Double Branches Ass'n v. Jones

770 S.E.2d 252, 331 Ga. App. 159, 2015 Ga. App. LEXIS 112
CourtCourt of Appeals of Georgia
DecidedMarch 12, 2015
DocketA14A2069
StatusPublished

This text of 770 S.E.2d 252 (Double Branches Ass'n v. Jones) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Double Branches Ass'n v. Jones, 770 S.E.2d 252, 331 Ga. App. 159, 2015 Ga. App. LEXIS 112 (Ga. Ct. App. 2015).

Opinion

Ray, Judge.

Double Branches Association, Inc., a homeowners association of the Double Branches subdivision in Greene County, along with [160]*160several of the subdivision’s residents (collectively, the “Association”), sued Double Branches Water, LLC, a private water company, and its past owners (collectively, “Double Branches Water”) for alleged breaches of a 1991 Trust Indenture Water Services Agreement (the “Agreement”) entered into between the developer of the Double Branches subdivision and Double Branches Water. The Association claimed that these breaches occurred when Double Branches Water added certain fees and raised the rates for water service to the subdivision’s homes above the maximum amount allowed by the Agreement. Double Branches Water filed a motion for summary judgment and a petition for declaratory judgment. The trial court granted Double Branches Water’s motion for summary judgment without making findings of fact or conclusions of law. Finding that the Agreement constituted a “covenant running with the land,” the trial court granted the petition for declaratory judgment on the grounds that the terms of the Agreement were no longer enforceable under OCGA § 44-5-60. For the following reasons, we affirm.

Summary judgment is warranted if the pleadings and evidence “show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” (Punctuation and footnote omitted.) Calhoun, GA NG, LLC v. Century Bank, 320 Ga. App. 472, 472-473 (740 SE2d 210) (2013).

The record shows that in 1991, the developers of the Double Branches subdivision entered into a Trust Indenture/Water Services Agreement with Andrew Jones d/b/a Jones Water Systems,1 a private water supplier. The Agreement was for the purpose of providing water to the homes built in the Double Branches subdivision. The Agreement was then recorded in the deed book in the office of the Clerk of the Superior Court of Greene County.

Pertinently, the Agreement provides that “the benefits and obligations identified [in the Agreement] become an appurtenance to and run with the land described . . . and inure to the benefit of the successors in title [.]” The Agreement notes that Double Branches Water constructed two wells and infrastructure related to providing private water service to the subdivision and that it “covenants and agrees to furnish water” to the homes “until the operation of said system is otherwise made available to the property by a municipality, or other governmental agency... or public utility.” In exchange for the “privilege and right” to use the water, lot owners “will be responsible [161]*161for the installation, maintenance, and expense of their own water lines” as well as pay applicable fees. Additionally, the Agreement bound each lot owner to pay for water consumed on its premises as follows: “[Double Branches Water] shall have the right to .. . charge a minimum rate for the first 3,000 gallons used per month based on the highest rate charged for such amounts by any municipality . . . within a fifty (50) mile radius.” It further provides that Double Branches Water has the right to adjust the minimum rate from “time to time,” but that such rate should not exceed the highest amount charged by a municipality within a 50-mile radius. Finally, the Agreement provides that “this agreement shall constitute a restriction against private well systems.”

The Complaint alleges that in 2012, Double Branches Water informed lot owners that the monthly minimum rates would increase to $45, that there would be an additional monthly testing fee of $2.50, and that the rates for setup fees, late fees, and reconnection fees would be increased. The Complaint alleges that these changes violated the Agreement.

In its motion for summary judgment and petition for declaratory judgment, Double Branches Water argued, inter alia, that the Agreement constituted a restrictive covenant, and thus, it expired after 20 years because the homeowners failed to renew the covenant pursuant to former OCGA § 44-5-60 (d). The trial court granted relief in favor of Double Branches Water on the grounds that the Agreement constituted a “covenant running with the land” and became unenforceable 20 years after its enactment pursuant to OCGA § 44-5-60.

1. We first note that the Association raises several arguments for the first time on appeal: namely, that the Agreement constitutes an “easement,” and that Double Branches Water is estopped from raising its rates under the theory of promissory estoppel. We will not consider such arguments. See Kahn v. Britt, 330 Ga. App. 377, 385 (3) (d) (765 SE2d 446) (2014). To the extent that the Association presents arguments on appeal that were considered by the trial court, however, we will consider its enumerations of error.

2. The Association contends that the trial court erred in concluding that OCGA § 44-5-60 (b) applied to the Agreement as it did not constitute a restrictive covenant. We disagree.

Our application of the rules of construction to the Agreement is de novo. Crabapple Lake Parc Community Assn. v. Circeo, 325 Ga. App. 101, 104 (1) (751 SE2d 866) (2013). In construing the Agreement,

we interpret its terms using their plain, ordinary, and popular sense. Additionally, with respect to this particular [Agreement] , we must bear in mind the general rule that the owner [162]*162of land has the right to use it for any lawful purpose and that Georgia law does not favor restrictions on private property.

(Citations and punctuation omitted.) Davista Holdings v. Capital Plaza, 321 Ga. App. 131, 133 (741 SE2d 266) (2013).

OCGA § 44-5-60 (a) provides, generally, that covenants running with the land go to the purchaser of the land. OCGA § 44-5-60 (b) provides, in pertinent part:

Notwithstanding subsection (a) of this Code section, covenants restricting lands to certain uses shall not run for more than 20 years in municipalities which have adopted zoning laws nor in those areas in counties for which zoning laws have been adopted. . . .2

(Emphasis supplied.)

The trial court, in its order, correctly concluded that the Agreement constitutes a covenant that runs with the land as access to water affects the use of and enjoyment of each lot owner’s parcel. See Tenstate Distribution Co. v. Averett, 397 FSupp. 1227, 1231 (N.D. Ga. 1975) (applying Georgia law) (“A covenant will run with the land if it affects the value of the property or the mode of enjoyment of the property”) (citation omitted). Further, the Agreement specifically provides that “the benefits and obligations identified [in the Agreement] become an appurtenance to and run with the land described... and inure to the benefit of the successors in title.” See Lincoln Land Co. v.

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Lincoln Land Co. v. Palfery
203 S.E.2d 597 (Court of Appeals of Georgia, 1973)
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386 S.E.2d 161 (Supreme Court of Georgia, 1989)
Calhoun GA NG, LLC v. Century Bank
740 S.E.2d 210 (Court of Appeals of Georgia, 2013)
Davista Holdings, LLC v. Capital Plaza, Inc.
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Bluebook (online)
770 S.E.2d 252, 331 Ga. App. 159, 2015 Ga. App. LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/double-branches-assn-v-jones-gactapp-2015.