State v. Coastland Corp.

517 S.E.2d 655, 134 N.C. App. 269, 1999 N.C. App. LEXIS 749
CourtCourt of Appeals of North Carolina
DecidedJuly 20, 1999
DocketNo. COA98-1067
StatusPublished
Cited by1 cases

This text of 517 S.E.2d 655 (State v. Coastland 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
State v. Coastland Corp., 517 S.E.2d 655, 134 N.C. App. 269, 1999 N.C. App. LEXIS 749 (N.C. Ct. App. 1999).

Opinion

LEWIS, Judge.

Defendant appeals from the trial court’s order denying its motion to dismiss the State’s declaration of taking and notice of deposit. Defendant contends that the trial court lacked subject matter jurisdiction because “plaintiff has sought to condemn property for a purpose which is beyond their statutory authority.” Defendant also asserts that the State failed to state a claim upon which relief could be granted because the taking was not for a public purpose. The trial court concluded that the State was authorized to take defendant’s property pursuant to N.C. Gen. Stat. sections 146-22.1(1) and (10) (1991), and that the State might alternatively take the property pursuant to N.C. Gen. Stat. section 113-306(a) (1997). Defendant made fourteen assignments of error, and argues six of them in one massive contention that the “State’s attempt to take real property of the defendant is not a taking for a public purpose.”

Defendant and the State own approximately 1000 acres as tenants in common, with defendant owning a one-fifth undivided interest and the State owning the remaining four-fifths. This unusual ownership arrangement exists pursuant to a North Carolina Supreme Court decision. See Taylor v. Johnston, 289 N.C. 690, 224 S.E.2d 567 (1976). The State, using public funds, constructed impoundments on the property in 1963. The impoundments were intended to provide mosquito control and a management area for wildlife, including waterfowl, shorebirds, wading birds, turtles, and other creatures. The twelve miles of dikes that make up the impoundments, together with their pumping stations, pumps, sheds and utility buildings, have been maintained continuously by the State since the 1960’s. The area serves as a habitat and/or breeding area for numerous species, including the endangered peregrine falcon and the threatened bald eagle. The land is available for public wildlife-based recreations such as fishing, birdwatching, and photography. Hunting is permitted in the impoundments an average of 20 days per year and in the marsh area approximately 60 days per year. Maintenance of the facility structures and equipment requires 124 man-days per year, habitat management requires 40 man-days per year, and regulation of the area requires 60 man-days per year. Average annual costs for operation of the facility since 1962 have been $30,030, not including labor which currently requires approximately $11,000 per year.

In 1985, defendant purchased its one-fifth undivided interest from John “Jack” Taylor, a party to the case establishing shared own[271]*271ership with the State. The record indicates that defendant and the State have negotiated unsuccessfully to resolve the joint ownership situation since 1985. Defendant was willing to pay the State approximately $800,000 for the State’s 80% interest in the land; however, an offer by the State to purchase defendant’s 20% interest for $200,000 was refused by defendant. The State declined to physically partition the property, claiming such a division would adversely affect the management and operation of the impoundment facility. At various times the parties considered land trades, a sale by defendant if the State could secure a permit so defendant could build impoundments on adjacent property, and donation of the land to the State, all without agreement.

In 1991, the Wildlife Resources Commission asked the State Property Office, a division of the Department of Administration (“DOA”), to assess alternatives to the joint ownership. In October of 1995, the Wildlife Commission adopted a resolution requesting that DOA acquire defendant’s interest by condemnation since all prior negotiations had failed. On 24 June 1996, defendant filed a petition for partition against the State. The Governor and the Council of State approved an action of condemnation as requested by DOA on 6 August 1996, and on 29 August 1996, the State, through DOA, filed a Complaint and Declaration of Taking and Notice of Deposit for defendant’s one-fifth interest. The State deposited $200,000 in Pamlico County Superior Court, and title in the one-fifth interest thereby immediately vested in the State, as provided by N.C. Gen. Stat. section 136-104 (1993).

The State moved to dismiss defendant’s partition proceeding on grounds of sovereign immunity and mootness on 16 September 1996. On 27 September 1996, defendant voluntarily dismissed its partition proceeding; defendant reinstituted the partition action on 26 September 1997. The State again filed a motion to dismiss on grounds of mootness and sovereign immunity on 21 October 1997. The State’s motion to dismiss the partition suit was granted on 24 April 1998, but defendant still contests the validity of the taking by eminent domain.

Defendant asserted in the trial court that the taking was improper because it was beyond statutory authority and was not for a public purpose. The trial court denied defendant’s motion to dismiss, and from this order defendant appeals. An opinion filed concurrently with this one, Coastland Corporation v. N.C. Wildlife Resources Comm’n, [272]*272134 N.C. App. 343, - S.E.2d- (1999), addresses the issues of mootness and sovereign immunity raised by the partition proceeding. Here we address defendant’s arguments regarding the propriety of the taking.

Defendant assigns error to the trial court’s conclusions of law that the State was authorized to condemn the undivided one-fifth interest pursuant to N.C. Gen. Stat. sections 146-22.1 (1) and (10) (1991) and pursuant to N.C. Gen. Stat. section 113-306 (1997). The DOA’s authority to condemn land is found in Chapter 146, Article 6 of our General Statutes.

In carrying out the duties and purposes set forth in Chapters 143 and 146 of the General Statutes, the Department of Administration is vested with the power of eminent domain .... The power of eminent domain herein granted is supplemental to and in addition to the power of eminent domain which may be now or hereafter vested in any State agency. . . and [DOA] may exercise on behalf of such agency the power vested in said agency or the power vested in [DOA] herein.

N.C. Gen. Stat. § 146-24.1 (1991). The duties of DOA include acquiring land for state agencies. See N.C. Gen. Stat. § 143-341 (4)(d) (1999); State v. Club Properties, 275 N.C. 328, 331, 167 S.E.2d 385, 387 (1969). In acquiring property, “the Department of Administration may follow the procedure set forth in G.S. 146-24 or the procedure of such agency, at the option of the Department of Administration.” G.S. § 146-24.1. Therefore, DOA can act to condemn land using either its own authority, here alleged to be found in section 146-22.1(1) and (10), or the authority of the requesting agency, here alleged to be section 113-306. Procedurally, DOA can act to condemn defendant’s land either under section 146-24, which directs DOA to use the Board of Transportation procedures found in Chapter 136, Article 9 (“Transportation procedures”), or under Chapter 40A, which dictates the Wildlife Resources Commission’s procedure to take property. See N.C. Gen. Stat. §§ 146-24 (1991); 113-306(a).

It is clear that the State utilized the Transportation procedures in condemning defendant’s land. Both the complaint and the declaration of taking definitively state that “the Department of Administration by virtue of G.S. 146-24 and G.S.

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Related

Coastland Corp. v. North Carolina Wildlife Resources Commission
517 S.E.2d 661 (Court of Appeals of North Carolina, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
517 S.E.2d 655, 134 N.C. App. 269, 1999 N.C. App. LEXIS 749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-coastland-corp-ncctapp-1999.