Municipal Electric Authority v. 2100 Riveredge Associates, Ltd.

348 S.E.2d 890, 180 Ga. App. 326, 1986 Ga. App. LEXIS 2163
CourtCourt of Appeals of Georgia
DecidedSeptember 3, 1986
Docket72595, 72596
StatusPublished
Cited by6 cases

This text of 348 S.E.2d 890 (Municipal Electric Authority v. 2100 Riveredge Associates, Ltd.) 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
Municipal Electric Authority v. 2100 Riveredge Associates, Ltd., 348 S.E.2d 890, 180 Ga. App. 326, 1986 Ga. App. LEXIS 2163 (Ga. Ct. App. 1986).

Opinion

Sognier, Judge.

2100 Riveredge Associates, Ltd. (Riveredge) sought a declaration of its rights under a deed executed between Municipal Electric Authority of Georgia (MEAG) and Chase Manhattan Mortgage and Realty Trust (Chase), to whose interest Riveredge partially succeeded. MEAG moved for summary judgment asserting that the contested language in the deed, involving a restrictive covenant, was unambiguous and that, under its interpretation, the restriction had terminated. Riveredge made an oral motion for summary judgment also asserting that the language was unambiguous but that under its construction of the deed the restriction was still valid. The trial court determined that the contested language was ambiguous and that questions of fact remained as to the intent of the parties. We granted ME AG’s application for interlocutory appeal and Riveredge filed its cross-appeal.

MEAG acquired by deed a portion of land purchased from a larger tract owned by Chase. Most of the remainder of the tract (Chase tract) was subsequently sold to a third party from whom Riveredge acquired its property. The deed from Chase to MEAG provided in pertinent part: “The within conveyance of the Property is hereby made subject to the restriction that for a period of twenty years following the date of this instrument, the Property shall be used solely for office and related purposes with an aggregate interior office building area, in one or two buildings, not to exceed 100,000 square feet total; . . . Furthermore, in the event any other parcel within the tract of land owned, on the date hereof, by Grantor (from which the Property has been conveyed) shall be approved by competent authority for any use not permitted in an M-l zone, as presently constituted in the zoning resolution of Fulton County, Georgia, then the foregoing [327]*327use restriction shall terminate.”

The “M-l” light industrial zoning regulations referenced by the deed are contained in Article XVI of the Fulton County Zoning Resolutions (Article XVI) which is organized into seven sections, including Section 2 “Use Regulations” and Section 4 “Height Regulations.” Subsequent to the execution of the subject deed, permission was obtained from the zoning authority and buildings were constructed on Chase tract parcels which exceeded the height regulations in Section 4 of the “M-l” regulations. MEAG also has obtained approval to develop its property by constructing a building in excess of the eight-story limitation in Section 4. However, the design of MEAG’s eight-plus story building would necessitate an area density exceeding 100,000 square feet. Accordingly, Riveredge brought this action to obtain a declaration as to the validity of the above-deed restriction.

MEAG contends the trial court erred by denying its motion for summary judgment because, under MEAG’s interpretation of the language of the deed, the use restriction has terminated. MEAG contends that due to the erection of the buildings exceeding eight stories or 100 feet in height on Chase tract parcels, the termination provision in the deed is now invalid on the basis that the square footage/height restriction in the deed constitutes a “use” restriction.

“ ‘As a general rule, the owner of land in fee has the right to use the property for any lawful purpose, and any claim that there are restrictions upon such use must be clearly established. Limitations or restrictions by implication are not favored, and must be strictly construed. [Cits.]’ ” Jordan v. Orr, 209 Ga. 161, 163 (la) (71 SE2d 206) (1952). “In the construction of an instrument, ‘the whole instrument is to be construed together so as to give effect, if possible, to the entire deed . . . and the construction which will uphold a deed in whole and in every part is to be preferred.’ [Cits.]” Shoaf v. Bland, 208 Ga. 709, 711 (2) (69 SE2d 258) (1952). Applying the rules of construction set forth in Shoaf, supra, it is readily apparent that the word “use” and its permutations constitute the pivotal term in the interpretation of the deed language.

If the word “use” as employed in the termination provision includes only the two matters restricted in the deed, namely, that the property be used solely for office and related purposes and that the interior office building area of the one or two buildings constructed not exceed 100,000 square feet total, then MEAG’s contention that the termination provision is invalid must fail. First, MEAG’s argument fails because it is uncontroverted that the other buildings on Chase tract parcels are being utilized solely for office or related purposes and thus as to this restriction the termination provision is still viable. Secondly, assuming arguendo that the “area” restriction is a “use” restriction, Article XVI contains no mention of either square [328]*328footage or density and thus these matters cannot be defined as “use[s] not permitted in an M-l zone.” Contrary to MEAG’s argument, there is nothing in the plain language of the deed to equate the 100,000 square foot area restriction imposed on MEAG with the eight story or 100 feet height restriction in Section 4 of Article XVI. To illustrate this point: Should a building with 600,000 square feet but only 6 stories high be constructed on a Chase tract parcel it would not conflict with the height regulations in Section 4 of Article XVI, whereas the identical building on MEAG’s property would nevertheless violate the restrictive covenant in the deed. Thus, it is unnecessary to address Riveredge’s and MEAG’s arguments concerning whether a “square footage” restriction or an “area” restriction is a “use” restriction since, regardless, it is not mentioned in Article XVI and could not, under any circumstances, constitute “any use not permitted in an M-l zone.”

Although this construction of the deed language affords no relief to MEAG, an alternate construction of the deed also presents itself. If the word “use” as employed in the termination provision phrase, “any use not permitted in an M-l zone,” is not limited by the two restrictions in the deed, it opens the possibility that any use not allowed by the zoning regulations could serve as the trigger to terminate the restrictions on MEAG’s property. Accordingly, MEAG argues that the approval for construction of buildings in excess of the eight story 100 feet Section 4 height restrictions on Chase tract parcels — “any use” not permitted in an “M-l” zone — invalidated the otherwise unrelated restrictions in the deed.

Article XVI of the “M-l” LIGHT INDUSTRIAL DISTRICT REGULATIONS contains seven sections which are organized as follows: 1. General Provisions; 2. Use Regulations; 3. Parking and Loading Regulations; 4. Height Regulations; 5. Area Regulations; 6. Residential Floor Area Regulations; 7. Sign Regulations. Height is not included in the Section 2 “Use Regulations,” and it is uncontroverted that no Chase tract parcel has obtained approval by competent authority to change from office or related purposes to any of the 34 “uses” listed in Section 2. (Examples of the Section 2 uses being: slaughterhouse, blast furnace, petroleum refining, truck terminals.) Thus, the validity of MEAG’s construction of the deed is dependent upon an interpretation to the effect that the phrase “any use not permitted in an M-l zone” is not limited to the uses so denominated in Section 2 of Article XVI but also includes the height regulations in Section 4 and, by logical extension, all the remaining sections as well.

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Bluebook (online)
348 S.E.2d 890, 180 Ga. App. 326, 1986 Ga. App. LEXIS 2163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/municipal-electric-authority-v-2100-riveredge-associates-ltd-gactapp-1986.