Coucoulas/Knight Properties, LLC v. Town of Hillsborough

683 S.E.2d 228, 199 N.C. App. 455, 2009 N.C. App. LEXIS 1483
CourtCourt of Appeals of North Carolina
DecidedSeptember 1, 2009
DocketCOA08-1087
StatusPublished
Cited by6 cases

This text of 683 S.E.2d 228 (Coucoulas/Knight Properties, LLC v. Town of Hillsborough) 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
Coucoulas/Knight Properties, LLC v. Town of Hillsborough, 683 S.E.2d 228, 199 N.C. App. 455, 2009 N.C. App. LEXIS 1483 (N.C. Ct. App. 2009).

Opinions

BRYANT, Judge.

The Board of Commissioners of the Town of Hillsborough (defendants) appeal from an order and judgment of the Orange County Superior Court concluding that the denial of plaintiff’s conditional use zoning request unintentionally treated plaintiff in a manner different than other similarly situated applicants and was unduly discriminatory toward plaintiff, overturning the denial, and remanding the zoning request to defendants with instructions to grant the request. Defendants also appeal from a judgment and order requiring defendants to take action on plaintiff’s conditional use permit request. As discussed below, we reverse.

Facts

Plaintiff owns 2.16 acres of land in three separate lots located at the intersection of North Churton Street and Corbin Street in Hillsborough, North Carolina (“the property”). A small portion of the property is zoned NB (neighborhood business) and the remainder of the property is zoned R-20 (medium density residential). The R-20 district allows development of neighborhoods primarily composed of single and two-family residences. The property is also located within Hillsborough’s historic district.

North Churton Street is designated by the Churton Street Corridor Strategic Plan (“the plan”) as a “district gateway.” According to the plan, district gateways function as “transition points between one district and another.”

On 28 July 2006, plaintiff submitted a request to rezone the property to a Entranceway Special Use (“ESU”) zoning district. Hillsborough’s Zoning Ordinance established an ESU district pursuant to N.C. Gen. Stat. § 160A-382, and, pursuant to that statute, property may be zoned an ESU district only in response to a petition by the owner of the property.

[457]*457Defendants bring forth the following arguments on appeal: whether the superior court erred by (I) determining that the denial of plaintiffs rezoning request had the unintentional consequence of being unduly discriminatory and treating plaintiff in a manner different than others similarly situated; (II) ordering defendants to grant plaintiffs’ rezoning request; (III) ordering defendants to take action on plaintiffs’ application for a special use permit in 07 CVS 685.

Through cross-assignment of error pursuant to N.C. R. App. P. 10(d), plaintiff argues the superior court deprived him of an alternative basis in law for supporting the final order and judgment on the following bases: (I) defendants’ actions were inconsistent with the purposes of Hillsborough’s comprehensive plan; (II) defendants’ denial did not bear a substantial relationship to the public health, safety, morals or welfare and was not in the public interest; and (III) defendants’ actions were whimsical, willful, unreasonable, arbitrary, and capricious.

Defendants’ Arguments

Defendants argue that the superior court erred in overturning its denial of plaintiff’s rezoning request on the ground that the Board’s decision resulted in plaintiff being treated differently than other similarly situated applicants and was unduly discriminatory. We agree.

“Ordinarily, the only limitation upon [a municipal body’s] legislative authority is that it may not be exercised arbitrarily or capriciously.” Allred v. City of Raleigh, 277 N.C. 530, 545, 178 S.E.2d 432, 440 (1971). Furthermore,

[w]hen the most that can be said against [zoning] ordinances is that whether it was an unreasonable, arbitrary or unequal exercise of power is fairly debatable, the courts will not interfere. In such circumstances the settled rule seems to be that the court will not substitute its judgment for that of the legislative body, charged with the primary duty and responsibility of determining whether its action is in the interest of the public health, safety, morals, or general welfare.

In re Appeal of Parker, 214 N.C. 51, 55, 197 S.E. 706, 709, disc. appeal dismissed, Parker v. Greensboro, 305 U.S. 568, 83 L. Ed. 358 (1938). In determining whether a Board decision is arbitrary and capricious, “the reviewing court must apply the ‘whole record’ test.” Sun Suites Holdings, LLC, v. Board of Aldermen of Town of Garner, 139 N.C. App. 269, 272, 533 S.E.2d 525, 528, writ of supersedeas and disc. [458]*458review denied, 353 N.C. 280, 546 S.E.2d 397 (2000) (internal citation and quotation marks omitted). This test

requires the reviewing court to examine all competent evidence (the ‘whole record’) in order to determine whether the [Board’s] decision is supported by substantial evidence.
Substantial evidence is such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. The reviewing court should not replace the [Board’s] judgment as between two reasonably conflicting views; [w]hile the record may contain evidence contrary to the findings of the [Board], this Court may not substitute its judgment for that of the [Board].

SBA, Inc. v. City of Asheville City Council, 141 N.C. App. 19, 26, 539 S.E.2d 18, 22 (2000) (internal quotation marks and citations omitted). Further, in reviewing the superior court’s order

the appellate court examines the trial court’s order for error of law. The process has been described as a twofold task: (1) determining whether the trial court exercised the appropriate scope of review and, if appropriate, (2) deciding whether the court did so properly.

Amanini v. N.C. Dep’t of Human Resources, 114 N.C. App. 668, 675, 443 S.E.2d 114, 118-19 (1994) (internal citations omitted). “[A] determination [that the trial court erred in its review] might well require remand of the case to the trial court for its application of the proper standard of review.” Sun Suites, 139 N.C. App. at 274, 533 S.E.2d at 528 (citation omitted). However, in the interests of judicial economy, when the entirety of the record is before us, this Court may conclude remand is unnecessary. See id., 533 S.E.2d at 528-29. Thus, “if we conclude there is substantial evidence in the record to support the Board’s decision, we must uphold it.” Meads v. N.C. Dep’t of Agric., 349 N.C. 656, 663, 509 S.E.2d 165, 170 (1998).

Here, the superior court stated the proper standard of review, the whole record test; however, because substantial evidence supports the Board’s decision, we conclude that the court did not apply the whole record test properly.

Pursuant to N.C.G.S. § 160A-385(a), when a valid protest petition has been submitted in response to a rezoning request, as the parties agree occurred here, the rezoning does not become effective except by a favorable vote of three-fourths of the Board, a supermajority. [459]*459N.C. Gen. Stat. § 160A-385(a)(l) (2007).

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COUCOULAS/KNIGHT PROPERTIES, LLC v. Town of Hillsborough
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Coucoulas/Knight Properties, LLC v. Town of Hillsborough
683 S.E.2d 228 (Court of Appeals of North Carolina, 2009)

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Bluebook (online)
683 S.E.2d 228, 199 N.C. App. 455, 2009 N.C. App. LEXIS 1483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coucoulasknight-properties-llc-v-town-of-hillsborough-ncctapp-2009.