Stegall v. Housing Authority of the City of Charlotte

178 S.E.2d 824, 278 N.C. 95, 51 A.L.R. 3d 548, 1971 N.C. LEXIS 943
CourtSupreme Court of North Carolina
DecidedFebruary 10, 1971
Docket48
StatusPublished
Cited by38 cases

This text of 178 S.E.2d 824 (Stegall v. Housing Authority of the City of Charlotte) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stegall v. Housing Authority of the City of Charlotte, 178 S.E.2d 824, 278 N.C. 95, 51 A.L.R. 3d 548, 1971 N.C. LEXIS 943 (N.C. 1971).

Opinion

SHARP, Justice.

The question presented is whether plaintiffs, who own lots in the northern half of the 18-acre tract conveyed by Garrison to Williams, may enjoin the erection of multi-family units on the southern half of the tract by virtue of the restriction in Williams’ deed “that only one single-family residence may be erected on any one lot.” Plaintiffs, as grantees of Williams, contend that the restriction is a covenant running with the land which is enforceable by any subsequent grantee of Williams. Defendants contend (1) that it is a personal covenant between Williams and Garrison, not intended for plaintiffs’ benefit, and (2) that the restriction is void for vagueness.

A grantee of land cannot benefit from covenants contained in the deed to his vendor “except such as attach to, and run with, the land.” 20 Am. Jur. 2d Covenants, Conditions, Etc. §§ 20, 292 (1965). A restriction which is merely a personal covenant with the grantor does not run with the land and can be enforced by him only. McCotter v. Barnes, 247 N.C. 480, 101 S.E. 2d 330; Julian v. Lawton, 240 N.C. 436, 82 S.E. 2d 210; 7 Thompson, Real Property § 3168 (1962 Replacement). Whether restrictions imposed upon land by a grantor create a personal obligation or impose a servitude upon the land enforceable by subsequent purchasers from his grantee is determined by the intention of the parties at the time the deed containing the restriction was delivered. Ordinarily this intention must be ascertained from the deed itself, but when the language used is ambiguous it is proper to consider the situation of the parties and the circumstances surrounding their transaction. However, this intention may not be established by parol. Neither the testimony nor the declarations of a party is competent to prove intent. The instrument must be construed most favorably to the grantee, and all doubts and ambiguities are resolved in favor of the unrestricted use of the property. The foregoing rules of construction have been often stated. See Reed v. Elmore, 246 N.C. 221, 98 S.E. 2d 360, and cases cited therein; Cummings v. Dorsam, Inc., 273 N.C. 28, 159 S.E. 2d 513; Long v. Branham, 271 N.C. 264, 156 S.E. 2d 235; Lamica v. Gerdes, 270 N.C. 85, *101 153 S.E. 2d 814; Hege v. Sellers, 241 N.C. 240, 84 S.E. 2d 892; Davis v. Robinson, 189 N.C. 589, 127 S.E. 697.

In July 1958, at the time Garrison conveyed the 18 acres by metes and bounds to Williams, no part of the 18 acres had been subdivided into building lots, and there was in existence no map or general plan of development for that tract. The first map of Walnut Hills, Williams’ subdivision of the northern portion of the tract, was dated, approved by the Charlotte-Mecklenburg Planning Commission, and recorded on 19 October 1959. From 8 January 1945, the date the Garrisons acquired the 59.77-acre tract from which they sold the 18 acres to Williams, they never subdivided the property into lots or made any plans for developing it themselves. It was divided into three separate tracts by the three sales above noted.

Restrictions in a deed will be regarded as for the personal benefit of the grantor unless a contrary intention appears, and the burden of showing that they constitute covenants running with the land is upon the party claiming the benefit of the restriction. 26 C.J.S. Deeds § 167 (3) (1956); 7 Thompson, Real Property § 3152 (1962 Replacement). “These principles apply with especial force to persons who (as here) are not parties to the instrument containing the restriction.” Stevenson v. Spivey, 132 Va. 115, 120, 110 S.E. 367, 368, 21 A.L.R. 1276, 1278. In the absence of a general plan of subdivision, development and sales subject to uniform restrictions, restrictions limiting the use of a portion of the property sold are deemed to be personal to the grantor and for the benefit of land retained. Sheets v. Dillon, 221 N.C. 426, 20 S.E. 2d 344. Furthermore, “where . . . a deed containing a covenant restricting the use of land embraces and conveys all the land affected thereby, such covenant stands only as a personal covenant between the parties.” Craven County v. Trust Co., 237 N.C. 502, 516-517, 75 S.E. 2d 620, 631.

For all practical purposes, after the Garrisons conveyed the 18 acres to Williams, they had disposed of the entire 59.77-acre tract. The lot retained, which is less than an acre, is useless because encumbered by the railroad right-of-way. Indeed, Garrison testified that he would be glad to give it to the City. Thus, the restriction which the Garrisons inserted in their deed to Williams could not have been for the benefit of any part of the 59.77-acre tract. Having parted with all their interest in *102 the 18 acres the Garrisons had no right to limit its free use by imposing upon it a covenant running with the land except for the benefit of other lands then owned by them. Craven County v. Trust Co., supra. “[T]he existence of the dominant estate is ordinarily essential to the validity of the servitude granted, and the destruction of the dominant estate releases the servitude.” Welitoff v. Kohl, 105 N.J. E. 181, 188, 147 Atl. 390, 393, 66 A.L.R. 1317, 1323. “A restrictive covenant can be enforced only by the owner of some part of the dominant land for the benefit of which the covenant was made. It cannot be enforced by the grantor who created the covenant, nor by his heirs, after he or they have parted with all interest in any land benefited by the covenant.” 7 Thompson, Real Property § 3172 (1962 Replacement). Accord, 26 C.J.S. Deeds § 162(3) at 1094 (1956); Kent v. Koch, 333 P. 2d 411 (Dist. Ct. App. Cal.). See 20 Am. Jur. 2d Covenants, Conditions, Etc. § 290 (1968); Welitoff v. Kohl, supra.

One who seeks to enforce a restrictive covenant “must show that he is the owner of or has an interest in the premises in favor of which the benefit or privilege has been created; otherwise, he has no interest in the covenant and is a mere intruder.” Los Angeles University v. Swarth, 107 F. 798, 804 (C.C.S.D. Cal.). Garrison testified that at the time the restriction in question was inserted in Williams’ deed he owned property “in the area.” The record, however, does not disclose its location or distance from the 18-acre tract. Unless it was close enough to the 18-acre tract to be adversely affected by Williams’ disregard of the covenant restricting the use of “any one lot” to “one single-family residence,” the Garrisons themselves could not enforce the covenant.

The meager and imprecise language by which the Garrisons attempted to impose restrictions upon Williams’ 18 acres makes it imposible to ascertain their real purpose. If the “one-family lot” restriction was inserted for the benefit of other lands retained by the Garrisons it would have been very easy for them to have specified the land. Furthermore, “ [T] he word lot has no definite significance with reference to dimensions, and, as an indication of quantity, the term is of the vaguest import and contains no legal or other meaning in this respect. How much and what it includes must be determined by the facts and circumstances of each particular case.

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

Related

Prevette v. Elsner
Court of Appeals of North Carolina, 2025
C Invs. 2, LLC v. Auger
Supreme Court of North Carolina, 2022
In re MidSouth Golf, LLC
549 B.R. 156 (E.D. North Carolina, 2016)
Davis v. Davis
2014 NCBC 60 (North Carolina Business Court, 2014)
Warrender v. Gull Harbor Yacht Club, Inc.
228 N.C. App. 520 (Court of Appeals of North Carolina, 2013)
WEIN II, LLC v. Porter
683 S.E.2d 707 (Court of Appeals of North Carolina, 2009)
Schwartz v. Banbury Woods Homeowners Ass'n
675 S.E.2d 382 (Court of Appeals of North Carolina, 2009)
Midsouth Golf, LLC v. Fairfield Harbourside Condominium Ass'n
652 S.E.2d 378 (Court of Appeals of North Carolina, 2007)
Danaher v. Joffe
646 S.E.2d 783 (Court of Appeals of North Carolina, 2007)
Winding Ridge Homeowners Ass'n v. Joffe
646 S.E.2d 801 (Court of Appeals of North Carolina, 2007)
Shaff v. Leyland
914 A.2d 1240 (Supreme Court of New Hampshire, 2006)
Hultquist v. Morrow
610 S.E.2d 288 (Court of Appeals of North Carolina, 2005)
Wise v. Harrington Grove Community Ass'n
584 S.E.2d 731 (Supreme Court of North Carolina, 2003)
Wal-Mart Stores, Inc. v. Ingles Markets, Inc.
581 S.E.2d 111 (Court of Appeals of North Carolina, 2003)
Station Associates, Inc. v. Dare County
501 S.E.2d 705 (Court of Appeals of North Carolina, 1998)
Angel v. Truitt
424 S.E.2d 660 (Court of Appeals of North Carolina, 1993)
Runyon v. Paley
416 S.E.2d 177 (Supreme Court of North Carolina, 1992)
Amerson v. Lancaster
415 S.E.2d 93 (Court of Appeals of North Carolina, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
178 S.E.2d 824, 278 N.C. 95, 51 A.L.R. 3d 548, 1971 N.C. LEXIS 943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stegall-v-housing-authority-of-the-city-of-charlotte-nc-1971.