds informally, you can use formal discovery through the Clerk of Superior Court to request documents and, if needed, ask the clerk to compel production. If mediation fails, the clerk will hold a hearing and can set enforceable deadlines or move the case forward toward partition or sale.

Understanding the Problem

You are in a North Carolina partition action before the Clerk of Superior Court. The immediate question is: can you make a co-owner show proof of funds during mediation so you can decide whether to settle on a buyout? Here, one co-owner has not provided updated bank statements or a loan-application update despite requests, and mediation is ongoing with a hearing set if no settlement occurs.

Apply the Law

North Carolina clerks can order mediation in partition cases. Attendance and payment of mediator fees are mandatory, and mediation talks are confidential. But mediation does not create a duty to disclose financial records unless the parties agree or the court orders it. If voluntary exchange stalls, you can use the Rules of Civil Procedure in this special proceeding to request documents, subpoena third parties (like lenders), and move to compel if the other side refuses. If a statutory or court-ordered buyout is on the table, the clerk can set firm deadlines (including deposits). Missed deadlines or failure to prove ability to pay often means the matter proceeds to partition in kind or sale.

Key Requirements

• Mediation attendance is mandatory: Parties must attend and participate in court-ordered mediation; nonattendance or nonpayment can be sanctioned.
• Confidentiality, not secrecy: What is said in mediation is confidential, but actual documents and facts remain discoverable later.
• Use formal discovery for proof: Serve document requests and subpoenas; if there is no compliance, file a motion to compel and seek appropriate orders from the clerk.
• Deadlines control buyouts: When a buyout is pursued, the clerk can set strict election, documentation, and deposit deadlines; missing them typically moves the case toward partition or sale.

What the Statutes Say

• G.S. 7A-38.3B (Mediation before the Clerk) – Clerk may order mediation; attendance and payment are required; mediation communications are confidential with limited exceptions.
• G.S. 1-393 (Rules in Special Proceedings) – Rules of Civil Procedure apply to special proceedings unless a statute provides otherwise.
• Rule 45, N.C. R. Civ. P. (Subpoenas) – Subpoena documents from nonparties like lenders to verify loan status or funds.
• Rule 37, N.C. R. Civ. P. (Motions to Compel/Sanctions) – If a party refuses discovery, the court can order compliance and impose sanctions.

Analysis

Apply the Rule to the Facts: Mediation does not, by itself, require your co-owner to hand over bank statements or loan paperwork, so the refusal during mediation usually isn’t sanctionable by itself. Because this is a North Carolina partition special proceeding, you can serve formal document requests and issue a Rule 45 subpoena to the lender for loan status; if the co-owner still withholds, ask the clerk to compel production under Rule 37. If the co-owner cannot meet any buyout deadline the clerk sets (including proof of financing or deposits), the case will likely move forward to a hearing and potentially to partition in kind or sale.

Process & Timing

1. Who files: The co-owner seeking proof. Where: Office of the Clerk of Superior Court in the North Carolina county where the property lies. What: Serve Rule 34 requests for production; issue Rule 45 subpoenas (e.g., to the lender); file a motion to compel under Rule 37 if needed. When: Parties typically have about 30 days to respond to written discovery; mediation completion deadlines come from the clerk’s mediation order.
2. After service, track responses. If incomplete or late, notice a motion to compel. The clerk may set a short hearing to resolve discovery and, if relevant, set or enforce buyout deadlines.
3. At the merits hearing, the clerk may: set final buyout conditions (including deposits) or move the matter to partition in kind or sale. Expect a written order stating next steps or the partition remedy.

Exceptions & Pitfalls

• Mediation limits: The mediator cannot force document production; use formal discovery and, if needed, a motion to compel.
• Confidentiality traps: Do not disclose mediation-only communications in filings; instead, seek the underlying documents through discovery.
• Service issues: Improper service of discovery or subpoenas can sink a motion to compel; follow Rule 5 (parties) and Rule 45 (nonparties).
• Buyout timing: If a statutory or court-ordered buyout process applies, missing the election or deposit deadline typically moves the case to partition or sale.

Talk to a Partition Action Attorney

If you’re dealing with a buyout stalemate in a partition case and need to verify another co-owner’s ability to pay, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.