Shoney's Inc. v. Cooke

353 S.E.2d 300, 291 S.C. 307, 1987 S.C. App. LEXIS 242
CourtCourt of Appeals of South Carolina
DecidedFebruary 9, 1987
Docket0876
StatusPublished
Cited by5 cases

This text of 353 S.E.2d 300 (Shoney's Inc. v. Cooke) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shoney's Inc. v. Cooke, 353 S.E.2d 300, 291 S.C. 307, 1987 S.C. App. LEXIS 242 (S.C. Ct. App. 1987).

Opinion

Goolsby, Judge:

This is a declaratory judgment action brought by the respondent First Federal Savings and Loan Association and Shoney’s, Inc., seeking an order declaring that certain property owned by First Federal and subject to a contract of sale to Shoney’s is free from all restrictions, except those of public record. The appellants are the owners of other property purchased from the same tract from which the property belonging to First Federal was sold. The trial judge rendered judgment in favor of First Federal and Shoney’s giving them the declaration that they sought. We affirm.

The issues on appeal are whether the acceptance of a deed tendered in performance of an agreement to convey certain property merged the agreement to convey in the deed and whether the property is subject to an implied reciprocal negative easement.

*309 Lexington Park Associates, a South Carolina Limited Partnership, purchased a 6.5 acre tract of land in Lexington County to develop a professional office complex. It recorded a plat of the property that divides the tract into nine lots. Eight of the lots front on a street referred to on the plat as “Professional Avenue.” A legend on the plat states that it is a “plat ... of Lexington Office Plaza.”

Lexington Park gave Lexington County Savings and Loan Association, which financed the development of the 6.5 acre tract for Lexington Park, a written option to buy three lots reflected on the plat. The option recites that the property “has, or will have restrictions limiting its use to professional office type commercial businesses, including bank type institutions____”

Lexington Savings thereafter exercised its option and bought the three lots from Lexington Park. The deed conveying these lots to Lexington Savings states that the “conveyance is made subject to all ... restrictions ... and covenants of record____” At the time of the conveyance, however, there were no restrictions or covenants of record. Indeed, Lexington Park never recorded any restrictions or covenants limiting the use of the nine lots shown on the plat.

When it purchased the three lots, Lexington Savings intended to build a bank building thereon; however, adverse conditions prevented it from doing so. Lexington Savings eventually merged with First Federal.

Shoney’s contracted to buy the three lots from First Federal after First Federal determined it had no use for the property. Shoney’s intends to build a restaurant and motel upon the property.

Lexington Park also conveyed lots from the 6.5 acre tract to the appellants Raymond R. Cooke, James T. Wiggins, George H. Fann, T. D. Ravenel, Jr., and Paul Franklin Chumley. The conveyances to Cooke, Fann, and Ravenel were made pursuant to written contracts of sale. Fann’s and Ravenel’s contracts contain a reference to restrictions but Cooke’s contract does not. None of the deeds conveying a lot or lots from the 6.5 acre tract to the appellants contains a restriction limiting the use of the property.

The appellants improved their lots by building thereon a pharmacy, a physician’s office, dentists’ offices, a veterinarian’s office, and an insurance office.

*310 First Federal and Shoney’s initiated this action seeking a declaration that the property is free from any restriction that would prevent its use as a motel and restaurant. The appellants counterclaimed seeking a declaration that all lots conveyed from the 6.5 acre tract by Lexington Park are subject to a covenant restricting their use to professional offices and that the restaurant and motel proposed by Shoney’s are inconsistent with a use of that kind.

The case was heard by the trial judge sitting without a jury. He implicitly found that Lexington Savings’ acceptance of the deed tendered in performance of Lexington Park’s agreement to convey, which is embodied in the option, merged the agreement to convey in the deed and that the deed alone now regulates the rights and liabilities of the parties. He expressly found that Lexington Park abandoned either at or prior to the time of its conveyance of the property to Lexington Savings its intention to impose a common scheme of development upon the 6.5 acre tract and that there is no implied reciprocal negative easement that would prevent the use of First Federal’s property as a motel and restaurant.

I.

We discuss first the appellants’ arguments regarding merger.

a.

The appellants maintain that Lexington Savings’ acceptance of Lexington Park’s deed in performance of the agreement to convey the three lots did not extinguish the antecedent agreement to restrict the use of the three lots because the parties did not intend for a merger to occur.

In Charleston & Western Carolina Railway Co. v. Joyce, 231 S. C. 493, 99 S. E. (2d) 187 (1957), the Supreme Court fully discussed the doctrine of merger. They observed, while quoting from Snyder v. Roberts, 45 Wash. (2d) 865, 871, 278 P. (2d) 348, 352 (1955), and from 55 Am. Jur. Vendor and Purchaser § 327 at 756 (1946):

“The doctrine of merger is founded upon the privilege, which parties always possess, of changing their contract obligations by further agreements prior to performance. *311 The execution, delivery, and acceptance of a deed varying from the terms of the antecedent contract indicates an amendment of the original contract, and generally the rights of the parties are fixed by their expressions as contained in the deed. [Citations omitted.]”
“... Where there is no mistake or fraud a deed executed subsequently to the making of an executory contract for the sale of land is generally regarded as conclusive evidence of a previous modification of the executory contract. A deed executed subsequent to the making of an executory contract for the sale of land supersedes that contract....”

231 S. C. at 504-05, 99 S. E. (2d) at 193.

In Hughes v. Greenville Country Club, 283 S. C. 448, 322 S. E. (2d) 827 (Ct. App. 1984), we noted that this state recognizes the contrary intent exception to the merger doctrine. We held in Hughes, however, that “the party denying merger has the burden of proving by clear and convincing evidence that merger was not intended.” 283 S. C. at 451, 322 S. E. (2d) at 828.

Here, then, the acceptance by Lexington Savings of the deed tendered by Lexington Park in performance of its agreement to convey the three lots to Lexington Savings from the 6.5 acre tract merged the agreement to convey in the deed absent proof by clear and convincing evidence that the parties did not intend to merge the agreement to convey in the deed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stonington Community Association v. Taylor
Court of Appeals of South Carolina, 2024
Misty Lake v. Bridleridge
Court of Appeals of South Carolina, 2013
Gambrell v. Schriver
440 S.E.2d 393 (Court of Appeals of South Carolina, 1994)
Hammerquist v. Warburton
458 N.W.2d 773 (South Dakota Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
353 S.E.2d 300, 291 S.C. 307, 1987 S.C. App. LEXIS 242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shoneys-inc-v-cooke-scctapp-1987.