RICHLAND RUN HOMEOWNERS ASSOCIATION, INC. v. CHC Durham Corp.

473 S.E.2d 649, 123 N.C. App. 345, 1996 N.C. App. LEXIS 726
CourtCourt of Appeals of North Carolina
DecidedAugust 6, 1996
DocketCOA94-1392
StatusPublished
Cited by9 cases

This text of 473 S.E.2d 649 (RICHLAND RUN HOMEOWNERS ASSOCIATION, INC. v. CHC Durham Corp.) 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
RICHLAND RUN HOMEOWNERS ASSOCIATION, INC. v. CHC Durham Corp., 473 S.E.2d 649, 123 N.C. App. 345, 1996 N.C. App. LEXIS 726 (N.C. Ct. App. 1996).

Opinions

[347]*347McGEE, Judge.

Although the order of the trial court purports to be a dismissal of plaintiffs claims, because the court considered matters outside of the pleadings, the order is actually a grant of summary judgment for defendants. A motion to dismiss for failure to state a claim is converted to a N.C.R. Civ. P. 56 motion for summary judgment when matters outside of the pleadings are presented to and not excluded by the trial court. Stanback v. Stanback, 297 N.C. 181, 205, 254 S.E.2d 611, 627 (1979). In this case, the order clearly shows the court considered the affidavits submitted by the parties in making its decision. Since the affidavits were not incorporated by reference into the pleadings pursuant to N.C.R. Civ. P. 10(c), the affidavits are matters outside of the pleadings. Consideration by the trial court of the parties’ affidavits and supporting documents converted the motion to dismiss into a motion for summary judgment.

Plaintiff suffered no prejudice by treating the motion to dismiss as one for summary judgment. Defendants filed their motion and supporting affidavit in May 1994. Since the court did not hear the motion until August 1994 and because the motion specifically stated the grounds upon which defendants sought relief, plaintiff had ample time to prepare to defend the motion and present supporting evidence. Plaintiff did in fact file two supporting affidavits and accompanying documents. Further, by attending and participating in the hearing without objection or without requesting a continuance, plaintiff waived any right to object to the summary judgment hearing on the ground of lack of notice. Raintree Corp. v. Rowe, 38 N.C. App. 664, 667-68, 248 S.E.2d 904, 907 (1978).

Because the court’s order acted as a grant of summary judgment for defendants, on appeal this Court must affirm if there are any grounds upon which to sustain the granting of summary judgment. Shore v. Brown, 324 N.C. 427, 428, 378 S.E.2d 778, 779 (1989). After reviewing the record, we find there are grounds to sustain the granting of summary judgment and affirm.

I.

The trial court held that: “Plaintiff’s complaint . . . fails to state claims upon which relief can be granted in that Plaintiff failed to comply with all conditions precedent to maintaining the alleged causes of action against Defendants.” The applicable statute of repose for plaintiff’s cause of action is six years. N.C. Gen. Stat. § l-50(5)(a). This [348]*348statute is substantive in nature and requires as a condition precedent that a plaintiff establish that the action has been brought within the six-year period. Sink v. Andrews, 81 N.C. App. 594, 597, 344 S.E.2d 831, 833 (1986). This Court has held that under North Carolina law, statutes of repose are conditions precedent which must be specially pled pursuant to N.C.R. Civ. P. 9(c). Tipton & Young Construction Co. v. Blue Ridge Structure Co., 116 N.C. App. 115, 118, 446 S.E.2d 603, 605 (1994), affirmed per curiam, 340 N.C. 257, 456 S.E.2d 308 (1995). If a plaintiff does not aver compliance with a condition precedent, such as a statute of repose, then the plaintiffs case is insufficient as a matter of law. Id.

Plaintiff failed to allege in its complaint when the last act or omission of defendants or substantial completion of the construction of the condominiums occurred. Plaintiff also failed to allege that the last act or omission or substantial completion of the construction, whenever it occurred, occurred within six years prior to the filing of this action. However, plaintiff argues in its brief that even if the action was filed outside of the six-year statute of repose, this case falls within the exception contained in G.S. l-50(5)(d). Nevertheless, plaintiff also failed to specially plead in its complaint any grounds to show the exception applied in this case or any other grounds to show the six-year statute of repose should not apply. Under this Court’s holding in Tipton, because plaintiff failed to specially plead that its action was brought within the applicable statute of repose, plaintiffs cause of action is insufficient as a matter of law.

II.

The trial court also held that: “Plaintiff has further failed to show that it has standing to assert its claims against Defendants.”

“[I]t is elementary that the substantive issues cannot be considered unless the party raising them has the capacity to do so.” Property Owners’ Assoc. v. Current and Property Owners’ Assoc. v. Moore, 35 N.C. App. 135, 136, 240 S.E.2d 503, 505 (1978). If a party is not a natural person, it must affirmatively allege its legal existence and capacity to sue. N.C.R. Civ. P. 9(a). Evidence in the record and presented to the trial court shows the plaintiff was incorporated in October 1985 under the name of “Richland Run Condominium Association, Inc.” as a homeowners association for Richland Run Condominiums. As stated in the declaration establishing the condominium, and because of the date of incorporation, the association is [349]*349governed by N.C. Gen. Stat. § 47A-1 et. seq., commonly known as the “Unit Ownership Act” (the Act). Under the Act, any cause of action relating to common areas and facilities is to be brought by “the manager or board of directors, in either case in the discretion of the board of directors, on behalf of two or more of the unit owners, as their respective interests may appear . . . .” N.C. Gen. Stat. § 47A-26.

In construing who may bring an action under the Act, this Court has said:

Where the legislature has specifically designated certain statutory procedures, it has by implication excluded other procedures. To hold . . . that the statutory designation of parties who may maintain an action is merely illustrative, would make the statutory designation meaningless and contrary to both its implication and the rule of strict construction. This is especially so since the corporation here exists by virtue of statute and operates under the statutory scheme established by G.S. Chapter 47A ....

Laurel Park Villas Homeowners Assoc. v. Hodges, 82 N.C. App. 141, 143, 345 S.E.2d 464, 465-66, disc. review denied, 318 N.C. 507, 349 S.E.2d 861 (1986) (citation omitted). As in Laurel Park, we find nothing in plaintiff’s articles of incorporation and bylaws giving the homeowners association the power to bring this action. The bylaws give the board of directors the power to “enforce by any legal means or proceedings” the provisions of the bylaws and articles of incorporation and to “hir[e] attorneys and other professionals.” The bylaws do not address whether the plaintiff association has the power to bring an action such as the cause of action in this case. Nor has plaintiff alleged other grounds which might give the homeowners association standing in this case.

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RICHLAND RUN HOMEOWNERS ASSOCIATION, INC. v. CHC Durham Corp.
473 S.E.2d 649 (Court of Appeals of North Carolina, 1996)

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Bluebook (online)
473 S.E.2d 649, 123 N.C. App. 345, 1996 N.C. App. LEXIS 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richland-run-homeowners-association-inc-v-chc-durham-corp-ncctapp-1996.