KEVIN BELVERD and wife, MERYL BELVERD,
Plaintiffs-Appellants,
v.
ALLAN D. MILES and wife, WANDA M. MILES, SYCAMORE PROPERTIES, a
North Carolina General Partnership, SYCAMORE DEVELOPMENT, LLC,
and HUNTER & BROWN, INC.,
Defendants-Appellees.
Womble Carlyle Sandridge & Rice, PLLC, by John C. Cooke and
Christine Carlisle Odom, for plaintiff-appellants.
Rosenman & Colin LLP, by Richard L. Farley, for defendant-
appellees.
McGEE, Judge.
This case involves the question of whether Sycamore
Properties, Sycamore Development, LLC, and Hunter & Brown, Inc.
(the Developers) are prohibited from using a particular strip of
land, located on a lot in a subdivision, to construct a through-
street as a result of certain restrictive covenants. The trial
court held that the restrictive covenants do not prohibit the use
of the land in question to construct a through-street. We affirm.
The following facts are undisputed. The Partridge Bluff
subdivision (Partridge Bluff) is a single-family, residential
subdivision in Concord, Cabarrus County, North Carolina that is
divided into two sections, Section I and Section II. The originalowners of Partridge Bluff, Allan D. Miles and Wanda M. Miles (the
Mileses), executed and recorded "Protective Covenants and
Restrictions for the Subdivision of Partridge Bluff" (the
Covenants) for Section I of Partridge Bluff at Book 527, Page 93 in
the Cabarrus County Registry. The Mileses conveyed Lot 30 to the
predecessor-in-title of plaintiffs in 1983. Lot 30 fronts on
Bridlewood Place (a public street) and is directly across from Lot
1. The Mileses also owned a large tract of land adjacent to
Partridge Bluff (the Sycamore Property). The Mileses conveyed the
Sycamore Property and a certain portion of Lot 1 of Partridge Bluff
(together the Sycamore Tract) to defendant Sycamore Properties by
deed (the Sycamore Deed) dated 26 January 1988. The Sycamore Deed
identifies the portion of Lot 1 conveyed to Sycamore Properties as
being sixty feet in width and 385 feet in length (the Lot 1 Strip).
One of the purposes of including the Lot 1 Strip in the Sycamore
Deed was "to provide access to the Sycamore Tract directly from
Bridlewood Place, a public street."
Lot 30 was acquired by Carolina Family Restaurants Limited
Partnership I (CFRP I) and Carolina Family Restaurants Limited
Partnership II (CFRP II) in 1996. Plaintiff Kevin Belverd was and
is the general partner of CFRP I and CFRP II. CFRP I and CFRP II
conveyed Lot 30 to Carolina Family Restaurants Limited Partnership
III (CFRP III) in 1998. CFRP III conveyed Lot 30 to plaintiffs.
Defendant Sycamore Properties employed defendant Hunter &
Brown, Inc. in 1998 to provide planning and project management
services for the development of the Sycamore Tract. In November1998, Hunter & Brown, Inc. presented to the City of Concord
Planning and Zoning Commission (the Commission) a preliminary plan
to subdivide the Sycamore Tract into a residential section and a
commercial section, and to call the subdivision "Coldwater." The
Commission published a Notice of Public Hearing on 4 January 1999
for the preliminary plat review of the Coldwater Subdivision. No
notice of the hearing was mailed directly to the owners of lots in
Partridge Bluff, and plaintiffs did not have actual knowledge of
the Commission's consideration of the plat.
At the hearing on 19 January 1999, the preliminary plat plan
was unopposed, and the Commission thereafter approved the plat. In
March 1999, the Developers began to construct a through-street
across the Lot 1 Strip in order to connect the Coldwater
Subdivision on the Sycamore Tract to Bridlewood Place in Partridge
Bluff, Section I.
Plaintiffs filed a complaint against the Developers and the
Mileses on 5 May 2000, setting forth various causes of action,
requesting declaratory judgment, and seeking to prevent continued
construction of the through-street. The Developers and the Mileses
filed answers denying the allegations and asserting affirmative
defenses of laches and estoppel. The trial court entered a
temporary restraining order in June 2000 and subsequently entered
a preliminary injunction, specifically enjoining the use of the
through-street for access to the commercial portion of Coldwater.
The trial court indicated that the Developers could continue to
construct the through-street at their own risk. The Developersproceeded with construction of the through-street and offered the
street for public dedication in December 2000. The street,
originally named "Henry Place" and subsequently renamed "Ravenswood
Drive," now connects the residential portion of the Sycamore Tract,
renamed Sycamore Ridge, to Bridlewood Place. Ravenswood Drive is
currently the only completed, paved street connecting Sycamore
Ridge to the public street system.
The parties participated in a Mediated Settlement Conference
and reached a Settlement Agreement in January 2001, pursuant to
which plaintiffs dismissed all of their claims for damages against
Sycamore Properties, Sycamore Development, LLC, and Hunter & Brown,
Inc., and took a voluntary dismissal as to all claims against the
Mileses. Plaintiffs filed one motion for summary judgment as to
all of their claims, and a second motion for summary judgment as to
the Developers' affirmative defenses of laches and estoppel.
Plaintiffs also filed a motion to join necessary parties. The
Developers filed a motion for summary judgment as to all of
plaintiffs' claims. Following a hearing, the trial court entered
an order on 16 April 2001 that dissolved the preliminary
injunction, granted the Developers' motion for summary judgment on
all claims, and denied all of plaintiffs' motions, holding that the
Developers' "use and intended use of the disputed portion of Lot 1
does not violate, complies with and is permitted by [the
covenants]." The trial court's order did not address the $5,000.00
bond that plaintiffs had posted in support of the preliminary
injunction. On appeal, plaintiffs first argue that the trial court erred
in granting summary judgment in favor of the Developers on claim
one (seeking injunctive relief based on an alleged violation of the
covenants), and on claim nine (seeking declaratory judgment).
Plaintiffs contend that the applicable covenants prohibit the
Developers' use of the Lot 1 Strip as a through-street. We
disagree.
The covenants contain a list of provisions, including the
following:
1. No lot shall be used for other than
residential purposes. No residential dwelling
shall be erected, placed or permitted to
remain on any lot other than one single family
dwelling[.]
. . . .
13. No lot shall be used for the purpose of
constructing a public street or to provide
access to and from the properties located in
the subdivision of Partridge Bluff, Section
One, to property surrounding Partridge Bluff,
Section One, except with the written consent
and permission of Allan D. Miles and wife,
Wanda M. Miles, their heirs and assigns.
Neither paragraph one nor paragraph thirteen is, on its own,
ambiguous. However, in terms of whether a lot may be used for a
through-street, paragraphs one and thirteen conflict with each
other. Paragraph one would prohibit the use of a lot for a public
through-street since such use is clearly not "residential." See
Easterwood v. Burge, 103 N.C. App. 507, 509, 405 S.E.2d 787, 789
(1991) (holding that a covenant restricting property to
"residential purposes only" prohibited construction of access road
to separate parcel); see also Franzle v. Waters, 18 N.C. App. 371,376, 197 S.E.2d 15, 18 (1973). Paragraph thirteen, on the other
hand, would allow such use if the Mileses gave written consent.
Plaintiffs contend that paragraph thirteen was not intended to
modify the general prohibition against using lots for non-
residential purposes in paragraph one; rather, plaintiffs contend,
paragraph thirteen was only intended to "add[] an additional layer
of protection." We find this argument to be without merit.
If paragraph thirteen is not construed as modifying paragraph
one, then, pursuant to paragraph one, no lot could ever be used to
construct a public street because such use is not residential, and
paragraph thirteen, purporting to allow such use if the Mileses
give written consent, would be superfluous. We believe such an
interpretation of the covenants would be contrary to the applicable
rules of interpretation.
The applicable rules of interpretation
require that the meaning of the contract be
gathered from a study and a consideration of
all the covenants contained in the instrument
and not from detached portions. It is
necessary that every essential part of the
contract be considered -- each in its proper
relation to the others -- in order to
determine the meaning of each part as well as
of the whole, and each part must be given
effect according to the natural meaning of the
words used.
Another fundamental rule of construction
applicable here requires that each part of the
contract must be given effect, if that can be
done by fair and reasonable intendment, before
one clause may be construed as repugnant to or
irreconcilable with another clause.
Callaham v. Arenson, 239 N.C. 619, 625, 80 S.E.2d 619, 623-24
(1954) (internal citations omitted). Pursuant to these rules, we hold that paragraph thirteen was
intended to modify the general prohibition of paragraph one by
providing that lots could be used for the specific non-residential
purpose of constructing a public street upon obtaining consent from
the Mileses in writing. Furthermore, we note that this
construction comports with the well-established principle that when
the meaning of covenants purporting to restrict the free use of
property is in doubt, such covenants are to be construed in favor
of the unrestricted use of property. See Long v. Branham, 271 N.C.
264, 268, 156 S.E.2d 235, 239 (1967).
Because we hold that the covenants do not prohibit the
Developers' use of the Lot 1 Strip as a through-street, we need not
address plaintiffs' argument that the trial court erred in denying
plaintiffs' motion for summary judgment as to the Developers'
defenses of laches and estoppel. Plaintiffs also contend that the
trial court erred in granting summary judgment in favor of the
Developers on plaintiffs' claim that the Mileses breached a promise
implied from the development plan. We disagree and affirm the
trial court's ruling on this claim because the claim, as set forth
in the complaint, is expressly alleged against the Mileses and, as
noted above, plaintiffs have voluntarily dismissed all claims
against the Mileses.
Furthermore, we disagree with plaintiffs' argument that the
trial court erred in denying plaintiffs' motion to join certain
parties. Plaintiffs rely solely upon the case of Karner v. Roy
White Flowers, Inc., 351 N.C. 433, 527 S.E.2d 40 (2000), for theproposition that the trial court should have joined as necessary
parties all of the lot owners and the City of Concord. However,
plaintiffs' reliance upon Karner is misplaced. That case involved
a "determination of whether a change of circumstances has taken
place so as to void a restrictive covenant in equity[.]" Id. at
437, 527 S.E.2d at 43. The case before us involves no such
determination, but rather involves the determination of whether a
certain use of the land in question violates the applicable
restrictive covenants. Having found no authority to support
plaintiffs' proposition, we affirm the trial court's ruling on this
issue.
We have also examined plaintiffs' arguments that the trial
court erred in granting summary judgment on plaintiffs' claims of
negligence and unfair and deceptive practices and find them to be
without merit.
Finally, plaintiffs contend the trial court erred by failing
to return to plaintiffs the $5,000.00 bond posted by plaintiffs as
security for the issuance of the preliminary injunction. However,
the record does not contain any indication that the trial court has
yet considered or determined whether the Developers have sustained
any damages as a result of the injunction entered against them.
See Tedder v. Alford, 128 N.C. App. 27, 36, 493 S.E.2d 487, 492
(1997), disc. review denied, 348 N.C. 290, 501 S.E.2d 917 (1998).
Thus, plaintiffs' assignment of error on this issue is premature.
We affirm the order of the trial court.
Affirmed. Judges WYNN and LEWIS concur.
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