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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
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DEBORAH C. TEMPLETON and GARY W. TEMPLETON, Plaintiffs, v. APEX
HOMES, INC., SOL A. JAFFA in his capacity as Trustee, and MICHAEL
I. JAFFA in his capacity as Trustee, Defendants
NO. COA03-570
Filed: 18 May 2004
Appeal and Error--aggrieved parties--lack of standing
Plaintiffs' appeal in a restrictive covenants case challenging the trial court's entry of
summary judgment in defendants' favor as to the setback requirement and the prohibition against
temporary structures is dismissed since plaintiffs are not aggrieved parties within the meaning of
N.C.G.S. § 1-271, and thus, lack standing to appeal, because: (1) the trial court's resolution of
those issues in this case was neither necessary nor essential to the court's judgment that the
pertinent house was in violation of the applicable restrictive covenants and should be removed;
(2) when a party has prevailed below and any subsidiary adverse rulings will not subject the party
to collateral estoppel on those issues, the party is not aggrieved for purposes of appeal; and (3)
the only relief sought by plaintiffs was removal of the house, and the trial court granted that
remedy.
Appeal by plaintiffs from order entered 12 February 2003 by
Judge Ripley E. Rand in Mecklenburg County Superior Court. Heard
in the Court of Appeals 4 February 2004.
Aaron E. Michel, for plaintiffs-appellants.
No brief filed on behalf of Apex Homes, Inc.,
defendant-
appellee.
No brief filed on behalf of Sol. A. Jaffa and Michael I.
Jaffa, defendants-appellees.
GEER, Judge.
Plaintiffs Deborah C. and Gary W. Templeton obtained a
judgment in their favor concluding that defendants had moved a
house onto the lot next door to the Templetons in violation of twoapplicable restrictive covenants. The trial court ordered
defendant Apex Homes, Inc. to remove the house. Defendants have
chosen to comply with the court's judgment rather than appeal it.
The Templetons have, however, appealed, arguing that the trial
court should have concluded that defendants violated four
restrictive covenants rather than just two. Because the Templetons
are not aggrieved parties within the meaning of N.C. Gen. Stat. §
1-271 (2003), we dismiss this appeal.
Facts
The Templetons purchased a lot and house at 2701 Sandy Porter
Road in Charlotte, North Carolina on 30 April 1998. Their property
adjoins property purchased by defendant Apex Homes on 5 April 2001.
The Apex Homes property, at 2715 Sandy Porter Road, is subject to
a deed of trust held by defendants Sol. A. and Michael I. Jaffa.
The Templeton and Apex Homes properties were created by a
subdivision of two lots ("Lots 1 and 2") in 1997. As a result of
the 1997 subdivision, the Templeton property is a corner lot that
abuts both Sandy Porter Road and Oakhaven Drive. The Apex Homes
property is a composite of parts of the original Lots 1 and 2,
abutting only Sandy Porter Road.
On or about 10 April 2001, Apex Homes moved a small wood-frame
house built in 1946 onto the property. The house ("Apex Homes
house") was placed 56.32 feet from Sandy Porter Road, with its
front facing Sandy Porter Road. The parties agreed below that ten restrictive covenants
applied to the Templeton and Apex Homes properties. On 1 October
2001, the Templetons sued Apex Homes and the Jaffas, alleging that
the Apex Homes house violated five of the restrictive covenants:
3. Any residence erected on said property
shall contain a minimum of 1500 square feet of
heated floor space.
4. No building shall be erected on any lot
nearer than 100 feet to the street or road on
which it faces.
5. No temporary structure shall be placed on
said property and used as a residence.
6. No noxious or offensive use shall be made
of said property nor shall the property be
used in any way so as to constitute a
nuisance.
7. All residences must be of brick
construction.
The Templetons requested a permanent injunction requiring
defendants to remove the house from the lot and prohibiting
defendants from further construction of any structure on the lot
violating the restrictive covenants. In the event that the court
failed to issue the requested injunction, plaintiffs sought an
award of monetary damages. Defendants filed answers denying the
material allegations of the complaint.
The Templetons subsequently moved for summary judgment,
seeking an order concluding that the house violated paragraphs 3,
4, 5, and 7 of the restrictive covenants. At a hearing onplaintiffs' motion, the parties announced that defendants had
conceded as to all issues but two. The two issues in dispute were:
(1) whether the location of the Apex Homes house violated the 100-
foot setback requirement of restrictive covenant 4 (identified in
the record as "issue 3"); and (2) whether the Apex Homes house was
a temporary structure in violation of restrictive covenant 5
(identified in the record as "issue 4").
After hearing argument on those two remaining issues, the
trial judge stated that he would enter partial summary judgment in
favor of the Templetons on the issues defendants had conceded.
With respect to the questions still in dispute, issues 3 and 4, the
court ruled:
With respect to issues 3 and 4, as to
issue 3, the Court finds that there is a
material dispute, genuine issue of fact, and
summary judgment is denied as to that.
And as to issue 4, the Court finds that
there is a genuine issue of material fact as
to that, and summary judgment is denied as to
that.
Plaintiffs' counsel then argued that because of the two
violations found by the court, "Plaintiff[s] would be entitled to
the relief requested, the removal of the Defendant's structure."
Counsel for Apex Homes, however, urged the court to order Apex
Homes to modify the house to conform with the restrictions within
a specified period. The trial court decided not to order a remedy,
but rather to allow the case to proceed to trial the followingweek:
I don't think that it's appropriate for
me at this point given that there are still
outstanding issues, to make a ruling that
that's premature.
If the case is scheduled to go on the
trial calendar next week, I'm inclined just to
rule as I have ruled, enter an order to that
effect, and then however the trial shakes out,
that will be up to the Trial Judge to decide
what, if anything, to do once the case is
concluded in its entirety.
At that point, counsel for Apex Homes made an oral motion for
summary judgment in its favor on the two disputed issues.
Plaintiffs' counsel stated: "Of course, if the Court entered
summary judgment in favor of the Defendant on those two points at
this point, then the case would be ripe for providing the remedy."
The court accordingly granted summary judgment for defendant on the
remaining two issues. Plaintiffs' counsel noted his exception "to
entering summary judgment against the Plaintiffs without notice."
The trial court then asked: "What do we do with the
property?" Plaintiffs' counsel responded: "The case law is clear
on the remedy. That remedy is removal. I'm not aware of any case
in which any other remedy has been provided once it's been found
that the restrictive covenants . . . [have] been breached."
Plaintiffs did not seek any further relief or remedy apart from
removal of the house. Counsel for Apex Homes again requested time
to renovate the house to bring it into compliance with therestrictive covenants. The court ultimately scheduled a hearing
for the following day to allow the parties time to conduct
additional research regarding the appropriate remedy. At the
second hearing, following argument, the court ruled: "[N]ow with
respect to the remedy that the judgment of the Court is that the
Defendant [Apex Homes] shall remove the offending property, or the
offending structure from the property, and will have 45 days from
today's date to do so."
On 12 February 2003, the trial court entered its order
granting summary judgment to plaintiffs in part and to defendants
in part and ordering defendant Apex Homes to remove the residence
at 2715 Sandy Porter Road by 16 March 2003 at 5:00 p.m. The
Templetons filed notice of appeal on 11 March 2003. On 24 July
2003, Apex Homes filed a Notice of Non-Opposition, informing this
Court that it does not oppose the Templetons' appeal as it has
removed the Apex Homes house as ordered.
Discussion
On appeal, the Templetons challenge the trial court's entry of
summary judgment in defendants' favor as to the setback requirement
and the prohibition against temporary structures. They argue that
they were entitled either to summary judgment on those issues or,
if a genuine issue of material fact existed, a trial.
We first note that the trial court initially concluded that a
trial was appropriate on those issues, but that the parties joinedtogether to encourage the court to enter summary judgment on all
issues in order to proceed immediately to the question of remedy.
It appears, therefore, that plaintiffs may have invited any error,
precluding them from appealing the trial court's entry of summary
judgment. Our Courts have long held to the principle that a party
may not appeal from a judgment entered on its own motion,
Wachovia
Bank & Trust Co. v. Morgan, 9 N.C. App. 460, 466, 176 S.E.2d 860,
864 (1970), or provisions in a judgment inserted at its own
request,
Dillon v. Wentz, 227 N.C. 117, 123, 41 S.E.2d 202, 207
(1947).
We need not, however, base our decision on this principle
because the Templetons are not a "party aggrieved" within the
meaning of N.C. Gen. Stat. § 1-271 and, therefore, lack standing to
appeal. N.C. Gen. Stat. § 1-271 ("Any party aggrieved may appeal
in the cases prescribed in this Chapter."). "A party aggrieved is
one whose rights are subst
antially affected by judicial order."
Carawan v. Tate, 304 N.C. 696, 700, 286 S.E.2d 99, 101 (1982). The
Templetons have failed to show that their rights were substantially
affected by the trial court's judgment.
At the summary judgment
hearing, plaintiffs sought a single remedy: removal of the house.
The trial court entered judgment ordering precisely that remedy.
The Templetons' brief on appeal suggests that they are
concerned that the trial court's order may allow defendants in the
future to violate the two restrictions upon which the Templetonsdid not prevail. This argument appears to be based on a belief
that in the absence of an appeal of the grant of summary judgment
as to those two restrictions, the Templetons may be subject to the
defense of collateral estoppel in any litigation arising out of
future construction on the lot. This concern is misplaced.
Collateral estoppel or issue preclusion may arise only when
four requirements have been met:
"(1) The issues to be concluded must be the
same as those involved in the prior action;
(2) in the prior action, the issues must have
been raised and actually litigated; (3) the
issue must have been material and relevant to
the disposition of the prior action; and
(4)
the determination made of those issues in the
prior action must have been necessary and
essential to the resulting judgment."
Key v. Burchette, 134 N.C. App. 369, 371, 517 S.E.2d 667, 669
(emphasis added; quoting
Johnson v. Smith, 97 N.C. App. 450, 452-
53, 388 S.E.2d 582, 583-84,
disc. review denied, 326 N.C. 596, 393
S.E.2d 878 (1990)),
disc. review denied, 351 N.C. 106, 540 S.E.2d
363 (1999). Even if precisely the same issues regarding the
restrictive covenants should arise in future litigation, the trial
court's resolution of those issues in this case was neither
necessary nor essential to the court's judgment that the Apex Homes
house was in violation of applicable restrictive covenants and
should be removed.
When a party has prevailed below and any subsidiary adverse
rulings will not subject the party to collateral estoppel on thoseissues, the party is not aggrieved for purposes of appeal.
Lennon
v. Wahler, 84 N.C. App. 141, 145, 351 S.E.2d 843, 845 (1987) (when
judgment was entered in defendant's favor, defendant could not
appeal from adverse conclusion of law because it "would not be
binding on any court in any future litigation"). Because the only
relief sought by the Templetons was removal of the Apex Homes house
and the trial court granted that remedy and because any adverse
determinations were not necessary and essential to the judgment,
the Templetons are not "aggrieved" within the meaning of N.C. Gen.
Stat. § 1-271. This appeal must be dismissed.
Gaskins v. Blount
Fertilizer Co., 260 N.C. 191, 195, 132 S.E.2d 345, 347 (1963)
("Where a party is not aggrieved by the judicial order entered, as
in the present case, his appeal will be dismissed.").
Dismissed.
Chief Judge MARTIN and Judge STEELMAN concur.
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