CAROLINA FOREST ASS'N, INC. v. White

678 S.E.2d 725, 198 N.C. App. 1, 2009 N.C. App. LEXIS 1066
CourtCourt of Appeals of North Carolina
DecidedJuly 7, 2009
DocketCOA08-1445
StatusPublished
Cited by10 cases

This text of 678 S.E.2d 725 (CAROLINA FOREST ASS'N, INC. v. White) 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
CAROLINA FOREST ASS'N, INC. v. White, 678 S.E.2d 725, 198 N.C. App. 1, 2009 N.C. App. LEXIS 1066 (N.C. Ct. App. 2009).

Opinions

ERVIN, Judge.

Howard White and his wife, Judith White (Defendants), appeal from a judgment entered 30 September 2008 providing that Carolina Forest Association, Inc. (Plaintiff), have and recover from Defendants the principal sum of $9,934.50; “[p]re-judgment interest at the rate of 8% per annum from March 1, 2008 to today;” “[p]ost[3]*3judgment interest at the rate for [judgments from today;” and “[t]he costs of this action.” After careful consideration of Defendants’ arguments, we decline to disturb the trial court’s judgment.

Plaintiff is an association of property owners in Carolina Forest, a community located near Lake Tillery in Montgomery County, North Carolina. As is typical of many property owners associations (POAs), Plaintiff has responsibility for maintaining the roads and common areas within Carolina Forest. According to Defendants, Carolina Forest was initially developed in 1970 and contains approximately 900 lots designated for conventional houses. Since 1970, houses have been built on approximately 70 lake-front lots and approximately 70 interior lots. Approximately 760 lots in Carolina Forest have yet to be build upon.

Defendants contend that Plaintiffs contract to provide amenities and road maintenance expired in 1990. Since that time, Plaintiff has operated under the terms of an implied contract. Under the fee arrangement which Plaintiff currently attempts to enforce, vacant lot owners are charged 30 percent less than the owners of lots upon which houses have been constructed. Defendants contend that a high percentage of the fees collected by Plaintiff benefit the owners with lots upon which houses have been built even though the owners of such lots represent a small minority of the overall body of property owners. Defendants’ objections to this perceived inequity eventually resulted in the present litigation.

Defendants own five vacant lots and one lake-front lot in Carolina Forest. Defendants have built a house on their lake-front lot. Defendants have disputed the fairness of the POA fees assessed by Plaintiff since 2003 and have attempted to negotiate the payment of a full fee for their lake-front lot and a fee based on the cost of road maintenance and other select items for their vacant lots. Plaintiff has declined to accept Defendants’ bifurcated fee proposal, so Defendants have declined to pay their POA fees.

On 25 March 2004, Plaintiff filed a complaint in File No. 04 CVD 168 against Defendants in the District Court of Montgomery County seeking the entry of a judgment in the amount of Defendant’s unpaid POA fees. In its complaint, Plaintiff alleged that Plaintiff was “charged with the responsibility of budgeting sufficient funds for maintaining the roads, common areas, and recreational facilities and to determine dues and assessments per lot to apportion these expenses among the several property owners of Carolina Forest[.]” [4]*4Plaintiff alleged that Defendants owed $1,336.00 in dues and assessments as of 31 December 2003. The record does not disclose why Montgomery County File No. 04 CVD 168 was apparently not resolved on the merits.

On 14 March 2006, Plaintiff filed a second complaint in File No. 06 CVD 153 in the District Court of Montgomery County alleging that, as of 2 June 2005, Defendants owed $3,809.00 in unpaid dues and assessments. In their response to the complaint filed in Montgomery Country File No. 06 CVD 153, Defendants alleged that “Plaintiff has acted in bad faith toward Carolina Forest property owners and [has] not complied in good faith with either the North Carolina Planned Community Act or other laws pertaining to implied contracts.” Defendants also claimed that owners of undeveloped lots in Carolina Forest are “gravely mistreated” and receive “no services in return for about 75 percent of the money paid . . . for each undeveloped lot[.]” Defendants requested the court to “instruct Plaintiff to reconstruct the spending plan for Carolina Forest so that spending beneficial to owners of undeveloped lots is in proportion to the dues collected from them[.]”

On 17 August 2006, Plaintiff filed a motion for summary judgment in Montgomery County File No. 06 CVD 153. In seeking summary judgment, Plaintiff relied upon the trial court’s decision in Montgomery County File No. 98 CVS 106. In that case, the trial court entered an order requiring several property owners in Carolina Forest to pay various sums to Plaintiff on the basis of a conclusion that there was an implied contract between the POA and the property owners. In addition, Plaintiff cited the decision of this Court in Miles v. Carolina Forest Ass’n, 167 N.C. App. 28, 604 S.E.2d 327 (2004), which upheld the trial court’s ruling in Montgomery County File No. 98 CVS 106 on the basis that there was a contract implied in fact between the parties and that there was no dispute about the value of the services provided by Plaintiff to the property owners before the Court in that case. Defendants responded to Plaintiff’s motion by arguing that “Defendants’ unique situation sets them apart from the issues decided in Miles” because Defendants owned five lots and the owners in Miles only owned single lots.

On 28 September 2006, the trial court entered an order denying Plaintiffs motion for summary judgment, stating that, “while an implied contract exists,” there was “a genuine issue of material fact as to the terms and conditions of said contract and the amount which [5]*5may be owed to Plaintiff pursuant to said implied contract^] ” As a result, the court concluded that the issues between the parties in Montgomery County File No. 06 CVD 153 should be heard and decided before a properly-selected jury. On 26 October 2007, Plaintiff voluntarily dismissed its complaint against Defendants in Montgomery County File No. 06 CVD 153 without prejudice.

On 23 January 2008, Plaintiff filed a complaint against Defendants in File No. 08 CVD 1498 in the District Court of Mecklenburg County alleging that Defendants owed $7,422.00, plus the amount of assessments for 2008 and interest at 8% from and after 1 June 2007 due to Defendants’ breach of an implied contract between the parties. Plaintiff also alleged, in the alternative, that Defendants owed the foregoing amount based on either quantum meruit and unjust enrichment grounds or on the basis of North Carolina’s Planned Community Act, which has been codified at N.C. Gen. Stat. § 47F-1-101, et seq.

On 14 February 2008, Defendants responded by stating that “Defendants were surprised and mystified as they were handed a Civil Summons by [a] Mecklenburg County deputy . . . because the subject summons concerned litigation that rightfully belongs in Montgomery County District Court, where it has been in progress for the past four years.” Defendants argued that the District Court of Mecklenburg County did not have “jurisdiction over the parties” and denied the validity of Plaintiff’s claims under the doctrines of implied contract, quantum meruit and unjust enrichment, and under the North Carolina Planned Community Act. On 10 March 2008, Defendants filed a motion for change of venue seeking to have “Mecklenburg case 08 [CVD] 1498 . . . dismissed and Plaintiff . . . directed to litigate its dispute with Defendants in Montgomery County as a continuation of Montgomery case 06-CvD-153.”

On 8 September 2008, Plaintiff filed a summary judgment motion Plaintiff’s summary judgment motion was scheduled for hearing on 15 September 2008.

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CAROLINA FOREST ASS'N, INC. v. White
678 S.E.2d 725 (Court of Appeals of North Carolina, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
678 S.E.2d 725, 198 N.C. App. 1, 2009 N.C. App. LEXIS 1066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carolina-forest-assn-inc-v-white-ncctapp-2009.