Partition Action Q&A Series

What can I do if the other side’s settlement offer feels like it was not made in good faith in a partition case? – North Carolina

Short Answer

In a North Carolina partition case, a “bad” settlement offer usually is not something a judge or clerk can punish by itself, because parties are generally not required to make any offer at all. The practical move is to ask the court to order mediation and require the decision-makers to attend, which can force real-time negotiation and reduce delay. If the other side fails to attend a court-ordered mediation (or fails to pay required mediation fees) without good cause, the court can impose sanctions.

Understanding the Problem

In a North Carolina partition action, can a co-owner do anything when the other co-owner’s settlement position seems unreasonable or “not serious,” especially when communication is difficult and the case risks becoming more complicated and expensive? The decision point is whether to keep negotiating informally or to ask the court to use its authority to structure settlement efforts through a court-ordered mediation process.

Apply the Law

North Carolina partition cases can be mediated, and the court can order mediation in the right circumstances. Importantly, North Carolina’s mediation statutes focus on getting the right people to the table and keeping the process moving; they do not force anyone to make a particular offer. In many partition matters, the most effective response to “bad faith” bargaining is to shift from informal back-and-forth to a court-ordered mediation with required attendance by parties (and anyone with authority to settle), plus a clear schedule and consequences for nonappearance.

Key Requirements

  • Proper forum authority: The partition matter must be in a posture where the clerk of superior court or the superior court can order mediation as part of the case management.
  • Attendance by decision-makers: When mediation is ordered, the parties and their attorneys (and, in many situations, people with authority to settle) can be required to attend unless excused.
  • Enforceable result must be written: Even if the parties reach agreement in mediation, the settlement generally needs to be reduced to writing and signed to be enforceable.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The co-owners have exchanged settlement offers, but neither side believes the other has made a best offer yet, and one party is hard to reach. Under North Carolina law, the fact that an offer feels unreasonable usually does not create a direct “bad faith offer” remedy, because the statutes emphasize attendance and participation rather than forcing a number. The most direct tool is to request court-ordered mediation in the partition case so the parties (and counsel) must appear and negotiate on a set date, which can reduce delay when one party is out of the country or otherwise unresponsive.

In practice, mediation also helps narrow the real issues that drive “bad faith” perceptions in partition cases—such as disagreements about value, credits for expenses, timing of a sale, or who controls listing and repairs. For more on what the mediation day typically looks like, see what mediation involves in a co-owner property dispute.

Process & Timing

  1. Who files: A party to the partition case (through counsel, if represented). Where: The Clerk of Superior Court (for clerk-handled partition matters) or the Superior Court division if the case is pending there in North Carolina. What: A written motion asking for court-ordered mediation in the partition proceeding (and, where appropriate, an order requiring attendance by the parties and any person with settlement authority). When: Often as soon as it becomes clear informal negotiations are stalled or one party is difficult to reach.
  2. Scheduling and mediator selection: The parties may be able to agree on a mediator; if they cannot, the court/clerk can appoint one under the applicable mediation rules and statutes. The order typically sets a deadline to complete mediation and may address fees and attendance expectations.
  3. After mediation: If the case settles, the agreement should be put in a signed writing so it can be enforced. If it does not settle, the case proceeds, but the mediation can still streamline later steps by clarifying what is truly disputed.

Exceptions & Pitfalls

  • “Bad faith offer” is not the same as “failure to attend.” North Carolina’s mediation statutes generally do not require any party to make an offer they believe is against their interests, so the cleaner sanctions issue is usually nonattendance or nonpayment, not the size of an offer.
  • Do not rely on handshake deals. A settlement reached in mediation is far safer when reduced to a written agreement signed by the parties against whom enforcement is sought.
  • Hard-to-reach parties create logistics problems. If a party is out of the country or routinely unavailable, the motion for mediation should address practical attendance issues early (for example, requesting clear attendance requirements and confirming who has authority to settle).
  • Confidentiality limits “proof.” Mediation communications are generally protected and inadmissible, with limited exceptions (including certain sanctions proceedings). Strategy should focus on what can be proven (missed attendance, missed payments, refusal to comply with an order), not on arguing about negotiating tone.

Conclusion

In North Carolina partition cases, an offer that feels “not in good faith” usually does not create a direct remedy because parties generally are not required to make any particular settlement offer. The most effective step is often to move negotiations into a court-ordered mediation, where the clerk or court can require attendance and keep the case on a schedule. If the other side fails to attend the ordered mediation (or fails to pay required fees) without good cause, sanctions may apply. Next step: file a motion requesting court-ordered mediation in the partition proceeding.

Talk to a Partition Action Attorney

If a co-owner’s settlement posture is stalling a North Carolina partition case, our firm has experienced attorneys who can help evaluate options, request court-ordered mediation, and keep the matter moving on a realistic timeline. 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.