Tater Patch Estates Home Owner's Ass'n v. Sutton
251 N.C. App. 686
| N.C. Ct. App. | 2017Background
- Tammy Sutton purchased Lots 20, 25, and 28 at auction (conveyed in one deed) and later Lot 2; all deeds referenced recorded Declaration of Covenants requiring each lot owner to pay a pro rata share of subdivision road maintenance.
- Sutton filed a Notice to Combine Lots 20, 25, and 28 into a single parcel; the Declaration permits combining lots.
- After the developers conveyed 75% of lots, an HOA was formed in 2007; Sutton was billed assessments for multiple lots beginning in 2007 but refused to pay, disputing the HOA’s authority and/or the number of assessable lots.
- The HOA (plaintiff, incorporated 2007) later changed gate locks denying Sutton access until 2014 for nonpayment; the HOA invoiced increasing amounts and sued Sutton for unpaid assessments; Sutton counterclaimed for property damage and loss of access after the roadway elevation was lowered by an adjoining lot owner with HOA approval.
- After a 3-day jury trial, the jury awarded the HOA $8,040 (assessments and late fees) and awarded Sutton $8,040 on her counterclaim; both parties appealed and the Court of Appeals affirmed (no error).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1) Whether the trial court should have granted a directed verdict for the HOA on unpaid assessments | HOA: amount due can be resolved as a matter of law; Sutton owed assessments on multiple lots | Sutton: combining lots reduced her assessment obligation | Denied — sufficient evidence supported sending the amount/assessment issue to the jury; jury awarded assessments for two lots plus late fees |
| 2) Whether the trial court should have directed verdict for the HOA on Sutton's counterclaim (road grading / access) | HOA: no evidence HOA approved or caused the road alteration; no duty to prevent others from altering road | Sutton: HOA approved grading and thereby caused/allowed damage and loss of access | Denied — factual dispute (photos, testimony about grading, HOA conduct re: gate) presented to jury; verdict for Sutton sustained |
| 3) Admissibility of auction announcements and the land-sale contract | HOA: statements at auction and land contract were irrelevant/merged into deed and hearsay; their admission was prejudicial | Sutton: the auction announcements and contract informed purchaser expectations about combining lots and assessments | Admission not reversible error — appellant failed to show prejudice; jury found liability for two lots despite disputed evidence |
| 4) Jury instructions: (a) adjacency for assessment liability and (b) purchaser assumptions from plat | HOA: instructions were proper and reflected covenant language requiring pro rata assessments by lot | Sutton: law requires adjacency to subdivision road for assessment liability; also faults instruction on purchaser assumptions | No reversible error — covenant and precedent support assessments against lots that are part of subdivision regardless of adjacency; plaintiff failed to show prejudice from the plat-assumption instruction |
Key Cases Cited
- Davis v. Dennis Lilly Co., 330 N.C. 314 (standard for reviewing directed verdict/JNOV)
- Four Seasons Homeowners Assoc. v. Sellers, 62 N.C. App. 205 (covenant to pay common expenses runs with lots in entire subdivision)
- Opsahl v. Pinehurst, Inc., 81 N.C. App. 56 (merger of prior negotiations into deed / relevance of pre-deed statements)
- Boykin v. Morrison, 148 N.C. App. 98 (appellate rule on harmless error and burden to show prejudice)