WS CE RESORT OWNER, LLC v. HOLLAND

884 S.E.2d 282, 315 Ga. 691
Supreme Court of Georgia·Decided February 21, 2023·No. S22G0030·Published·Cited by 4 cases

Opinion

315 Ga. 691 FINAL COPY

S22G0030. WS CE RESORT OWNER, LLC v. HOLLAND et al.

PINSON, Justice.

A resort community in North Georgia includes a golf course next to a subdivision. The current owner of the resort wants to redevelop the golf course into a residential property, and several homeowners in the subdivision sued to stop it. The trial court concluded that the homeowners had an easement in the golf course and granted a permanent injunction preventing the course from being put to any other use, and the Court of Appeals affirmed.

We granted certiorari and now vacate the Court of Appeals’

decision and remand for further proceedings. Both courts below concluded that the homeowners acquired an easement in the golf course because their lots were bought with reference to a subdivision plat that designated a “golf course” next to the subdivision. That conclusion relied on a long line of our decisions recognizing that

easements in features like streets, parks, and lakes could be acquired on this basis, which amounts to an easement by express grant. But golf courses are different. Given the wide range of interests that an easement in a golf course could possibly include— interests in a view, access, use, or enjoyment, to name a few—merely designating a “golf course” on a subdivision plat and selling lots with reference to the plat cannot give reasonable certainty as to the scope of a claimed easement. And unlike with streets and parks, we are not aware of longstanding and settled expectations about golf courses from which intent to grant easements of reasonably certain scope may be inferred. So, although subdivision owners might be able to acquire an easement in a given adjacent golf course, the intent to convey such an interest must be shown through evidence based in the relevant documents taken as a whole, rather than presumed based on the golf course’s mere designation on a plat. For these reasons and more set out below, we vacate the contrary decision below and remand for further proceedings consistent with this opinion.

1. Background (a) The Land In 1993, Fountainhead Development, Inc. developed the Chateau Elan resort property, which is currently owned by appellant WS CE Resort Owner, LLC (the “resort owner”). Chateau Elan includes hotels, a spa, a winery, a tennis center, an equestrian center, residential subdivisions, and four golf courses, including the nine-hole “Par 3 Course” at issue here. The Par 3 Course is adjacent to a residential subdivision known as the “Manor Homes” subdivision.

In 1995, a surveyor, Donald Jones, prepared “The Final Plat for Executive Estates — Block A.” The Plat was a representation of the Manor Homes subdivision, and also noted the owners and uses of some adjacent properties. On the other side of one boundary of the subdivided area, the plat listed “Fountainhead Development, Inc. (Golf Course).” The adjacent properties were noted on the Plat only generally, with no delineation of boundary lines, specification of acreage, or identification of reference points. Jones stated in an

affidavit that listing adjacent property owners was “typical for plats and [per] local subdivision regulations,” but that he did not survey the adjacent golf course and did not intend to include the golf course as part of the Plat.

A realtor for Chateau Elan, Ben Harrison, testified that within the Chateau Elan development, residential lots were known for having either a wooded view or a golf course view, with the golf course views being more expensive. As part of Harrison’s pitch to prospective buyers, he would share with them the Master Site Plan, which showed three 18-hole golf courses and the nine-hole Par 3 Course, as well as wooded-view and golf course-view residential lots. He also showed them a marketing brochure for the Manor Homes subdivision, which noted various amenities of the Chateau Elan property, including the golf courses. The brochure explained that “[t]his year we will be introducing an exciting new ‘Manor Home’ development of smaller homes overlooking the Par 3 golf course.”

(b) The Homeowners Evelyn and John McCarthy (with Harrison’s help) purchased a

lot in the Manor Homes subdivision in 1995. Evelyn testified that the couple were “especially interested” in the lot “because it was adjacent to an existing Par 3 Golf Course and had a good view of the golf course from its back yard,” and that that particular lot’s proximity and access to the course was the “sole reason” for their purchase. In purchasing their home, the McCarthys relied on the Master Site Plan and marketing brochure provided to them by Harrison. The McCarthys paid a $15,000 site premium for their lot, which they understood to be because of its proximity and access to the course. The couple played golf on the Par 3 Course, enjoyed their view daily, and also received a free discount card for the course “by virtue of being a homeowner.”

Thomas and Connie Holland (with the help of Harrison and the president of Fountainhead) purchased a lot in the Manor Homes subdivision in 1996. Thomas testified that the couple were “especially looking for a home in a golf community.” He noted that “[t]he Par 3 Golf Course was an essential part of the concept [of buying a home in Manor Homes]. . . . We were very much drawn to

the Manor Homes because of the Par 3 Golf Course.” The Hollands paid a $15,000 site premium for their lot, which they understood to be because of its proximity to the course. The Hollands relied on the Plat’s depiction of the Par 3 Course as adjacent to the Manor Homes.

(c) Proposed Redevelopment of the Par 3 Course According to the resort owner, the Par 3 Course is not profitable. As a result, the resort owner applied to rezone the Par 3 Course to enable its conversion into a residential development. After its rezoning application was granted, Evelyn McCarthy1 and the Hollands (collectively, the “homeowners”) sued the resort owner in Barrow County Superior Court, seeking (1) an interlocutory injunction to enjoin the resort owner from “taking any action to change the use of the Par 3 Course”; (2) a declaratory judgment that (a) the Par 3 Course is subject to a use restriction limiting the use to operation as a golf course, (b) the use of the property as a golf course cannot be eliminated, and (c) the Par 3 Course cannot be converted to residential uses or any uses other than that as a golf course; and

1 John McCarthy passed away in 2008.

(3) attorney fees.

(d) Decisions Below The parties cross-moved for summary judgment. The trial court granted summary judgment to the homeowners, finding that they had established an implied easement that required the resort owner to keep the Par 3 Course operating as a golf course. The court found that an easement had been created by two different methods, which it called the “common-grantor” and “oral assurances” methods, relying on Peck v. Lanier Golf Club, Inc., 315 Ga. App. 176 (726 SE2d 442) (2012).

Applying Peck’s common-grantor method, the trial court looked to the plat and other evidence to determine whether the Par 3 Course was “set apart” for the homeowners’ use. The court concluded that it was, noting that the plat included “Fountainhead Development, Inc. (Golf Course)” as a description of property adjacent to the subdivision, McCarthy’s status as a homeowner in the Manor Homes gave him a special use discount on the course, and the homeowners had paid a premium price to “purchase[ ] an

adjacency and proximity” to the course.

Applying Peck’s oral-assurances method, the trial court also found that Fountainhead had made oral assurances to the homeowners that the Par 3 Course would remain a golf course. The court pointed out that Fountainhead’s marketing materials advertised the Manor Homes as “overlooking the Par 3 Course,” and that Fountainhead told buyers they would be buying lots “in a golf course community” and that they could use the course.

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WS CE RESORT OWNER, LLC v. HOLLAND, 884 S.E.2d 282, 315 Ga. 691 (Ga. 2023).

884 S.E.2d 282 (WS CE RESORT OWNER, LLC v. HOLLAND) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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