Link to original WordPerfect file
How to access the above link?
All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
print version appearing in the North Carolina Reports and North Carolina Court of Appeals Reports, the latest print version is to be considered authoritative.
NO. COA01-23
NORTH CAROLINA COURT OF APPEALS
Filed: 19 March 2002
BUNN LAKE PROPERTY OWNER'S ASSOCIATION, INC.
Plaintiff,
v
.
S. CHRIS SETZER,
Defendant.
Appeal by defendant from judgments entered 24 March 2000 by
Judge Wade Barber, and 18 September 2000 by Judge Narley L.
Cashwell, both orders entered in Franklin County Superior Court.
Heard in the Court of Appeals 17 October 2001.
J. Michael Weeks, for plaintiff-appellee.
Gay, Stroud & Jackson, L.L.P., by Darren G. Jackson and Andy
W. Gay, for defendant-appellant.
Bailey & Dixon, L.L.P., by David S. Wisz, for counterclaim
defendant.
BIGGS, Judge.
This appeal arises from a dispute over lakefront structures
that S. Chris Setzer (defendant) erected on Bunn Lake, in Wake and
Franklin Counties, in North Carolina. For the reasons that follow,
we affirm the trial court.
The facts, as established by the record, are as follows: Bunn
Lake is a man-made body of water created in the 1960's. In 1966,
Bunn Lake Estates, Inc., the owner of the land that includes Bunn
Lake, subdivided the property to create Bunn Lake Subdivision. The
Bunn Lake Property Owners Association (plaintiff), is the
homeowners' association for Bunn Lake Subdivision. In 1978,plaintiff adopted its bylaws, and recorded restrictive covenants.
These covenants and bylaws address the type of structures that Bunn
Lake residents are permitted to build on the lake. The relevant
restrictions are summarized as follows:
1. Lakefront homeowners may have one
waterfront boating or fishing pier, whose
dimensions over the water are not to exceed 25
feet by 15 feet;
2. Subdivision homeowners are required to get
plaintiff's prior approval before constructing
a waterfront dock or pier;
3. Plaintiff's Lake Committee evaluates
homeowners' requests for permission to
construct a pier or dock, and reports to
plaintiff's board of directors whether the
proposed structure complies with the
restrictive covenants and bylaws;
4. Plaintiff's board of directors is the only
group authorized under the bylaws or covenants
to grant approval of homeowners' construction
projects.
In 1992, defendant acquired a lakefront lot in Bunn Lake
Subdivision, subject to plaintiff's bylaws and restrictive
covenants. At that time, defendant's property already had a
concrete walkway and a partially enclosed boat house extending over
Bunn Lake. During the following five years, defendant constructed
a screen house, a wood deck, a stone planter, a floating dock, and
expanded the boat house and dock, without obtaining plaintiff's
permission.
In October 1997, defendant began further expansion of his
lake-front structures, including: replacement of the existing sea
wall by a new wall; extension of his pier further into the lake
bed; enlarging the dimensions of his boat house; and adding a newscreen porch on the existing dock. Defendant was told by a
representative of plaintiff's Lake Committee to stop construction
until he had obtained approval from plaintiff's board of directors.
Defendant refused to stop construction, which was followed by
several months of controversy in Bunn Lake Subdivision over
defendant's waterfront construction projects. Plaintiff's board of
directors held several meetings, and took the following actions:
1. On 18 November 1997 plaintiff's board of
directors, of which defendant was a member,
held a meeting which defendant attended. They
discussed the covenants and bylaws requiring
all homeowners to get prior approval for dock
expansions.
2. On 25 November 1997 plaintiff's Lake
Committee requested in writing that defendant
submit his construction plans for plaintiff's
review and possible approval.
3. Defendant responded to plaintiff's request
on 27 November 1997 with a drawing of his
proposed building project, and a letter
arguing that his project was exempt from the
requirements of Bunn Lake Subdivision bylaws.
4. On 17 December 1997, plaintiff's board of
directors met, and the Lake Committee
representative formally recommended that the
board reject defendant's request. The board
voted to conditionally approve defendant's
plans, provided that defendant's construction
plans subsequently received approval by the
subdivision's entire membership.
5. Plaintiff's board met on 18 January 1998,
and was informed by the board's attorney that
it lacked the authority to approve a project
that did not conform to plaintiff's bylaws and
restrictive covenants, regardless of the
results of the proposed neighborhood
referendum.
6. The board voted not to approve defendant's
construction, and decided that if defendantdid not stop his waterfront construction,
plaintiff would institute legal action.
On 18 February 1998, plaintiff filed suit against defendant,
alleging that defendant's piers and other structures were in
violation of plaintiff's bylaws and encroached on plaintiff's
property. The complaint also named defendant's wife as a party;
however, the suit against her was subsequently dismissed because
she was not an owner of the property. Defendant's answer and
counterclaim, filed in April, 1998, raised the defenses of
equitable estoppel, waiver and selective enforcement, laches, and
the statute of limitations. Defendant also filed a counterclaim
for misrepresentation, slander of title, and an action to compel
plaintiff to enforce its bylaws uniformly. On 22 April 1999,
plaintiff's claims against defendant's wife, as well as defendant's
claim of misrepresentation, were dismissed by Judge James Spencer,
Jr. On 19 May 1999, plaintiff filed a motion for summary judgment,
which was followed by defendant's summary judgment motion filed on
5 November 1999.
On 24 March 2000, Judge Wade Barber issued an order granting
partial summary judgment to plaintiffs. The trial court found that
the only genuine question of material fact was the location of the
boundary line between plaintiff's lake bed and defendant's property
line. The trial court concluded that there were no other genuine
issues of material fact, and that plaintiff was entitled as a
matter of law to summary judgment on all the remaining issues in
this action. Accordingly, the trial court denied defendant's
motion for summary judgment, and granted plaintiff's summaryjudgment motion with respect to all of defendant's affirmative
defenses, and on the issue of defendant's encroachment on
plaintiff's lake bed. The significant conclusions of law in the
summary judgment order are summarized as follows:
1. Defendant has an easement appurtenant to
his ownership of a waterfront lot in Bunn Lake
Subdivision, allowing him to have one boat or
fishing pier, not over 375 square feet.
2. Structures erected by defendant or by his
predecessors such as a sea wall, boat house,
concrete boat ramp, and screen porch, are not
within the scope of the easement, and are an
encroachment on plaintiff's lake bed.
3. Structures erected by defendant or by his
predecessors in excess of 375 square feet are
an encroachment upon plaintiff's lake bed.
4. Plaintiff did not grant approval for
defendant to expand his waterfront structures.
5. Defendant knew that approval for
construction could only come from a formal
decision of plaintiff's board of directors,
and that individual officers have no authority
to grant approval for construction.
6. Defendant did not rely to his detriment
upon statements by individual board members
suggesting that he had approval because (a) he
knew that approval could come only from a
formal vote by the board, (b) he stated that
he didn't need permission because his projects
would fall within a loophole, and (c) he
stated that he would continue his project with
or without plaintiff's approval.
7. Plaintiff's decision not to grant approval
of defendant's lakefront construction was not
arbitrary or capricious.
The trial court ordered the case set for trial on the issue of
the location of the property line between plaintiff's lake bed and
defendant's property; ordered defendant restrained from furtherencroachment; and ordered that within 30 days of the determination
of the location of the property line, defendant was to remove all
encroaching structures except for the single fishing pier allowed
under the restrictive covenants.
On 17 April 2000, when the case was called for trial, the
parties informed the court that they had reached an agreement that
plaintiff would sell defendant the area of his encroachment, and
that defendant would keep one boathouse and dock, and would
demolish his other waterfront structures. The terms of their
agreement were read aloud into the record, and upon inquiry by the
trial court, the parties indicated their consent to its terms. On
18 September 2000 Judge Narley Cashwell entered a final judgment in
the case. Defendant has appealed from the order awarding partial
summary judgment for plaintiff, and from the final judgment entered
in this case.
I.
Defendant argues first that the trial court erred in its entry
of summary judgment on the issues of his encroachment on Bunn Lake,
and on his affirmative defense of equitable estoppel.
Summary judgment should be granted when "the pleadings,
depositions, answers to interrogatories, and admissions on file,
together with the affidavits, if any, show that there is no genuine
issue as to any material fact and that any party is entitled to a
judgment as a matter of law." N.C.G.S. § 1A-1, Rule 56(c) (1999).
An issue is material if the facts alleged would constitute a legal
defense, or would affect the result of the action, or if itsresolution would prevent the party against whom it is resolved from
prevailing in the action." Koontz v. City of Winston-Salem, 280
N.C. 513, 518, 186 S.E.2d 897, 901 (1972). With regard to an
affirmative defense, summary judgment is appropriate if the movant
establishes that the non-movant cannot prevail on at least one of
the elements of his affirmative defense. Development Corp. v.
James, 300 N.C. 631, 268 S.E.2d 205 (1980).
[T]he party moving for summary judgment ultimately has the
burden of establishing the lack of any triable issue of fact."
Pembee Mfg. Corp. v. Cape Fear Constr. Co., 313 N.C. 488, 491, 329
S.E.2d 350, 353 (1985) (citation omitted). Furthermore, the
evidence presented by the parties must be viewed in the light most
favorable to the non-movant." Bruce-Terminix Co. v. Zurich Ins.
Co., 130 N.C. App. 729, 733, 504 S.E.2d 574, 577 (1998).
Defendant argues that there are genuine issues of fact as to
trespass and encroachment. He contends that the trial court's
findings of fact are inconsistent with its grant of summary
judgment. The relevant findings are summarized as follows:
1. Plaintiff owns the lake bed of Bunn Lake;
defendant owns a lot in Bunn Lake Estates
subdivision, which he obtained in 1992, and
which is subject to plaintiff's bylaws and
restrictive covenants.
2. The bylaws and covenants confer an easement
on homeowners, allowing construction of one
pier or dock of no more than 375 square feet,
and requiring plaintiff's prior approval for
waterfront construction.
3. Defendant and his predecessors constructed
waterfront structures that included a lakeside
boat house, deck, a concrete boat ramp,
concrete sea wall, a stone planter and stonewall, a floating platform, and a screen porch;
these structures exceed 1500 square feet.
4. Defendant was a member of plaintiff's board
of directors, had discussed the restrictive
covenants concerning waterfront construction
with his neighbors, and had told them that his
construction fell within a loophole to
plaintiff's bylaws and covenants.
5. Defendant did not obtain plaintiff's
approval for his projects; when plaintiff told
defendant to stop his construction, defendant
expressed his intention to proceed with
construction whether or not plaintiff granted
approval, and continued construction.
6. The sea wall, deck, stone wall, and other
lakeside structures that defendant erected may
have altered the high water mark, requiring
the substitution of a metes and bounds
description.
Defendant argues that the trial court's finding that there was an
issue of the location of the property line precluded its entry of
summary judgment. He contends that the exact property line must be
established before any determination can be made regarding whether
he has encroached on plaintiff's lake. We disagree.
As the owner of the lake bed, plaintiff also owns the water
above the bed, and may restrict the use of the land and water,
including restrictions on structures built on the lake bed.
Development Corp., 300 N.C. 631, 268 S.E.2d 205. If an easement is
granted, the user of the easement may neither change the easement's
purpose nor expand the easement's dimensions. Moore v. Leveris,
128 N.C. App. 276, 495 S.E.2d 153 (1998) (easement to use
neighborhood road would not allow defendant to place sewer line
under road); Swaim v. Simpson, 120 N.C. App. 863, 463 S.E.2d 785
(1995), aff'd, 343 N.C. 298, 469 S.E.2d 553 (1996) (where plaintiffwas granted easement for ingress and egress to tract, trial court
errs by construing easement to permit installation of utility
pipes, thus enlarging scope of easement); Sheftel v. Lebel, 44
Mass. App. Ct. 175, 689 N.E. 2d 500 (1998) (easement extending to
high water line of tidal area does not encompass extension to low
water line, or permit defendant to construct pier to low water
line).
In the instant case, plaintiff's restrictive covenants and
bylaws grant defendant an easement over the lake bed for the
restricted purpose of having one fishing pier no larger than 375
square feet. The uncontradicted evidence establishes that
defendant has structures on Bunn Lake that are not restricted to a
single fishing pier, and whose dimensions exceed 1500 square feet.
There is no dispute that these structures extend over the waters of
Bunn Lake. The trial court's findings in this regard are the basis
of its conclusion that defendant had trespassed and encroached on
Bunn Lake. Thus, the trial court's determination that the
plaintiff was entitled to summary judgment on the issue of
defendant's trespass is based upon facts and conclusions that are
unaffected by the exact location of the waterline. As the
plaintiff has noted, even if the boundary line was later
established by the jury [to be located] as contended by the
Defendant, the Defendant would still be encroaching upon
Plaintiff's land[.] We conclude there was no genuine issue of
material fact regarding whether defendant had encroached upon
plaintiff's lake bed. Defendant next argues, however, that assuming arguendo, that
there was no issue as to defendant's encroachment, the trial court
still could not grant summary judgment because defendant
successfully raised the affirmative defense of equitable estoppel.
He contends that he produced ample evidence of the existence of
this defense. We disagree.
Equitable estoppel is a common law doctrine that is designed
to aid the law in the administration of justice when without its
intervention injustice would result. Thompson v. Soles, 299 N.C.
484, 486, 263 S.E.2d 599, 602 (1980). The elements of equitable
estoppel are (1) speech, conduct, or actions that induce another to
believe certain facts exist, that are not in fact true; (2) a lack
of knowledge and means of obtaining knowledge as to the true facts
in question; and (3) detrimental reliance by the party claiming
this defense upon the representations of the party making the false
representations. Keech v. Hendricks, 141 N.C. App. 649, 540 S.E.2d
71 (2000). The doctrine prevents a party from asserting a right
that 'he otherwise would have had against another' if his own
conduct renders this unfair. LSB Fin. Servs, Inc. v. Harrison, 144
N.C. App. 542, 548, 548 S.E.2d 574, 579 (2001) (quoting In Re Varat
Enterprises, Inc., 81 F.3d 1310, 1317 (4th Cir. 1996)). Equitable
estoppel is established by evidence that 'an individual . . .
induces another to believe that certain facts exist and that other
person rightfully relies on those facts to his detriment.' Bowers
v. City of Thomasville, 143 N.C. App. 291, 298, 547 S.E.2d 68, 73,(quoting Miller v. Talton, 112 N.C. App. 484, 488, 435 S.E.2d 793
(1993)), disc. review denied, 353 N.C. 723, 550 S.E.2d 769 (2001).
In the instant case, defendant contends that he relied to his
detriment upon false representations by his neighbors, including
some members of plaintiff's board of directors, that he had
permission to proceed with his construction. In support of his
position, defendant has submitted his letters to various neighbors,
and synopses of neighborhood conversations concerning defendant's
construction plans. These conversations included telephone calls
and informal neighborhood visits, in which neighbors either
repeated what others were reputed to have said or done, or
expressed their own views.
Although the participants in these interactions may have
included officers of plaintiff's board of directors, none of these
conversations purport to be a formal meeting or decision by
plaintiff's board, which is the only body authorized to grant
approval to a homeowner's lake construction project. The record
establishes unequivocally that defendant was on plaintiff's board,
attended board meetings at which he discussed the bylaws and
covenants regarding waterfront structures, and that defendant had
analyzed these restrictions in the hope that his construction might
fall within a loophole of the covenants. We conclude that there
is no genuine issue of material fact regarding defendant's
knowledge of the relevant facts. Further, defendant's letters and
other documents also establish his intention to proceed with
building, with or without plaintiff's permission. Defendant wasinstructed to stop his lakefront construction, but continued in
defiance of plaintiff's bylaws, and thus did not act in reliance
upon a false representation that it was approved. Development
Corp., 300 N.C. 631, 268 S.E.2d 205 (equitable estoppel
inapplicable where lake owner tells defendant to cease construction
of pier, but defendant disregards plaintiff and continues
building). We conclude that the evidence establishes that
defendant's actions were not taken in reliance upon plaintiff's
representations, and that there is no genuine issue of any material
fact that might support defendant's claim of detrimental reliance.
For the reasons outlined above, we hold that the trial court
did not err in its grant of summary judgment on the issues of
encroachment and equitable estoppel. Accordingly these assignments
of error are overruled.
II.
Defendant next argues that the trial court erred by entering
the consent judgment. He contends that the judgment was not
signed, does not accurately reflect the parties' agreement, and
that it is otherwise invalid. Plaintiff, on the other hand, argues
that we should not reach the merits of defendant's claims because
defendant has not preserved these issues for appellate review, as
required by N.C.R. App. P. 10(b)(1) (to preserve a question for
appellate review, a party must [present] the trial court [with] a
timely request, objection or motion). In the instant case,
defendant did not object to the entry of judgment, file a post-
judgment motion to amend or set aside judgment, or present a timelyrequest to the trial court. However, in the interests of justice,
and pursuant to our authority under N.C.R. App. P. Rule 2, this
Court will consider defendant's contentions on the merits.
The party who challenges a consent judgment bears the burden
of proving it is invalid.
Milner v. Littlejohn, 126 N.C. App. 184,
484 S.E.2d 453,
disc. review denied, 347 N.C. 268, 493 S.E.2d 458
(1997). To prevail on this issue, defendant must demonstrate that
the challenged aspects of the final consent judgment, if error,
were prejudicial.
HAJMM Co. v. House of Raeford Farms, 328 N.C.
578, 403 S.E.2d 483 (1991) (citation omitted).
Defendant first contends that the entry of a final consent
judgment is invalid because he did not sign it. However, the
validity of a consent judgment depends upon the parties' consent to
its terms when recited and explained in court, rather than by the
parties' signature at the time the judgment is reduced to writing
and signed by the trial court.
Chance v. Henderson, 134 N.C. App.
657, 518 S.E.2d 780 (1999).
In the instant case, the transcript establishes that the
defendant was asked several times by the court if he agreed to the
provisions of the parties' agreement, and that defendant through
counsel assented to the judgment. Defendant further agreed to the
procedure proposed by the trial court, that a judgment be prepared
for his signature. We conclude that the consent judgment was not
invalidated by the fact that defendant did not sign it. Defendant next argues that the consent judgment does not,
when viewed in its entirety, accurately reflect the parties'
agreement. We disagree.
Defendant first assigns error to the inclusion in the judgment
of Judge Barber's findings of fact from the partial summary
judgment order entered in this case, contending that the addition
of these findings of fact was unnecessary and prejudicial.
[A] trial court's findings of fact are deemed conclusive on
appeal if they are supported by competent evidence, regardless of
whether there is evidence which could have supported findings to
the contrary.
Tepper v. Hoch, 140 N.C. App. 354, 361, fn. 5, 536
S.E.2d 654, 659, fn. 5 (2000) (citation omitted). Findings of fact
and conclusions of law are not required in a summary judgment
order.
Bland v. Branch Banking & Tr., 143 N.C. App. 282, 547
S.E.2d 62 (2001). However, findings of fact do not render a
summary judgment void or voidable[.]
Mosley v. Finance Co., 36
N.C. App. 109, 111, 243 S.E.2d 145, 147,
disc. review denied, 295
N.C. 467, 246 S.E.2d 9 (1978) (citations omitted)
.
Further,
defendant has not identified which findings of fact he contends are
unsupported by competent evidence. We conclude that the findings
of fact in the consent order are supported by competent evidence,
and should be upheld. Accordingly, this assignment of error is
overruled.
Defendant next argues that the consent agreement provided for
his approval of a new survey, separate from the one referenced in
the terms of the agreement itself. The transcript of the hearingincluded no mention of an additional survey, and provides no
support for defendant's contention. This assignment of error is
overruled.
Defendant also alleges that the consent agreement is void
because it does not explicitly state that his general release of
his claims against plaintiff is limited to claims asserted in the
present action. As defendant has no claims against plaintiff other
than those arising from this action, this omission has no effect
upon the agreement, and could not prejudice defendant. This
assignment of error is overruled.
Defendant finally contends that the judgment is invalid
because it was not physically attached to the letter of agreement
upon which the recitals in open court were based. At the
conclusion of the hearing, the trial court stated in relevant part:
All right, it sounds like a fair and
reasonable settlement . . . I will make the
following suggestion to counsel, that you
prepare a consent judgment[,] . . . [that
will] incorporate the document that Mr. Weeks
read in court, [and] that a copy be attached
to the judgment[.]
The trial court's suggestion was not a formal requirement, and
defendant has shown no prejudice attributable to the agreement's
not being stapled to the judgment.
For the reasons discussed above, we conclude that the consent
judgment reflects in all significant aspects the agreement of the
parties, and that the trial court did not err in its entry of
judgment. We further conclude that the trial court properly
entered the partial summary judgment order. Accordingly, we affirmthe order of partial summary judgment, and the consent judgment
entered in this case.
Affirmed.
Judges MCGEE and TIMMONS-GOODSON concur.
*** Converted from WordPerfect ***