Cape Homeowners Ass'n, Inc. v. S. Destiny

CourtCourt of Appeals of North Carolina
DecidedJuly 5, 2022
Docket21-366
StatusPublished

This text of Cape Homeowners Ass'n, Inc. v. S. Destiny (Cape Homeowners Ass'n, Inc. v. S. Destiny) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cape Homeowners Ass'n, Inc. v. S. Destiny, (N.C. Ct. App. 2022).

Opinion

IN THE COURT OF APPEALS OF NORTH CAROLINA

2022-NCCOA-445

No. COA21-366

Filed 5 July 2022

New Hanover County, No. 19-CVS-1668

CAPE HOMEOWNERS ASSOCIATION, INC., DESMOND P. MCHUGH and wife, GERALDINE MCHUGH, MICHAEL L. BODNAR and wife, PATRICIA L. BODNAR, BRUCE ANDERSON and wife, ARLENE ANDERSON, DONNA J. MARTIN and spouse, PETER MARTIN, Plaintiffs,

v.

SOUTHERN DESTINY, LLC, a North Carolina Limited Liability Company, Defendant.

Appeal by Plaintiffs from orders entered 3 December 2020 and 8 February

2021 by Judge R. Kent Harrell in New Hanover County Superior Court. Heard in the

Court of Appeals 15 December 2021.

Shipman & Wright, L.L.P., by Gary K. Shipman, for Plaintiffs-Appellants.

Ward & Smith, P.A., by Ryal W. Tayloe, Christopher S. Edwards, and Luke C. Tompkins, for Defendant-Appellee.

COLLINS, Judge.

¶1 Plaintiffs appeal from orders on cross-motions for summary judgment and

Plaintiffs’ motion for amended and additional findings of fact. Plaintiffs argue that

the trial court erred by entering summary judgment in Defendant’s favor based upon

its conclusions that Defendant has an express easement permitting it to use the CAPE HOMEOWNERS ASS’N, INC. V. SOUTHERN DESTINY, LLC

Opinion of the Court

streets and roads of Plaintiffs’ residential subdivision and that Plaintiffs lack an

easement implied by plat requiring certain property adjacent to the subdivision to be

kept open for their reasonable use. Because the trial court erred by concluding that

Defendant has an express easement permitting it to use the streets and roads of

Plaintiffs’ residential subdivision, we reverse the trial court’s entry of summary

judgment on that claim. We remand to the trial court to enter summary judgment in

Plaintiffs’ favor regarding Defendant’s claim for an express easement and for further

proceedings to address Defendant’s alternative claims for an implied easement. We

affirm the trial court’s entry of summary judgment based on its conclusion that

Plaintiffs lacked an easement over the property adjacent to the subdivision.

I. Background

¶2 This case concerns property rights in the Cape Subdivision, a residential

development, and an adjacent property which has historically been used as a golf

course (“Subject Property”). Plaintiffs are the Cape Homeowner’s Association, Inc.

(“Cape HOA”), and owners of individual lots within the Cape Subdivision.1 The Cape

HOA is responsible for maintaining the “common areas, streets, and entrances to and

in” the Cape Subdivision.

¶3 Defendant Southern Destiny, LLC, is the current owner of the Subject

1Upon Plaintiffs’ motion, the trial court certified a class of individual property owners within the Cape Subdivision. CAPE HOMEOWNERS ASS’N, INC. V. SOUTHERN DESTINY, LLC

Property. Defendant ceased operating a golf course on the Subject Property in 2018

and wishes to develop portions of it into residential subdivisions.

¶4 In January 1983, Carolina Resorts acquired the Subject Property and the

property on which the Cape Subdivision now sits. Carolina Resorts conveyed this

property to Suggs & Harrelson, Inc., in November 1983. Between 1983 and 1986,

Carolina Resorts and Suggs & Harrelson, Inc., recorded a series of plat maps

depicting residential lots in sections of the Cape Subdivision. Several of the maps

show portions of roads, the Cape Fear River, areas labeled for “future development”

and “future construction,” lakes, and areas labeled “the Cape Golf Course” adjacent

to the sections of the Cape Subdivision. No single map depicts an entire golf course.

Taken together, the maps either label or illustrate the locations of holes 1, 5-15, and

18 of the Cape Golf Course adjacent to the sections of the Cape Subdivision.

¶5 In August 1986, The Cape Joint Venture, of which Suggs & Harrelson, Inc. was

an owner, deeded the Subject Property to Midway Partners. Simultaneously, Suggs

& Harrelson, Inc., conveyed two tracts, with certain exceptions, to Midway Partners.

Defendant alleged, and Plaintiffs admitted, that as a result of these conveyances

Midway Partners owned the unsold lots in the Cape Subdivision, all the roads in the

subdivision, and the Subject Property.

¶6 In September 1986, Midway Partners deeded the Subject Property to Michael

and Gwen Mattie (the “Matties”). Midway Partners granted several easements in the CAPE HOMEOWNERS ASS’N, INC. V. SOUTHERN DESTINY, LLC

deed, including an easement for

vehicular, golf cart, and pedestrian use by the Grantee, the Grantee’s successors and assigns, the Grantee’s employees, Grantee’s guests, members of the Grantee’s golf club and their guests, and members of the public playing golf at the golf course described above as Tracts 1, 2, 3, 4, and 5, The Cape Golf Course, over and across all streets and roads in the Cape Subdivision, whether dedicated to public use or reserved for private use, as shown on present or future recorded maps of sections of the Cape Subdivision, including but not limited to the recorded maps to which reference is made in the foregoing descriptions of Tracts 1, 2, 3, 4, and 5, The Cape Golf Course, and including all maps of future subdivision sections and future phases of development of The Cape, whether named as such or otherwise, provided that this easement is limited to present and future streets and roads lying within the boundaries of that parcel or parcels, tract or tracts of land described in Exhibit I of this conveyance.

(the “Streets and Roads Easement”). The same day, the Matties conveyed the

property and accompanying easements to Thomas Wright.

¶7 Wright deeded the Subject Property to Defendant approximately 20 years

later, in November 2006. Defendant’s deed describes the Subject Property as depicted

in a 29 November 2006 Boundary Survey of the Cape Golf and Racquet Club.

Defendant continued to operate a golf course and country club on the Subject

Property, open only to members and the paying public. Defendant ceased operation

of the golf course in late 2018, following damage from Hurricane Florence. Since the

closure of the course, Defendant has pursued plans to build residential developments CAPE HOMEOWNERS ASS’N, INC. V. SOUTHERN DESTINY, LLC

on portions of the Subject Property.

¶8 Plaintiffs filed their complaint on 6 May 2019. Plaintiffs sought declaratory

judgment on whether (1) Defendant had any right to use the streets of the Cape

Subdivision to develop the Subject Property, (2) the Cape HOA had any right to

prohibit Defendant from using the streets of the Cape Subdivision to develop the

Subject Property, (3) the individual plaintiffs “acquired a right to have the [Subject

Property] or any portion thereof kept open for their reasonable use,” (4) the individual

plaintiffs acquired an easement appurtenant in the Subject Property, (5) there was a

dedication of the Subject Property, (6) Defendant may subdivide and develop the

Subject Property for another use, and (7) Defendant may use or connect to the

drainage system of the Cape Subdivision. Plaintiffs also brought claims for

interference with an easement and nuisance; the Cape HOA alone brought a claim

for trespass. Plaintiffs sought injunctive relief. Defendant answered, raised

counterclaims, and sought a declaratory judgment that it held an express easement,

implied easement by prior use, prescriptive easement, easement by necessity, or

easement by estoppel in the roads of the Cape Subdivision.

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