Norton Realty & Loan Co. v. City of Gainesville

160 S.E.2d 819, 224 Ga. 166, 1968 Ga. LEXIS 703
CourtSupreme Court of Georgia
DecidedMarch 7, 1968
Docket24444
StatusPublished
Cited by10 cases

This text of 160 S.E.2d 819 (Norton Realty & Loan Co. v. City of Gainesville) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norton Realty & Loan Co. v. City of Gainesville, 160 S.E.2d 819, 224 Ga. 166, 1968 Ga. LEXIS 703 (Ga. 1968).

Opinions

Per Curiam.

This appeal is from the grant of what is denominated a judgment on the pleadings, which dismissed a petition attacking the rezoning of property.

' The petition was filed in the Superior Court of Hall County by Norton Realty & Loan Company, Inc., and two of its officers and stockholders against the City of Gainesville and its commissioners. The petition is in two counts, but only Count 1 is involved here since the enumerations of error relate exclusively to it.

The allegations of that count, insofar as necessary to recite, are those which follow.

The corporate plaintiff is the owner of Lots 30, 31, 32, and 33 of a named subdivision within the city. On January 25, 1962, it purchased this and other property comprising an 18-acre tract fronting on U. S. Highway 129.

Prior to said purchase and continuing to the effective date of the rezoning ordinance in question this tract was zoned R-II, which permits development and construction of multi-family residences, including apartments. Also, prior to such purchase plaintiffs conferred with named city officials and from them received certain assurances and approvals, including that this tract was zoned R-II, and that it could be developed as a residential subdivision in accordance with plans and specifications proposed by the plaintiffs.

[167]*167Before purchasing the 18-acre tract plaintiffs determined that, because of the grade level of the four lots now in question, which front on U. S. Highway 129, they could not be developed as single family residential dwelling lots and must remain zoned R-II for possible future sale and development as duplexes, town houses or apartments. Thus, plaintiffs purchased said tract for development partly as a restricted residential subdivision and partly as possible multi-family units as permitted under R-II zoning. This dual plan of development was approved by and considered good land use and planning practices by the planning commission of the city.

Plaintiffs have expended over $75,000 in cash and development time and efforts. They surveyed and contracted for a street through the tract, prepared a restrictive covenant agreement for the subdivision which expressly excluded the four lots involved here, thereby leaving them to be developed as permitted under R-II zoning, and upon completion of paving and water system and approval of the city, began in March 1964 the sale of residential lots in the subdivision. In considering the possible use and development of the four lots prior to such purchase, plaintiffs would not have purchased the 18-acre tract and would not have made said expenditures unless they had known that the four lots could be developed for purposes authorized and permitted by R-II zoning in force at the time of purchase, and prior thereto.

The existence of R-II zoning of said tract was part consideration for plaintiffs’ decision to purchase it for development of most of the tract as a residential subdivision.

In March 1967, following announcements of plans for construction and expansion of apartments in the vicinity, certain property owners filed a petition for rezoning of an area including the plaintiffs’ four lots, so as to prevent construction of apartments or other multi-family units in such area. Upon learning through a local newspaper item of the action of the planning commission of the city on such petition, plaintiffs appeared before the city commission and opposed the rezoning. However, on July 12, 1967, the city allegedly enacted an ordinance, copy of which is attached, rezoning plaintiffs’ four lots from R-II to R-I (single family residential). The plaintiffs contend, for a number of [168]*168reasons, that this rezoning ordinance is illegal and void. Under the view which we take of the case, it is not necessary to recite those contentions here.

These four lots were zoned R-II originally in 1956 and later in 1964 pursuant to a comprehensive zoning ordinance of the city. Plaintiffs have a vested right in the continuation and permanency of the R-II zoning of their four lots. The rezoning action amounts to a taking, confiscation, and complete destruction of plaintiffs’ property, completely depriving them of the beneficial use thereof, in violation of stated provisions of the Federal and State Constitutions.

This count prayed that the ordinance be declared void as applied to plaintiffs’ four lots, and that the defendants be permanently enjoined from enforcing or applying it to plaintiffs’ property.

The defendants’ answer denied the material allegations of the petition and alleged that such ordinance was passed pursuant to and in compliance with all applicable requirements of the city and state. Attached to it are documents relating to enactment of the ordinance. Under our view- of the case, it is not necessary to set them out.

The defendants’ motion for judgment on the pleadings, pursuant to Georgia Laws 1966, pp- 609, 623 (Code Ann. § 81A-112 (c)), asserted that no cause of action was stated upon which relief could be granted; that as to the count involved here the defendants’ answer shows that the ordinance was passed in compliance with law; and that the petition should be dismissed because it seeks to enjoin the city from enforcing a valid ordinance under facts which do not authorize injunction, and also because it alleges mere apprehension of damage to a future speculative property use, not authorizing injunction.

The plaintiffs, in addition to their petition, relied upon two affidavits.

That of a real estate broker in the city recited, in material part, the following: that for stated reasons the four lots in question could not feasibly or practically be developed as single family residential properties of comparable quality to other houses in the area; that to restrict the use of this property to single family residences would amount to a complete restriction of its rea[169]*169sonable use; that it is remotely possible that-the lots might be capable of development as multi-family units; that single unit houses built there would have to be small and inexpensive; that they would be less attractive than others in the area; and that the fair market value of the lots would be approximately $12,000 to $15,000 as possible development under R-II zoning, but not more than $7,000 to $8,000 if R-I.

The essential features of the joint affidavit of the individual plaintiffs were those which follow.

Before purchase they determined that these lots could not be developed as part of the proposed residential subdivision. They determined to keep them zoned R-II for possible sale or development as multi-family residences, possibly duplexes, town houses or apartments, and therefore excluded them from the restrictive covenants covering the other lots. Realizing the problems of developing these lots but also realizing that they might possibly in the future be developed as multi-family residences, the plaintiffs purchased the tract with the thought of developing most of it as a single-family residence subdivision, and possibly developing these lots as multi-family residences. They would not have invested $75,000 in the development of this tract and would not have purchased it unless they had known that these lots could possibly be developed as authorized and permitted by R-II- zoning regulations and ordinances in existence at the time of purchase and for many years prior thereto.

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Norton Realty & Loan Co. v. City of Gainesville
160 S.E.2d 819 (Supreme Court of Georgia, 1968)

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Bluebook (online)
160 S.E.2d 819, 224 Ga. 166, 1968 Ga. LEXIS 703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norton-realty-loan-co-v-city-of-gainesville-ga-1968.