Brookline Residential , 251 N.C. App. 537 ( 2017 )


Menu:
  •                IN THE COURT OF APPEALS OF NORTH CAROLINA
    No. COA16-202
    Filed: 17 January 2017
    Mecklenburg County, No. 14 CVS 21212
    BROOKLINE RESIDENTIAL, LLC and RESIDENCES AT BROOKLINE LLC,
    Plaintiffs,
    v.
    CITY OF CHARLOTTE;           and    INTERNATIONAL        FIDELITY     INSURANCE
    COMPANY, Defendants.
    Appeal by plaintiffs from order entered 24 August 2015 by Judge Hugh B.
    Lewis in Mecklenburg County Superior Court. Heard in the Court of Appeals 10
    August 2016.
    Morningstar Law Group, by William J. Brian, Jr., Shannon R. Joseph, and
    Jeffrey L. Roether, for plaintiffs-appellants.
    Senior Assistant City Attorney, Lina E. James, for defendant-appellee City of
    Charlotte.
    Johnston, Allison & Hord, P.A., by Martin L. White and Munashe Magarira,
    for defendant-appellee International Fidelity Insurance Company.
    DAVIS, Judge.
    This case presents the issue of whether a successor developer may compel the
    City of Charlotte to enforce a performance bond that had originally been obtained by
    the prior developer to guarantee the construction of certain infrastructure
    improvements.    Brookline Residential, LLC and Residences at Brookline, LLC
    (collectively “Brookline”) appeal from an order granting summary judgment in favor
    of the City of Charlotte (the “City”) and International Fidelity Insurance Company
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    (“IFIC”) (collectively “Defendants”) and denying Brookline’s cross-motion.           After
    careful review, we affirm the trial court’s order for the reasons set forth below.
    Factual and Procedural Background
    In 2007, Clarion-Reames, LLC (“Clarion-Reames”), a developer, sought to
    construct a residential housing development called Brookline Phase 1 on a parcel of
    land (the “Property”) in Charlotte, North Carolina. In early 2008, Clarion-Reames
    received final approval from the City to record plats for a section of the development
    known as “Phase 1, Map 1.” In order to receive this approval, Clarion-Reames agreed
    to complete certain road improvements (the “Original Road Improvements”) to nearby
    Lakeview Road and Reames Road estimated to cost $683,500, and on 26 February
    2008 Clarion-Reames obtained a surety bond (the “Bond”) from IFIC to guarantee
    construction of the improvements.
    The Bond listed Clarion-Reames as the principal, IFIC as the obligor, and the
    City as the obligee. The Bond stated that if Clarion-Reames was “in default under
    its obligation to install improvements” pursuant to the Subdivision Final Plat
    Approval Form it had submitted in connection with final approval of Phase I, Map I,
    IFIC “will (a) within fifteen (15) days of determination of such default, take over and
    assume completion of said improvements, or (b) pay the City of Charlotte in cash the
    reasonable cost of completion.”
    -2-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    Although Clarion-Reames obtained the Bond as a precondition to final plat
    approval of Phase I, Map I — which was to consist of 10 single-family homes — the
    bonded improvements covered all of the required public road improvements for the
    entire Brookline Phase 1 development, which was to consist of 184 single-family
    homes.
    By 2010, Clarion-Reames had constructed only nine of the planned 184 homes
    in the Brookline development and had completed some, but not all, of the bonded road
    improvements.     In early 2010, Clarion-Reames ceased work on the development
    because it was unable to raise sufficient capital for the project.
    In July 2011, Clarion-Reames’s lender foreclosed on the Property, which was
    purchased by Brookline in May 2012. Before making the purchase, Brookline had
    made inquiries to the City about the status of the Bond. In an email to Neil Kapadia,
    one of Brookline’s two principals, the Customer Service and Permitting Manager for
    the City, Nan Peterson, stated that “the City does have a bond for the . . .
    improvements on Lakeview and Reames Road.”
    In February 2013, Brookline recorded several new plats in order to combine a
    number of lots on the Property that had been depicted as individual lots in the
    original Brookline Phase I plan. Brookline then filed a rezoning petition with the
    City in early 2013 in order to receive approval for its plans to build multi-family
    housing on the Property. On 30 April 2013, while that rezoning petition was pending,
    -3-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    Brookline made another inquiry to the City regarding the status of the Bond. Tom
    Ferguson, the Engineering Program Manager for the City, provided the following
    response in an email to Kapadia:
    1)     What does the bond cover? The bond covers the
    required improvements to Lakeview and Reames Roads as
    specified on the subdivision plans approved by the City on
    September 6, 2007.
    2)     When will the City call the bond and complete
    the      remaining       improvements?       The     prior
    developer/owner has completed sufficient improvements to
    safely serve the limited development which has occurred to
    date (only 9 homes built so far). The unfinished
    improvements include widening for turn lanes, curb &
    gutter, and sidewalk along Reames Road and a segment of
    sidewalk on Lakeview Road east of Cushing Street. Until
    there is additional development activity within the site to
    warrant construction of the turn lanes on Reames Road, we
    do not plan to call the bond and complete the remaining
    improvements.
    You previously contacted our office in February 2012
    regarding the status of the referenced bond. At that time,
    we confirmed that the bond was still in place and that the
    original developer (or the surety) remained responsible for
    completing the improvements to Reames Road and
    Lakeview Road. Since that time, you have filed a rezoning
    petition for the site. The site plan associated with your
    rezoning petition (2013-047) proposes to relocate the street
    connections to Reames Road approximately 200 feet north
    of the connection point shown on the currently approved
    subdivision plans. Please be advised that the currently
    held performance bond guarantees construction of
    improvements as specified on the subdivision plans
    approved in September 6, 2007. If you make changes to the
    approved plans upon which the current performance bond
    was based, you will likely become fully responsible for all
    -4-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    roadway improvements specified on the revised plans.
    (Emphasis added.)
    After receiving this email, Brookline went forward with its rezoning plans, and
    in July 2013 the City approved Brookline’s rezoning petition to allow for multi-family
    apartment units on the Property. In November 2014, the City approved Brookline’s
    subdivision plan, which provided for certain road improvements (the “Altered Road
    Improvements”) that included several new improvements along with most of the
    Original Road Improvements. As part of the approval process, Brookline committed
    to making the Altered Road Improvements.
    In the spring and summer of 2014, Brookline tried unsuccessfully to convince
    the City to call the Bond and force IFIC to pay for the portions of the Original Road
    Improvements that had not yet been completed and were included within the Altered
    Road Improvements. After failing to persuade the City to enforce the Bond, Brookline
    filed the present action against Defendants in Mecklenburg County Superior Court
    on 17 November 2014. Defendants each filed motions to dismiss, which the trial court
    denied on 28 May 2015.
    Brookline filed an amended complaint on 3 June 2015 in which it requested
    various forms of declaratory relief relating to the Bond, including a declaration that
    “the City [was] obligated either to call the Bond and provide those funds to Plaintiffs
    to use to construct the portion of the Original Road Improvements that remain part
    -5-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    of the Altered Road Improvements, or tender as damages to Plaintiffs the cost to
    construct the portions of the Original Road Improvements that remain of [sic] part of
    the Altered Road Improvements.” Brookline sought accompanying injunctive relief
    requesting that the trial court direct (1) the City to call the Bond and fund the
    construction of the Original Road Improvements; (2) IFIC to pay the City the funds
    necessary to complete the portions of the Original Road Improvements that remained
    part of the Altered Road Improvements; and (3) the City to advance to Plaintiffs all
    funds received from IFIC pursuant to the Bond for Brookline’s use in completing the
    Altered Road Improvements. Brookline also asserted a claim, in the alternative, for
    the recovery of damages for the expenses it would incur if it was required to construct
    the portions of the Original Road Improvements contained within the Altered Road
    Improvements.
    The parties filed cross-motions for summary judgment, and a hearing was held
    on 3 August 2015 before the Honorable Hugh B. Lewis. On 24 August 2015, the trial
    court entered an order granting Defendants’ motions for summary judgment and
    denying Brookline’s cross-motion. Brookline filed a timely notice of appeal.
    Analysis
    “On an appeal from an order granting summary judgment, this Court reviews
    the trial court’s decision de novo. Summary judgment is appropriate if the pleadings,
    depositions, answers to interrogatories, and admissions on file, together with the
    -6-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    affidavits, if any, show that there is no genuine issue as to any material fact and that
    any party is entitled to a judgment as a matter of law.” Premier, Inc. v. Peterson, 
    232 N.C. App. 601
    , 605, 
    755 S.E.2d 56
    , 59 (2014) (internal citations and quotation marks
    omitted). “The moving party has the burden of demonstrating the lack of any triable
    issue of fact and entitlement to judgment as a matter of law. The evidence produced
    by the parties is viewed in the light most favorable to the non-moving party.” Hardin
    v. KCS Int’l, Inc., 
    199 N.C. App. 687
    , 695, 
    682 S.E.2d 726
    , 733 (2009) (internal
    citations omitted). We have held that “[a]n issue is ‘genuine’ if it can be proven by
    substantial evidence and a fact is ‘material’ if it would constitute or irrevocably
    establish any material element of a claim or a defense.” In re Alessandrini, __ N.C.
    App. __, __, 
    769 S.E.2d 214
    , 216 (2015) (citation omitted).
    Brookline’s argument that the trial court erred in granting summary judgment
    in favor of Defendants essentially rests on two main contentions: (1) that the City
    had an obligation to seek enforcement of the Bond upon Clarion-Reames’s default and
    Brookline is entitled to compel the City’s performance of that duty;1 and (2) that the
    City’s obligation remains ongoing because the Bond was neither invalidated nor
    extinguished despite the changes in zoning and road improvement plans that
    1  Brookline does not argue that it possesses the authority itself to call the Bond. Rather, it
    contends that the City has a legal duty to call the Bond and that Brookline has the right to compel the
    City to exercise this power through the present action.
    -7-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    occurred after Brookline purchased the property. Because our analysis of the first
    issue is dispositive of this appeal, we need not address the second issue.
    Brookline argues that “a municipality’s statutory authority to obtain a
    performance bond to secure improvements required in connection with the approval
    and recordation of a subdivision plat, carries an implicit obligation on the
    municipality to enforce that bond when the primary obligor defaults and loses the
    development to foreclosure.” In order to determine the validity of this contention on
    the present facts, we must analyze the relevant statutes enacted by the General
    Assembly and the applicable ordinance passed by the City pertaining to the use of
    performance bonds in regulating subdivision development.
    The General Assembly has provided that “[a] city may by ordinance regulate
    the subdivision of land within its territorial jurisdiction.” N.C. Gen. Stat. § 160A-371
    (2015). Such municipal ordinances
    may provide for the more orderly development of
    subdivisions by requiring the construction of community
    service facilities in accordance with municipal plans,
    policies, and standards. To assure compliance with these
    and other ordinance requirements, the ordinance may
    provide for performance guarantees to assure successful
    completion of required improvements. If a performance
    guarantee is required, the city shall provide a range of
    options of types of performance guarantees, including, but
    not limited to, surety bonds or letters of credit, from which
    the developer may choose. . . .
    -8-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    N.C. Gen. Stat. § 160A-372(c) (2013).2
    The City’s subdivision ordinance during the time period relevant to this action
    stated, in pertinent part, as follows:
    Unless specifically noted, before any final plat of a
    subdivision is eligible for final approval, and before any
    street is accepted for maintenance by the city or the state
    department of transportation, minimum improvements,
    including drainage and soil erosion, must have been
    completed by the developer and approved by the city or
    county engineer in accordance with the standards and
    specifications of the Charlotte Land Development
    Standards manual or bonded in accordance with section
    20-58(c).
    Charlotte, N.C., Code § 20-51. Section 20-58(c) of the ordinance, in turn, provided in
    relevant part the following:
    Where the improvements required by this chapter have not
    been completed prior to the submission of the final
    subdivision plat for approval, the approval of the plat will
    be subject to the owner filing a surety bond or an
    irrevocable letter of credit with the engineering
    department . . . with sureties satisfactory to the city
    guaranteeing     the    installation  of   the      required
    improvements . . . . Upon completion of the improvements
    and the submission of as-built drawings, as required by
    this chapter, written notice thereof must be given by the
    subdivider to the appropriate engineering department. The
    engineering department will arrange for an inspection of
    the improvements and, if found satisfactory, will, within 30
    days of the date of the notice, authorize in writing the
    release of the security given, subject to the warranty
    requirement.
    2  There were a number of changes made to N.C. Gen. Stat. § 160A-372 in 2015 that became
    effective after 1 October 2015. See 2015 Sess. Laws 486, 486-90, ch. 187, §§ 1-3. We apply the prior
    version of the statute that was in effect during the time period relevant to this action.
    -9-
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    Charlotte, N.C., Code § 20-58(c).
    We must interpret the above-quoted statutes and ordinance according to well-
    established principles of statutory construction. See Woodlief v. Mecklenburg Cty.,
    
    176 N.C. App. 205
    , 209, 
    625 S.E.2d 904
    , 907 (“The rules applicable to the construction
    of statutes are equally applicable to the construction of municipal ordinances.”
    (citation and quotation marks omitted)), disc. review denied, 
    360 N.C. 492
    , 
    632 S.E.2d 775
    (2006).
    The primary objective of statutory interpretation is to
    ascertain and effectuate the intent of the legislature. If the
    language of the statute is clear and is not ambiguous, we
    must conclude that the legislature intended the statute to
    be implemented according to the plain meaning of its
    terms. Thus, in effectuating legislative intent, it is our duty
    to give effect to the words actually used in a statute and
    not to delete words used or to insert words not used.
    Lunsford v. Mills, 
    367 N.C. 618
    , 623, 
    766 S.E.2d 297
    , 301 (2014) (internal citations
    and quotation marks omitted).
    Based upon our careful reading of the above-quoted provisions, we are unable
    to conclude that Brookline is entitled to an order compelling the City to call the Bond.
    Neither the statutes nor the ordinance contain language either specifying the
    circumstances under which the City must enforce a performance guarantee or
    authorizing a developer to compel the City to take such action. This Court is not at
    liberty to read into the statutes and ordinance words that simply do not exist therein.
    - 10 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    See 
    id. (holding that
    in construing statutes courts must not “insert words not used”);
    In re Duckett, 
    271 N.C. 430
    , 436, 
    156 S.E.2d 838
    , 844 (1967) (“It is not within the
    province of a court to read a meaning into a statute that is not warranted by the
    legislative language.”).
    In an attempt to show that the City had a duty to call the Bond, Brookline
    points to the language in N.C. Gen. Stat. § 160A-372(c) providing that “[t]o assure
    compliance with . . . ordinance requirements, the ordinance may provide for
    performance guarantees to assure successful completion of required improvements.”
    N.C. Gen. Stat. § 160A-372(c). Brookline then asserts that the City’s ordinance
    implementing this statute provides for only one set of circumstances under which a
    bond may be released — that is, when the City, upon inspection, certifies that the
    bonded improvements have been completed. See Charlotte, N.C., Code § 20-58(c)
    (“Upon completion of the improvements and the submission of as-built drawings, as
    required by this chapter, written notice thereof must be given by the subdivider to
    the appropriate engineering department. The engineering department will arrange
    for an inspection of the improvements and, if found satisfactory, will, within 30 days
    of the date of the notice, authorize in writing the release of the security given . . . .”).
    However, while this language explains how a bond may be satisfied and
    released after agreed-upon improvements have been made, it does not speak to when
    — and under what circumstances — the City must seek enforcement of a bond. Thus,
    - 11 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    no duty on the City’s part to enforce such bonds is expressly contained in the statutes
    or the ordinance. And Brookline has failed to persuade us that such a duty is implied
    therein.
    Moreover, even assuming arguendo that there are, in fact, some conceivable
    circumstances under which the City could be compelled to enforce a performance bond
    by an appropriate party, Brookline is not such a party. Here, Brookline was not a
    party to the Bond, was not assigned rights under the Bond, and was not a third-party
    beneficiary of the Bond.3 Furthermore, Brookline (1) was expressly warned by the
    City before rezoning the Property and altering the road improvement plans that “[i]f
    you make changes to the approved plans upon which the current performance bond
    was based, you will likely become fully responsible for all roadway improvements
    specified on the revised plans”; and (2) made a commitment to the City — in
    connection with the City’s approval of Brookline’s development plans — to construct
    the required road improvements itself.
    While our ruling in this case is based entirely on North Carolina law, we note
    that our decision is consistent with two recent decisions from other jurisdictions that
    have addressed similar issues.4 In Ponderosa Fire District v. Coconino County, 235
    3 A “public performance bond is a contract, governed by the law of contracts.” Town of Pineville
    v. Atkinson/Dyer/Watson Architects, P.A., 
    114 N.C. App. 497
    , 499, 
    442 S.E.2d 73
    , 74 (1994).
    4Although decisions from other jurisdictions are not binding on this Court on an issue arising
    under North Carolina law, we may consider such decisions as persuasive authority. See Carolina
    - 12 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    Ariz. 597, 
    334 P.3d 1256
    (Ct. App. 2014), the original developer obtained several
    bonds to guarantee infrastructure improvements tied to plat approval by Coconino
    County of a portion — referred to as Unit 3 — of a larger housing development. Units
    1 and 2 had already been finished and their improvements installed. The original
    developer went bankrupt before it could build any homes on — or complete the
    infrastructure improvements for — Unit 3. 
    Id. at 599,
    334 P.3d at 1258.
    After several trustee sales, a successor developer, Bellemont 276, L.L.C.
    (“Bellemont”), purchased Unit 3 in order to build homes on it and then sell them to
    the public. Bellemont attempted to persuade Coconino County to call the bonds that
    had been obtained by the original developer and covered the required improvements
    to Unit 3. After failing to convince the county to enforce these bonds, Bellemont
    brought suit against the county. In its complaint, Bellemont “alleg[ed] that it had
    acquired Unit 3 with the expectation the bonds would be called to pay for the
    remaining improvements and infrastructure” and “requested declaratory relief, a
    writ of mandamus compelling the County to call the bonds, and monetary damages.”
    
    Id. at 600,
    334 P.3d at 1259.
    Power & Light Co. v. Employment Sec. Comm’n of N.C., 
    363 N.C. 562
    , 569, 
    681 S.E.2d 776
    , 780 (2009)
    (noting that while not binding, a decision from another jurisdiction was nonetheless “instructive”);
    State v. Williams, 
    232 N.C. App. 152
    , 157, 
    754 S.E.2d 418
    , 422 (“While we recognize that decisions
    from other jurisdictions are, of course, not binding on the courts of this State, we are free to review
    such decisions for guidance.” (citation and quotation marks omitted)), appeal dismissed and disc.
    review denied, 
    367 N.C. 784
    , 
    766 S.E.2d 846
    (2014); Skinner v. Preferred Credit, 
    172 N.C. App. 407
    ,
    413, 
    616 S.E.2d 676
    , 680 (2005) (“Because this case presents an issue of first impression in our courts,
    we look to other jurisdictions to review persuasive authority that coincides with North Carolina’s
    law.”), aff’d, 
    361 N.C. 114
    , 
    638 S.E.2d 203
    (2006).
    - 13 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    On appeal, the Arizona Court of Appeals examined the relevant Arizona
    statute, which stated in pertinent part that subdivision regulations adopted by a
    county “shall require the posting of performance bonds, assurances or such other
    security as may be appropriate and necessary to ensure the installation of required
    street, sewer, electric and water utilities, drainage, flood control and improvements
    meeting established minimum standards of design and construction.” 
    Id. at 602,
    334
    P.3d at 1261.
    The court held that the statute “plainly require[s] the County to ‘ensure’ that
    the amount of the bond posted by a developer is sufficient to cover the cost of
    necessary subdivision improvements. The statute does not, however, specify when a
    county is required to call a bond.” 
    Id. at 603,
    334 P.3d at 1262. The court then stated
    as follows:
    We conclude the County’s decision not to call the bonds at
    this time was a proper exercise of its necessary and implied
    power under [the statute]. The legislative purpose of the
    statute is to require developers such as Bellemont to pay
    for the cost of subdivision improvements. Here, the County
    determined that calling the bonds did not serve this
    interest; rather, the County decided, in its discretion, to
    forego calling the bonds and require Bellemont to pay for
    the cost of the Unit 3 improvements.
    In support of this conclusion, we note that Bellemont’s
    construction of [the statute] would lead to absurd results.
    Under Bellemont’s interpretation of the statute, whenever
    a developer abandons a subdivision, a county has a
    mandatory duty to call the bond, regardless of the
    circumstances. This leaves counties with an open-ended
    - 14 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    obligation to finish all abandoned subdivision
    improvements, with no discretion to consider any factors
    that may arise after the final plat is approved. For
    example, counties would be required to call a bond and
    finish improvements for a subdivision that may lay vacant
    for many years. . . .
    We therefore conclude the County exercised its discretion
    under the statute by seeking to have Bellemont install the
    required subdivision improvements rather than calling the
    bonds.
    
    Id. at 603-04,
    334 P.3d at 1262-63 (internal citations omitted).
    The court then examined the relevant Coconino County ordinance, which
    provided as follows:
    The Final Plat will be submitted to the Board for approval
    if the construction and improvements have been accepted
    or if a cash deposit or other financial arrangement
    acceptable to the County have been made between the
    subdivider and the Board. In the event the subdivider fails
    to perform within the time allotted by the Board, then after
    reasonable notice to the subdivider of the default, the
    County may do or have done all work and charge
    subdivider’s deposit with all costs and expenses incurred.
    
    Id. at 604,
    334 P.3d at 1263 (emphasis omitted).
    The court concluded that the language of this ordinance — like the language
    of the statute — did not limit the county’s discretion as to when to call the bonds.
    Accordingly, the court determined that Bellemont was not entitled to an order
    compelling the county to enforce the bonds covering Unit 3. 
    Id. at 605,
    334 P.3d at
    1264.
    - 15 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    Similarly, in LDS Development, LLC v. City of Eugene, 
    280 Or. App. 611
    , 
    382 P.3d 576
    (2016), the original developer represented to the City of Eugene, Oregon
    that it would install certain infrastructure improvements in connection with the city’s
    approval of a development project and obtained a bond guaranteeing its performance.
    That developer then withdrew from the project before completing the bonded
    improvements. A successor developer purchased the property and subsequently sued
    the city, alleging that the city was required to either finish the improvements itself
    or call the performance bond. 
    Id. at 616,
    382 P.3d at 579.
    On appeal, the Oregon Court of Appeals held that the applicable
    statutes and city code provisions do not require that the
    city actually exercise its right to call in a bond or complete
    the improvements itself in the event that a developer fails
    to do so. Certainly the city may exercise its discretion to
    complete planned improvements or to enforce a bond
    provided by a subdivider who failed to fulfill its obligations,
    but, under the operative statutes, the city is not required
    to do so.
    
    Id. at 620,
    382 P.3d at 582. Thus, the reasoning in Ponderosa and LDS is fully
    consistent with our ruling on this issue.
    In light of our holding that Brookline lacks authority to compel the City to call
    the Bond and has no legal rights with respect to the Bond, we likewise reject the
    notion that it is entitled to any of the other forms of declaratory or injunctive relief
    requested in its amended complaint. See Beachcomber Props., L.L.C. v. Station One,
    Inc., 
    169 N.C. App. 820
    , 824, 
    611 S.E.2d 191
    , 194 (2005) (“Absent an enforceable
    - 16 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    contract right, an action for declaratory relief to construe or apply a contract will not
    lie.”); DeMent v. Nationwide Mut. Ins. Co., 
    142 N.C. App. 598
    , 600, 
    544 S.E.2d 797
    ,
    799 (2001) (concluding that “because plaintiff was a stranger to [the] insurance
    contract . . . , plaintiff lacked standing to seek a declaratory judgment construing the
    policy provisions”). Nor do we discern any legal basis upon which Brookline would be
    entitled to recover monetary damages stemming from the City’s exercise of its
    discretion in not enforcing the Bond.
    For these reasons, we hold that the trial court properly granted Defendants’
    motions for summary judgment and denied Brookline’s cross-motion. However, we
    note that while the precise basis for the trial court’s ruling is not entirely clear from
    its 24 August 2015 order, it appears that the trial court’s decision was based primarily
    on the notions that (1) Brookline’s rezoning of the property from single-family homes
    to multi-family apartments “drastically changed” the 2008 preliminary subdivision
    plans approved by the City; and (2) the road improvements constructed by Clarion-
    Reames before the foreclosure were adequate to support the nine existing single-
    family homes in the development. We need not address either of these issues given
    our holding that Brookline is not entitled to any of the relief sought in its pleadings
    because it lacks a legal basis to compel the City to call the Bond or any other legal
    rights relating to the Bond.
    - 17 -
    BROOKLINE RESIDENTIAL, LLC V. CITY OF CHARLOTTE
    Opinion of the Court
    Accordingly, we affirm the ultimate result reached by the trial court albeit for
    different reasons. See State v. Austin, 
    320 N.C. 276
    , 290, 
    357 S.E.2d 641
    , 650 (1987)
    (“A correct decision of a lower court will not be disturbed on review simply because
    an insufficient or superfluous reason is assigned. The question for review is whether
    the ruling of the trial court was correct and not whether the reason given therefor is
    sound or tenable.” (citation omitted)), cert. denied, 
    484 U.S. 916
    , 
    98 L. Ed. 2d 224
    (1987); Cape Fear Pub. Util. Auth. v. Costa, 
    205 N.C. App. 589
    , 598, 
    697 S.E.2d 338
    ,
    343 (2010) (affirming trial court’s order granting summary judgment for reasons
    different from those articulated by trial court).
    Conclusion
    For the reasons stated above, we affirm.
    AFFIRMED.
    Judges ELMORE and DIETZ concur.
    - 18 -