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STEVE SINGLETON
v.
HAYWOOD ELECTRIC MEMBERSHIP CORPORATION
Appeal pursuant to N.C.G.S. § 7A-30(2) from the
decision of a divided panel of the Court of Appeals, 151 N.C.
App. 197, 565 S.E.2d 234 (2002), affirming a judgment entered
19 October 2000 by Judge Loto G. Caviness in Superior Court,
Haywood County. On 3 October 2002, the Supreme Court granted
discretionary review of additional issues. Heard in the Supreme
Court 7 April 2003.
Smathers & Norwood, by Patrick U. Smathers, for
plaintiff-appellee.
Parker, Poe, Adams & Bernstein LLP, by Robert H.
Tiller, Jack L. Cozort, and Irvin W. Hankins III, for
defendant-appellant.
Smith Anderson Blount Dorsett Mitchell & Jernigan, LLP,
by James D. Blount, Jr., Christopher G. Smith, and
Kevin E. Pethick, on behalf of Progress Energy and Duke
Power; Lawrence F. Mazer, Associate General Counsel,
for Progress Energy; and Lara Simmons Nichols,
Assistant General Counsel, for Duke Power, amici
curiae.
Robert B. Schwentker for North Carolina Electric
Membership Corporation; and Moore & Van Allen, PLLC, by
Joseph W. Eason and Robert A. Meynardie, on behalf of
the North Carolina Electric Membership Corporation,
amicus curiae.
Orr, Justice.
The issue before the Court is whether the Court of
Appeals properly affirmed the trial court's entry of partialsummary judgment for the plaintiff. For the reasons discussed
herein, we affirm the decision of the Court of Appeals.
Defendant, Haywood Electric Membership Corporation
(HEMC), is a rural electric cooperative owned by its members.
Plaintiff, Steve Singleton, first became a member of HEMC in
August of 1966 when he signed a membership application for that
one year. In November of 1976 Singleton signed another
membership application in which he agreed to purchase and use
electric power for any properties he owned serviced by HEMC for
the duration of his ownership of those properties. Every member
agrees to be bound by the rules and regulations governed by HEMC
when the member signs his membership application.
In February of 1998, following an ice storm, Singleton
telephoned HEMC to report a downed transmission power line on
property he had owned since September of 1995. The property, a
14.319 acre tract bearing two rental homes, is located on U.S.
Highway 276 in Haywood County, North Carolina. The evidence
showed that there were no transmission power poles located on the
property and that the transmission line at issue crossed over
Singleton's property at an approximate height of 300 feet from
one mountain ridge to another. Norman Sloan, HEMC's General
Manager, stated in his affidavit that this transmission line had
been in existence for more than 50 years. Prior to the ice
storm and HEMC's subsequent repair work, the only power pole on
Singleton's property was a service pole that provided electricity
to the two rental homes on the property and was not connected to
the transmission line in question. Singleton stated in his affidavit that the transmission
line at issue did not serve [his] property. Ronnie Allen, an
HEMC employee, stated in his affidavit that the downed
transmission line served 178 meters and that before HEMC
repaired the downed line those customers were without power.
Additionally, Singleton stated in his deposition that the rental
homes on his property did not lose power during the ice storm
when the transmission line fell. Finally, the record does not
reflect that the downed transmission line was connected to the
service pole that provided electricity to Singleton's rental
homes.
Singleton first reported the downed line to HEMC
because he was concerned that a child or an animal might be
electrocuted by the downed line. Three days after Singleton
reported the downed line, he noticed that it had not been
repaired, so he called HEMC to report the downed line again.
Gary Best, an HEMC employee, stopped by Singleton's business to
advise him of the status of the downed line. Best informed
Singleton that HEMC would have to replace the transmission pole
at the top of the ridge adjacent to Singleton's property line.
Singleton told Best that HEMC would have to replace it by hand
because he did not want any vehicles up there.
Subsequently, HEMC entered Singleton's property and
replaced the pole at the top of the ridge, placed two new poles
on Singleton's property and cleared a thirty to forty foot-wide
swath approximately 550 feet down the mountain on Singleton's
property. HEMC also replaced existing copper wire withapproximately 550 feet of aluminum wire. The transmission line
formerly spanned from ridge to ridge at a height of 300 feet, but
HEMC lowered the lines to a thirty-foot height. The new aluminum
lines were substantially bigger in size, and, as a result, more
visible. In order to complete this task, HEMC cut several large
oak trees, pruned an apple orchard and cleared the river bank of
vegetative growth on Singleton's property that formerly acted as
a buffer from the highway and neighboring campground.
Singleton filed a complaint against HEMC on 17 November
1999 alleging four causes of action:
That the foregoing constitutes trespass to
Plaintiff's real property, including ongoing
trespass.
That the foregoing constitutes an unlawful
taking and inverse condemnation of
Plaintiff's real property.
That the foregoing constitutes a conversion
of Plaintiff's real and personal property[.]
That the Plaintiff will be irreparably harmed
if the poles and power lines are not removed
from Plaintiff's real property, and Plaintiff
is entitled to a mandatory injunction
ordering and directing Defendant to remove
said poles and utility lines.
Singleton later voluntarily dismissed the claims of inverse
condemnation and conversion. The trial court granted partial
summary judgment in Singleton's favor based on the theory that
HEMC did not have an express or prescriptive easement for
placing utility lines, poles, or other electrical transmission
equipment upon [Singleton's] real property, and that the actions
of [HEMC] constitute[] trespass and a continuing trespass. The case proceeded to trial on 9 October 2000 on the
single remaining issue of money damages. The jury awarded
Singleton $700.00 per month for rental of the land. The trial
court ordered HEMC to pay Singleton the sum of $22,125.80 as
rental from February 21, 1998 through October 10, 2000 for
retroactive rent payment. The trial court further ordered that
HEMC would remain liable for rental sums to the Plaintiff from
October 10, 2000 until all power lines, power poles, and other
miscellaneous transmission equipment are removed from Plaintiff's
real property . . . and any other damages which may result from
Defendant's continuous trespass. The trial court ordered HEMC
to pay Singleton interest in the sum of $1,591.72 from the date
of filing (17 November 1999) through the date of the judgment (10
October 2000).
HEMC appealed the trial court's grant of partial
summary judgment to the Court of Appeals, which affirmed the
trial court with Judge Walker dissenting. Singleton v. Haywood
Elec. Mbrshp. Corp., 151 N.C. App. 197, 565 S.E.2d 234 (2002).
The trial court found, and the Court of Appeals agreed, that
there was no express easement or a prescriptive easement and no
genuine issue of material fact existed for Singleton's claim of
continuing trespass. Thus, Singleton was entitled to judgment as
a matter of law.
Summary judgment is appropriate when the pleadings,
depositions, answers to interrogatories, and admissions on file,
together with the affidavits, if any, show that there is no
genuine issue as to any material fact and that any party isentitled to a judgment as a matter of law. N.C.G.S. § 1A-1,
Rule 56(c)(2001). [T]he movant must meet the burden of proving
an essential element of plaintiff's claim does not exist, cannot
be proven at trial or would be barred by an affirmative defense.
Goodman v. Wenco Foods, Inc., 333 N.C. 1, 21, 423 S.E.2d 444, 454
(1992).
There are two issues before this Court. First, the
dissent argued that a genuine issue of material fact exists as to
whether HEMC exceeded the scope of the membership service
agreement thus making the trial court's grant of partial summary
judgment improper. Second, this Court granted HEMC's petition
for discretionary review on whether the trial court should have
granted summary judgment in HEMC's favor because consent to entry
on the property is a complete defense to trespass.
First, we will address the issue raised by HEMC's
petition for discretionary review. As to this issue, HEMC
contends that no genuine issue of material fact exists but that
HEMC was authorized to perform the work at issue both by contract
(membership rules and regulations) and by Singleton's request to
repair the downed line. Thus according to HEMC, it is entitled
to judgment as a matter of law because there was no trespass as a
matter of law.
We first turn to the law of civil trespass. It is
elementary that trespass is a wrongful invasion of the
possession of another. State ex rel. Bruton v. Flying W
Enterprises, Inc., 273 N.C. 399, 415, 160 S.E.2d 482, 493 (1968).
'Furthermore, a claim of trespass requires: (1) possession ofthe property by plaintiff when the alleged trespass was
committed; (2) an unauthorized entry by defendant; and (3) damage
to plaintiff.' Fordham v. Eason, 351 N.C. 151, 153, 521 S.E.2d
701, 703 (1999) (quoting Fordham v. Eason, 131 N.C. App. 226,
229, 505 S.E.2d 895, 898 (1998)); See also Matthews v. Forrest,
235 N.C. 281, 283, 69 S.E.2d 553, 555 (1952). The courts of this
State have defined continuing trespass as wrongful trespass upon
real property, caused by structures permanent in their nature.
Oakley v. Texas Co., 236 N.C. 751, 753, 73 S.E.2d 898, 898
(1953); See also Bishop v. Reinhold, 66 N.C. App. 379, 384, 311
S.E.2d 298, 301, disc. rev. denied, 310 N.C. 743, 315 S.E.2d 700
(1984); Teeter v. Postal Tel. Co., 172 N.C. 783, 786, 90 S.E.
941, 941 (1916), and Sample v. Roper Lumber Co., 150 N.C. 161,
166, 63 S.E. 731, 732 (1909).
Singleton is the record owner of the property at issue
and alleges damages as a result of HEMC's placement of new
electric poles and lines and the damage to his property
necessitated by the new poles and lines. There is no dispute
that Singleton asked HEMC to enter the property to re-string the
downed transmission line as it had been for the last fifty years.
However, Singleton does not complain about HEMC's physical
entrance onto the land; rather, Singleton complains that the
placement of new poles and lines in order to re-design the
existing transmission line constituted trespass because the new
poles and lines were unauthorized, and therefore an unlawful
entry. Matthews, 235 N.C. at 283, 69 S.E.2d at 555. Singleton
complained that the new poles and lines were permanent in theirnature and therefore amount to a continuing trespass. Oakley,
236 N.C. at 753, 73 S.E.2d at 899. Furthermore, Singleton
complained that he was damaged by HEMC's cutting of the trees and
clearing of the land.
In a trespass action a defendant may assert that the
entry was lawful or under legal right as an affirmative defense.
Hildebran v. Southern Bell Tel. & Tel. Co., 216 N.C. 235, 236, 4
S.E.2d 439, 439 (1939). Because Singleton consented to HEMC's
entry upon the land, the crucial question for determination is
whether HEMC had authorization or consent to repair and replace
the lines in the manner that it did.
HEMC concedes that it had no express easement and does
not argue that it had an easement by prescription. HEMC argues,
however, that Singleton contractually authorized HEMC to
maintain, repair, and replace HEMC's equipment when he agreed to
be bound by the membership rules and regulations found in the
service agreement. HEMC submits that the rules and regulations
operated as consent for HEMC's actions because it expressly
provides that members must grant all necessary easements and
rights-of-way. HEMC further submits that this operative
agreement authorized it to re-design the existing transmission
line, and that this service agreement prevented the new lines and
poles from creating a continuing trespass.
Section V, titled Conditions of Services, of the
membership service agreement set out member responsibilities
before electrical service will be supplied to the member. HEMC
contends these Conditions of Service bind the member tofurnish without cost to the Cooperative all necessary easements
and rights-of-way and oblige the member to provide the right of
access to member's premises at all times for the purpose of . . .
repairing, removing, maintaining or exchanging any or all
equipment. Section V states in pertinent part:
A. General Conditions
The Cooperative will supply electrical
service to the Member after all of the
following conditions are met:
1. The Member is in compliance with
all aspects of the Service
Agreement and agrees to be bound by
the Cooperative's Articles of
Incorporation and Bylaws.
2. The Member agrees to furnish
without cost to the Cooperative all
necessary easements and rights-of-
way.
. . . .
4. The Member agrees that the
Cooperative will have the right of
access to member's premises at all
times for the purpose of reading
meters, testing, repairing,
removing, maintaining or exchanging
any or all equipment and facilities
which are the property of the
Cooperative, or when on any other
business between the Cooperative
and the Member. In cases where it
is reasonably necessary and cost
effective, the Cooperative may use,
without payment to the Member, the
Member's premises for accessing
neighboring property served by the
Cooperative. However, the Member
will have the opportunity to locate
a right-of-way that is beneficial
to all parties.
. . . .
8. The Member agrees to be responsible for
any additional facilities, protectivedevices, or corrective equipment
necessary to provide adequate service or
prevent interference with service to the
Cooperative's other members.
In interpreting contracts, we adhere to the following
rules of construction:
[T]he goal of construction is to arrive at
the intent of the parties when the [contract]
was issued. Where a [contract] defines a
term, that definition is to be used. If no
definition is given, non-technical words are
to be given their meaning in ordinary speech,
unless the context clearly indicates another
meaning was intended. The various terms of
the [contract] are to be harmoniously
construed, and if possible, every word and
every provision is to be given effect.
Gaston County Dyeing Machine Co. v. Northfield Ins. Co., 351 N.C.
293, 299-300, 524 S.E.2d 558, 563 (2000) (quoting Woods v.
Nationwide Mut. Ins. Co., 295 N.C. 500, 505-06, 246 S.E.2d 773,
777 (1978)); see also C.D. Spangler Constr. Co. v. Industrial
Crankshaft & Engineering Co., 326 N.C. 133, 142, 388 S.E.2d 557,
563 (1990).
The scope of the Conditions of Service is expressly
limited to supply of electrical service to the Member. The
rules and regulations define Member as the person . . . that
has the legal responsibility for payment of the bill for
service. The express language of the Conditions of Service
requires that these conditions be met before the service will be
supplied: The Cooperative will supply electrical service to the
Member after all of the following conditions are met. (Emphasis
added.) Read in light of the scope and time limitations, a
member only contracts to grant rights-of-ways and easements forthe initial set up for the supply of electrical service for that
individual member.
The evidence showed that the downed transmission line
did not provide electrical service to Singleton because unlike
the other 178 HEMC members, his rental homes never lost power
during the ice storm. Therefore, the Conditions of Service did
not confer on HEMC the unilateral right to utilize Singleton's
land to re-design an existing transmission line, add poles and
lines, remove vegetative growth or cut down trees, and clear the
path in order to restore power to other HEMC members.
Next, HEMC relies on Section V, subsection D, titled
Right-of-Way Maintenance as its authority to maintain the
transmission line in the manner that it did. Section V,
subsection D, states in full:
The Member will grant to the Cooperative, and
the Cooperative will maintain right-of-way
according to its specifications with the
right to cut, trim, and control the growth of
trees and shrubbery located within the right-
of-way or that may interfere with or threaten
to endanger the operation or maintenance of
the Cooperative's line or system. When
trimming the right-of-way, the Cooperative
will remove debris at its expense from clean
and maintained areas; that is, an area which
is regularly maintained free of logs and
brush, but not the removal of stumps. In
other areas, right-of-way debris will be left
in the right-of-way limit.
(Emphasis added.)
The plain language of this section assumes that HEMC
obtained the necessary easements and rights-of-ways prior to
entering the property to cut, trim, and control the growth of
trees and shrubbery. This section is in the future tense,stating: the member will grant . . . and the Cooperative will
maintain. This language, along with the language in the
preceding Conditions of Service assumes that prior to HEMC
servicing its members with electricity, it will obtain all
necessary easements and rights-of-way to maintain, repair and
replace its equipment utilized in the furnishing of electricity
to the member. HEMC failed to obtain those necessary easements
and rights-of-way before electing to re-design the downed
transmission line.
Interpreting the rules and regulations in the way that
HEMC desires would result in far reaching powers for HEMC over
the lands of consumers it services. For example, if HEMC had
unlimited access for repairing, removing, maintaining or
exchanging its equipment over and above that which provides
electricity to the member, then the power company could arguably
place a transformer or substation on any member's property
without the landowner's consent or compensation for the taking.
This is simply not the case under North Carolina real property
law. Prior to re-designing the existing line, HEMC could have
negotiated for an easement or used its power of eminent domain
under N.C.G.S. § 40A-3(a)(1).
The rules and regulations, read as a whole, did not
confer on HEMC the unilateral right to increase its presence and
use of Singleton's land above and beyond the original use. As
previously noted, HEMC did not have an express easement and has
made no claim of a prescriptive easement. Because HEMC failed to
obtain an easement or right-of-way before redesigning theexisting transmission line by erecting two poles, lowering the
line from a height of 300 feet to a thirty-foot height, removing
vegetation and trees in a thirty to forty foot swath, its actions
were unauthorized, and therefore an unlawful entry and thus
constituted continuing trespass as a matter of law. Matthews,
235 N.C. at 283, 69 S.E.2d at 555. Therefore, summary judgment
should not have been granted in HEMC's favor and the trial court
properly denied HEMC's motion for summary judgment.
Next, the dissent raised the issue that summary
judgment should not have been granted in Singleton's favor
because a genuine issue of material fact still existed regarding
whether HEMC committed an act in excess of the authority granted
under the service rules and regulations. Singleton, 151 N.C.
App. at 207, 565 S.E.2d at 241. This issue is subsumed by the
issue of whether the service rules and regulations operated as a
defense against the trespass action. As previously discussed, we
conclude that HEMC's acts were unauthorized, and therefore an
unlawful entry, and that Singleton did not consent by signing
the rules and regulations. Matthews, 235 N.C. at 283, 69 S.E.2d
at 555. Thus, since there is no genuine issue of material fact
and no right under the membership agreement to perform the work
complained of, the Court of Appeals correctly affirmed the trial
court in granting partial summary judgment in Singleton's favor.
Finally, the Court of Appeals properly dismissed HEMC's
estoppel argument because HEMC did not properly assign error on
this basis because it failed to state plainly, concisely and
without argumentation the legal basis upon which error isassigned in violation of the Rules of Appellate Procedure. N.C.
R. App. P. 10(c)(1) (2001).
For the reasons stated herein, the opinion of the Court
of Appeals is affirmed.
AFFIRMED.
Justice EDMUNDS dissenting.
I fear that the majority's restrictive reading of the
Haywood Electric Membership Corporation Service Rules and
Regulations may have unfortunate consequences. The wire that
fell during the February 1998 ice storm had been in place for at
least fifty years. Defendant initially entered plaintiff's
property pursuant both to plaintiff's express invitation and to
Section V(A)(4) of the Service Rules and Regulations, which gives
defendant the right of access to [plaintiff's] premises at all
times for the purpose of . . . repairing . . . any or all
equipment and facilities which are the property of [defendant].
The issue now before us is whether the actions defendant took
thereafter, replacing the wire with one that was heavier and hung
substantially lower, erecting new poles, cutting vegetation along
the wire's right-of-way, and so on, resulted in a continuing
trespass. The majority's holding, that summary judgment for
plaintiff was properly granted, fails to recognize that the
evidence in this case presents a genuine issue of material fact.
It is apparent from the discussion in the majority
opinion that the fallen power line was, at best, obsolescent. Defendant used the opportunity presented by the ice storm to
erect modern equipment in its place. Section V of the Service
Rules and Regulations permits defendant to enter plaintiff's land
for the purposes of maintaining or exchanging . . . equipment
and facilities and of maintain[ing the] right-of-way. It is
inconceivable that defendant would have signed this agreement if
it understood that, by so doing, it would not be permitted at its
discretion to update or replace antiquated equipment that was on
or crossed over property belonging to plaintiff and others. A
fifty-year-old infrastructure would be inefficient, unprofitable,
and probably unsafe, benefitting neither plaintiff nor defendant.
Nevertheless, under the majority's holding, a utility provider
such as defendant may be discouraged from making improvements to
its equipment. On the other hand, it also seems unlikely that,
when plaintiff called on defendant to repair the line, he had any
expectation that wholesale and intrusive changes would follow.
Accordingly, I believe that a genuine issue of material fact
exists as to whether defendant's actions on plaintiff's property
fall within the meaning of repairing . . . maintaining or
exchanging any or all equipment or facilities as those terms are
used in the Service Rules and Regulations. This case should be
tried. I respectfully dissent.
Justice Parker joins in this dissenting opinion.
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