NO. COA98-80
NORTH CAROLINA COURT OF APPEALS
Filed: 7 September 1999
JANET L. KARNER and LYMAN G. WELTON, Plaintiffs and LORETTA LEE
PENDERGRAST, APRILLE L. SHAFFER and SHELLY JORDAN, Intervenor
Plaintiffs v. ROY WHITE FLOWERS, INC., ROY J. WHITE, JR.,
MARGARET C. WHITE, and EDWARD A. WHITE, Defendants
1. Deeds--restrictive covenants--residential purposes only--motion to require joinder--
proper party--necessary party
The trial court did not err in denying plaintiff's motion to require joinder of the non-
litigant residential property owners on the basis that defendants' changed conditions defense
could result in the invalidation of the restrictive covenants in the residential subdivision because
all landowners in the subdivision are not necessary parties, but instead merely proper parties
since their interest is fully represented by the present parties.
2. Statute of Limitations--incorporeal hereditaments--restrictive covenant--
encroachment--prescriptive easement
The trial court did not err in utilizing N.C.G.S. § 1-50(a)(3)'s six-year statute of
limitations for injury to incorporeal hereditaments, instead of a twenty-year statute of limitations
extinguishing restrictive covenants upon adverse use for the prescriptive period, since the present
case involves a restrictive covenant rather than an encroachment and/or prescriptive easement.
3. Deeds--restrictive covenant--directed verdict--aware or reasonably aware of
violation
The trial court erred in directing verdict for defendants based on a six-year statute of
limitations pursuant to N.C.G.S. § 1-50(a)(3) on lots 1, 2, and 3 because there is conflicting
evidence whether plaintiffs were aware or should have reasonably been aware of a continual
violation of the restrictive covenant on those lots from 5 October 1989 to 5 October 1995.
However, the trial court did not err in directing verdict for lot 4 because it has been openly used
for non-residential purposes for at least twenty-two years before this suit was instituted, and
evidence of vacating and demolishing a building which has continually been used for
commercial purposes does not indicate in and of itself that the property has returned to a
residential use.
Judge GREENE dissenting. Appeal by Janet L. Karner, Lyman G. Welton, Loretta Lee
Pendergrast and Aprille L. Shaffer from order of 9 May 1996 and
judgment entered 11 February 1997 by Judge Marvin Gray in
Mecklenburg County Superior Court. Heard in the Court of Appeals
26 January 1999.
James, McElroy & Diehl, P.A., by Paul P. Browne and Law
Offices of Kenneth T. Davies, by Kenneth T. Davies, for
plaintiff-appellants.
Odom & Groves, P.C., by George J. Miller and L. Holmes
Eleazer, Jr., for defendant-appellees.
HUNTER, Judge.
Briefly, the record reveals that the parties are all
property owners in Elizabeth Heights, a neighborhood in Charlotte
which was developed as a residential subdivision around the turn
of the century. Each of the conveyances of lots in Elizabeth
Heights to the original grantees, and their heirs and assigns,
contained a restrictive covenant that encumbered the lots for use
for residential purposes only.
In 1995, defendants began to clear four (4) of their six
(6) lots in Elizabeth Heights. After it was reported in a local
newspaper that defendants intended to demolish three vacant
houses on the property in question and construct a 5,300 square
foot commercial building, plaintiffs filed a complaint 5 October1995 seeking, inter alia, to enjoin defendants from erecting a
commercial structure. Defendants answered and raised several
affirmative defenses, including a defense that the action was
barred by N.C. Gen. Stat. § 1-50(a)(3), the six-year statute of
limitations for injury to an incorporeal hereditament, and that
the use and character of the neighborhood had changed over the
years to such an extent that it was not desirable or economically
feasible to use the properties for residential purposes and such
covenant should be annulled by the court.
On 18 March 1996, plaintiffs moved the trial court to
require defendants to join all other landowners within the
relevant area as third party defendants. The court denied
plaintiffs' motion in an order entered 9 May 1996.
The case came on for trial and following the presentation of
evidence by both parties, the trial court entered an order of
directed verdict against plaintiffs on the grounds that their
claims were barred by N.C. Gen. Stat. § 1-50(a)(3). Plaintiffs
appeal the denial of their motion for joinder and the directed
verdict as to lots one (1) through four (4).
I. Joinder
[1]First, plaintiffs argue that the trial court erred in
denying their motion to require joinder of the non-litigant
property owners in Elizabeth Heights. Plaintiffs contend thatdefendants' changed conditions defense could result in the
invalidation of the restrictive covenants which apply to
Elizabeth Heights; consequently, all landowners in the
subdivision are necessary parties because their property rights
could therefore be affected.
The removal of restrictive covenants is an equitable action
based upon whether changed conditions of an area are a
substantial departure from the purposes of the original plan,
and is a matter to be decided in light of the specific
circumstances of each case.
Hawthorne v. Realty Syndicate, Inc.,
300 N.C. 660, 667, 268 S.E.2d 494, 499,
reh. denied, 301 N.C.
107, 273 S.E.2d 442 (1980). Rule 19 of the North Carolina Rules
of Civil Procedure provides that those who are united in interest
must be joined as plaintiffs or defendants. N.C. Gen. Stat. §
1A-1, Rule 19(a) (1990). The court may determine any claim
before it when the rights of others not before the court are not
prejudiced, but when a complete determination of such claim
cannot be made without the presence of other parties, the court
shall order such other parties summoned to appear in the action.
N.C. Gen. Stat. § 1A-1, Rule 19(b) (1990). A necessary party is
one who is so vitally interested in the controversy that a valid
judgment cannot be rendered in the action completely and finally
determining the controversy without his presence[;] however, aproper party is one whose interest may be affected by a decree,
but whose presence is not essential in order for the court to
adjudicate the rights of others.
Carding Developments v. Gunter
& Cooke, 12 N.C. App. 448, 451-52, 183 S.E.2d 834, 837 (1971).
While necessary parties must be joined in an action, proper
parties may be joined, and whether proper parties will be
ordered joined rests within the sound discretion of the trial
court.
Id.
Plaintiffs assert that under
Sheets v. Dillon, 221 N.C. 426,
20 S.E.2d 344 (1942), all property owners in Elizabeth Heights
must be joined as necessary parties in the present case. In
Sheets, the plaintiff sought to enforce a contract of sale of
real property, which the defendant refused to complete after
learning of residential restrictive covenants in the plaintiffs'
chain of title. The trial court found that the defendant was not
required to act under the contract. The plaintiff raised the
issue of changed conditions in the neighborhood, asserting that
the residential covenants were no longer valid, and our Supreme
Court remanded the case, stating:
[T]here is some evidence that plaintiff
acquired title under a general scheme or at
least tending to show that other grantees of
the original grantor may be interested in
attempting to so prove. It follows that the
original grantor is, and its other grantees
may be, interested in the enforcement of thecovenant plaintiff seeks to annul.
The judgment herein is not conclusive as
to any one other than plaintiff and
defendant. Plaintiff's predecessor in title
and those who may claim that the covenant was
inserted pursuant to a general plan or scheme
of development are not estopped from
hereafter asserting their rights thereunder.
Under such circumstances equity will not
require defendant to comply with his contract
in direct violation of the stipulation that
the property is to be conveyed free of
restrictive covenants. If plaintiff desires
to have this covenant invalidated and
stricken from the deed of the original
grantee, he must bring in the interested
parties and give them a day in court.
Id. at 431-32, 20 S.E.2d at 347-48 (emphasis added). We
interpret
Sheets to stand for the proposition that if one party
seeks to annul or invalidate a restrictive covenant in equity,
based on changed conditions, the interest of other property
owners, who may challenge this cause of action, must be
represented in the suit. In
Sheets, the plaintiff property owner
sought to annul restrictive covenants, and the defendant had no
property interest in the subject property. Therefore, the
interest of other landowners, who may have contested the
invalidation, was not represented.
To the contrary, in the present case, the interest of
landowners wishing to either oppose or support the assertion of
changed conditions is fully represented by the present parties. Other landowners in Elizabeth Heights are not necessary parties
for the court to determine whether or not the character of the
neighborhood has changed to such an extent that the residential
covenants should be annulled. Nor are they necessary for the
court to determine any other issue presented in this case. If
other landowners in Elizabeth Heights choose to join either the
plaintiffs or defendants as parties in this suit, the court could
order their joinder as proper; however, the joinder of each
individual landowner is not necessary for the action to proceed.
Accordingly, we hold that the record reveals no abuse of
discretion by the trial court in its denial of the motion for
joinder of all property owners in Elizabeth Heights in the
present action.
II. Statute of Limitations
[2]Plaintiffs assert that the trial court erred in entering
a directed verdict under the authority of
N.C. Gen. Stat. § 1-
50(a)(3), a six-year statute of limitation [f]or injury to any
incorporeal hereditament, because the correct statute of
limitation in the present case is the prescriptive period of
twenty years.
Plaintiffs filed suit to enforce a restrictive covenant. A
restrictive covenant is a servitude, commonly referred to as a
negative easement, and an easement is an incorporealhereditament.
Hawthorne v. Realty Syndicate, Inc., 43 N.C. App.
436, 440, 259 S.E.2d 591, 593 (1979),
aff'd, 300 N.C. 660, 268
S.E.2d 494,
reh. denied, 301 N.C. 107, 273 S.E.2d 442 (1980)
(citation omitted). The term incorporeal hereditament derives
from English law and is defined as:
Anything, the subject of property, which is
inheritable and not tangible or visible. A
right issuing out of a thing corporate
(whether real or personal) or concerning or
annexed to or exercisable within the same. A
right growing out of, or concerning, or
annexed to, a corporeal thing, but not the
substance of the thing itself.
Black's Law Dictionary 726 (6
th ed. 1990). This Court has held
that N.C. Gen. Stat. § 1-50(a)(3) requires that an action for
injury to any incorporeal hereditament be brought within six
years, and applies to restrictive covenants.
Hawthorne, 43 N.C.
App. at 440, 259 S.E.2d at 593.
Plaintiffs argue that the statute of limitations rule
enunciated in
Hawthorne does not apply in the present case. They
contend that their claims are subject to a twenty-year statute
of limitations because they are seeking an injunction and [a]n
easement may be extinguished by adverse use by the owner of the
servient property for the prescriptive period.
Skvarla v. Park,
62 N.C. App. 482, 488, 303 S.E.2d 354, 358 (1983). Plaintiffs
rely on
Bishop v. Reinhold, 66 N.C. App. 379, 311 S.E.2d 298,
disc. review denied, 310 N.C. 743, 315 S.E.2d 700 (1984), for
this proposition. The defendant's home in
Bishop was partially
erected on the plaintiff's property in 1973 and plaintiffs sued
in 1980 on the basis of continual trespass, seeking removal of
the building from their property. The Court noted that in the
case of an actual encroachment, a plaintiff is limited to a
single recovery of all damages.
Bishop, 66 N.C. App. at 383,
311 S.E.2d at 300. The Court held that any claim for relief for
actual removal of the structure as in an action for compensation
for the easement or for the fee by adverse possession was not
barred until defendants had been in continuous use thereof for a
period of twenty years so as to acquire the right by
prescription.
Id. at 384, 311 S.E.2d at 301. The Court
apparently relied upon the rule that to obtain such a
prescriptive easement in North Carolina,
a claimant must prove: (1) that its use of
the easement was adverse, hostile, or under a
claim of right, (2) that the use has been
open and notorious, (3) that the use was
continuous and uninterrupted for a period of
twenty years, and (4) that there is
substantial identity of the easement for this
twenty year period.
Boger v. Gatton, 123 N.C. App. 635, 637, 473 S.E.2d 672, 675,
review denied, 344 N.C. 733, 478 S.E.2d 3 (1996) (
citing
Dickinson v. Pake, 284 N.C. 576, 580-81, 201 S.E.2d 897, 900-01(1974)).
Plaintiffs' novel argument, while provoking, lacks merit.
The present case is distinguishable from
Bishop in that a
residential restrictive covenant is at issue rather than an
encroachment and/or prescriptive easement. While other
jurisdictions have found in accordance with the plaintiffs'
contention,
Jinkins v. City of Jal, 386 P.2d 599 (N.M. 1963)
(applicable period of limitations in a suit to enjoin violation
of restrictive covenant as to use of land was 10-year period of
prescription and not three- or four-year statutes of limitation),
we have found no authority under the laws of this state which
support the position that restrictive covenants may be
extinguished upon adverse use for a prescriptive period.
Because plaintiff has failed to show an exception to the rule
announced in
Hawthorne, we find no error. N.C. Gen. Stat. § 1-
50(a)(3) is the applicable statute of limitations in the present
case; therefore, plaintiffs' case is barred if this six-year
statute of limitation is satisfied.
III. Accrual of Statute of Limitations Defense
[3]Plaintiffs contend that even under N.C. Gen. Stat. § 1-
50(a)(3), their action was timely brought because the lots in
question were not used for non-residential purposes in a manner
that was continuous, open and notorious for the full six-yearstatutory period.
The trial court found that there is no dispute between and
among the parties that the Defendants have used the subject six
(6) parcels of property for non-residential uses in a continuous,
open and notorious manner . . . for a period of time in excess of
six (6) years prior to filing of the plaintiffs' Complaint on
October 5, 1995. Therefore, the trial court concluded that
plaintiffs' suit was barred by N.C. Gen. Stat. § 1-50(a)(3) and
granted a directed verdict for the defendants.
In ruling on a motion for directed verdict, the trial court
must consider the evidence in the light most favorable to the
non-movant. This means that the evidence in favor of the
non-movant must be taken as true, resolving all conflicts in the
non-movant's favor and entitling him to the benefit of all
reasonable inferences.
Freeman v. Development Co., 25 N.C. App.
56, 212 S.E.2d 190 (1975). If plaintiffs fail to present
evidence of each element of their claim for relief, they will not
survive a directed verdict motion,
Felts v. Liberty Emergency
Service, 97 N.C. App. 381, 388 S.E.2d 619 (1990), and there must
be more than a scintilla of evidence to support each element of
the plaintiffs' claim.
Tedder v. Alford, 128 N.C. App. 27, 493
S.E.2d 487 (1997),
disc. review denied, 348 N.C. 290, 501 S.E.2d
917 (1998). Finally, a directed verdict should not be grantedwhen conflicting evidence has been presented on contested issues
of fact.
Brewer v. Cabarrus Plastics, 130 N.C. App. 681, 504
S.E.2d 580 (1998),
disc. review denied, 1999 WL 386187 (N.C. Sup.
Ct. Feb. 4, 1999).
Before considering plaintiffs' assignments of error, we must
first review the rule as to when the statute of limitation begins
running:
Generally, a cause of action accrues and the
statute of limitations begins to run as soon
as the right to institute and maintain a suit
arises. . . . [A]s soon as the injury
becomes apparent to the claimant or should
reasonably become apparent, the cause of
action is complete and the limitation period
begins to run. It does not matter that
further damage could occur; such further
damage is only aggravation of the original
injury.
Liptrap v. City of High Point, 128 N.C. App. 353, 355, 496 S.E.2d
817, 819,
disc. review denied, 348 N.C. 73, 505 S.E.2d 873 (1998)
(citations omitted). In
Hawthorne, supra, the trial court had
found that the action to enjoin defendants from using their
property for commercial uses was brought within three years
after the first non-residential use of the defendants' property;
therefore, the statute of limitations did not bar the suit.
Hawthorne, 43 N.C. App. at 439, 259 S.E.2d at 593. This Court
agreed, stating: G.S. 1-50(3) requires that an action for
injury to any incorporeal hereditament be brought within sixyears. Plaintiffs' action was clearly brought within this
period.
Id. at 440, 259 S.E.2d at 593.
Under
Liptrap and
Hawthorne, it is clear that the statute of
limitations begins running as to the violation of a restrictive
covenant when the plaintiff first becomes aware or should have
reasonably become aware of the violation. Therefore, if the
plaintiff is aware, or should reasonably be aware of the
violation continually for six years, a valid defense exists under
N.C. Gen. Stat. § 1-50(a)(3).
Cf. Williamson v. Pope, 60 N.C.
App. 539, 299 S.E.2d 661 (1983) (the court cannot presume that
adjoining property owners acquiesce to a violation of a
restrictive covenant when they were formerly informed that a
violation did not exist, and brought suit once they became aware
of violation, thus laches does not bar their suit).
First, plaintiffs contend that the lots in question were not
in violation of the restrictive covenants at the time the lawsuit
was filed, therefore a statute of limitations defense in the
present case is inapplicable. Plaintiffs argue that defendants
had vacated any structures on the lots at issue in the summer of
1995 and demolished them at the time suit was brought on 5
October 1995; therefore, assuming
arguendo that violations of the
restrictive covenants had existed prior to the property becoming
vacant, the offending use ceased when the lots became vacant, andthe residential restrictive covenant again became enforceable
because the applicability of a covenant is renewed once the
violation ceases. Plaintiffs' cite
Schoenhals v. Close, 451
S.W.2d 597 (Tx. App. 1970) to support their argument.
In
Schoenhals, the appropriate statute of limitations was
four (4) years, and the plaintiffs
brought an action to enjoin
the operation of a beauty shop in the garage of a home in their
neighborhood. The neighborhood was subject to a residential
restrictive covenant. The record revealed that defendant
Schoenhals had converted the inside of his garage into a beauty
shop in late 1959. In January of 1960 Schoenhals' daughter,
Griggs, opened the beauty shop for commercial operation. In
October of 1960, the Closes (plaintiffs), purchased the house
next to the Schoenhals' lot. At that time, the beauty shop was
in operation, and remained in commercial operation until some
time in 1964. Griggs did some work in the beauty shop for some
ten (10) members of her church on a charitable basis from 1964
until July 1969. Plaintiff Close made over $30,000.00 in
improvements to his property during the period from 1964 to 1969
when commercial activity surrounding the beauty shop had ceased.
Griggs made arrangements to resume commercial operations of the
beauty shop in July 1969, at which point the plaintiff brought
suit to enjoin the commercial operation for violation of arestrictive covenant. The court found that the determinative
question was whether a party who acquires a right through the
statute of limitations to operate a commercial enterprise in
contravention of a restrictive covenant may lose that right by
abandonment. Answering in the affirmative, the court stated:
A restriction may become unenforceable
with respect to a particular lot in a tract
under the defenses of the statute of
limitations, waiver, or laches. Even though
a party has violated a restrictive covenant
and is able to continue to do so under one of
the foregoing defenses, the restrictive
covenant will continue to exist, even if the
violation as it exists, continues. If the
violation ceases, the covenant will once more
become effective and will bar any future
violations. Any other result would, in
effect, seriously impair the usefulness and
value of restrictive covenants, as any
prospective purchaser of a home in a
residential area could never be certain that
a previous violation of a restrictive
covenant in the neighborhood had not rendered
that covenant ineffective.
Schoenhals, 451 S.W.2d at 599-600 (citation omitted). The court
noted that the beauty shop ceased its commercial activity some
time in 1964, and from the outside, a casual observer would not
have noticed anything unusual about the garage during that
period. The court found that [w]hen appellants ceased to
violate the restrictive covenant, they waived the rights they may
have acquired during the previous operation of the beauty shop.
Id. at 600. Likewise, [n]one of the neighbors would have beenable to maintain a suit during this period as the appellants were
not at that time violating the restrictive covenant.
Id. The
Texas Court of Appeals held that the defendants' violation in
1969 started the running of the statute of limitations once
again; therefore, plaintiffs were not barred by Texas' four-year
statute of limitations when they filed suit in ten days after
learning of commercial activity in the defendants' garage.
Id.
We agree with the reasoning in the
Schoenhals case.
Although the violation of the restrictive covenant for the
statutory period may be asserted as a defense, such violation
does not invalidate the restrictive covenant in perpetuity. The
violation must exist continually, and plaintiff must be aware or
should have reasonably been aware of it, for the full statutory
period in order for a valid defense to exist under N.C. Gen.
Stat. § 1-50(a)(3). Therefore, our inquiry now turns to whether
the plaintiffs were or should have been reasonably aware of the
continued non-residential use of lots one (1), two (2), three
(3), and four (4), from 5 October 1989 to 5 October 1995,
satisfying the six-year statute of limitations and therefore
barring the present action, which was filed on 5 October 1995.
The evidence presented by the plaintiffs to the trial court
indicates that two neighbors testified that the house on lot one
(1) was vacant from the summer of 1989, when Tim Irby moved fromthe house, until the time of the commencement of this action, and
that there was no apparent use of the property, as the windows
were boarded up, no signage was attached to the property, and no
one was seen going in or out of the house. Defendants presented
evidence to the trial court indicating that Tim Irby lived in the
building on lot one (1) from 1983 to the summer of 1989, where he
openly operated a business, Everything on East, during that
time. From the time Irby left in 1989 until shortly before the
October 1995 demolition of the building, defendants presented
evidence that the structure was commercially used for storage of
various items related to the flower shop business Roy White
Flowers, Inc.
As to lot two (2), plaintiffs presented evidence which
indicated that the house located thereon was occupied as a
residence by Mitchell Cooper and others from July 1988 until 30
September 1989 in a boarding house type situation. Cooper
testified that his lease was residential, requiring a $50.00
deposit for a waterbed. He also testified that the rent payments
to defendant Edward A. White varied over the term of the lease
because the lease provided for monthly rent of $700.00 for the
first six (6) people, and $100.00 for each additional individual
living in the home. Defendants presented evidence that Mr.
Cooper used the house on lot two (2) in a non-residential manneras a place for his business, a rock-and-roll band, to practice
music. They presented evidence that Cooper installed sound-
dampening material to improve acoustics for and to reduce noise
from the practices. Defendants also presented evidence that the
house was vacant from 30 September 1989 until it was rented by
Tom Brown in November 1989. At some point before the summer of
1990, Brown opened a small consignment shop named The Girl Can't
Help It on the first floor of the house. Plaintiffs contend
Brown also used the structure for a residence. The house became
vacant in September 1995 and was torn down in October 1995.
In regards to lot three (3), it is uncontested that it has
been a vacant, grassy lot since the early 1980s when the building
thereon was destroyed by fire. Defendants' evidence indicated
that during the time that Mitchell Cooper occupied the house on
lot two (2), from July 1988 to 30 September 1989, he and his
house and/or band-mates used lot three (3) for parking. It also
indicated that from October 1989 to September 1995, the vacant
lot was used for overflow parking from defendant Roy White's
business, that from 1983 to 1989 it was used for parking for Mr.
Irby's business on lot one (1), and from the spring of 1990 to
sometime in 1995, it was used for parking for Mr. Brown's
business on lot two (2). Plaintiffs presented testimony by Lyman
G. Welton, who had lived in the neighborhood since 1980 and hadwalked past lot three (3) hundreds of time[s], that he had
very rarely seen cars parked on lot three (3) between 1980 and
the date of commencement of this case. Mitchell Cooper testified
that he never saw any employees of defendant Roy White Flowers,
Inc. use lot three (3) for parking between July 1988 and October
1995. Plaintiffs also presented evidence that the grassy lot
was never paved or improved in any manner.
Viewing the evidence in the light most favorable to
plaintiffs, we hold that there is conflicting evidence as to
whether plaintiffs were aware or should have reasonably been
aware of a violation of the residential restrictive covenant on
lots one (1), two (2), and three (3) from 5 October 1989 to 5
October 1995 and therefore this issue could not have been
determined by the trial court as a matter of law. We hold the
directed verdict was in error and this issue should have gone to
the jury.
The evidence indicates that lot four (4) had been used for
non-residential purposes for at least twenty-two (22) years when
this suit was instituted. The building on lot four (4) was
openly used for and operated as a food cooperative business from
1973 until 1987. From 1987 until shortly before demolition of
the building on the lot in 1995, the building was openly used to
house Bucky Adams Pet Grooming, a small dog grooming business. Defendants presented evidence that the house was demolished for
commercial development, therefore, commercial activity never
ceased. Plaintiffs presented evidence that the house on lot four
(4) was vacated for about five (5) or six (6) months and was
eventually demolished prior to the commencement of litigation in
this case. The vacation and demolishment of a building which has
continually been used for commercial purposes does not indicate
in and of itself that the property has returned to a residential
use. Plaintiffs did not present a scintilla of evidence that
they were not aware or should not have reasonably been aware that
commercial use of the property continued after the pet grooming
business vacated the premises. Viewing the evidence in the light
most favorable to plaintiffs, we hold that there is no
conflicting evidence as to whether plaintiffs were aware or
should have reasonably been aware of a violation of the
restrictive covenant on lot four (4) from 5 October 1989 to 5
October 1995. Therefore, the trial court did not err in granting
a directed verdict pursuant to N.C. Gen. Stat. § 1-50(a)(3) in
regards to lot four (4).
Based on the foregoing, we affirm the trial court's denial
of joinder, application of N.C. Gen. Stat. § 1-50(a)(3), and
directed verdict as to lot four (4), and reverse and remand the
directed verdict as to lots one (1), two (2), and three (3). Affirmed in part; reversed and remanded in part.
Judge JOHN concurs.
Judge GREENE dissents.
==========================
GREENE, Judge, dissenting.
I do not agree that the trial court correctly denied
plaintiffs' motion for joinder of all property owners in
Elizabeth Heights in the present action. I therefore would
reverse the trial court on this issue and remand for joinder of
all property owners in Elizabeth Heights. Further, I would not
address the issues relating to the statute of limitations.
Plaintiffs contend that all property owners in Elizabeth
Heights are necessary parties to this action, and I agree.
When there is a uniform plan of development for real
property and a restrictive covenant placed on that property is in
dispute, all the owners of lots in that development are
"necessarily interested parties in any action against or by [any]
lot owner."
Hillcrest Building Co. v. Peacock, 7 N.C. App. 77,
82, 171 S.E.2d 193, 196 (1969);
see also Muilenburg v. Blevins,
242 N.C. 271, 276, 87 S.E.2d 493, 497 (1955). It follows that
all the lot owners must be made parties to the action.
See
Hillcrest Building Co., 7 N.C. App. at 83, 171 S.E.2d at 196;
see
also N.C. Gen. Stat. § 1A-1, Rule 19(a) (1990). If the samerestrictive covenants are placed in all the deeds conveying
property within the area, it is presumed for the purpose of
ascertaining necessary parties that the property was sold
pursuant to a general plan of development.
See Muilenburg, 242
N.C. at 276, 87 S.E.2d at 497.
This case involves an attempt by a property owner in
Elizabeth Heights to annul a restrictive covenant. All of the
original conveyances of lots in the Elizabeth Heights subdivision
contained a restrictive covenant allowing only residential use by
the grantees, their heirs and assigns. Therefore, since there is
no evidence in this record that the property in Elizabeth Heights
was not sold pursuant to a general scheme or plan of development,
all of the owners in Elizabeth Heights are necessary parties and
must be joined in this action.
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