Link to original WordPerfect file
Link to PDF 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.
HOME BUILDERS ASSOCIATION OF FAYETTEVILLE NORTH CAROLINA INC.,
JAMES EDWARD GRAVES, JIM GRAVES & ASSOCIATES, INC., JOHN McNATT
GILLIS, GILLIS DEVELOPMENT CORPORATION, INC., et al., Petitioner
Appellants, v. CITY OF FAYETTEVILLE, Respondent Appellee
NO. COA04-1108
Filed: 7 June 2005
1. Cities and Towns--annexation--untimely challenge--settlement with other
petitioners--no effect
Petitioners' challenge to an annexation was time-barred because they did not file within
the statutory 60-day period. A settlement between another group which did timely file and the
City has no effect on petitioners, and respondent's motion to dismiss was correctly granted. The
annexation statutes do not call for the treatment of a settlement as a new ordinance, as petitioner
contends, which would allow a new 60-day period for review.
2. Cities and Towns--annexation--settlement--motion to intervene
There was no abuse of discretion in the denial of petitioner's motion to intervene in an
annexation settlement by another group where petitioners did not timely file their challenge and
the other group had timely filed. Intervention under Rule 24 of the Rules of Civil Procedure is
not utilized when a differing procedure is prescribed by statute, as here; even so, there were none
of the unusual circumstances required for post-judgment intervention.
Appeal by petitioners from orders entered 29 June 2004 by
Judge Gary L. Locklear in Cumberland County Superior Court. Heard
in the Court of Appeals 13 April 2005.
Garris Neil Yarborough, for petitioner appellants.
Parker, Poe, Adams, & Bernstein, by Anthony Fox and Brenton W.
McConkey; and City Attorney Karen M. McDonald, for respondent
appellee.
General Counsel Andrew L. Romanet, Jr., and Senior Assistant
General Counsel Gregory F. Schwitzgebel, III, for Amicus
Curiae North Carolina League of Municipalities.
McCULLOUGH, Judge.
Petitioners appeal from an order granting respondent's motion
to dismiss and an order denying petitioners' motion to intervene.
On 24 November 2003, the City of Fayetteville adopted an annexationordinance that was to become effective on 30 June 2004. In North
Carolina, an owner of annexed property may seek judicial review of
an annexation if he or she petitions [w]ithin 60 days following
the passage of [the] annexation ordinance[.] N.C. Gen. Stat.
§ 160A-50(a)(2003).
A group of Cumberland County residents, the Gates Four
community, filed the only timely petition for review in Cumberland
County Superior Court. Ultimately, the City and the Gates Four
community reached a settlement which excluded Gates Four from the
area to be annexed. On 12 May 2004, the superior court entered a
consent judgment approving that settlement. The consent judgment
was entered pursuant to N.C. Gen. Stat. § 160A-50(m) (2003) which
gives courts discretion to resolve annexation challenges by
approving any settlement reached by all parties.
Petitioners were not part of the Gates Four petition and did
not seek review of the annexation within the 60-day period.
Instead, petitioners filed this challenge on 23 June 2004. This
was five months after the 60-day period had ended.
Petitioners offered two different theories to the trial court.
First, they claimed that the Gates Four Settlement revived their
time to seek review. Second, they made a motion to intervene. The
trial court rejected these arguments, granted respondent's motion
to dismiss, and denied petitioners' motion to intervene.
Petitioners appeal.
On appeal, petitioners argue that the trial court erred by
granting respondent's motion to dismiss and denying petitioners'motion to intervene. We disagree and affirm the orders of the
trial court.
I. Motion to Dismiss
[1] Petitioners argue that the trial court erred in granting
respondent's motion to dismiss. We disagree.
In North Carolina, an owner of annexed property can seek
judicial review if the owner files a petition [w]ithin 60 days
following the passage of an annexation ordinance[.] N.C. Gen.
Stat. § 160A-50(a). It is undisputed that petitioners failed to
seek judicial review within 60 days after the passage of the
annexation ordinance. In fact, they made their challenge five
months after the 60-day period ended. Therefore, their action is
time-barred.
In an attempt to avoid this result, petitioners present two
theories. First, they argue that the settlement required remand
back to the City Council for adoption of an amended annexation
ordinance. Second, they claim that the settlement created a new
ordinance and a new 60-day period for challenges. Neither of these
arguments is persuasive.
Although annexations are admittedly complex, the provisions
dealing with time limitations and settlements are fairly
straightforward. As we have indicated, the owner of annexed
property has 60 days to seek judicial review of an annexation
ordinance. N.C. Gen. Stat. § 160A-50(a). Similarly, the section
dealing with settlements indicates that [a]ny settlement reached by all parties in an
appeal under this section may be presented to
the superior court in the county in which the
municipality is located. If the superior
court, in its discretion, approves the
settlement, it shall be binding on all parties
without the need for approval by the General
Assembly.
N.C. Gen. Stat. § 160A-50(m).
It is noteworthy that neither subsection (a) nor subsection
(m) calls for a remand to city council or the treatment of a
settlement as a new ordinance which would allow a new 60-day
period for judicial review. In another annexation case, this Court
explained that courts must give a statute 'its plain and definite
meaning, and are without power to interpolate, or superimpose,
provisions and limitations not contained therein[.]' Sonopress,
Inc. v. Town of Weaverville, 139 N.C. App. 378, 383, 533 S.E.2d
537, 539 (2000) (citation omitted). Further, courts should not
infer additional language when 'it would have been a simple matter
[for the General Assembly] to [have] include[d] th[at] explicit
phrase[.]' Id. at 383, 533 S.E.2d at 540 (citation omitted).
Because the sections dealing with time limits and settlements have
no language permitting a remand or a new 60-day period to seek
judicial review, we are not at liberty to create such a remedy.
Our courts presume that the legislature acted rationally and
'did not intend an unjust or absurd result.' Best v. Wayne Mem'l
Hosp., Inc., 147 N.C. App. 628, 635, 556 S.E.2d 629, 634 (2001)
(citation omitted), appeal dismissed, disc. review denied, 356 N.C.
433, 572 S.E.2d 426 (2002). In fact, there are sound public policyreasons for maintaining a clear, unqualified 60-day period for
challenges. The strict time limitation promotes certainty and
allows cities to extend services to newly annexed areas. Adopting
petitioners' position would destroy the certainty of the 60-day
period and allow those who did not file timely petitions
(petitioners in this case) to unfairly benefit from those who did
timely file and settle their dispute (the Gates Four community).
We are aware that a remand to the municipal governing board is
a possible remedy when the court conducts judicial review.
Subsection (f) describes the procedure for judicial review of
annexation proceedings. N.C. Gen. Stat. § 160A-50(f). In that
review, the court is to consider whether the annexation has
complied with the overall statutory procedure. Id. This includes,
for example, whether the character of the area to be annexed meets
statutory requirements. Id. After conducting that review, the
court has the option of affirming the ordinance, declaring the
ordinance null and void, or remanding the action to the municipal
governing board. N.C. Gen. Stat. § 160A-50(g)(1)-(4).
Although a remand is permitted under subsection (g), the key
provisions in the present case (those dealing with time limitations
and settlements) do not provide the option of a remand. This is
revealing because it shows that when the General Assembly intends
a remand to occur, it says so expressly. Once again, we will not
read into or superimpose language which is not contained in the
statute. Finally, we are not persuaded by petitioners' suggestion that
a remand is required under N.C. Gen. Stat. § 160A-75 (2003). This
section, which is not a provision dealing with annexation,
addresses voting by members of a city council and the mayor:
An affirmative vote equal to a majority of all
the members of the council not excused from
voting on the question in issue, including the
mayor's vote in case of an equal division,
shall be required to adopt an ordinance[] [or]
take any action having the effect of an
ordinance[.]
Id. (emphasis added). Using this general language, petitioners
contend that the settlement had the effect of an ordinance and
therefore required a remand to city council. We disagree.
Settlements cannot be classified as actions having the effect
of an ordinance because the city council and the mayor are not
involved in settlements in any way. Rather, settlements are
carried out by cities and opposing parties who have a dispute
involving the annexation. Since settlements are a method of
dispute resolution in the annexation process, rather than
governmental actions having the effect of an ordinance, there is no
need to send the matter back to city council after a settlement is
reached.
We recognize that every settlement changes the area to be
annexed to some degree. In this case, the settlement between the
City and Gates Four removed Gates Four from the area to be annexed.
However, there are provisions in the annexation statute that show
that the City is not required to start over simply because the area
to be annexed has changed. Subsection (e) states At any time before or during the review
proceeding, any petitioner or petitioners may
apply to the reviewing court for an order
staying the operation of the annexation
ordinance pending the outcome of the review.
The court may grant or deny the stay in its
discretion upon such terms as it deems proper,
and it may permit annexation of any part of
the area described in the ordinance concerning
which no question for review has been raised.
N.C. Gen. Stat. § 160A-50(e) (emphasis added). Similarly,
subsection (h) reveals that
[t]he superior court may, with the agreement
of the municipality, permit annexation to be
effective with respect to any part of the area
concerning which no appeal is being made and
which can be incorporated into the city
without regard to any part of the area
concerning which an appeal is being made.
N.C. Gen. Stat. § 160A-50(h). These statutory provisions reveal
that a remand is not required because it would amount to an
unnecessary procedural delay. See In re Durham Annexation
Ordinance, 66 N.C. App. 472, 489-90, 311 S.E.2d 898, 908 (1984)
(explaining that in drafting N.C. Gen. Stat. § 160A-50, the clear
intent of the legislature was to provide an expedited judicial
review, limited in scope, and avoiding unnecessary procedural
delays).
Before moving to the next section, we wish to clarify our
holding. Because petitioners failed to seek judicial review within
the 60-day time period, their action was time-barred. Petitioners
have sought to find a way around that deadline. However, a
settlement between the city and another party that did timely file
has no effect on the 60-day rule. The statutes do not require aremand to city council or allow petitioners a new 60-day period.
Therefore, we overrule this assignment of error.
II. Motion to Intervene
[2] Petitioners argue that the trial court erred by denying
their motion to intervene. We considered this exact issue in
Gates
Four Homeowners Assoc. v. City of Fayetteville, ____ N.C. App.
____, ____ S.E.2d ___ (filed 7 June 2005) (No. COA04-1202), and
will apply the same analysis in the present case.
Petitioners argue that they should have been allowed to
intervene under Rule 24(a) of the North Carolina Rules of Civil
Procedure. Although the North Carolina Rules of Civil Procedure
generally do apply to civil proceedings, they are not utilized
when a differing procedure is prescribed by statute. N.C. Gen.
Stat. § 1A-1, Rule 1 (2003). N.C. Gen. Stat. § 160A-50 describes
the procedure for annexations, including time limitations. Under
subsection (a), a property owner must petition for judicial review
within 60 days following the adoption of the annexation ordinance.
N.C. Gen. Stat. § 160A-50(a).
In the present case, petitioners did not comply with the
procedure set forth in the annexation provisions because they moved
to intervene five months after the 60-day period had ended.
Because Rule 24 intervention would have violated the statutory
procedure of N.C. Gen. Stat. § 160A-50, intervention was not
available.
Even if Rule 24 had applied, petitioners cannot show that the
trial court abused its discretion in denying the motion tointervene. Pursuant to N.C. Gen. Stat. § 1A-1, Rule 24(a) (2003),
anyone can intervene if the individual timely files a petition
(1) When a statute confers an unconditional
right to intervene; or
(2) When the applicant claims an interest
relating to the property or transaction which
is the subject of the action and he is so
situated that the disposition of the action
may as a practical matter impair or impede his
ability to protect that interest, unless the
applicant's interest is adequately represented
by existing parties.
The determination of the timeliness of the motion under this
rule is left to the sound discretion of the trial court. Taylor v.
Abernethy, 149 N.C. App. 263, 268, 560 S.E.2d 233, 236 (2002),
disc. review denied, 356 N.C. 695, 579 S.E.2d 102 (2003). Such
rulings are given great deference and will only be overturned upon
a showing that the ruling 'was so arbitrary that it could not have
been the result of a reasoned decision.' Id. (quoting White v.
White, 312 N.C. 770, 777, 324 S.E.2d 829, 833 (1985)).
When considering the issue of timeliness, North Carolina
Courts consider five factors:
(1) the status of the case, (2) the
possibility of unfairness or prejudice to the
existing parties, (3) the reason for the delay
in moving for intervention, (4) the resulting
prejudice to the applicant if the motion is
denied, and (5) any unusual circumstances.
State ex rel. Easley v. Philip Morris, Inc., 144 N.C. App. 329,
332, 548 S.E.2d 781, 783 (citation omitted), disc. review denied,
354 N.C. 228, 554 S.E.2d 831 (2001). While post-judgment
intervention is not impossible, the law disfavors it. Id. It willonly be allowed if there are extraordinary and unusual
circumstances. Id.
After evaluating all five factors, we must conclude that the
trial court did not abuse its discretion in denying the motion to
intervene.
With regard to the first factor, status of the case,
petitioners sought to intervene after the May 12 judgment had been
entered. As we have mentioned, post-judgment intervention is
disfavored. Likewise, under the second factor dealing with
prejudice to the existing parties, intervention would prejudice the
City and the Gates Four community by destroying their settlement.
The final three factors do not support petitioners' position.
Petitioners have not offered a legitimate reason for the delay, and
their reliance on the Gates Four community is meritless because
there was no agreement, promise, or representation that Gates Four
would protect their interests. Although denying the motion to
intervene would harm petitioners, their action has caused this
result. Finally, there are no unusual circumstances which lead us
to conclude that the trial court abused its discretion in denying
the motion to intervene.
After careful consideration of the record, briefs, and
arguments of the parties, we conclude that the trial court acted
properly in granting respondent's motion to dismiss and denying
petitioners' motion to intervene. The orders are
Affirmed.
Judges HUNTER and Judge LEVINSON concur.
*** Converted from WordPerfect ***