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DOUGLAS M. ROBINS
v.
TOWN OF HILLSBOROUGH
No.
154A06
FILED: 26 JANUARY 2007
1. Zoning--site specific development plan_applicable ordinance
Plaintiff had a right to have defendant town's board of adjustment consider and
render a decision on his application for approval of a site specific development plan for an asphalt
plant under the zoning ordinance in effect at the time the application was made where, after the
board of adjustment had held hearings on plaintiff's application, the town's board of
commissioners adopted a moratorium on consideration of applications for the construction of
manufacturing and processing facilities involving petreleum products, including asphalt plants, and
the board of commissioners thereafter amended the zoning ordinance to prohibit manufacturing
and processing facilities involving the use of petroleum products within the town's zoning
jurisdiction.
2. Zoning_-amended ordinance_-constitutionality
The portion of the Court of Appeals opinion concerning the constitutionality of the
amended zoning ordinance is vacated because the Court of Appeals unnecessarily addressed the
issue.
Justice HUDSON did not participate in the consideration or decision of this case.
Appeal pursuant to N.C.G.S. § 7A-30(2) from the
decision of a divided panel of the Court of Appeals, 176 N.C.
App. 1, 625 S.E.2d 813 (2006), reversing and remanding an order
granting summary judgment entered 29 October 2004 by Judge James
C. Spencer, Jr. in Superior Court, Orange County. Heard in the
Supreme Court 16 October 2006.
Smith, James, Rowlett & Cohen, LLP, by Seth R. Cohen,
for plaintiff-appellee.
Cranfill, Sumner & Hartzog, L.L.P., by Susan K.
Burkhart, for defendant-appellant.
Van Winkle, Buck, Wall, Starnes & Davis, P.A., by Craig
D. Justus, and Richard A. Zechini, Counsel for North
Carolina Association of Realtors, for the North
Carolina Home Builders Association, North Carolina
Association of Realtors, and North Carolina Outdoor
Advertising Association, amici curiae.
BRADY, Justice.
In this case we determine whether plaintiff, who
applied to defendant for approval of his site specific
development plan, has a right to have his application reviewed
under the zoning ordinance in effect at that time. We conclude
that he does and therefore modify and affirm in part, and vacate
in part, the opinion of the Court of Appeals. We also remand
this case for entry of judgment in plaintiff's favor.
FACTUAL BACKGROUND
Prior to 21 January 2003, plaintiff Douglas M. Robins
contracted to purchase a parcel of land zoned general industrial
and containing approximately 4.96 acres within defendant Town of
Hillsborough's extraterritorial zoning jurisdiction.
(See footnote 1)
On 21
January 2003, plaintiff submitted an application to defendant
seeking approval of his site specific development plan, in which
he proposed to construct a bituminous concrete (asphalt) plant on
this property, which was situated directly across from an
existing cement plant. Plaintiff also submitted an erosion
control plan to the Orange County Soil and Erosion Control
Officer on 11 March 2003 and received approval of his erosion
control plan on 14 April 2003.
(See footnote 2)
Plaintiff spent approximately
$100,000 in pursuit of this project in addition to the
expenditure of time required to prepare his application and
attend the various public hearings on his proposal. Defendant's Board of Adjustment held three separate
hearings to consider plaintiff's development plan on 12 February
2003, 12 March 2003, and finally on 9 April 2003. At the third
hearing, the Board of Adjustment once again continued proceedings
until 30 April 2003. Earlier that same day, however, defendant
had published, in a newspaper of record, notice of a hearing to
be held on 22 April 2003 to consider a moratorium on the
construction of processing and manufacturing facilities involving
petroleum products, including asphalt plants, within its zoning
jurisdiction. Nothing in the record indicates plaintiff was
aware of the pending moratorium hearing at the time he acquiesced
to the 9 April 2003 continuance of his hearing before the Board
of Adjustment.
At the moratorium hearing, defendant's Board of
Commissioners (Town Board) adopted An Ordinance Amending the
Town of Hillsborough Zoning Ordinance to Temporarily Suspend the
Review, Consideration and Issuance of Permits and Applications
for Manufacturing and Processing Operations Involving Petroleum
Products (the moratorium), which reads:
Notwithstanding any provision in this
Zoning Ordinance to the contrary, no
manufacturing and processing facility
involving petroleum products as one of the
materials being manufactured and/or processed
(including, but not limited to, refineries
for gasoline and other fuels, liquefied gas
refineries, asphalt plants, finished
petroleum products plants, plants which
manufacture asphalt paving mixtures and
blocks, asphalt shingles and/or coating
materials, and plants manufacturing or
processing petroleum lubricating oils and
greases) shall be permitted, and no
application for any permit or approval to
operate such a facility shall be accepted,processed, reviewed or considered by the
Town.
This section shall apply to all
applications for a permit or approval,
including any application which is pending as
of the effective date hereof.
(Emphasis added.) This moratorium was to begin immediately and
remain in effect until 31 December 2003, unless terminated
earlier or extended by the Town Board for a period of up to six
months. At the time the moratorium took effect, plaintiff's
asphalt plant was the
only development plan under consideration
by the Board of Adjustment that was affected.
Defendant issued a notice that the hearing scheduled
for 30 April 2003 was cancelled as a result of the moratorium,
causing an indefinite delay in plaintiff's development plan.
Then, on 24 November 2003, the Town Board adopted an amendment to
Section 3.3 of its zoning ordinance (the amendment) which states:
[M]anufacturing and processing facilities involving the use of
petroleum products, such as . . . asphalt plants . . . are
expressly prohibited in the Town of Hillsborough and it[s]
extraterritorial zoning jurisdiction. The amendment was to take
effect 1 March 2004. On 1 December 2003, the Town Board extended
the moratorium to coincide with the effective date of the
amendment. This action effectively terminated the development
plan of plaintiff, who then initiated litigation.
PROCEDURAL BACKGROUND
On 22 January 2004, plaintiff filed a complaint and
petition for judicial review and writ of certiorari in Orange
County Superior Court concerning his application. In September
2004 defendant filed a motion for summary judgment. Afterhearing defendant's motion, the trial court allowed summary
judgment for defendant on 29 October 2004. The trial court's
order determined, as a matter of law, that plaintiff is not
entitled to a review of his application under the pre-moratorium
and pre-amendment ordinance; that defendant complied with all due
process and statutory requirements in adopting the moratorium,
the moratorium extension, and the amendment; that plaintiff's
challenge to the extension of the moratorium was mooted by
enactment of the amendment; that plaintiff is not entitled to any
further review or decision concerning his application; and that
plaintiff is not entitled to any damages.
Plaintiff appealed the trial court's order to the Court
of Appeals, which, in a divided decision, found that plaintiff
was entitled to rely upon the language of, and have his
application considered under, the zoning ordinance in effect at
the time he applied for his permit. Robins v. Town of
Hillsborough, 176 N.C. App. 1, __, 625 S.E.2d 813, 817 (2006).
The majority also held that the trial court erred in granting
summary judgment to defendant on plaintiff's constitutional
claims because there was a genuine issue of material fact. Id.
at __, 625 S.E.2d at 819. Defendant appeals on the basis of a
dissent in the Court of Appeals.
STANDARD OF REVIEW
We review a trial court's order for summary judgment de
novo to determine whether there is a genuine issue of material
fact and whether either party is entitled to judgment as amatter of law. Summey v. Barker, 357 N.C. 492, 496, 586 S.E.2d
247, 249 (2003) (citing N.C.G.S. § 1A-1, Rule 56(c)).
ANALYSIS
[1] The issue before us is whether plaintiff has a
right to have defendant consider and render a decision on his
application under the ordinance in effect at the time the
application was made. Although the parties have presented
arguments as to whether plaintiff may assert a vested right,
either by operation of statute or common law principles, these
arguments are inapposite because our vested rights decisions have
considered whether a plaintiff has a right to complete his
project despite changes in the applicable zoning ordinances,
see,
e.g.,
Finch v. City of Durham, 325 N.C. 352, 373, 384 S.E.2d 8,
20 (1989), an issue distinct from the one before us today.
However, we determine, consistent with prior decisions of this
Court, that plaintiff was entitled to have defendant render a
decision on his application, complete with competent findings of
fact which support such decision. Additionally, defendant's
application merits review under the zoning ordinance as it
existed before the moratorium and the amendment were passed.
Under Section 21.3.2 of the Town of Hillsborough Zoning
Ordinance, the Board of Adjustment's powers shall include the
authority to [p]ass upon, decide, or determine such other
matters as may be required by this Ordinance. Hillsborough,
N.C., Zoning Ordinance . 21.3.2 (2003) [hereinafter Zoning
Ordinance]. Similarly, the Rules of Procedure of the Board of
Adjustment state that the Board shall . . . hear and
decide allmatters . . . upon which it is required [to] pass by the Zoning
Ordinance of Hillsborough. Hillsborough, N.C., Bd. of Adjust.
R.P. VI(A) [hereinafter Adjust. R.P.] (emphasis added). Section
5.27 of the Zoning Ordinance lists the land uses for which site
plan approval by the Board of Adjustment is require[d]. Zoning
Ordinance . 5.27.2 (2003). These uses include [a]ll projects
involving the construction of new buildings . . . on lots within
various districts including the GI district, in which
plaintiff's proposed project is located.
Id. . 5.27.2(b).
Under the Board of Adjustment's Rules of Procedure,
board decisions shall be supported by competent, material, and
substantial evidence in the whole record. Adjust. R.P.
VI(D)(1). Appeals from Board of Adjustment decisions are to the
Superior Court. Zoning Ordinance . 21.3.10. The Board's
procedural rules state that a hearing shall be held before a
decision is rendered. Adjust. R.P. VI(C). Although nothing in
the rules allows or prohibits a series of hearings or an
indefinite suspension of consideration of an application, the
rules require the Board's decision to be rendered in a timely
fashion, that is, not more than thirty (30) days from the date
of the last hearing of the matter under consideration.
Id.
VI(D)(2).
This Court has stated that the task of a court
reviewing a town board's decision when the town board has acted
as a quasi-judicial body includes:
(1) Reviewing the record for errors in law,
(2) Insuring that procedures specified by law
in both statute and ordinance are followed,
(3) Insuring that appropriate due process
rights of a petitioner are protected
including the right to offer evidence, cross-
examine witnesses, and inspect documents,
(4) Insuring that decisions of town boards
are supported by competent, material and
substantial evidence in the whole record, and
(5) Insuring that decisions are not arbitrary
and capricious.
Coastal Ready-Mix Concrete Co. v. Bd. of Comm'rs., 299 N.C. 620,
626, 265 S.E.2d 379, 383 (1980). Because town boards are
generally composed of laymen who do not always have the benefit
of legal advice, they cannot reasonably be held to the standards
required of judicial bodies.
Humble Oil & Ref. Co. v. Bd. of
Aldermen, 284 N.C. 458, 470, 202 S.E.2d 129, 137 (1974).
However, such a body conducting a quasi-judicial hearing can
dispense with no essential element of a fair trial.
Id. One of
those essential elements is that [a]ny
decision of the town
board has to be based on competent, material, and substantial
evidence that is introduced at a public hearing.
Coastal Ready-
Mix Concrete Co., 299 N.C. at 626, 265 S.E.2d at 383 (emphasis
added). Accordingly, it is impossible for a court reviewing a
town board's
decision to do so unless the town board
actually
renders that decision.
Previously, this Court has bound town boards to their
own rules of procedure. In
Humble Oil, this Court noted that
[t]he procedural rules of an administrative agency 'are binding
upon the agency which enacts them as well as upon the public. . .
. To be valid the action of the agency must conform to its rules
which are in effect at the time the action is taken. . . .' 284N.C. at 467, 202 S.E.2d at 135 (citations omitted). Consistent
with this Court's duty to ensure that decisions are not
arbitrary and capricious,
Coastal Ready-Mix Concrete Co., 299
N.C. at 626, 265 S.E.2d at 383, we must determine whether
defendant followed its own procedures. In no other way can an
applicant be accorded due process and equal protection, or the
[board] refute a charge that [its actions] constituted an
arbitrary and unwarranted discrimination against a property
owner.
Humble Oil, 284 N.C. at 468, 202 S.E.2d at 135 (citing
Keiger v. Winston-Salem Bd. of Adjust., 281 N.C. 715, 720, 190
S.E.2d 175, 179 (1972)).
In many ways this case is analogous to
Humble Oil. In
Humble Oil, this Court required a Board of Aldermen to consider
an applicant's application de novo because the procedural rules
of the ordinance had not been followed.
284 N.C. at 467, 471,
202 S.E.2d at 135, 138. Specifically, the applicable ordinance
required the Board of Aldermen, before a decision on an
application was made, to receive a recommendation from the
Planning Board after the Planning Board conducted an
investigation into the subject matter of the application.
Id. at
467, 202 S.E.2d at 135. In
Humble Oil, the Board of Aldermen
failed to follow this rule by denying the application before
referring it to the Planning Board.
Id. at 468, 202 S.E.2d at
135-36. In the case
sub judice, the applicable ordinance
provides that the Board of Adjustment shall [p]ass upon, decide,
or determine such . . . matters as may be required by this
Ordinance, including site plans. Zoning Ordinance . 21.3.2(d). The Zoning Ordinance specifies the grounds upon which a site plan
may be approved or denied.
Id. . 5.27. Instead of following the
proper procedures by which the Board of Adjustment would have
rendered an up or down decision on plaintiff's application,
defendant, acting through its Board of Commissioners, passed the
moratorium and eventually amended the ordinance, effectively
usurping the Board of Adjustment's responsibility in the matter.
In essentially dictating by legislative fiat the outcome of a
matter which should be resolved through quasi-judicial
proceedings, defendant did not follow its own ordinance
pertaining to the disposition of site specific development plans,
thus leaving the Town Board no defense to the charge that its
actions were arbitrary and capricious.
See Humble Oil, 284 N.C.
at 468, 202 S.E.2d at 135 (citing
Keiger, 281 N.C. at 720, 190
S.E.2d at 179 (1972)).
We hold that when the applicable rules and ordinances
are not followed by a town board, the applicant is entitled to
have his application reviewed under the ordinances and procedural
rules in effect as of the time he filed his application.
Accordingly, plaintiff was entitled to receive a final
determination from defendant regarding his application and to
have it assessed under the ordinance in effect when the
application was filed. We express no opinion as to whether the
application should be approved or denied on the merits, but
merely that plaintiff is entitled to a decision by defendant
pursuant to the ordinance as it existed before passage of the
moratorium and the amendment. [2] Because of our holding, we need not address the
portion of the Court of Appeals opinion concerning the
constitutionality of the amended zoning ordinance except to note
that the Court of Appeals unnecessarily addressed the issue.
Because plaintiff is entitled to have his application decided
under the ordinance in effect at the time he filed his
application, the amended ordinance does not apply to his proposed
activity. Accordingly, we vacate that portion of the Court of
Appeals opinion.
Thus, w
e modify and affirm the portion of the Court of
Appeals opinion concerning plaintiff's right to have his
application reviewed
and a decision made
under the zoning
ordinance in effect on 21 January 2003. We remand to that court
for further remand to the trial court with instructions to enter
judgment for plaintiff declaring his right to have his
application reviewed in accordance with this opinion. We also
vacate the portion of the opinion of the Court of Appeals
concerning the constitutionality of the amended zoning ordinance.
MODIFIED AND AFFIRMED IN PART; VACATED IN PART;
REMANDED.
Justice HUDSON did not participate in the consideration
or decision of this case.
Footnote: 1 Plaintiff closed on this property in December 2003.
Footnote: 2 There is a dispute as to whether this and other state and
local permit applications were necessary steps for plaintiff's
application to be complete. However, these facts ultimately are
not determinative of our analysis of the critical issue in this
case.
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