Lincoln Terrace Associates, Ltd. v. Kelly

635 S.E.2d 434, 179 N.C. App. 621, 2006 N.C. App. LEXIS 2035
CourtCourt of Appeals of North Carolina
DecidedOctober 3, 2006
DocketCOA05-1563
StatusPublished
Cited by4 cases

This text of 635 S.E.2d 434 (Lincoln Terrace Associates, Ltd. v. Kelly) 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
Lincoln Terrace Associates, Ltd. v. Kelly, 635 S.E.2d 434, 179 N.C. App. 621, 2006 N.C. App. LEXIS 2035 (N.C. Ct. App. 2006).

Opinion

HUNTER, Judge.

Sharanza Kelly (“appellant”) appeals on behalf of herself and her family from a judgment entered 19 April 2005. For the reasons stated herein, we reverse this order.

The trial court made findings that appellant, her husband, Franklin Kelly (“Franklin”), and their two children entered into a lease for an apartment at Lincoln Terrace Apartments on 21 October *622 2003. The apartment rent was subsidized by the United States Department of Housing and Urban Development (“HUD”), requiring compliance with applicable federal rules and regulations related to the program.

In October of 2004, Franklin damaged the unit in which appellant and Franklin lived by kicking in the door. The door was repaired shortly thereafter by appellee. No charges were billed' to appellant and Franklin at the time the repair was completed.

On 21 December 2004, a verbal altercation occurred in the common area of the Lincoln Terrace Apartments between Franklin and other tenants. The manager of the Lincoln Terrace Apartments, Barbara White (“White”), summoned police. The police directed residents and guests to return to their residences. Approximately twenty minutes later, after the police had left, White testified she saw a fist fight between Franklin and another resident, Adam Randolph, in the parking lot. White testified that she saw both men swinging at one another, but did not see how the altercation began. The trial court found that on 27 December 2004, appellant was served with a HUD Notice of Infraction regarding the fight on 21 December 2004, and that on 28 December 2004, appellant was served with a Notice of Termination.

On 28 January 2005, appellee filed a complaint in summary ejectment against appellant and the occupants of her apartment, alleging as lease infractions that members of the household had disturbed and harrased other tenants, had assaulted other tenants, and had damaged property by kicking in the front door.

A trial was conducted before the magistrate on 22 February 2005 and judgment was awarded to appellee. Appellant appealed to district court and both parties waived their right to a jury trial. The trial court awarded judgment in appellee’s favor and damages of $144.58 and the cost of the appeal. Appellant appeals.

I.

Appellant contends the trial court erred in awarding appellee judgment when appellee failed to show that appellant was properly served with a termination notice which strictly complied with the lease agreement. As we find no evidence to support the trial court’s finding after careful review of the record, we agree.

*623 “[A] trial court’s findings of fact in a bench trial have the force of a jury verdict and are conclusive on appeal if there is competent evidence to support them, even though there may be evidence that would support findings to the contrary.” Biemann & Rowell Co. v. Donohoe Cos., 147 N.C. App. 239, 242, 556 S.E.2d 1, 4 (2001). “However, conclusions of law reached by the trial court are reviewable de novo.” Id.

In order to evict a tenant in North Carolina, a landlord must prove: (1) That it distinctly reserved in the lease a right to declare a forfeiture for the alleged act or event; (2) that there is clear proof of the happening of an act or event for which the landlord reserved the right to declare a forfeiture; (3) that the landlord promptly exercised its right to declare a forfeiture, and (4) that the result of enforcing the forfeiture is not unconscionable.

Charlotte Housing Authority v. Fleming, 123 N.C. App. 511, 513, 473 S.E.2d 373, 375 (1996). “Our courts do not look with favor on lease forfeitures.” Stanley v. Harvey, 90 N.C. App. 535, 539, 369 S.E.2d 382, 385 (1988). “When termination of a lease depends upon notice, the notice must be given in strict compliance with the contract as to both time and contents.” Id. (holding that when notice to vacate was insufficient to comply with the terms of the lease, lease was not properly terminated before commencement of summary ejectment action).

Here, the relevant portion of the governing lease, Paragraph 23, Termination of Tenancy, states that:

e. If the Landlord proposes to terminate this Agreement, the Landlord agrees to give the Tenant written notice and the grounds for the proposed termination.... Notices of proposed termination for other reasons must be given in accordance with any time frames set forth in State and local law. Any HUD-required notice period may run concurrently with any notice period required by State or local law. All termination notices must:
• specify the date this Agreement will be terminated;
• state the grounds for termination with enough detail for the tenant to prepare a defense;
• advise the Tenant that he/she has 10 days within which to discuss the proposed termination of tenancy with the Landlord. The 10-day period will begin on the earlier of the date the *624 notice was hand-delivered to the unit or the day after the date the notice is mailed. If the Tenant requests the meeting, the Landlord agrees to discuss the proposed termination with the Tenant; and
• advise the Tenant of his/her right to defend the action in court.
f. If an eviction is initiated, the Landlord agrees to rely only upon those grounds cited in the termination notice required by paragraph e.

A review of the record shows that no Notice of Termination was entered into evidence. In closing arguments during the bench trial, appellee’s counsel stated:

My client testified on the notice of termination, in fact, she testified on cross, [appellant] asked her, and she testified that she had served them with notice of termination because it’s a four or five-page document, the last page of which had the bill for the damages.
In [appellant]’s closing she stated and she was arguing about the waiver on the door, she said on December 28th after the notice of termination had been served on the 27th. So, it’s very clear that notice of termination was served. My client testified to it. We did not introduce it, but we did in fact testify to it which is sufficient.

A review of the trial transcript reveals that the sole evidence presented to the trial court regarding the Notice of Termination was in the form of testimony by White. On direct examination, White did not testify regarding a notice on termination or eviction. On cross-examination, White testified that she sent out a Notice of Termination to appellant on 27 December 2004. White stated that the Notice of Termination did not include the damage to the door, but did include the incident on 21 December 2004. When asked if she was reading the Notice of Termination, White responded that she was.

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Bluebook (online)
635 S.E.2d 434, 179 N.C. App. 621, 2006 N.C. App. LEXIS 2035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lincoln-terrace-associates-ltd-v-kelly-ncctapp-2006.