Which Clock is Ticking? Recent (Unpublished) NC Court of Appeals' decision in October of 2025 continues precedent of applying the 3-year contract statute of limitations when suing to contest a POA.

Court Opinion: https://appellate.nccourts.org/opinions/?c=2&pdf=44709

Facts: A POA is executed in 2016. Two years later in 2018 the named agent under the POA executes a deed through the purported powers of the 2016 POA. One year later in 2019, the principal of the POA dies. Three years later in 2022 a quiet title action is filed challenging the validity of the 2018 deed on the theory that the 2016 POA was ineffective due to allegations that the principal lacked capacity and was defrauded in its execution at that time.

Trial: A jury trial found the 2016 POA invalid due to the principal lacking capacity.

Appeal: On appeal the main issue was whether the affirmative defense originally pleaded by defendants (which was a statute of limitations defense) was effective. The Court of Appeals held that in NC a POA is essentially a contract, so any claim for relief must be sought "within three years of the time the cause of action accrues." The court went on to note that whether the cause of action accrued at the 2016 POA signing or the 2018 deed through the POA, neither could have been reached by the lawsuit not filed until 2022.

The COA accordingly reversed the trial court's judgement on the grounds that it erred in its consideration of defendants' original affirmative defense (application of the 3-year SOL).

Plaintiff's case should have never gotten off the runway.

Takeaways:

1. Was the family dynamic "missed" in the estate planning process here? Could the POA have been drafted differently to account for a difficult dynamic, such with a different selection of agent or limitation on powers related to gifting and real estate?

2. Always double check your statute of limitations, especially if you haven't originally researched it already.

3. It's not over until it's over. Just like estate planners need to have good relationships with trial litigators, so too litigators need to foster relationships with appellate litigators. What an amazing feat achieved on appeal by the defense counsel = when all surely felt lost to their client.