CENTRAL CAROLINA DEVELOPERS, INC.,
Plaintiff
v
.
MOORE WATER AND SEWER AUTHORITY, and MOORE COUNTY,
Defendants, Third-Party Plaintiff
v.
VAN CAMP GROUP, INC. as successor to and f/k/a REGIONAL
INVESTMENTS OF MOORE, INC., PINEHURST WATER & SANITARY COMPANY,
INC., JOHN KARSCIG, ROBERT W. VAN CAMP, JAMES R. VAN CAMP and
DONALD HUFFMAN,
Third-Party Defendants
Gill & Tobias, LLP, by Douglas R. Gill, for plaintiff-
appellant.
Lesley F. Moxley, Moore County Attorney, and Paul A. Raaf,
Assistant Moore County Attorney, for defendant-appellee Moore
County.
Cranfill, Sumner & Hartzog, L.L.P., by William W. Pollock, for
defendant-appellee and third-party plaintiff Moore Water and
Sewer Authority; and Van Camp, Meacham & Newman, PLLC, by
Michael J. Newman, for third-party defendant-appellee Van Camp
Group.
WALKER, Judge.
In August of 1994, plaintiff entered into a contract for the
purchase of Lot 253 in a development known as Fairwoods on 7 from
Pinehurst Acquisition Corporation. In an addendum to the contract
signed 3 August 1994, the parties agreed [t]hat purchaser accepts
subject lot in its present condition and purchaser will be solelyresponsible for the payment of any expenses that may be incurred in
preparing the lot for the construction of a residence thereon.
In May of 1995, prior to the sale, the general contractor for
the plaintiff hired Emmett Shelton Raynor, a professional land
surveyor, to survey Lot 253. He observed a sewer pipe clearly
visible, and . . . above the water line of the creek, crossing the
creek on Lot 253. On 11 May 1995, he informed the plaintiff's
contractor of the existence of the sewer pipe. He also informed
Moore Water and Sewer Authority (MOWASA) and it was determined that
the sewer pipe was active and belonged to MOWASA. Plaintiff
claimed it did not receive notice from its general contractor of
the existence of this sewer pipe. On 21 July 1995, plaintiff
purchased Lot 253. At the time of the purchase, there were no
easements, restrictions, or reservations on record other than those
contained in the deed.
In mid-May 1997, plaintiff was proceeding to build a residence
on Lot 253 when he contends he first discovered the sewer pipe
running through the lot. Because the sewer pipe was located on Lot
253, plaintiff could not build. On 16 April 1998, plaintiff filed
suit against Pinehurst Acquisition Corporation and MOWASA alleging
breach of implied warranty by Pinehurst Acquisition Corporation and
claims of trespass and inverse condemnation against MOWASA. MOWASA
filed a third-party complaint against Van Camp Group, Inc., as
successor to and f/k/a Regional Investments of Moore, Inc.,
Pinehurst Water and Sanitary Company, Inc., John Karscip, Robert W.
Van Camp, James R. Van Camp, and Donald Huffman (Van Camp Group)claiming that if MOWASA were liable to plaintiff, then the Van Camp
Group would be liable to MOWASA for contribution. The Van Camp
Group had sold its water company to MOWASA in 1991. While the
present suit was pending, MOWASA sold the water company to Moore
County which was joined as a defendant. Plaintiff voluntarily
dismissed the suit against Pinehurst Acquisition Corporation.
MOWASA and Van Camp Group filed motions for summary judgment
and Moore County filed a motion to dismiss pursuant to N.C. Gen.
Stat. § 1A-1, Rule 12(b)(6)(1999). The basis for all motions was
that the plaintiff's complaint was time barred based on the statute
of limitations created in N.C. Gen. Stat. § 40A-5(a).
At the hearing, MOWASA and Van Camp Group submitted affidavits
stating that the sewer pipe in question was installed through Lot
253 prior to 1989. Plaintiff submitted an affidavit in opposition
to the motions which did not contradict the affidavits of MOWASA
and Van Camp Group as to the 1989 date of installation of the sewer
pipe. Plaintiff's affidavit did not contain any information
regarding the date of the sewer pipe installation. The trial court
granted the motions for summary judgment in favor of MOWASA and the
Van Camp Group and granted Moore County's motion to dismiss under
Rule 12(b)(6).
Plaintiff first claims the inverse condemnation action against
MOWASA should not have been dismissed. Inverse condemnation is
simply a device to force a governmental body to exercise its power
of condemnation, even though it may have no desire to do so.
Smith v. City of Charlotte, 79 N.C. App. 517, 521, 339 S.E.2d 844,847 (1986). The remedy for inverse condemnation lies under N.C.
Gen. Stat. § 40A-51(a) which states:
If property has been taken by an act or
omission of a condemnor listed in G.S. 40A-
3(b) or (c) and no complaint containing a
declaration of taking has been filed the owner
of the property, may initiate an action to
seek compensation for the taking. The action
may be initiated within 24 months of the date
of the taking of the affected property or the
completion of the project involving the
taking, whichever shall occur later.
Plaintiff contends that the taking or condemning of the
easement across Lot 253 could not have occurred until 29 September
1997 when plaintiff notified MOWASA that it would not accept the
continued use of its property for MOWASA's sewer system.
Plaintiff bases this assertion on the holding in Construction Co.
v. Charlotte, 208 N.C. 309, 180 S.E. 573 (1935).
In Construction Co., the evidence showed that possession of a
water main by the city was with the permission of [the land
owner], and was at no time adverse to [the land owner]; and that
such possession was pursuant to agreements with respect to said
water mains by and between [the land owner] and the superintendent
of the [city's] municipal water system. 208 N.C. at 312, 180 S.E.
at 574-75. Thus, the Court concluded that the taking by the city
did not begin until the city refused to recognize the land owner as
the rightful owner of the water mains. Id. at 312, 180 S.E. at
575.
The facts and circumstances of the present case are
distinguishable from those presented in Construction Co. Here,plaintiff did not allege nor did it present any evidence which
would show that, prior to 29 September 1997, the sewer pipe was
running through Lot 253 pursuant to some agreement between MOWASA
and the plaintiff or the plaintiff's predecessor-in-interest. The
only evidence is that MOWASA's sewer pipe has been located in Lot
253 since 1989. Thus, Construction Co. is not applicable to the
present case in determining the date of the taking. Because
there is no allegation that MOWASA was in possession of the land
pursuant to an agreement or with permission of the plaintiff, a
taking could only have occurred when the sewer pipe was installed
across Lot 253.
Plaintiff has the burden of proving that the inverse
condemnation action was filed within two years of the date of the
taking. McAdoo v. City of Greensboro, 91 N.C. App. 570, 572, 372
S.E.2d 742, 743 (1988). Plaintiff presented no evidence nor did it
allege the date of the taking. However, MOWASA presented
uncontroverted evidence, through the affidavit of Wayne Haddock,
that the pipe located on plaintiff's property was installed prior
to early 1989. Mr. Haddock oversaw the installation of sewer pipes
in the area of the plaintiff's property. He stated that the sewer
pipe in question was in existence and already in place prior to
our commencement of the sewer project at Fairwoods on 7 in or about
June 1987. His project had ended by early 1989.
Therefore, any taking would have occurred when the sewer
pipe was installed across Lot 253. Because there is undisputed
evidence that the sewer pipe was installed by 1989, plaintiff musthave filed suit by 1991. As the present suit was filed 16 April
1998, the claim against MOWASA for inverse condemnation was time
barred.
Plaintiff also claims that, notwithstanding the inverse
condemnation claim, it has a viable claim for trespass against
MOWASA. The exclusive remedy for failure to compensate for a
'taking' is inverse condemnation under G.S. 40A-51 . . . . An
owner has no common-law right to bring a trespass action against a
city. McAdoo, 91 N.C. App. at 573, 372 S.E.2d at 744. Plaintiff
has no claim for trespass against MOWASA because it is a public
utility with the power of eminent domain just as a municipality.
The trial court properly granted summary judgment in favor of
MOWASA and the Van Camp Group. Plaintiff admits that Moore County
should share whatever outcome is appropriate for its predecessor,
Moore Water and Sewer Authority. Because summary judgment was
proper in favor of MOWASA and the Van Camp Group, the granting of
Moore County's motion to dismiss was likewise proper.
Affirmed.
Judges WYNN and THOMAS concur.
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