Sandy Mush Properties, Inc. v. Rutherford County Ex Rel. Rutherford County Board of Commissioners

638 S.E.2d 557, 181 N.C. App. 224, 2007 N.C. App. LEXIS 87
CourtCourt of Appeals of North Carolina
DecidedJanuary 2, 2007
DocketCOA06-68
StatusPublished
Cited by5 cases

This text of 638 S.E.2d 557 (Sandy Mush Properties, Inc. v. Rutherford County Ex Rel. Rutherford County Board of Commissioners) 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
Sandy Mush Properties, Inc. v. Rutherford County Ex Rel. Rutherford County Board of Commissioners, 638 S.E.2d 557, 181 N.C. App. 224, 2007 N.C. App. LEXIS 87 (N.C. Ct. App. 2007).

Opinion

McGEE, Judge.

Sandy Mush Properties, Inc. (Sandy Mush) and Florida Rock Industries, Inc. (Florida Rock) (collectively Plaintiffs) and Rutherford County, by and through the Rutherford County Board of Commissioners (Defendant), appeal an order for summary judgment filed 7 December 2005. In its order for summary judgment, the trial court set forth the following procedural and factual history of the case, which the parties do not contest.

Sandy Mush owns a 180-acre tract of land in Rutherford County (the property), which it leased in July 2000 to Hanson Aggregates Southeast, Inc. (Hanson) for the operation of a crushed stone rock quarry. A portion of the property is within 2,000 feet of a school boundary. Hanson applied to the State for a mining permit for the property in September 2000, and the State eventually granted a mining permit to Hanson in March 2002. Hanson applied to Defendant’s building department on 26 June 2001 for building permits to construct on the property a modular office building, an office building, and a metal building. Defendant’s building department denied Hanson’s applications.

Defendant enacted a Polluting Industries Development Ordinance (the moratorium) on 2 July 2001, which imposed a moratorium on the operation of new or expanded heavy industry within 2,000 feet of a church, school, residence or other structure. Hanson renewed its applications for building permits on 31 August 2001, after meeting the requirements that caused the initial denial of the applications. Defendant again denied Hanson’s applications when Hanson refused to certify that the buildings would not be used in conjunction with a quarry on the property, which was a heavy industry prohibited by the moratorium.

*226 Hanson filed a complaint against Defendant requesting a writ of mandamus to direct Defendant to issue the building permits and seeking an injunction to prevent Defendant from enforcing the moratorium against Hanson. The trial court ruled on 28 September 2001 that Defendant was enjoined from enforcing the moratorium and ordered Defendant to grant the building permits to Hanson. Defendant issued the building permits to Hanson on 1 October 2001. Later that day, Defendant enacted the School Zone Protective Ordinance (the ordinance), which prohibited heavy industries within 2,000 feet of a primary or secondary school property boundary in Rutherford County. Defendant enacted the ordinance after notice and publication pursuant to the North Carolina General Statutes.

Hanson commenced construction on an office building on the property in October 2001 and continued construction until 20 December 2001, at which time it ceased construction. Defendant received a request from the State regarding Hanson’s application for an air quality permit for the proposed quarry, and Defendant responded that Hanson’s proposed quarry violated the ordinance.

Defendant filed a motion for summary judgment and noticed it for hearing on 1 July 2002. At the hearing, Sandy Mush appeared and announced that it was willing to be substituted for Hanson and that Sandy Mush ratified all of Hanson’s claims. In an assignment of rights and relinquishment of leasehold interest entered 1 July 2002, Hanson and Sandy Mush terminated Hanson’s lease of the property and Hanson assigned

all of its right, title and interest, including its grandfathered or vested rights, and in and to all permits issued to it or applied for by it, including but not limited to all building or other permits issued by Rutherford County, North Carolina, and all surface mining, water quality or air quality permits or applications issued to or filed by Hanson .... It is the intention to assign these rights to Sandy Mush... as fully and as completely as possible, to the maximum extent allowed by law.

In an order entered 8 August 2002, the trial court substituted Sandy Mush for Hanson, and Sandy Mush later moved for summary judgment. The trial court entered an order for summary judgment on 25 August 2002, dissolving the writ of mandamus, granting Defendant’s motion for summary judgment, and denying Sandy Mush’s motion for summary judgment.

*227 Sandy Mush appealed to this Court and we filed an opinion on 21 October 2003. However, this Court allowed Defendant’s petition for rehearing and issued an opinion, which superseded the first opinion, on 4 May 2004. In Sandy Mush Props., Inc. v. Rutherford Cty., 164 N.C. App. 162, 595 S.E.2d 233 (2004), our Court held that the moratorium was invalid because the defendant Rutherford County had failed to comply with the applicable notice requirements. Id. at 167-68, 595 S.E.2d at 236-37. Therefore, our Court held:

Although the [defendant] subsequently complied with those requirements before adopting the [ordinance], [the] defendant[] had already been ordered to issue Hanson a building permit because the moratorium was an invalid exercise of the [defendant’s] police powers. [The] [p]laintiff, as the owner of the Property and the party properly substituted for Hanson in this action, is now therefore entitled to that permit. Accordingly, we reverse the trial court’s denial of [the] plaintiff’s summary judgment motion and its grant of summary judgment in favor of [the] defendant!].

Id. at 168, 595 S.E.2d at 237.

Sandy Mush informed Defendant on 7 July 2004 that it planned to resume construction under its building permit on 14 July 2004. Defendant notified Sandy Mush on 15 July 2004 that the building permit had expired. Plaintiffs filed a complaint for declaratory and injunctive relief on 6 August 2004. Plaintiffs alleged that Florida Rock held an option agreement and a mineral agreement and lease with regard to the property. Plaintiffs sought a declaration and an injunction allowing them to continue construction of the office building on the property, or in the alternative, an order tolling the period for the expiration of the permit pending a final decision. Plaintiffs attached a copy of the office building permit to the complaint.

The trial court entered an order on 17 August 2004, denying Plaintiffs’ request to resume construction under the building permit, but ordering that “[t]he period available for... [P]laintiffs to continue construction, if any such period has not already expired, under the October 1, [2001] permit is hereby tolled from and after July 13, 2004 pending a final decision in this cause.” Plaintiffs filed an amended complaint on 8 October 2004 seeking a determination that Plaintiffs had statutory and common law vested rights to use the property for a quarry. Plaintiffs filed a motion for partial summary judgment regard *228 ing the validity of the building permits and Plaintiffs’ statutory vested right to use the property as a quarry.

In its summary judgment order filed 7 December 2005, the trial court found that “[b]oth parties to this action acknowledge that the issue relating to common law vested rights involves questions of fact that would require a jury trial, if that issue is necessary for disposition of the case.” The trial court then made the following conclusions of law:

1.

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Bluebook (online)
638 S.E.2d 557, 181 N.C. App. 224, 2007 N.C. App. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sandy-mush-properties-inc-v-rutherford-county-ex-rel-rutherford-county-ncctapp-2007.