PETER M. BICKET, RICHARD L. VON TACKY, WILLIAM T. BURGESS, R.J.
RICHARDSON, ROY C. HACKLEY, JR., COLEMAN ROMAIN, LOUIS G.
CREVELING, WILLIAM E. GENTNER, ELMER L. NICHOLSON, RICHARD A.
PETTY, TOM BROOKS, and WARREN I. KNOUFF, Plaintiffs, v. McLEAN
SECURITIES, INC., PURCELL CO., INC., (formerly Diamondhead
Corporation), PINEHURST, INCORPORATED, PINEHURST COUNTRY CLUB,
INC., VICTOR PALMIERI AND COMPANY INCORPORATED, HOWARD C. MORGAN,
TRUSTEE, STEVEN K. BAKER, TRUSTEE, B. CHARLES MILNER, TRUSTEE,
CITIBANK, N.A., CHASE MANHATTAN BANK, N.A., THE FIRST NATIONAL
BANK OF CHICAGO, FIRST PENNSYLVANIA BANK, N.A., FIRST NATIONAL
STATE BANK, N.A., CROCKER NATIONAL BANK, and WACHOVIA BANK AND
TRUST COMPANY, N.A., Defendants
Appeal by defendant Resorts of Pinehurst, Incorporated (now
known as Pinehurst, Inc.) and plaintiffs from Order Modifying
Declaratory Judgment entered 21 April 1999 by Judge F. Fetzer Mills
in Moore County Superior Court. Heard in the Court of Appeals 16
February 2000.
Kitchin, Neal, Webb, Webb & Futrell, P.A., by Henry L. Kitchin
and Stephan R. Futrell, for plaintiff-appellees/appellants.
Van Camp, Hayes & Meacham, P.A., by James R. Van Camp and
Michael J. Newman, Brown, McCarroll & Oaks Hartline, by
Jackson D. Wilson II, and Smith, Helms, Mullis & Moore,
L.L.P., by James G. Exum, Jr., for defendant-
appellant/appellee Pinehurst, Inc.
EDMUNDS, Judge.
This case is the continuation of a long-running dispute
between members of Pinehurst Country Club and various owners of the
club. In the late 1970s, Diamondhead Corporation (Diamondhead)
purchased Pinehurst, Incorporated, which owned all of the public
properties in the Village of Pinehurst, large undeveloped acreages,
golf courses, and other recreational facilities. As a result of
its purchase of Pinehurst, Incorporated, Diamondhead came into
ownership of Pinehurst Country Club, Inc., which operated Pinehurst
Country Club. Diamondhead developed and sold residential lots to
buyers, who in turn could join Pinehurst Country Club upon approval
of Pinehurst Country Club, Inc. When a disagreement arose between
members of Pinehurst Country Club and Diamondhead as to certain
membership privileges, the members filed a class action lawsuit toobtain a declaration of their membership rights. The class action
ended when the parties agreed to a Final Consent Judgment on 19
December 1980.
In 1982, Pinehurst, Incorporated, the owner of Pinehurst
Country Club, merged into Diamondhead's affiliated corporation,
Purcell Co., Inc. Purcell Co., Inc. immediately transferred all
assets and stock of Pinehurst Country Club to Pinehurst Inc. As a
result of these transactions, Pinehurst, Incorporated no longer
existed as a legal entity as of that date.
Diamondhead also owned and operated a resort hotel and
associated villas, condominiums, and conference center known as
Pinehurst Hotel and Country Club, later called Pinehurst Resort and
Country Club. In 1984, defendant Resorts of Pinehurst, Inc.,
purchased Pinehurst Resort and Country Club and succeeded to the
interests of the original owner-defendants. Resorts of Pinehurst,
Inc., changed its name in 1998 to Pinehurst, Inc., which is not to
be confused with Pinehurst, Incorporated or with Pinehurst Inc.,
the immediate successor of Pinehurst, Incorporated. Around 1990, a dispute arose between Resorts of Pinehurst,
Inc., and members of the Pinehurst Country Club over certain
provisions of the 1980 Final Consent Judgment. The parties filed
an action for declaratory judgment asking the trial court to
construe contested sections of the Final Consent Judgment. The
trial court issued its judgment on 28 December 1994, and both
parties appealed. This Court affirmed in part, reversed in part,
and remanded the case to the trial court to take action consistent
with its directives for interpreting the Final Consent Judgment.
See Bicket v. McLean Securities, Inc., 124 N.C. App. 548, 478
S.E.2d 518 (1996) (hereinafter Bicket I), disc. review denied, 346
N.C. 275, 487 S.E.2d 538 (1997). The trial court accordingly
issued an Order Modifying Declaratory Judgment on 21 April 1999.
Both parties appeal from that modifying order.
I. Defendant's Appeal
A. Final Consent Judgment -- Protected Class
Defendant first contends the trial court failed to comply with
our holding in
Bicket I. One of the issues this Court addressed in
Bicket I concerned identifying those members who fell under the
protection of the 1980 Final Consent Judgment. The 1994
Declaratory Judgment issued by the trial court stated:
The rights and privileges of each
subclass of membership referred to and
described in paragraph 6 of the Final Consent
Judgment are not limited to Pinehurst Country
Club members as individuals. Those rights are
extended to each subclass of membership
described in the Final Consent Judgment and
are intended to include, and do include any
membership that was in existence as of the
entry of the Final Consent Judgment,
or which
has come into existence within the various
enumerated subclasses since the entry of the
Final Consent Judgment .
. . . Any membership that was in
existence at the time of the Final Consent
Judgment, or that has been sold, transferred,
or approved after the Final Consent Judgment,
wether [sic] by direct purchase or transfer in
any one of the subclasses of membership
enumerated in paragraph 6 of the Final Consent
Judgment, is entitled to the protections set
out in the Final Consent Judgment.
(Emphasis added.)
In
Bicket I, defendant assigned as error the trial court's
conclusion that members who joined the Pinehurst Country Club after
the entry of the Final Consent Judgment are within the class
protected by that agreement.
Id. at 562, 478 S.E.2d at 526. In
addressing this assignment of error, we held that the Final Consent
Judgment limits the class to those holding membership
as of 1 October 1980. The trial court,
however, extended the protections of the Final
Consent Judgment not only to those within the
classes of membership as of the entry of that
judgment, but also to those memberships which
have come into existence since the Final
Consent Judgment.
Id. Therefore, we remanded the case for modification of the
Declaratory Judgment to limit the protections of the Final Consent
Judgment to only those holding membership as of 1 October 1980.
Id.
Upon remand, the trial court in its Order Modifying
Declaratory Judgment struck the language from the original
Declaratory Judgment that purported to extend protection to any
memberships that came into existence after 1 October 1980 and
limited protection to those holding membership in Pinehurst
Country Club, Inc. as of 1 October 1980. However, the trial court
also modified the judgment as follows:
It is further ordered, that the second
sentence of the fourth paragraph of Section 1
PROTECTED CLASS[] is modified and rewritten
to state: Any membership that was in
existence as of October 1, 1980, and has been
transferred after the Final Consent Judgment
in any one of the subclasses enumerated in
Paragraph 6 of the Final Consent Judgment is
entitled to the protection set out in the
Final Consent Judgment.
It is further [o]rdered that the sixth
paragraph of Section 1
PROTECTED CLASS is
hereby modified and rewritten to state as
follows: The classification of those
memberships listed in Paaragraph [sic]
6(a),(b),(c),(d), and (f) that were in
existence as of October 1, 1980 are protected
by the terms of the Final Consent Judgment
regardless of whether transferred before or
after October 1, 1980.
Defendant contends that the trial court's Order Modifying
Declaratory Judgment does not comply with our mandate because the
quoted provisions extend class protection to memberships that were
in existence before 1 October 1980 and have been transferred to new
persons after 1 October 1980. Plaintiffs respond that
Bicket I did
not address the transfer of memberships, and consequently the
portion of the Declaratory Judgment dealing with that issue is the
law of the case.
Upon a close review of the record and our opinion in
Bicket I,
we conclude that this Court did address the issue of transferred
memberships in
Bicket I. In a section titled Protected Class,
the Declaratory Judgment considered the question of who was
protected. Although this section did not distinguish between those
in the protected class in terms of how they became members, it did
acknowledge that membership might result from sale, transfer, or
other means. Therefore, the issues of membership in the protected
class and the means of obtaining that membership were intertwined
when first brought before this Court. The record reveals that both
parties' briefs for
Bicket I addressed the issue of whether
memberships in existence before 1 October 1980 but transferred
after 1 October 1980 were in the protected class. Therefore, we
agree with defendant that in
Bicket I we reached the issue as to
whether those who obtained membership after 1 October 1980 are
members of the protected class and held that only those members who
possessed a membership as of 1 October 1980 were entitled to class
protection. We further conclude that this holding was intended toeliminate all language from the Declaratory Judgment that offered
protection to those who obtained memberships by means of transfer
after 1 October 1980.
Because we ruled on this issue in
Bicket I, we do not now
attempt a reinterpretation of the Consent Judgment. Once an
appellate court has ruled on a question, that decision becomes the
law of the case and governs the question not only on remand at
trial, but on a subsequent appeal of the same case.
N.C.N.B. v.
Virginia Carolina Builders, 307 N.C. 563, 566, 299 S.E.2d 629, 631
(1983) (citations omitted).
As a general rule, when an appellate
court passes on questions and remands the case
for further proceedings to the trial court,
the questions therein actually presented and
necessarily involved in determining the case,
and the decision on those questions become the
law of the case, both in subsequent
proceedings in the trial court and on a
subsequent appeal, provided the same facts and
the same questions, which were determined in
the previous appeal, are involved in the
second appeal.
Transportation, Inc. v. Strick Corp., 286 N.C. 235, 239, 210 S.E.2d
181, 183 (1974) (citations omitted). The trial court erred by not
fully modifying the Declaratory Judgment in accordance with the
mandate of this Court. Therefore, we remand this issue to the
trial court with instructions to delete all language from the
Declaratory Judgment that purports to give class protection to any
person who received membership by transfer after 1 October 1980.
B. Final Consent Judgment -- Paragraph 6
Defendant's second contention is that the trial court erred in
finding that Paragraph 6(h) of the Final Consent Judgment prohibitsdefendant from increasing initiation fees for membership at
Pinehurst Country Club above $3,000, the amount Pinehurst,
Incorporated charged to property purchasers in 1982. Paragraph
6(h) of the Final Consent Judgment reads:
(h) Whenever the term transfer fee is
used herein, the amount of the transfer fee
shall not exceed thirty percent of the then
current initiation fee for the applicable
class of membership transferred. (In the case
of a Resident membership, current initiation
fee refers to the amount then being charged
to property purchasers from Pinehurst,
Incorporated.)
A transfer fee is charged to a purchaser who buys property in the
Village of Pinehurst from a selling member and also receives a
transferred membership from the selling member. Because of the
relationship between initiation fees and transfer fees, an issue
arose as to whether the initiation fee could be increased. The
trial court's Declaratory Judgment interpreted Paragraph 6(h) to
mean that the current initiation fee was the initiation fee
charged to the last person who purchased property from Pinehurst,
Incorporated, which went out of existence in 1982. Because the
initiation fee charged to the last purchaser of property from
Pinehurst, Incorporated before it ceased to exist was $3,000, the
trial court determined the only allowable transfer fee to be $900.
On appeal, we held in
Bicket I that the cessation of
Pinehurst, Incorporated made Paragraph 6(h) ambiguous.
Bicket I,
124 N.C. App. at 559, 478 S.E.2d at 524. Because the trial court
had not made findings as to the parties' original intent and had
based its conclusions 'upon the language . . . of the FinalConsent Judgment, and in consideration of the evidence presented,'
we remanded this issue for appropriate findings of fact,
authorizing the trial court to consider parol evidence in
ascertaining the original parties' intent as to the meaning of the
paragraph.
Id. (alteration in original). In its Order Modifying
Declaratory Judgment, the trial court made twenty-two findings of
fact and again concluded that the transfer fee was $900. Pursuant
to our mandate in
Bicket I, the trial court on remand should have
made findings of fact as to what the parties, in 1980, intended to
occur if Pinehurst, Incorporated ceased to exist. Instead, the
trial court focused on (1) whether the omission in Paragraph 6(h)
of language pertaining to successors and assigns of Pinehurst,
Incorporated was deliberate or accidental, and (2) what the parties
intended regarding the general level of fees, i.e., whether they
should be generally high or low.
The scope of our review of the trial court's findings is (1)
whether there is competent evidence in the record to support the
findings of fact and (2) whether these findings justify the court's
legal conclusions.
See Insurance Co. v. Allison, 51 N.C. App. 654,
657, 277 S.E.2d 473, 475 (1981). Paragraph 5 of the Final Consent
Judgment states that plaintiffs' rights are not subject to
alteration by the defendants Diamondhead Corporation, Pinehurst,
Incorporated, Pinehurst Country Club, Inc., or any of their parent
corporations,
subsidiary corporations, successors, or assigns.
(Emphasis added.) Similarly, Paragraph 7 sets out members' rights
to use the facilities and properties of Pinehurst, Incorporated,and its subsidiaries, so long as said properties and facilities are
operated and maintained by Pinehurst, Incorporated, its parent
corporations,
subsidiary corporations, successors, or assigns
. . . . (Emphasis added.)
Plaintiffs contend and the trial court held that because
language relating to successors or assigns did not also appear in
Paragraph 6(h), the parties did not intend for successors or
assigns of Pinehurst, Incorporated to have the capability to
increase transfer fees. However, not every section in the Final
Consent Judgment explicitly provided that powers granted to
Pinehurst, Incorporated would be held by its successors or assigns.
A separate section of Paragraph 7 also contains language pertaining
to fees for the use of certain facilities:
Such fees (other than dues) are subject to
change at any time, in the discretion of the
defendant Pinehurst, Incorporated.
The use of the above facilities and
properties [excluding the use of the Members
Private Clubhouse except as set out in
subparagraph (h) above] may be extended by
Pinehurst, Incorporated to future purchasers
of property from or through Pinehurst,
Incorporated, its subsidiaries and affiliates
. . . upon such terms and conditions as
Pinehurst, Incorporated shall determine.
(Brackets in original.) Despite the absence of successor or
assigns language in this section, we believe it inconceivable that
control of the fees and facility usage described in the quoted
section died with Pinehurst, Incorporated in 1982. Consequently,
explicit successor or assigns language is not required as a
condition precedent to a finding that particular rights and dutiesassigned to Pinehurst, Incorporated in the Final Consent Judgment
continued after that entity ceased to exist in 1982. Therefore,
the absence of successor or assigns language in Paragraph 6(h) of
the Final Consent Judgment does not mandate a finding that
initiation and transfer fees were frozen at the time of Pinehurst,
Incorporated's dissolution and could not be changed by a successor
organization.
This interpretation of Paragraph 6(h) as allowing successors
to Pinehurst, Incorporated to change initiation fees is reinforced
by an examination of the original parties' course of conduct after
the Final Consent Judgment was signed.
In ascertaining the parties' intent, courts
may consider the language, subject matter and
purpose of the contract, as well as the
situation of the parties at the time, and may
even read into a contract such implied
provisions as may be necessary to effect the
parties' intent. Courts also must give
consideration to evidence of the parties' own
interpretation of the contract prior to the
controversy.
Investment Trust v. Belk-Tyler, 56 N.C. App. 363, 367, 289 S.E.2d
145, 148 (1982) (internal citation omitted). In contract law,
where the language presents a question of doubtful meaning and the
parties to a contract have, practically or otherwise, interpreted
the contract, the courts will ordinarily adopt the construction the
parties have given the contract
ante litem motam.
Davison v. Duke
University, 282 N.C. 676, 713-14, 194 S.E.2d 761, 784 (1973)
(citations omitted). We focus on the behavior of plaintiffs
because, due to the changes in ownership, the instant corporatedefendant is not the same entity that agreed to the Final Consent
Judgment.
When Pinehurst, Incorporated ceased to exist in 1982, the
initiation fee was $3,000 and the transfer fee was $900. All
assets of Pinehurst Country Club were transferred to Pinehurst
Inc., which ran the club from 1982-1984. In 1983, Pinehurst Inc.
updated the Pinehurst Country Club's Rules and Regulations to
reflect that the initiation fee for a resident member was $5,000,
making the transfer fee $1,500. The document further states that
[t]hese rules and regulations . . . [w]here relevant, are subject
to the provisions of the Final Consent Judgment in Bicket et al.
vs. McLean Securities, Inc., et al. Mr. Roy C. Hackley signed the
Rules and Regulations as the President of Pinehurst Country Club.
According to the record, Mr. Hackley was a member of the protected
class, was one of the primary persons representing the plaintiffs
and the membership when the Final Consent Judgment was signed, and
had worked long and hard hours to insure that the members' rights
in the Final Consent Judgment were protected in his role as
Chairman of the members' Standby Committee responsible for
oversee[ing] the Consent Agreement. There is no evidence that
any member or representative of plaintiffs' class objected to the
increased initiation and transfer fees.
In 1984, defendant purchased Pinehurst Country Club. Since
that time, the initiation fee has risen to $15,000, making the
transfer fee $4,500. Although the parties dispute details
pertaining to increases after 1984, we need not address thesedetails. The fact that plaintiffs did not protest the increase
reflected in the 1983 Rules and Regulations, after Pinehurst,
Incorporated went out of existence, satisfies us that the original
parties intended that successors to Pinehurst, Incorporated would
be able to control initiation and transfer fees.
Having concluded that neither the terms of the Final Consent
Judgment nor the conduct of the parties precludes the successors of
Pinehurst, Incorporated from changing initiation fees, we now turn
to the trial court's examination of the parties' intent as to the
general level of the fees. Finding number fourteen of the Order
Modifying Declaratory Judgment reads: The parties to the Final
Consent Judgment intended to control the size of the transfer fee
charged for transferring a membership from one member to another,
so that the resort owner could not effectively prohibit transfers
of memberships by raising transfer or initiation fees. Defendant
contends, and we agree, that no evidence in the record supports the
trial court's finding. Although Foster Fludine, a member of the
Defense Committee formed after the parties agreed to the Final
Consent Judgment, testified that he thought the language meant that
no entity other than Pinehurst, Incorporated could set the fees, he
did not become a member of the club until approximately 1984 and
offered no testimony as to the intent in 1980 of the original
parties.
While the Final Consent Judgment states that the transfer fee
is limited to thirty percent of the initiation fee, indicating that
the size of the transfer fee is controlled in some manner, there isno evidence that the parties intended to control the transfer fee
so that the resort owner could not effectively prohibit transfers
of memberships by raising transfer or initiation fees. The trial
court's finding implies that the parties in 1980 intended for fees
to remain low, so that memberships could be transferred freely.
However, the proper inquiry for the trial court was not whether
fees were to be high or low, but whether any entity other than
Pinehurst, Incorporated could set the fees at issue.
The trial court found in finding number one that Pinehurst,
Incorporated was experiencing a severe financial crisis at the
time the Final Consent Judgment was entered. In finding number
five, the trial court found that this crisis led the plaintiff[s]
. . . to seek ways to prevent the sale of large blocks of
memberships without dues or fees, simply in order [for Pinehurst,
Incorporated] to create cash flow. The trial court continued,
noting plaintiffs' concern that selling large blocks of memberships
would
overwhelm the ability of Pinehurst Country
Club's facilities to accommodate members[']
needs. Thus, the parties did not intend to
base determination of the current initiation
fee on membership initiation charges or fees
that prevail at other country clubs, nor on
economic conditions or on market variables
that were not listed in the Final Consent
Judgment.
They sought to control the demands
on club facilities by tying the transfer fee
to the initiation fee charged to the owner of
the lots in the Village of Pinehurst.
(Emphasis added.)
To prevent such large-scale sale of memberships, logic
dictates that the parties would keep initiation and transfer feeshigh to discourage promiscuous selling, and in fact, testimony in
the record reflects that members wanted to set
minimum initiation
fees below which Pinehurst, Incorporated could not offer
memberships. Neither the witnesses nor Paragraph 6(h) of the Final
Consent Judgment indicates that the parties had any interest in
controlling the
maximum initiation or transfer fees.
Not only does finding number five indicate the parties' intent
to keep fees relatively high, it also demonstrates the parties'
intent to tie the transfer fee perpetually to the initiation fee
charged to the owner of the lots in the Village of Pinehurst.
Under Paragraph 6(g) of the Final Consent Judgment, only landowners
in the Village may become Resident members. Thus, an initiation
fee may be charged only to new property owners in the Village who
wish to become members. The only way to maintain fees at a level
such that large-scale fluctuations in membership would not occur
and overwhelm the club's facilities would be to allow the entity in
charge of memberships to raise the initiation fee if necessary.
Consequently, the trial court's ultimate conclusion -- that
only Pinehurst, Incorporated could set the initiation fee -- is
antithetical to the court's finding of fact number five. In
granting the power to control the demands on club facilities,
which includes the power to raise fees and thus lower demand, the
parties also must have intended that entities other than the now-
defunct Pinehurst, Incorporated would be able to set the fees in
the future. Because the trial court's finding of fact indicating
that the parties wished to keep the fees low is not supported bycompetent evidence, and because several of the trial court's other
findings suggest that the parties did not intend to restrict fee-
setting to Pinehurst, Incorporated, we find that the trial court's
conclusion of law on this issue is not supported by its findings of
fact.
The trial court's properly supported findings, in conjunction
with the parties' course of conduct, lead directly to the
conclusion that the parties intended to allow the alteration of the
initiation fee regardless of whether Pinehurst, Incorporated
continued to exist. We therefore reverse the decision of the trial
court and remand for entry of corrected judgment.
See Hofler v.
Hill and Hofler v. Hill, 311 N.C. 325, 329, 317 S.E.2d 670, 673
(1984) (holding conclusion of law fully reviewable on appeal and
may be reversed if erroneous);
Prime South Homes v. Byrd, 102 N.C.
App. 255, 258, 401 S.E.2d 822, 825 (1991) (explaining appellate
court not bound by inferences or conclusions trial court draws from
findings of fact). The trial court is ordered to replace Paragraph
3 of its 28 December 1994 Declaratory Judgment with the following
paragraph:
3.
TRANSFER
An initiation fee is the charge for the
purchase of a membership directly from
Pinehurst Country Club, Inc. A transfer fee
is the charge for the transfer of a membership
from one member to another. Current
initiation fee, as used in Paragraph 6(h) in
the Final Consent Judgment, as applicable to
Resident Members, means that initiation fee
charged by the entity owning Pinehurst Country
Club, Inc., at the time of the application to
purchase a membership.
The Court hereby further finds from the
evidence and the Final Consent Judgment that a
Life membership carries a $10,000.00
initiation fee; that a Charter membership
carries a $5,000.00 initiation fee plus such
increases as are allowed by the Consumer Price
Index language in Paragraph 6(i) of the Final
Consent Judgment; that the initiation fee for
Founder membership is $3,000.00 plus such
increases as are allowed by the Consumer Price
Index language in Paragraph 6(i) of the Final
Consent Judgment; and that the initiation fee
for Resident class memberships (Full,
Active, and Inactive) shall be set by the
entity owning Pinehurst Country Club, Inc.
II. Plaintiffs' Appeal
A. Approval of Board of Directors
Plaintiffs contend that the trial court erred in deleting the
entire second paragraph of the 1994 Declaratory Judgment titled
Approval of Board of Directors. This paragraph dealt with the
Board of Directors' approval of applicants for membership.
Plaintiffs argue that the trial court should not have deleted the
last sentence of the paragraph, which read:
This approval or disapproval of the Board of
Directors shall be based on the standards of
reputation, good moral standards, and
creditworthiness previously established in the
Rules and Regulations of Pinehurst Country
Club, Inc., and shall not be based on
arbitrary considerations or policy decisions
forestalling an individual membership
application, or acceptance, or precluding, or
denying approval as to any subclass as a
group.
We held in
Bicket I:
Unlike the trial court's interpretation,
the express and unambiguous language of the
Final Consent Judgment contains no limitation
on the Board's approval or disapproval. . . .
Accordingly, we remand this issue to the trial
court for modification of the DeclaratoryJudgment to delete the limitation on the
Board's approval or disapproval of individual
requests for membership in each of the
subclasses of membership set out in paragraph
6 of the Final Consent Judgment.
Bicket I, 124 N.C. App. at 559-60, 478 S.E.2d at 525. The language
that plaintiffs now claim was removed erroneously is a limitation
on the Board's power to approve or disapprove membership requests.
Therefore, the trial court correctly deleted this sentence.
Plaintiffs next argue that the trial court erred in deleting
Paragraph 7 of the Declaratory Judgment. This paragraph, entitled
Obligation to Insure Continued Existence of Amenities, addressed
defendant's responsibility to maintain properties and facilities
listed in the Final Consent Judgment. In
Bicket I, we found that
the trial court's interpretation of this paragraph was unnecessary
because the beginning provisions of paragraph 7 of the Final
Consent Judgment are unambiguous.
Id. at 557, 478 S.E.2d at 523.
Holding that the plain language of the Final Consent Judgment
controlled, we remanded to the trial court for modification of the
Declaratory Judgment consistent with this opinion.
Id. Upon
remand, the trial court focused on our holding that the provisions
of the Final Consent Judgment were unambiguous and, in its Order
Modifying Declaratory Judgment, deleted Paragraph 7 in its
entirety. Upon review of the Declaratory Judgment, we agree with
the trial court that Paragraph 7 is unnecessary. The trial court
was correct in striking this paragraph; this assignment of error is
overruled.
B. Additional Classes of Membership
Plaintiffs next contend the trial court erred in failing to
determine whether a new class of membership had been established.
However, this issue was resolved in
Bicket I. The Final Consent
Judgment permitted Pinehurst Country Club, Inc. to establish
additional classes of membership. In 1985, a two tier category
of membership was created. In the 1994 Declaratory Judgment, the
trial court found that [a] new class of membership . . . cannot be
created without properly notifying those individuals or classes of
memberships whose rights will be affected by the creation of the
new class of membership. On appeal, we disagreed and remand[ed]
for further modification of the Declaratory Judgment . . . to
eliminate the requirement that all classes of membership affected
by the creation of a new class be notified in writing prior to its
creation.
Id. at 560, 478 S.E.2d at 525.
In addition, the trial court found in its 1994 Declaratory
Judgment that defendant did not comply with the Final Consent
Judgment in establishing its two tier class of membership because
this new class did not have substantially different rights and
privileges and obligations from those classes of membership set
forth in paragraph 6 of the Final Consent Judgment. On appeal, we
disagreed and held: These qualifications are beyond the scope of
the express and unambiguous language of the provision in question.
We therefore remand this issue for modification of the Declaratory
Judgment to delete the restrictions that new classes of membership
must have substantially different rights, privileges andobligations . . . .
Id. On remand, the trial court en
tered its
Order Modifying Declaratory Judgment, which complied with our
instructions as to this issue. Because we addressed and resolved
this issue in
Bicket I, that decision is the law of the case.
N.C.N.B., 307 N.C. at 566, 299 S.E.2d at 631 (citations omitted).
This assignment of error is overruled.
C. Resort Guest
Plaintiffs next contend the trial court erred in its
interpretation of the term Resort Guest. In the 1994 Declaratory
Judgment, the trial court determined that Resort Guest as used in
the Final Consent Judgment meant any guest of the owner of the
Pinehurst Country Club regardless of whether that guest is a paying
customer at the Pinehurst Hotel. On appeal, we found the term
Resort Guest to be ambiguous and remanded to the trial court for
consideration of parol evidence and resulting findings of fact.
After hearing evidence and making findings of fact on remand,
the trial court reaffirmed its earlier finding that Resort Guests
do not have to be customers of the Pinehurst Hotel. These findings
are based on the conduct of the owners of Pinehurst Country Club
before and after the Final Consent Judgment. [T]he findings of
fact entered by a trial court are conclusive on appeal if they are
supported by any competent evidence, even though there may be
evidence in the record to support contrary findings . . . .
Auto
Supply v. Vick, 303 N.C. 30, 37, 277 S.E.2d 360, 365 (1981)
(citations omitted). There is competent evidence in the record
that, both before and after 1980, the owners of Pinehurst CountryClub permitted guests of various hotels in the Pinehurst area to
play on its golf courses using tee times reserved for resort
guests. Because the trial court's findings of fact are supported
by competent evidence and they support the trial court's
conclusions of law, we affirm the trial court's ruling. This
assignment of error is overruled.
D. Associate Member Program
In their last assignment of error, plaintiffs allege that the
trial court failed to rule on the Associate Members program.
Resorts of Pinehurst's parent company, Club Corp. International,
participated in an Associate Members program, which allowed
participating members to play at Pinehurst Country Club. There is
no indication in
Bicket I that this issue was appealed. We have
also examined the briefs submitted to the Court in
Bicket I and
find no argument on this issue. However, we believe the trial
court's interpretation of Resort Guest controls this issue. As
we held above, resort guests do not have to stay at the Pinehurst
Hotel in order to play golf there. This assignment of error is
overruled.
Defendant's appeal -- reversed with instructions.
Plaintiffs' appeal -- affirmed.
Judges LEWIS and JOHN concur.
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