Town of Midland v. Wayne
748 S.E.2d 35
N.C. Ct. App.2013Background
- Town filed two condemnation actions to acquire a ~3-acre easement (gas pipeline and fiber optic) on Wayne Tracts; Wayne Tracts are ~90 acres at southern end of a 250-acre Park Creek development.
- Park Creek, LLC owned the northern portion; Wayne Tracts are owned by Darryl Keith Wayne, Trustee of the Wayne Trust.
- 1997 Cabarrus County Plan authorized residential development on the Property under specified parameters.
- In 2009–2011, construction activity occurred on Wayne Tracts outside the Easement, including contractor use of land and staging areas.
- In 2011 the trial court held a §40A-47 hearing on issues other than damages and later found (a) inverse condemnation for temporary outdoor use and (b) no unity of ownership between Wayne Tracts and Park Creek, LLC; damages unresolved on remand.
- Town appeals the inverse condemnation ruling and regulatory-taking ruling; Defendant cross-appeals on unity of ownership.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether contractor use of Wayne Tracts outside the Easement was an inverse taking | Town argues no taking; contractor use outside Easement was not essential | Wayne contends contractor use outside Easement constitutes temporary taking | Temporary taking found (in part) for contractor activities outside Easement |
| Whether taking of the Easement constitutes a regulatory taking of the Wayne Tracts in their entirety | Town contends the Easement condemnation fully deprives Wayne Tracts of value/use | Wayne argues Wayne Tracts have no practical use in accordance with 1997 Plan | Regulatory taking of Wayne Tracts in their entirety rejected; damages may be shown for diminution in value; not a full taking |
| Whether there is unity of ownership between Wayne Tracts and Park Creek, LLC | No unity; Wayne Wayne Trustee not owner of Park Creek, LLC | Unity exists due to ownership structure and corporate/entity control | No unity of ownership between Wayne Tracts and Park Creek, LLC; reversed on that point for damages remand |
| Whether the expert testimony regarding regulatory taking was properly considered | Reliance on expert opinion unsupported | Findings support reliance on expert testimony | Mooted by the regulatory-taking ruling; not needed to resolve issue on appeal |
Key Cases Cited
- City of Winston-Salem v. Ferrell, 79 N.C. App. 103 (1986) (inverse condemnation; contractor use outside easements may constitute taking)
- Finch v. City of Durham, 325 N.C. 352 (1989) (test for taking: practical use and reasonable value; not every deprivation is a taking)
- Board of Transportation v. Jones, 297 N.C. 436 (1979) (admissibility/diminution in value as damages; remaining tract value evidence)
- Board of Transp. v. Martin, 296 N.C. 20 (1978) (unity of ownership; corporation/shareholder distinction)
- Yarbrough v. City of Winston-Salem, 117 N.C. App. 340 (1994) (unity of ownership in spousal/dower context; unhelpful for LLC-member scenario)
- Nelson Co. v. D.O.T., 127 N.C. App. 365 (1997) (unity of ownership in partnerships where general partners share ownership)
- Fernwood Hill Townhome Homeowners’ Ass’n v. City of Raleigh, 185 N.C. App. 663 (2007) (unity of ownership in HOA/common areas context)