Cities and Towns--condemnation--injunctive relief
The trial court did not err by granting defendant town's motion to dismiss plaintiff
property owners' actions seeking injunctive relief to prevent defendant from proceeding with the
condemnation of plaintiffs' property because plaintiffs had the opportunity to present all
affirmative defenses argued in their action for a permanent injunction during the condemnation
proceedings, giving plaintiffs an adequate remedy at law.
Judge HUDSON dissenting.
Adams Hendon Carson Crow & Saenger, P.A., by Martin Reidinger
and Cynthia Roelle, for plaintiffs-appellants.
Coward Hicks & Siler, P.A., by William H. Coward for
defendant-appellee.
STEELMAN, Judge.
Plaintiffs own property along Bowery Road within the corporate
limits of defendant Town of Highlands (defendant or Highlands).
On 31 August 2001, defendant issued to plaintiffs notices of
condemnation pursuant to N.C. Gen. Stat. § 40A-40 (2001) indicating
its intent to initiate actions to condemn portions of plaintiffs'
property for the purpose of widening and paving Bowery Road. These
notices stated that defendant intended to file its action forcondemnation on 1 October 2001, and specifically informed
plaintiffs of their right to commence an action...for injunctive
relief.
Plaintiffs Alice Monroe Nelson, et al., filed an action on 28
September 2001 (01 CVS 472) seeking to enjoin defendant from
condemning plaintiffs' property. Plaintiff Michael Wentz filed an
action on 2 October 2001 (01 CVS 475) also seeking to enjoin
defendant's condemnation of his property. Plaintiffs' complaints
essentially contained nine claims: (1) notices of condemnation
given plaintiffs by defendant were deficient under N.C. Gen. Stat.
§ 40A-40; (2) the Highlands governing board did not properly
authorize the undertaking of the condemnation; (3) the property to
be condemned was registered with the National Register of Historic
Places, and a reasonable alternative for condemnation existed which
did not include the historic property; (4) the condemnation was not
for a proper public purpose; (5) the condemnation was to be
financed unlawfully through a private escrow account containing
funds solicited by defendant based on misrepresentations that
contributions were tax deductible; (6) the terms and conditions of
the escrow had not been met to allow the condemnation to proceed;
(7) the escrow further was unlawful in that it provided for the
payment of attorneys' fees for private parties out of funds
contributed to defendant as a municipal corporation; (8) the
condemnation proceeding constituted an abuse of discretion by
defendant; and (9) defendant failed to perform required
archeological and environmental investigations and impact studies
of the property to be condemned. Plaintiffs prayed that defendantbe permanently enjoined from condemning or otherwise altering the
property of the [p]laintiffs.
On 4 October 2001, defendant filed twelve separate
condemnation actions against plaintiffs and other owners of
property along Bowery Road.
In December 2001, the two actions against defendant seeking
injunctive relief were heard as a single matter by the Macon County
Superior Court. On 15 January 2002, the trial court granted
defendant's motion to dismiss under N.C. Gen. Stat. § 1A-1, Rule
12(b)(6) (2001) for failure to state a claim upon which relief may
be granted. Plaintiffs appeal the trial court's granting of
defendant's motion to dismiss.
The issue presented in the instant case is whether plaintiffs
have a right under N.C. Gen. Stat. Chapter 40A to institute an
action for injunctive relief to prevent defendant from proceeding
with the condemnation of their property.
On appeal from a grant of a motion to dismiss, this Court must
determine whether, as a matter of law, the allegations of the
complaint, treated as true, are sufficient to state a claim upon
which relief may be granted under some legal theory. Harris v.
NCNB Nat'l Bank, 85 N.C. App. 669, 670, 355 S.E.2d 838, 840 (1987).
An action may be dismissed for failure to state a claim if no law
supports the claim, if sufficient facts to state a good claim are
absent, or if a fact is asserted that defeats the claim. Shell
Island Homeowners Ass'n v. Tomlinson, 134 N.C. App. 217, 517 S.E.2d
406 (1999).
It is established law in North Carolina that an injunction isan equitable remedy and where there is a full, complete, and
adequate remedy at law, the equitable remedy of injunction will not
lie. Pelham Realty Corp. v. Bd. of Transp., 303 N.C. 424, 432,
279 S.E.2d 826, 831 (1981). N.C. Gen. Stat. § 40A-42 provides in
part that [u]nless an action for injunctive relief has been
initiated, title to the property specified in the [condemnation]
complaint, together with the right to immediate possession thereof,
shall vest in the condemnor upon the filing of the complaint and
the making of the deposit in accordance with G.S. 40A-41. N.C.
Gen. Stat. § 40A-42(a)(1) (2001). In condemnation actions
commenced under N.C. Gen. Stat. § 40A-42(a), the condemnor is
required to provide notice to landowners of its intent to initiate
an action to condemn the property 30 days prior to filing the
condemnation complaint. N.C. Gen. Stat. § 40A-40(a)-(b). The
notice shall contain a plain language summary of the owner's
rights, including...[t]he right to commence an action for
injunctive relief. N.C. Gen. Stat. § 40A-40(b)(4).
In Yandle v. Mecklenburg County, 85 N.C. App. 382, 355 S.E.2d
216, disc. review denied, 320 N.C. 798, 361 S.E.2d 91 (1987), the
Town of Matthews (Matthews) certified a petition for voluntary
annexation of five parcels of land owned by the Yandles on 8
October 1984. Id. at 384, 355 S.E.2d at 217. On 6 November 1984,
after authorization by the Mecklenburg County Board of
Commissioners, the County Manager mailed notices of the County's
intent to condemn eight parcels of land, two of which were owned by
the Yandles and were part of the petition for annexation. Id. at
384, 355 S.E.2d at 218. On 5 December 1984, the Yandles filed acivil action seeking a temporary restraining order, preliminary
injunction and permanent injunction to prevent the County from
condemning their land. Id. Two days later, on 7 December 1984,
the County authorized the institution of condemnation proceedings
against the Yandles' property and also sought a temporary
restraining order, preliminary injunction and permanent injunction
to prohibit Matthews from annexing the Yandle property. Id. at
385, 355 S.E.2d at 218.
On 31 December 1984, the trial court preliminarily enjoined
the County from taking further steps to condemn the Yandles'
property and preliminarily enjoined Matthews from further action on
annexation of the Yandles' property. Id. On 21 July 1986, the
case was tried without a jury to determine which party had the
right to proceed in its actions on the Yandles' property. Id. The
trial court concluded that because Matthews took the first
mandatory public procedural step by approving the Yandles'
petition for voluntary annexation, Matthews could proceed with its
annexation while the County was prohibited from further action to
condemn the same property. Id. at 386, 355 S.E.2d at 219.
On appeal by the County, this Court considered the injunctive
order entered in December 1984 as to the condemnation action.
Relying on Centre Development Co. v. County of Wilson, 44 N.C. App.
469, 261 S.E.2d 275, disc. review denied and appeal dismissed, 299
N.C. 735, 267 S.E.2d 660 (1980), the Court in Yandle stated that
landowners could not seek to enjoin a county from condemning their
land in a court of equity if the owners had an adequate remedy at
law. Id. at 389-90, 355 S.E.2d at 221. This Court noted that N.C.Gen. Stat. § 40A-1 provides that the provisions of Chapter 40A
shall be the 'exclusive condemnation procedures to be used in this
State by...all local public condemnors,' and that N.C. Gen. Stat.
§ 40A-45 gives landowners the opportunity to assert affirmative
defenses in an answer to the condemnation complaint. Id. at 390,
355 S.E.2d at 221. Because N.C. Gen. Stat. Chapter 40A provided
the Yandles an opportunity to raise their pending annexation
action, which sought to prevent the County from condemning their
land, in an answer to the County's condemnation complaint, the
Yandle Court held they were afforded an adequate remedy at law by
the statute and, therefore, were not entitled to injunctive relief.
Id.
In Tradewinds Campground v. Town of Atlantic Beach, 90 N.C.
App. 601, 369 S.E.2d 365, appeal dismissed and disc. review denied,
323 N.C. 180, 373 S.E.2d 126 (1988), the plaintiff received a
notice on 13 July 1987 that the Town of Atlantic Beach (Town)
intended to condemn its property. Id. at 601, 369 S.E.2d at 365.
On 17 August 1987, the Town filed its complaint in the condemnation
action. Id. Before it answered the complaint, the plaintiff filed
an action for injunctive relief to prevent the condemnation. Id.
On 14 December 1987, plaintiff filed an answer to the Town's
condemnation complaint asserting the same defenses claimed in its
action for injunctive relief. Id. at 603, 369 S.E.2d at 366. The
trial court granted the Town's motion for judgment on the pleadings
pursuant to N.C. Gen. Stat. § 1A-1, Rule 12(c) (2001) on the
grounds that the relief sought could be raised as an affirmative
defense in an answer to the Town's condemnation action. Id. at601, 369 S.E.2d at 365.
On appeal to this Court, the Tradewinds plaintiff argued that
N.C. Gen. Stat. § 40A-42(a), supra, granted it a statutory right
to bring an action for injunctive relief to bar the condemnation
proceeding and to prevent the title and the right to immediate
possession of the property from vesting in defendant. Id. at 602,
369 S.E.2d at 365. This Court found that plaintiff had an adequate
remedy at law under N.C. Gen. Stat. § 40A-45, which provides that
a property owner whose land has been taken by the condemnor may
file an answer to the condemnor's complaint that includes
'affirmative defenses or matters as are pertinent to the
action....' Id. at 602-03, 369 S.E.2d at 366 (quoting N.C. Gen.
Stat. § 40A-45). Citing Yandle, the Tradewinds Court held that the
filing of an answer to the Town's complaint for condemnation gave
the plaintiff an adequate remedy at law and that the plaintiff was
not entitled to injunctive relief. Id. at 603, 369 S.E.2d at 366.
We have reviewed plaintiffs' substantive claims asserted in
the complaints and find that each of these can be adequately
addressed as affirmative defenses to the condemnation actions
instituted by defendant. We recognize that the language of N.C.
Gen. Stat. § 40A-42 provides some avenue of injunctive relief by
limiting the right of immediate possession by the condemnor when
an action for injunctive relief has been initiated. N.C. Gen.
Stat. § 40A-42(a)(1). We also acknowledge that N.C. Gen. Stat. §
40A-42(f) states that [t]he provisions of this section shall not
preclude or otherwise affect any remedy of injunction available to
the owner or the condemnor. However, we do not read the languageof the statute as expanding the rights of landowners to seek
injunctive relief in condemnation proceedings where an adequate
remedy at law exists. There is no evidence that the General
Assembly intended to overrule our well established case law
regarding the availability of equitable relief. The language of
the statute merely protects the right of landowners to seek any
remedy of injunction available to the owner or the condemnor.
N.C. Gen. Stat. § 40A-42(f) (emphasis added). Thus, the statute
does not abrogate the remedy of injunction where there is no
adequate remedy at law.
Absent evidence of an intent by the General Assembly to expand
the right to seek equitable relief in condemnation proceedings, we
hold that the statute's references to injunctive relief refer
solely to instances where there is no adequate remedy at law.
While Yandle and Tradewinds relied upon Centre Development, which
was decided by this Court prior to the enactment of N.C. Gen. Stat.
Chapter 40A, we do not believe the new statute was intended to
provide additional equitable remedies in condemnation proceedings.
Accordingly, Yandle and Tradewinds are controlling and constrain
this right where the property owners are deemed to have an adequate
remedy at law through the condemnation proceeding.
We are bound by this Court's previous decisions under the
principle of stare decisis. Reid v. Town of Madison, 145 N.C. App.
146, 550 S.E.2d 826, disc. review allowed, 354 N.C. 365, 556 S.E.2d
576 (2001), review improvidently allowed, 355 N.C. 276, 559 S.E.2d
786 (2002). While the doctrine of stare decisis is inapplicable
where case law conflicts with a pertinent statutory provision tothe contrary, Webb v. McKeel, 144 N.C. App. 381, 384, 551 S.E.2d
440, 442, disc. review denied, 354 N.C. 371, 557 S.E.2d 537 (2001),
stare decisis will operate where the previous decision expressly
considered the seemingly contrary statute, as this Court did in
Yandle and Tradewinds.
Like the landowners in Yandle, plaintiffs in the instant case
filed an action for injunctive relief prior to the condemnor's
filing of its condemnation action. Asserting their statutory right
under N.C. Gen. Stat. § 40A-42(a)(1), plaintiffs requested a
permanent injunction against defendant's condemnation of their
property. The trial court's order granted defendant's motion to
dismiss under Rule 12(b)(6) without prejudice to plaintiffs'
raising the same defenses in the condemnation actions filed by
defendant. Plaintiffs had the opportunity to present all
affirmative defenses argued in their action for a permanent
injunction during the condemnation proceedings, giving plaintiffs
an adequate remedy at law. Judicial economy counsels against
litigating the same issues in an injunctive relief setting and in
a condemnation proceeding. Because we are bound by the Yandle and
Tradewinds decisions, we hold that plaintiffs were not entitled to
injunctive relief and their actions were properly dismissed.
AFFIRMED.
Judge McGEE concurs.
Judge HUDSON dissents.
HUDSON, Judge, dissenting.
Because I disagree with the application of the principle of
stare decisis here, I respectfully dissent. The cases relied uponby the appellee and discussed in the majority opinion as binding
include Yandle v. Mecklenburg County, 85 N.C. App. 382, 355 S.E.2d
382 (1987), and Tradewinds Campground, Inc. v. Town of Atlantic
Beach, 90 N.C. App. 601, 369 S.E.2d 365 (1988). The Court in
Tradewinds relied entirely on Yandle, which in turn relied
primarily on Centre Development Co. v. County of Wilson, 44 N.C.
App. 469, 261 S.E.2d 275 (1980), on the issue of whether the
landowner may pursue injunctive relief. Because the statute upon
which Centre Development relied was repealed the year following the
decision, and the relevant subsection here was not mentioned in
either Yandle or Tradewinds, I do not believe we are bound to
follow those decisions.
In Centre Development, the issue before the Court was whether
the landowner should have been permitted to pursue a claim for
injunctive relief under the statutory provisions that existed at
that time. The provisions that the Court held set forth an
adequate remedy at law were found in Chapter 160A, Article 11,
specifically N.C.G.S. § § 160A-246 and 160A-255, neither of which
mentioned injunctions at all. All of Article 11 of N.C.G.S § 160A
was repealed by the General Assembly the following year and
replaced with Chapter 40A. These revisions to the statutes on
eminent domain refer specifically to the landowner's right to
pursue injunctive relief. For example, N.C.G.S. § § 40A-28(g) and
40A-42(f), which set forth the procedures, plainly state that
[t]he provisions of this section shall not preclude or otherwise
affect any remedy of injunction available to the owner or the
condemnor. None of the cases relied upon by the majority mentionsthis section. It appears, therefore, that the General Assembly, in
revising this chapter of the statutes, clearly intended to preserve
the rights of all parties to pursue injunctive relief.
Further, in Yandle, the plaintiff's claim was not dismissed
upon a Rule 12(b)(6) motion. Rather, the appeal followed a full
trial on the merits. Here, the plaintiffs' allegations in their
complaint are sufficient to set forth a claim for injunctive
relief, and, consistent with the revised statute, I would reverse
and remand for further proceedings.
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