Partition Action Q&A Series

How do I move forward with a partition hearing when the other side says there was a settlement agreement? – North Carolina

Short Answer

In North Carolina, a partition case is usually heard as a special proceeding before the Clerk of Superior Court. If the other side claims there was a settlement, the key question is whether that claim raises an “equitable defense” or asks for “equitable relief” (like enforcing the settlement). If it does, the Clerk generally must transfer that issue to a Superior Court judge, while the partition process may pause or proceed depending on what the judge orders.

Understanding the Problem

In a North Carolina partition action, one co-owner asks the Clerk of Superior Court to divide property or order a sale and divide the proceeds. What happens if the opposing side says the partition should not move forward because the parties already settled the dispute, even though the settlement was never signed? The decision point is whether the “settlement agreement” argument is treated as a defense that the Clerk can decide in the partition proceeding, or whether it must be sent to a Superior Court judge to decide enforceability before the partition hearing can move forward.

Apply the Law

North Carolina treats partition as a special proceeding, typically handled by the Clerk of Superior Court in the county where the property is located. If a party raises an equitable defense or asks for equitable relief in the partition case (for example, asking the court to enforce an alleged settlement and stop the partition), North Carolina law generally requires the Clerk to transfer the proceeding to the appropriate court for a judge to decide those issues. Separately, North Carolina’s partition statutes require the court to choose a method of partition (division in kind, sale, or a combination) and, if a sale is ordered, follow the statutory sale process.

Key Requirements

  • Proper forum (partition starts with the Clerk): A partition case is a special proceeding, and the Clerk of Superior Court is the usual decision-maker for partition steps unless a transfer rule applies.
  • Identify whether the “settlement” claim is equitable: If the other side is asking the court to enforce a settlement, stop the case, or grant other equitable relief, that typically triggers transfer to a Superior Court judge.
  • Partition method still must be decided under Chapter 46A: If the case remains with the Clerk (or returns after a judge rules), the court must select the legally permitted method of partition and, if a sale is ordered, follow the required sale procedure.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a partition hearing where opposing counsel may argue there was a prior settlement agreement even though it was not signed. If the opposing side is not merely “mentioning negotiations,” but is asking the tribunal to enforce the alleged settlement (or to dismiss/stay the partition because of it), that usually functions as an equitable defense or a request for equitable relief. Under North Carolina’s special proceeding transfer rule, that kind of issue is commonly sent to a Superior Court judge to decide, and the partition timeline may be affected until the enforceability question is resolved.

Process & Timing

  1. Who files: The party seeking to keep the partition moving typically files a written response opposing enforcement of the alleged settlement and/or a written motion asking the Clerk to proceed with partition steps. Where: The Clerk of Superior Court in the county where the partition special proceeding is pending. What: A pleading or motion that (a) disputes that an enforceable settlement exists and (b) addresses whether the “settlement” argument is an equitable defense/request for equitable relief that requires transfer under North Carolina’s special proceeding rules. When: As soon as the settlement claim is raised, because it can change who decides the issue and whether the partition hearing goes forward.
  2. Transfer decision: If the settlement issue is presented as an equitable defense or request for equitable relief, the Clerk generally transfers the proceeding (or at least the equitable issue) to Superior Court for a judge. The judge may decide only the settlement/enforcement issue and then send the partition case back to the Clerk, or the judge may keep and decide more of the controversy if appropriate under the transfer statute.
  3. Partition continues (or resumes): If the judge rules there is no enforceable settlement (or the issue is resolved another way), the case typically returns to the Clerk to decide the partition method under Chapter 46A (actual partition, sale, or a combination) and, if a sale is ordered, to follow the statutory sale process and confirmation steps.

Exceptions & Pitfalls

  • “Settlement talks” vs. “enforceable settlement”: A common pitfall is treating negotiation emails or draft terms as automatically binding. In practice, enforceability often turns on what the parties actually agreed to and whether they intended to be bound before signatures. If the other side cannot show a clear meeting of the minds on material terms, enforcement may be contested.
  • Raising the issue the wrong way: If the settlement argument is not properly raised in a pleading or written motion, it may not trigger the transfer process cleanly. Conversely, if it is raised as an equitable defense/request for equitable relief, transfer may be mandatory under the special proceeding statute.
  • Partition-specific limits on transfer: North Carolina law carves out that the Clerk decides the issue of whether to order actual partition or sale in lieu of partition of real property. Even when a case is transferred for equitable issues, parties should be prepared for the Clerk to retain authority over that partition-method decision unless a judge’s ruling effectively resolves it.
  • Practical delay and leverage: A settlement-enforcement fight can slow down a sale or division. Planning for that delay (and preserving evidence about what was or was not agreed) often matters as much as the partition merits.

Conclusion

In North Carolina, a partition case usually proceeds before the Clerk of Superior Court, but a claimed settlement can change the path if the other side asks to enforce it or uses it as an equitable defense. When that happens, the Clerk generally must transfer the equitable issue to a Superior Court judge under the special proceeding transfer statute, and the partition steps may pause until the judge rules. The practical next step is to file a written response or motion addressing transfer and enforceability promptly, keeping the 10-day appeal window for Clerk orders in mind.

Talk to a Partition Action Attorney

If a partition hearing is approaching and the other side claims there was a settlement agreement that should stop the case, our firm has experienced attorneys who can help explain the transfer rules, what evidence matters, and the timelines that can affect a sale or division. 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.