Opinion

Carolina Mills, Inc. v. Catawba County Board of Education

  • 27 N.C. App. 524
  • 219 S.E.2d 509
  • 1975 N.C. App. LEXIS 1891
Court
Court of Appeals of North Carolina
Filed
Nov 19, 1975
Status
Published
Author
Brock
On the bench
Brock, Clark, Hedrick
Cited by
4 cases
Authority
More cited than 69.0%

enforcing a restrictive covenant against condemning authority would defeat the purpose of eminent domain, but use of property — whether purchased or condemned — violating a restrictive covenant, constitutes taking and entitles an owner to compensation

How later courts described this case

  • enforcing a restrictive covenant against condemning authority would defeat the purpose of eminent domain, but use of property — whether purchased or condemned — violating a restrictive covenant, constitutes taking and entitles an owner to compensation
  • "The Board's power to purchase property . . . is tantamount to the power of eminent domain."
  • damages constitute appropriate remedy for taking of negative easements created by language of covenant

Written by the judges who cited it.

The opinion

BROCK, Chief Judge.

This appeal presents the question of whether a board of education which purchases property for a valid school purpose pursuant to G.S. 115-125 can be enjoined to comply with restrictive covenants requiring that the property be used exclusively for residential purposes.

In Raleigh v. Edwards, 235 N.C. 671 , 71 S.E. 2d 396 (1952), the City of Raleigh instituted condemnation proceedings to acquire a tract of land in a residential subdivision to serve as the site for an elevated water storage tank. The plaintiffs, adjoining property owners, brought an action to recover dam *526 ages for the City’s breach of restrictive covenants limiting the property to residential use. The Court held that the City’s violation of the restrictive covenants constituted a taking of vested property interests for which the owners were entitled to compensation commensurate with any loss they sustained. Although the issue was not directly before the Court, it is clear that in-junctive relief to enforce the covenants was not available to plaintiffs. “It is true that such other landowners may not. enforce the restrictions against the condemnor, but they are nonetheless entitled to an award of compensation ‘where, through the exercise of the power of eminent domain, there is a taking or damaging of such property rights. . . . ’ (citations omitted)” (emphasis supplied) Raleigh v. Edwards, supra. Indeed, the issuance of an injunction to compel a condemning authority to comply with restrictive covenants would defy the concept of eminent domain. By definition eminent domain represents the power of the state to acquire all private property rights for a public purpose, subject only to the requirement of fair compensation. This power, when exercised properly according to' law, cannot be restricted by injunctive relief to enforce covenants binding on the condemned property. As a general rule the party whose property rights are damaged or taken by the condemning authority is entitled to an action to recover damages; ■

Plaintiffs attempt to distinguish the present case, from Raleigh v. Edwards by focusing on the manner in. which the property, was acquired by the Board. Here, the Board. acquired the property by purchase rather than by condemnation; as a result, plaintiffs argue that the Board is subject to the restrictive covenants as. a private purchaser would be. This argument fails to grasp the full legal effect of the Board’s action. Title to the property was purchased by the Board pursuant to G.S. 115-125, which authorizes the Board to acquire property for school sites and related school purposes by purchase, gift,.and, if necessary, by condemnation: .

“§ 115-125. Acquisition of sites. — County and city boards of education may acquire suitable sites for schoolhouses or other school facilities either within or without the administrative unit; but no school may be operated by an administrative unit outside its own boundaries, although other school facilities such as repair shops, may be operated outside the boundaries of the administrative unit. Whenever any such board is unable to.acquire or enlarge a'suitable *527 site or .right-of-way for a school, school building, school bus. garage or for a parking area or access road suitable for school buses or for other school facilities by gift or purchase, condemnation proceedings to acquire same may be instituted by such board under the provisions of Article 2, Chapter 40 of the General Statutes, and the determination óx the bounty or city board of education of the land necessary for such purposes shall be conclusive; provided that not more than a total of 50 acres shall be acquired by condemnation for any one site for a schoolhouse or other school facility as aforesaid, (citations omitted).”

The Board’s power to purchase property under this section is tantamount -to the power of eminent domain. To the extent that the,'Board’s use violates and impairs the value of restrictive cdyenhnts running with. the property, there is a taking whether the.property.'is .purchased or condemned, and the owners of the easements created by covenant are entitled to compensation. The appropriate remedy for plaintiffs in this case is an action to..irqc.over damages, on the theory that the Board has taken their¡cproperty rights. Injunctive relief to enforce plaintiffs’ negative easements in the property acquired by the Board is not warranted on the basis of the illusory distinction between the' authority to purchase and the authority to condemn prescribed by G.S. 115-125.

, .Plaintiffs’ assignments of error are overruled, and the 24 April 1975 order is

Affirmed.

Judge Hedrick concurs.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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