BROWN v. CARSON ( 2022 )


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  • NOTICE: This opinion is subject to modification resulting from motions for reconsideration under Supreme Court
    Rule 27, the Court’s reconsideration, and editorial revisions by the Reporter of Decisions. The version of the
    opinion published in the Advance Sheets for the Georgia Reports, designated as the “Final Copy,” will replace any
    prior version on the Court’s website and docket. A bound volume of the Georgia Reports will contain the final and
    official text of the opinion.
    In the Supreme Court of Georgia
    Decided: May 3, 2022
    S21G0857. BROWN et al v. CARSON et al.
    COLVIN, Justice.
    We granted certiorari in this case to decide whether E. Howard
    Carson1 acquired a vested right to develop property in a particular
    manner based upon alleged assurances made to him by Tom Brown,
    the Forsyth County Planning Director. Based on the record before
    this Court, we conclude that Carson did not acquire a vested right;
    therefore, we reverse the decision of the Court of Appeals to the
    contrary and remand the case with direction. See Carson v. Brown,
    
    358 Ga. App. 619
     (856 SE2d 5) (2021). 2
    1Carson is the principal for Red Bull Holdings II, LLC, the property
    owner in this case.
    2 Carson filed three appeals in the Court of Appeals, two of which
    concerned separate actions for mandamus and injunctive relief based on his
    claim that he obtained vested rights to develop the property when he applied
    for a land disturbance permit. The Court of Appeals dismissed those two cases
    1.    On March 14, 2016, Carson met with Brown and
    discussed Carson’s plans to purchase approximately 17 acres of land
    and develop that property into 42 separate 9,000-square-foot
    residential lots. See 
    id. at 621
    . The record shows that, in his role as
    Planning Director, Brown was allowed to interpret the zoning code;
    however, he could not unilaterally promise or authorize the issuance
    of a building permit. The record further shows that Carson knew
    prior to that meeting that the current zoning code allowed for 9,000-
    square-foot lots.
    During the March 14 meeting, Carson showed Brown a hand-
    drawn document depicting Carson’s proposed subdivision layout,
    and then asked Brown to confirm whether the current zoning code
    allowed for 9,000-square-foot lots on the subject property. See 
    id.
    Brown confirmed that the code, as currently written, provided for
    that lot size. See 
    id.
     “Brown, however, ‘made no representations as
    as moot, concluding that, because Carson already had a vested right, he did
    not need mandamus or injunctive relief. See Carson, 358 Ga. App. at 619.
    Neither party petitioned for review of those rulings; however, because our
    holding affects the Court of Appeals’s reasoning on mootness, the court will
    need to reconsider those appeals on remand.
    2
    to future zoning code changes that might impact the indicated
    property nor did he guarantee that Carson would be able to build
    out this subdivision at 9,000[-]square[-]foot lots.’ ” See id. Two days
    later, Carson made an offer on the property, see id., and the record
    shows that he closed on the property approximately two weeks later.
    Carson claimed that based upon his interactions with Brown
    and, later, with persons in the County’s water and sewer
    department, “he spent in excess of $83,000.00 obtaining the
    requisite plans, studies, appraisals, and the like, pursuing
    development of the property with a residential subdivision
    consisting of up to 42 lots.” Id. at 621-622 (punctuation omitted).
    Then, in August 2016, the Forsyth County Board of Commissioners
    “imposed a moratorium on the acceptance of applications for land
    disturbance permits” for 9,000-square-foot residential lots. Id. at
    619 (footnote omitted). 3 Shortly after the moratorium went into
    3 In October 2016, the Board of Commissioners amended the County’s
    zoning code to prohibit the development of 9,000-square-foot residential lots.
    See id. at 619.
    3
    effect, Carson sought a land disturbance permit, which was denied.
    See id. Carson then filed an application with the Forsyth County
    planning department for a determination of his vested rights to
    develop the property with 9,000-square-foot lots. See id. at 620. The
    county attorney issued a decision that Carson did not have a vested
    right to develop the property. Carson appealed to the zoning board
    and the Forsyth County Superior Court, both of which affirmed the
    decision of the county attorney. See id. at 620-622. Carson then
    appealed, arguing that he had “acquired vested rights to develop the
    property consistent with the zoning regulations in place when he
    bought it and undertook to obtain sewer easements for the
    property.” Id. at 622. The Court of Appeals reversed the decision of
    the zoning board, concluding that Carson bought the subject
    property   and   made    expenditures   regarding    the   property’s
    development after relying upon the assurances of zoning officials
    that a building permit would issue. See id. at 623 (quoting Cohn
    Communities, Inc. v. Clayton County, 
    257 Ga. 357
    , 358 (1) (359 SE2d
    887) (1987)). We granted certiorari. For the reasons set forth below,
    4
    we reverse the decision of the Court of Appeals.
    2.   This Court has recognized four different scenarios
    wherein a landowner could acquire a vested right to initiate a
    specific use of a property despite a change in zoning laws. Those
    instances are when the landowner relies upon (1) issued building
    and other permits, (2) the law in existence at the time a landowner
    properly files an application for a permit, (3) formally and informally
    approved development plans, or (4) official assurances that a
    building permit will probably issue. See WMM Properties, Inc. v.
    Cobb County, 
    255 Ga. 436
    , 438-439 (1) (339 SE2d 252) (1986). This
    case concerns a right asserted based on the last category.
    Accordingly, in order to determine whether Carson acquired a
    vested right, we must look to whether he “ma[de] a substantial
    change in position by expenditures in reliance upon the probability
    of the issuance of a building permit, based upon an existing zoning
    ordinance and the assurances of zoning officials.” Cohn, 
    257 Ga. at
    358 (citing Barker v. Forsyth County, 
    248 Ga. 73
    , 76 (2) (281 SE2d
    5
    549) (1981)).4
    The Court of Appeals erroneously concluded that the March 14,
    2016 discussion established that Brown made an assurance to
    Carson. Specifically, the Court of Appeals explained that Georgia
    law does not require “that the zoning official’s assurances cover
    possible future changes” or that the assurance “make[s] any specific
    representation or contain any magic words.” Carson, 358 Ga. App.
    at 623. In order to acquire a vested right based on an assurance,
    4 Barker summarily announced this test, relying on a 1963 Illinois
    Supreme Court opinion. See 
    248 Ga. at
    76 (citing Cos Corp. v. City of Evanston,
    
    190 NE2d 364
    , 367-368 (Ill. 1963)). Neither Barker nor Cohn define the term
    “zoning officials” or clarify how many or what kind of “zoning officials” need to
    be consulted before a landowner can reasonably rely on their assurances that
    a building permit will issue. These cases also appear to be in tension with
    Georgia statutory law that “[a] governing authority may not be estopped
    regarding an ultra vires act.” City of Warner Robins v. Rushing, 
    259 Ga. 348
    ,
    348 (381 SE2d 38) (1989) (citing OCGA § 45-6-5, which states: “Powers of all
    public officers are defined by law and all persons must take notice thereof. The
    public may not be estopped by the acts of any officer done in the exercise of an
    unconferred power”). See also Corey Outdoor Advertising v. Board of Zoning,
    
    254 Ga. 221
    , 224 (327 SE2d 178) (1985) (explaining that “equitable estoppel
    will not apply so as to frustrate or contravene a governmental function of a
    governmental unit”); City of Calhoun v. Holland, 
    222 Ga. 817
    , 819 (152 SE2d
    752) (1966) (“In dealing with public agents, every person must take notice of
    the extent of their powers at his peril.” (punctuation and citation omitted)).
    Though the Barker majority opinion did not mention what is now OCGA § 45-
    6-5, the statute was cited by the dissent. See Barker, 
    248 Ga. at 78
     (Hill, J.,
    dissenting). However, we need not address these issues further here, as there
    was no assurance made to Carson in this case.
    6
    however, a landowner must show, in part, the landowner’s “reliance
    upon the probability of the issuance of a building permit,” meaning
    that the alleged assurance requires a representation that a building
    permit will likely issue in the future. Cohn, 
    257 Ga. at 358-359
    (emphasis supplied) (explaining that “this rule is derived from the
    principle of equitable estoppel,” and that Georgia courts have
    applied it “to situations where the landowner, relying in good faith
    on official assurances that a building permit will probably issue to
    develop the property in question as it is currently zoned, makes a
    substantial change in his position by the expenditure of substantial
    sums of money” (emphasis supplied)). Cf. WMM Properties, 
    255 Ga. at 439
     (1) (d) (approval of development plan from all relevant county
    departments without stipulations, together with county planning
    commission’s issuance of a certificate of zoning, qualified as an
    assurance creating a vested right); Spalding County v. East
    Enterprises, Inc., 
    232 Ga. 887
    , 887-889 (209 SE2d 215) (1974)
    (landowner acquired a vested right to develop property when he
    purchased the property in reliance upon the assurance of one county
    7
    commissioner that the property was zoned for the intended use, the
    landowner’s   development plan was informally approved by the
    county commissioners, and he expended money in reliance on the
    same).
    Here, the record shows no assurance from Brown that a
    building permit would probably issue or that the county would not
    change the property’s zoning. In other words, Brown’s words were
    “no more than a neutral statement of the present zoning in effect, a
    fact [Carson] could easily [have] obtain[ed] himself by consulting the
    proper records.” Cohn, 
    257 Ga. at 359
    . The Court of Appeals’s
    determination to the contrary was erroneous.
    We are also unpersuaded by the Court of Appeals’s attempt to
    distinguish our decision in Cohn from the present case.            In
    concluding that this case did not fall squarely within Cohn’s
    limitation on what qualifies as an assurance, the Court of Appeals
    relied on the fact that Brown’s confirmation to Carson “occurred
    within the context of a face-to-face discussion,” wherein Carson
    expressed an interest in purchasing and developing the property
    8
    and, later, spent in excess of $80,000 to prepare the land.. Carson,
    358 Ga. App. at 623-624. However, neither the letter issued by the
    zoning official in Cohn nor the discussion with Brown in this case
    included any assurance that a building permit would probably issue.
    The Court of Appeals also concluded that, unlike Cohn, there
    was evidence that Brown had notice that Carson “was about to
    expend substantial sums in reliance on information received.”
    Carson, 358 Ga. App. at 624. However, the record shows that, at the
    time of the March 14 meeting, Brown only knew that Carson was
    interested in purchasing a parcel of land and potentially developing
    the land into 42 lots, and “the purchase of land by itself does not
    confer a vested right to a particular use upon the purchaser.” North
    Georgia Mountain Crisis Network, Inc. v. City of Blue Ridge, 
    248 Ga. App. 450
    , 452 (546 SE2d 850) (2001). Moreover, the record shows
    that Carson knew that the zoning ordinance allowed for 9,000-
    square-foot lots prior to his March 14 conversation with Brown, and
    “there can be no estoppel by conduct where both parties have equal
    knowledge or equal means of knowing the truth.” City of Atlanta v.
    
    9 Black, 265
     Ga. 425, 429 (457 SE2d 551) (1995) (citation omitted).
    Based on the foregoing, we agree with Brown that our decision in
    Cohn controls in this case. Accordingly, we reverse the decision of
    the Court of Appeals, and we remand the case with direction to
    consider the two other appeals that the court mooted based upon the
    holding we are reversing.
    Judgment reversed and case remanded with direction. All the
    Justices concur, except Warren, J., not participating.
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