Callahan v. Point Clear Holdings, Inc.

579 F.3d 1207, 2009 U.S. App. LEXIS 17949, 2009 WL 2450286
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 12, 2009
Docket08-14634
StatusPublished
Cited by5 cases

This text of 579 F.3d 1207 (Callahan v. Point Clear Holdings, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Callahan v. Point Clear Holdings, Inc., 579 F.3d 1207, 2009 U.S. App. LEXIS 17949, 2009 WL 2450286 (11th Cir. 2009).

Opinion

ANDERSON, Circuit Judge:

Appellant Point Clear Holdings, Inc. (“PCH”) appeals from the district court’s grant of summary judgment to Appellees H.E. Scobee, Dorothy Scobee, Hank Perkins, and Paula Perkins (collectively “the Lot Owners”). The dispute in this case centers on controlling the use of Pine Grove Drive, a street in Point Clear, Alabama. PCH owns Pine Grove Drive, and the Lot Owners have a private easement for a street in Pine Grove Drive. The district court’s summary judgment order severely limited PCH’s ability to use Pine Grove Drive and to grant rights of use in Pine Grove Drive to persons other than the Lot Owners. After oral argument and careful consideration, we reverse the district court’s conclusions of law and vacate its “findings of fact.”

I. FACTS

This case centers around the use and control of a street, Pine Grove Drive, located in Point Clear, Alabama. Pine Grove Drive is the sole access street for a subdivision, Unit Two, of a residential development, Lakewood Club Estates (“Lakewood”). Lakewood is adjacent to a resort hotel, the Grand Hotel. Lakewood surrounds a golf course and tennis complex developed for the Grand Hotel. Unit Two, of which Pine Grove Drive is a part, is bound by a set of restrictive covenants filed by Grand Hotel Development Corpo *1211 ration (“GHDC”), the original developer of the Grand Hotel, Lakewood, and Unit Two of Lakewood. The most relevant portions of the restrictive covenants provide as follows: 1

A-7. Easements. The easements shown on the plat of said subdivision are hereby adopted as a part of these restrictions, and all lots in said subdivision shall be subject to said easements. Grand Hotel reserves unto itself, its successors and assigns, the right to grant unto others easements to install, maintain, repair and construct power, water gas and telephone lines and facilities and drainage ditches, in, on, over and under the areas, or any of the areas designated on said plat as “private easement” or “planting strip” or “planting area.”
A-8. Street Easements. The street easements shown on the plat of the subdivision have been designated as private easements for streets and are for the use and benefit of the owner of any lot in the subdivision or Grand Hotel, and guests, invitees and employees of the owner of any lot in the subdivision or Grand Hotel, and other members of the public who have business to conduct with the owner of any lot in the subdivision, or Grand Hotel; and Grand Hotel reserves the right at any time to dedicate said streets to the public, but neither the recording of a plat nor any other act of Grand Hotel shall be construed as a dedication of said streets to the public unless Grand Hotel shall execute and record in the Probate Court of Baldwin County, Alabama, a right of way deed or other documents conveying to the proper authority an easement for the benefit of the public in said streets. C-l. Term. These covenants, restrictions and limitations shall run with the land and shall be binding on all parties and persons claiming under them until January 1,1985, at which time said covenants shall be automatically extended for successive periods of ten (10) years, unless by a vote of a majority of the then owners of the lots it is agreed to change said covenants in whole or in part.

The reference to “street easements” that are “designated as private easements for streets” in paragraph A-8 is a reference to Pine Grove Drive as shown by the subdivision plat. Thus, according to the terms of the restrictive covenants paragraph A-8, Pine Grove Drive is designated as a private easement for a street. On the original plat, Pine Grove Drive intersected with one other Lakewood street on its western end and was intersected in the middle by an existing road which provides access to U.S. Highway 98. On its eastern end, Pine Grove Drive is shown on the plat as extending to the end of the plat, with the adjoining land to the east belonging to the developer. Since the development of Unit Two, Pine Grove Drive has actually been connected at its eastern end to another Lakewood street, with a security gate at that end.

PCH is the successor in interest to GHDC and is the current owner and operator of the Grand Hotel. PCH owns Pine Grove Drive. The Lot Owners are a group of persons who own residential lots within Unit Two. This dispute arose between PCH and the Lot Owners when the Lot Owners became aware that PCH planned to be involved in a condominium development project on land near Lakewood known as the “Pate property.” After the filing of this suit, PCH’s plan evolved to a larger, mixed-use development project called “the Colony at the Grand” (“the Colony”). The Colony development project would include the Pate property and other property located inside *1212 and outside of Lakewood, and would include a mixture of high- and low-density residential development and commercial development. PCH planned to grant a right-of-way over Pine Grove Drive to the Pate property or the Colony residents. The proposal to the zoning authority revealed the plan that Pine Grove Drive would be one of several means of access for Pate property or Colony residents (but not a primary one).

The Lot Owners, who use Pine Grove Drive as the sole means of access to their lots, enacted an amendment to paragraph A-8 of the restrictive covenants governing Unit Two to limit PCH’s future use of Pine Grove Drive. 2 The Lot Owners then brought suit against PCH seeking declaratory judgment that PCH had only limited use rights in Pine Grove Drive, that PCH could not use Pine Grove Drive in connection with any property development outside of the property owned by GHDC at the time that Unit Two was created, and that PCH could not dedicate Pine Grove Drive to the public. PCH brought a counterclaim, seeking a declaration that the Lot Owners’ attempted amendment of paragraph A-8 of the restrictive covenants was invalid. The Lot Owners filed a dis-positive motion for summary judgment. PCH filed a motion for partial summary judgment (to declare invalid the Lot Owners’ attempted amendment). The district court granted the Lot Owners’ motion for summary judgment, and denied PCH’s motion. 3 PCH has appealed.

II. STANDARD OF REVIEW

We review the district court’s order granting summary judgment de novo. Shuford v. Fidelity Nat’l Prop. & Cas. Ins. Co., 508 F.3d 1337, 1341 (11th Cir.2007). “We apply the same legal standards that bound the district court and view all facts and reasonable inferences in the light most favorable to the nonmoving party.” Id.

III. DISCUSSION

The Lot Owners and PCH agree that PCH owns Pine Grove Drive and that the Lot Owners have an easement in Pine Grove Drive. We will first analyze the easement, therefore, to determine the rights and obligations of each party. Blalock v. Conzelman, 751 So.2d 2, 6 (Ala.1999) (“[T]he existence of the easement creates mutual rights and obligations.”).

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Cite This Page — Counsel Stack

Bluebook (online)
579 F.3d 1207, 2009 U.S. App. LEXIS 17949, 2009 WL 2450286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/callahan-v-point-clear-holdings-inc-ca11-2009.