Warrender v. Gull Harbor Yacht Club, Inc.

228 N.C. App. 520, 2013 WL 3989949
CourtCourt of Appeals of North Carolina
DecidedAugust 6, 2013
DocketNo. COA12-1038
StatusPublished
Cited by3 cases

This text of 228 N.C. App. 520 (Warrender v. Gull Harbor Yacht Club, Inc.) 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
Warrender v. Gull Harbor Yacht Club, Inc., 228 N.C. App. 520, 2013 WL 3989949 (N.C. Ct. App. 2013).

Opinion

CALABRIA, Judge.

Defendants appeal from multiple orders and judgments entered by the trial court in favor of plaintiffs on claims involving the restrictive covenants governing the Gull Harbor subdivision (“Gull Harbor”). We affirm in part, reverse in part, vacate in part, and remand.

I. Factual and Procedural Background

On 11 April 1972, developer Walton W. Smith (“Smith”) acquired a large tract of land in Carteret County, North Carolina, intending to develop it into Gull Harbor. Gull Harbor included a marina (“the marina”), which was created by digging a basin and a channel from a portion of the land in Gull Harbor to Bogue Sound. Smith subdivided the remainder of Gull Harbor into lots for single-family homes.

On 19 December 1972, Smith recorded a “General Plan” for Gull Harbor (“the General Plan”), which included several restrictive covenants. The General Plan applied to “[t]hat area described as Blocks A, B, C, of Section 1, of Gull Harbor as shown on the map described above in Map Book 9, at Page 28.” Under the terms of the General Plan, all residents of Gull Harbor were required to join a homeowners association, which was “responsible for the maintenance of the marina, the channel from the marina to deep water, and all streets unless or until the maintenance of said streets is assumed by a state or municipal governmental agency.” Each property owner was required to pay the homeowners association $36.00 per year to fund this maintenance. On 10 August 1974, the “Gull Harbor Home-Owner’s Association, Inc.” (“GHHA”) filed Articles of Incoiporation with the North Carolina Secretary of State and began operating as the homeowners association for Gull Harbor.

The General Plan also provided that “[t]he yacht basin and boat ramp shall be for the exclusive use of Gull Harbor lot owners and their house guests[.]” However, Smith, as developer of Gull Harbor, specifically reserved the right to rent boat slips in the marina to other individuals “unless or until said slips are needed by Gull Harbor lot owners who will then be given preference on a first come first serve basis.” The General Plan was valid “until January 1, 1998, after which time said covenants shall be automatically extended for successive periods of ten years unless a majority of the then owners of the land described in the map change said covenants in whole or in part.”

In January 1973, Smith conveyed the majority of Gull Harbor to Gull Harbor, Inc. However, Smith retained ownership of the marina, [525]*525“togethér with its appurtenances, launching ramp, docks, bulkheading and channelization.” On 25 June 1987, Smith sold the marina to Thomas M. Foley (“Foley”) and John Robert Vakiener (“Vakiener”). The deed conveying the marina to Foley and Vakiener also conveyed “all improvements located thereon, including but not limited to bulkheading, docks and finger piers, and electrical and water installations.” The deed specifically was made subject to the “[r]ights of owners in lots in the Gull Harbor Subdivision to use of that portion of the property designated as ‘Gull Harbor Marina’ as set out in [the] General Plan....”

In 1983, a dispute arose between Smith and Gull Harbor property owners John W. Warrender (“Warrender”) and Diane Poole Warrender regarding six boat slips located near Warrender’s lot. The dispute was litigated and subsequently settled by consent judgment on 18 May 1984 (“the Smith-Warrender consent judgment”). Specifically, the SmithWarrender consent judgment ensured that the lessees of those six boat slips were not to trespass upon Warrender’s “lawn or land area” and were to respect Warrender’s “privacy and property rights.” In addition, the use of the slips was to be of such a nature that Warrender would not be “duly or unreasonably disturbed.”

On 3 February 1988, a majority of Gull Harbor property owners executed and filed a “Revision and Restatement” of the General Plan (“the Revision”), which amended many of the covenants included in the General Plan. Under the terms of the Revision, the GHHA increased the annual $36.00 per lot assessment to $60.00 per lot, but limited its contributions for maintenance of the marina to $3,000.00 per calendar year. Neither Foley nor Vakiener executed the Revision.

On 3 February 2000, the marina was conveyed to Byron T. Unger (“Unger”) and his wife, Anna Monique Kent. The deed to Unger described the marina as including the same improvements referenced in the 25 June 1987 deed to Foley and Vakiener and was explicitly subject to the “[r]ights of owners in the Gull Harbor Subdivision, if any, to use of that portion of the property designated as ‘GULL HARBOR MARINA’ as set out in [the] General Plan....”

On 27 February 2000, Unger sent a letter to all Gull Harbor residents indicating that he intended to lease boat slips in the marina for 99-year terms. Unger proceeded to enter into 99-year leases for twenty-two of the marina’s thirty boat slips. Eight of the leases were with individuals who were not lot owners in Gull Harbor (“the non-owners”). In addition, Unger executed two promissory notes, secured by deeds of trust on the marina, in the amounts of $220,000.00 and $80,000.00. Unger [526]*526subsequently defaulted on both promissory notes and foreclosure proceedings were initiated.

On 1 March 2005, the individuals who had entered into 99-year boat slip leases with Unger filed Articles of Incorporation for the non-profit corporation Gull Harbor Yacht Club (“GHYC”). GHYC purchased the two promissory notes and corresponding deeds of trust on the marina for $165,000.00. GHYC then continued with the foreclosure proceedings and ultimately purchased the marina at the ensuing foreclosure sale.

Several portions of the marina had been neglected by Unger and required extensive repairs. These repairs, which totaled $200,012.23, included replacing the boat ramp, dredging the marina basin and channel, and repairing the marina bulkheads. In 2007, GHYC changed the lock that secured the chain across the entrance to the marina and informed all Gull Harbor lot owners that it would begin charging them a “user fee” of $200.00 per year to access the marina boat ramp. In addition, lot owners would be required to pay $20.00 in order to receive a key to the locked chain.

On 13 September 2007, Warrender initiated an action against GHYC in Carteret County Superior Court. On 2 September 2008, Warrender filed an amended complaint against GHYC as well as the individual members of GHYC (“the individual defendants”)(collectively “defendants”). The amended complaint included claims for, inter alia, violation of restrictive covenants, tortious interference with a contract (“tortious interference”), trespass, nuisance, unfair and deceptive trade practices, and injunctive relief. That same day, eighteen other Gull Harbor property owners (collectively with Warrender, “the original plaintiffs”) filed a companion action against GHYC and the individual defendants, asserting similar claims. On 29 October 2008, the two cases were consolidated.

On 2 October 2008, defendant Wayne Young (“Young”), a Gull Harbor property owner who had entered into a 99-year lease with Unger, filed a motion to dismiss the original plaintiffs’ complaint as to their claims against him. On 31 October 2009, defendants filed an answer to the original plaintiffs’ complaint which raised several affirmative defenses, including the statute of limitations and laches. Additionally, defendants included in their answer a motion to dismiss for failure to join necessary parties.

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