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Knowing the difference can avoid problems! One of the most common situations we face is an Association thinking that it can use amendments to the bylaws to change the declarations (also known as the “covenants”). In western North Carolina this mistake is compounded by recording bylaws with the Register of Deeds. Bylaws and declarations serve two different purposes and amending the bylaws of your Association DOES NOT change your declarations. Bylaws should be used primarily as internal operating rules for your Association – including information regarding election procedures, board and member meetings, and similar information. As an internal document, they should not be recorded with the Register of Deeds as this may inadvertently create uncertainty as to your declarations. Declarations are used to describe property…
Read MoreA recurring problem we see in restricted communities arises when lots are combined. Declarations often permit combination of lots without discussing how the combination will effect assessments. Lot owners and/or associations often assume that language in the declarations permitting combination of lots also permits the owner of the combined lots to pay one assessment. Under current law, that assumption is not correct. The North Carolina Court of Appeals held in Clarement Property Owners Association v. Gilboy that in the absence of declaration provisions specifically permitting the reduction of assessments when lots are combined, the owner of the combined lots must continue to pay assessments as if the lots were not combined. While the decision involved a community that was not subject to the Planned Community…
Read MoreAt a recent hearing in Asheville on motions for summary judgment Bill Cannon successfully defended a motion for summary judgment by two surety bond companies and obtained summary judgment in favor of the Town of Black Mountain and Buncombe County in the amount of $1,403,240.00. The bond companies had guaranteed completion of roads, sewer, storm drainage and sewer improvements for a subdivision in the event that the developer failed to do so. After the developer defaulted on its obligation, the bond companies refused to pay. They claimed that the statute of limitations had run on the bonds before suit was filed and that the bonds were terminated when the subdivision was annexed into the Town. Bill Cannon’s practice includes representation of governmental entities in a…
Read MoreBill Cannon successfully defended a favorable decision entered by the North Carolina Court of Appeals after the North Carolina Supreme Court decided to review the decision of the Court of Appeals. In Glens of Ironduff Property Owners Association, Inc. v. Daly, a subdivision property owners association sued the developer for damage to a subdivision road. The trial court ruled in favor of our client, the developer, and the association appealed the decision to the North Carolina Court of Appeals. The Court of Appeals upheld the decision of the trial court and ruled in favor of the developer. The North Carolina Supreme Court granted the association’s Petition for Discretionary Review and ordered briefs to be submitted as well as counsel to appear before the Supreme Court…
Read MoreThe Eastern Band of Cherokee Indians held its primary elections for Tribal Council yesterday, September 5, 2013. Here are the unofficial winners in each community, as reported by the Cherokee One Feather newspaper and the Tribe’s Board of Elections. Each community has two council members and they serve two-year terms. Several incumbents lost their seats, but representation in the majority of communities stays the same. Big Cove Tribal Council Teresa McCoy and Perry Shell Yellowhill Tribal Council David Wolfe and Alan “B” Ensley Birdtown Tribal Council Gene “Tunney” Crowe Jr. and Albert Rose Painttown Tribal Council Tommye Saunooke and Terri Henry Wolftown Tribal Council Bo Crowe and Dennis Edward (Bill) Taylor Cherokee Co./Snowbird Tribal Council Adam Wachacha and Brandon Jones SUMMARY In this election several incumbents lost…
Read MoreIn SunTrust Bank v. C&D Custom Homes, et al., decided November 6, 2012, the North Carolina Court of Appeals found in favor of a Defendant sued by a bank on a guaranty agreement executed pursuant to a power of attorney. The Defendant contended that the attorney in fact had no authority under the terms of the power of attorney to act on the Defendant’s behalf until a physician had certified that the Defendant was incompetent. The Court of Appeals found that there was no evidence of incompetency and rejected the Bank’s argument that it could rely upon the apparent authority of the attorney in fact. It is difficult for a guarantor to prevail in North Carolina against claims by the lender. This case was decided…
Read MoreIn an appeal defended by Bill Cannon and Mike McConnell of Cannon Law, P.C., the North Carolina Court of Appeals found that a suit by a property owner’s association against the developers was not brought within the statute of repose and was properly dismissed by the trial court. In The Glens of Ironduff POA v. Daly, decided December 4, 2012 (COA 12-52), the Court reviewed a suit brought by a property owners’ association against the subdivision developer. The suit claimed that a road in the subdivision had been located too close to a stream and the association was entitled to reimbursement for cost of repairs to the road. The developer, represented by Bill Cannon and Mike McConnell of Cannon Law, P.C., moved for summary judgment…
Read MoreIn Erthal, et al. v. May, decided by the North Carolina Court of Appeals on November 20, 2012, the Court dealt with a suit arising out of a commercial stable operation located in an equestrian residential community. Although the restrictive covenants for the subdivision permitted horses and stables, the Plaintiffs contended that the commercial nature of the Defendants’ operations were a violation of the restrictions. The Court of Appeals disagreed and affirmed the trial court’s decision in permitting the commercial stable operation. Narrowly construing the restrictive covenants, the court noted that there was no express prohibition against commercial activity and that the stable operations were taking place in conjunction with a residential use. Members of restricted communities should not assume that covenants will be read…
Read MoreCan a Person Who Texts a Driver be Held Liable? Texting and driving can be lethal. The news is full of accounts of drivers – mostly young people – who get distracted by their cell phone, crash, and seriously injure somebody. So far, liability has been limited to the person who was negligently driving and who caused the crash and injuries. A new texting and driving case in New Jersey asks the novel question of whether the person who sent the text to the negligent driver can also be held liable. Crash Caused Terrible Injuries. In this case, David and Linda Kubert sued Kyle Best for injuries they suffered when Mr. Best crossed the center line in his car and collided with the Kuberts on…
Read MoreThe often misunderstood impact of writing “Payment in Full” on a check was before the North Carolina Court of Appeals in In the Matter of the Foreclosure of a Lien by Five Oaks Recreational Association, Inc., decided on March 6, 2012. In this case, a member of a planned community failed to pay his assessments on time. The association sued and moved for summary judgment in its favor. The member argued that by writing “Payment in Full” in the memo section of a check, he had reached a settlement with the association for less than the full amount. The Court of Appeals affirmed the entry of summary judgment by the trial court against the member, holding that there was no evidence that the amount was…
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