In re: Skybridge Terrace , 246 N.C. App. 489 ( 2016 )


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  •               IN THE COURT OF APPEALS OF NORTH CAROLINA
    No. COA15-810
    Filed: 5 April 2016
    Mecklenburg County, No. 12 CVS 22411
    IN RE SKYBRIDGE TERRACE, LLC LITIGATION
    Appeal by defendants from order and judgment entered 25 March 2015 by
    Judge James L. Gale in Mecklenburg County Superior Court. Heard in the Court of
    Appeals 27 January 2016.
    Randolph M. James, P.C., by Randolph M. James for plaintiff-appellee
    Skybridge Terrace, LLC.
    Horack Talley Pharr & Lowndes, P.A., by Amy P. Hunt, for defendant Doyle
    Christopher Stone.
    Erwin, Bishop, Capitano & Moss, PA, by Fenton T. Erwin, Jr. and Matthew M.
    Holtgrewe, for defendants-appellants.
    DAVIS, Judge.
    Christopher M. Allen and Harold K. Sublett, Jr. (collectively “Defendants”)
    appeal from the trial court’s 25 March 2015 order and judgment granting summary
    judgment in favor of Skybridge Terrace, LLC (“Skybridge”) on its claim seeking a
    declaratory judgment that it was entitled to withdraw certain property from
    Skybridge Terrace Condominiums (“the Condominium”) in its capacity as the
    declarant. After careful review, we affirm the trial court’s order and judgment.
    Factual Background
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    Skybridge is a North Carolina limited liability company that was created to
    facilitate the development of a condominium complex on Calvert Street in Charlotte,
    North Carolina. Skybridge issued a public offering statement in September 2006
    describing the planned features of the anticipated condominium complex. On 23 July
    2008, Skybridge legally created the Condominium by recording the Declaration of
    Skybridge Terrace Condominiums (“the Declaration”) in the Mecklenburg County
    Registry in Book 23980, Page 818 pursuant to N.C. Gen. Stat. § 47C-2-101 of the
    North Carolina Condominium Act (“the Condominium Act”).           The Declaration
    submitted the property described therein to the provisions of the Condominium Act
    and incorporated a plat map illustrating the plans for the Condominium. In the
    Declaration, Skybridge reserved certain development rights and other special
    declarant rights, including the right
    to complete the improvements indicated on the Plans; to
    maintain sales offices, models and signs advertising the
    Condominium on the Property; to exercise any
    development right as defined in Section 47C-2-110 of the
    Act; to use easements over the Common Elements; to elect,
    appoint or remove members of the Board during the
    Declarant Control Period; to make the Condominium part
    of a larger condominium; and to withdraw any portion of
    the Property from the Condominium; and to add property
    to the Condominium, including but not limited to one
    additional phase, which is shown on the Plat as Phase
    Three. . . .
    (Emphasis added.)
    -2-
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    The Declaration stated that the Condominium would be divided into two
    phases and include 96 separately owned units. It further provided that “[e]ach phase
    shall contain 48 units and the phases are designated as Phase One and Phase Two,
    sometimes alternatively referred to as Phase I and Phase II. Phase I has been built
    and Phase II is planned but not yet built.”
    Skybridge began conveying units in Phase I of the Condominium to purchasers
    in 2009. Defendants purchased their respective units in Phase I in early 2011. Phase
    II of the Condominium has never been developed.
    On 31 December 2012, Skybridge filed a complaint in Mecklenburg County
    Superior Court against Defendants, Sean M. Phelan (“Phelan”), Nexsen Pruet, PLLC
    (“Nexsen Pruet”), and various other unit owners of the Condominium. Skybridge’s
    complaint asserted professional malpractice and constructive fraud claims against
    Phelan and Nexsen Pruet with regard to their representation of Skybridge during the
    development of the Condominium and their drafting of the Declaration.1 In their
    claims against Defendants and the other unit owners, Skybridge sought (1)
    reformation of the Declaration so that it had the right of either developing or
    withdrawing the property encompassing Phase II of the Condominium; and (2) in the
    alternative, a declaratory judgment that Skybridge “has the right to develop and right
    to withdraw Phase II.” The matter was designated a mandatory complex business
    1   The claims against Phelan and Nexsen Pruet are not at issue in the present appeal.
    -3-
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    case on 1 February 2013 and was subsequently assigned to the Honorable James L.
    Gale in the North Carolina Business Court.
    Skybridge filed an amended complaint on 19 February 2013. On 25 October
    2013, Defendants filed an answer, asserting that they “presently own and possess
    indefeasible property rights in and to the real estate described in Phase II on the plat”
    and that Skybridge was not entitled to its requested declaratory relief in its amended
    complaint. On 16 December 2013, Judge Gale entered an order severing Skybridge’s
    claims against Phelan and Nexsen Pruet from its claims against the defendant unit
    owners pursuant to Rule 42 of the North Carolina Rules of Civil Procedure. The order
    further provided that the “claims against Nexsen Pruet and Sean Phelan are stayed
    and held in abeyance until the earlier of January 1, 2015 or resolution of [Skybridge’s]
    claims against the remaining Defendants.”
    On 11 March 2014, Defendants filed a motion seeking summary judgment in
    their favor on Skybridge’s claims.      Skybridge filed a cross-motion for summary
    judgment on 12 March 2014. The trial court granted summary judgment in favor of
    Skybridge by order entered 25 March 2015. In its order, the trial court determined
    that Skybridge “properly reserved a right to withdraw the Phase II parcel from
    Skybridge Terrace Condominiums[.]” The trial court certified its order pursuant to
    Rule 54(b) as a final judgment as to all claims between Skybridge and the unit owner
    defendants. Defendants gave timely notice of appeal to this Court.
    -4-
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    Analysis
    The entry of summary judgment is proper “if the pleadings, depositions,
    answers to interrogatories, and admissions on file, together with the 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.” N.C.R. Civ. P. 56(c). We review an order
    granting summary judgment de novo. Residences at Biltmore Condo. Owners’ Ass’n,
    Inc. v. Power Dev., LLC, ___ N.C. App. ___, 
    778 S.E.2d 467
    , 470 (2015).
    Here, Defendants argue that the trial court erred in granting summary
    judgment in favor of Skybridge on its declaratory judgment claim because Skybridge
    failed to adequately reserve in the Declaration the right to withdraw Phase II from
    the Condominium. Defendants further contend that even if the right to withdraw
    property was adequately reserved in the Declaration, Skybridge was precluded from
    exercising withdrawal rights after it began conveying units in Phase I to purchasers.
    The Condominium Act, codified in Chapter 47C of our General Statutes,
    “applies to all condominiums created within this State after October 1, 1986.” N.C.
    Gen. Stat. § 47C-1-102(a) (2015). The Condominium Act allows a declarant to reserve
    certain development rights in the condominium if such a reservation is contained in
    the declaration creating the condominium. N.C. Gen. Stat. § 47C-2-105(8) (2015).
    “Development rights” are statutorily defined by the Condominium Act as
    encompassing “any right or combination of rights reserved by a declarant in the
    -5-
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    declaration to add real estate to a condominium; to create units, common elements,
    or limited common elements within a condominium; to subdivide units or convert
    units into common elements; or to withdraw real estate from a condominium.” N.C.
    Gen. Stat. § 47C-1-103(11) (2015) (emphasis added).
    In order to properly reserve development rights, “a declarant must specifically
    state in the declaration the rights it wishes to retain ‘together with a legally sufficient
    description of the real estate to which each of those rights applies, and a time limit
    within which each of those rights must be exercised.’” Residences at Biltmore Condo.
    Owners’ Ass’n, ___ N.C. App. at ___, 778 S.E.2d at 472 (quoting N.C. Gen. Stat. § 47C-
    2-105(8)). With regard to the exercise of the development right of withdrawal, the
    Condominium Act expressly contemplates both the reservation of all of the real estate
    comprising the condominium and the reservation of less than all of said real estate,
    stating as follows:
    If the declaration provides pursuant to G.S. 47C-2-
    105(a)(8) that all or a portion of the real estate is subject to
    the development right of withdrawal:
    (1) If all the real estate is subject to withdrawal, and
    the declaration does not describe separate
    portions of real estate subject to that right, no
    part of the real estate may be withdrawn after a
    unit has been conveyed to a purchaser; and
    (2) If a portion or portions are subject to withdrawal,
    no part of a portion may be withdrawn after a
    unit in that portion has been conveyed to a
    purchaser.
    -6-
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    N.C. Gen. Stat. § 47C-2-110(d) (2015).
    In the present case, the Declaration provided that Skybridge, as the declarant,
    retained the right “to withdraw any portion of the Property from the Condominium.”
    (Emphasis added.) Defendants contend that the use of the term “any portion” (1)
    failed to sufficiently describe the real estate to which the right of withdrawal was
    meant to apply; and (2) should be interpreted as meaning that “the Declaration
    reserve[d] the right to withdraw all Property from the Condominium.” (Emphasis
    added.) We are not persuaded by either of these assertions.
    Under the Condominium Act, the plat showing the plans for the condominium
    “shall be considered a part of the declaration[.]” N.C. Gen. Stat. § 47C-2-109(a)
    (2015).    In this case, the recorded plat shows separate and distinct phases of
    development of the Condominium: Phase I, Phase II, and Phase III. Phases I and II
    are illustrated on the plat, and as the trial court noted in its summary judgment
    order, there is “a surveyed line of demarcation between them.”2 Phase III is depicted
    using a dotted line and was labeled “NEED NOT BE BUILT.” The boundaries of each
    phase are clearly depicted on the plat.
    Thus, the surveyed boundaries set forth on the plat provide a legally sufficient
    description of the real estate included in each phase of the Condominium. Because,
    2 Phase III was not actually part of the Condominium property but was depicted on the plat
    as property that could later be added to the Condominium.
    -7-
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    however, both the Declaration and the Condominium Act utilize the term “portion”
    rather than “phase” in discussing the right to withdraw, we must determine whether
    the two terms — as used here — are synonymous.
    On this issue, the trial court concluded that Phase II constituted a “portion” of
    the Condominium such that it could be withdrawn pursuant to Skybridge’s right to
    “withdraw any portion of the Property from the Condominium” as stated in the
    Declaration. The trial court explained its reasoning as follows:
    {51} The Act does not define “portion” or provide significant
    guidance on what constitutes a separate “portion” for
    purposes of reserving a right to withdraw. The undisputed
    facts of the case at hand, however, make clear that the
    Phase II parcel was and remains a separate and
    independent “portion” from Phase I. The recorded plat
    referenced in the Declaration labels separate phases and
    contains a surveyed phase line separating the Phase I and
    Phase II parcels. As noted, the Phase II real estate has a
    tax parcel identification number separate from Phase I and
    remains in [Skybridge’s] name.
    {52} This separate identity was clear at the time the
    Declaration was recorded and when each Unit Owner
    Defendant purchased his or her interest in the
    condominium.      Unit Owner Defendants could not
    reasonably conclude otherwise. They were on notice when
    they purchased their units that the Phase II real estate
    was considered a separate portion. . . .
    (Internal citations omitted.)
    We agree with the trial court’s analysis on this issue. The recorded plat for the
    Condominium showed a condominium complex comprised of two defined parts: Phase
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    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    I (which had been built) and Phase II (which was “planned”). The plat also provided
    for the possibility of adding Phase III, which was not yet part of the Condominium.
    Thus, because Phase I and Phase II are the only discrete and clearly identifiable
    “portions” of the Condominium depicted on the plat, Skybridge’s right to withdraw
    “any portion” must be construed as the right to withdraw either Phase I or Phase II.
    In a related argument, Defendants contend that Skybridge’s reservation of the
    right to “withdraw any portion of the Property” amounted to a reservation of the right
    to withdraw all of the Condominium property. Based on this contention, they assert
    that Skybridge was precluded from withdrawing Phase II because it had already
    conveyed to purchasers units in Phase I. See N.C. Gen. Stat. § 47C-2-110(d)(1) (“If
    all the real estate is subject to withdrawal, and the declaration does not describe
    separate portions of real estate subject to that right, no part of the real estate may be
    withdrawn after a unit has been conveyed to a purchaser . . . .”).
    However, subsection (2) of N.C. Gen. Stat. § 47C-2-110(d) contemplates
    scenarios where — as here — a declarant reserves the right to withdraw less than all
    of the condominium property, stating that “[i]f a portion or portions are subject to
    withdrawal, no part of a portion may be withdrawn after a unit in that portion has
    been conveyed to a purchaser.” N.C. Gen. Stat. § 47C-2-110(d)(2) (emphasis added).
    Thus, N.C. Gen. Stat. § 47C-2-110(d) recognizes the ability of a declarant to reserve
    -9-
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    a right of withdrawal as to either (1) all of the condominium’s real estate; or (2) any
    portion of the condominium’s real estate.
    Here, the Declaration does not refer to all of the Condominium’s property in
    describing the declarant’s withdrawal rights. Instead, to the contrary, it describes
    the right to withdraw any “portion” of the Condominium property. While not defined
    in the Condominium Act, the term “portion” necessarily means something less than
    all of the condominium property in its entirety. See American Heritage Dictionary
    966 (2nd college ed. 1985) (defining “portion” as “[a] section or quantity within a
    larger thing; a part of a whole”); see also Martin v. N.C. Dep’t of Health & Human
    Servs., 
    194 N.C. App. 716
    , 722, 
    670 S.E.2d 629
    , 634 (“Where a statute does not define
    a term, we must rely on the common and ordinary meaning of the word[ ] used.”),
    disc. review denied, 
    363 N.C. 374
    , 
    678 S.E.2d 665
    (2009).
    Thus, under the Act, Skybridge was prohibited from withdrawing the Phase I
    property because it had already conveyed units in Phase I but was not precluded from
    withdrawing the Phase II property because no units in Phase II had been conveyed.
    Indeed, no units in Phase II were ever even built. While admittedly an explicit
    reservation in the Declaration of the right to withdraw “any phase” (as opposed to
    “any portion”) would have been clearer and more precise, Skybridge’s express
    reservation of the right to withdraw “any portion” provided a legally sufficient
    - 10 -
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    description of the real estate to which withdrawal rights applied.        Defendants’
    argument on this issue is therefore overruled.
    While we have concluded that the identification and demarcation of the
    separate phases on the plat constituted “a legally sufficient description of the real
    estate” to which the withdrawal rights applied, N.C. Gen. Stat. § 47C-2-105(a)(8), we
    agree with Defendants that there are two specific statutory requirements concerning
    the right of withdrawal with which Skybridge did not comply. First, the plat map
    does not note Skybridge’s reservation of a right to withdraw property as required by
    N.C. Gen. Stat. § 47C-2-109(b)(3). See N.C. Gen. Stat. § 47C-2-109(b)(3) (requiring
    the recorded plat to show “[t]he location and dimensions of any real estate subject to
    development rights, labeled to identify the rights applicable to each parcel”). Second,
    the Declaration does not conform with N.C. Gen. Stat. § 47C-2-105(8) by listing the
    time limit within which the right to withdraw must be exercised.
    Pursuant to N.C. Gen. Stat. § 47C-1-104(c), however, the Condominium Act
    “excuses nonmaterial noncompliance with [its] requirements where the declarant has
    substantially complied with the statute.” In re Williamson Vill. Condos., 187 N.C.
    App. 553, 557, 
    653 S.E.2d 900
    , 902 (2007), aff’d per curiam, 
    362 N.C. 671
    , 
    669 S.E.2d 310
    (2008); see N.C. Gen. Stat. § 47C-1-104(c) (2015) (“If a declarant, in good faith,
    has attempted to comply with the requirements of this chapter and has substantially
    complied with the chapter, nonmaterial errors or omissions shall not be actionable.”).
    - 11 -
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    Thus, in order to show its entitlement to summary judgment on its claim seeking
    declaratory relief, Skybridge was required to show that (1) it in good faith attempted
    to comply with the Condominium Act; (2) it did, in fact, substantially comply with the
    requirements contained therein; and (3) its errors or omissions were nonmaterial.
    See Williamson Vill. 
    Condos., 187 N.C. App. at 557
    , 653 S.E.2d at 902.            Here,
    Defendants do not affirmatively argue that Skybridge acted in bad faith. Rather,
    they challenge the trial court’s determinations that (1) Skybridge substantially
    complied with the Condominium Act; and (2) Skybridge’s omissions were
    nonmaterial.
    Our Court applied N.C. Gen. Stat. § 47C-1-104(c) in Williamson Village
    Condominiums. We explained that substantial compliance with the Condominium
    Act means “compliance which substantially, essentially, in the main, or for the most
    part, satisfies the statute’s requirements.”       
    Id. (citation, quotation
    marks, and
    brackets omitted). In that case, the issue was whether the declarant had sufficiently
    reserved development rights in a condominium despite its failure to include a time
    limit on its right to further develop the property. 
    Id. at 556-57,
    653 S.E.2d at 901-02.
    In determining whether the declarant had substantially complied with the
    Condominium Act, we observed that “[t]he Act contains numerous requirements for
    condominium creation and operation” and that “[m]any of the Act’s requirements,
    both in N.C.G.S. § 47C-2-105 and elsewhere, deal with the contents of a condominium
    - 12 -
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    declaration.” Id. at 
    557, 653 S.E.2d at 902
    . We then compared the contents of the
    declaration at issue with the mandatory provisions of the Condominium Act along
    with a number of the nonmandatory sections. 
    Id. at 557-58,
    653 S.E.2d at 902-03.
    We concluded that the declaration “essentially, in the main, and for the most part,
    satisfie[d] the Act’s requirements.” 
    Id. at 558,
    653 S.E.2d at 903 (citation, quotation
    marks, and brackets omitted).
    In the present case, the trial court relied on our analysis in Williamson Village
    Condominiums and engaged in a similar analysis, correctly stating the following:
    {63} The Declaration, “for the most part, satisfies the [Act’s
    requirements].” Id. at 
    557, 653 S.E.2d at 902
    (quoting N.C.
    Nat’l Bank v. Burnette, 
    297 N.C. 524
    , 532, 
    256 S.E.2d 388
    ,
    393 (1979)). The Declaration is a forty-six-page document
    that includes the following: (1) the name of the
    condominium complex and condominium association, in
    compliance with section 47C-2-105(a)(1) of the Act; (2) the
    name of the county in which the real estate is located, in
    compliance with section 47C-2-105(a)(2) of the Act; (3) an
    adequate description of the real estate within the
    condominium, in accordance with section 47C-2-105(a)(3)
    of the Act; (4) the number of existing and potential future
    units in the condominium, pursuant to section 47C-2-
    105(a)(4) of the Act; (5) the boundaries and identifying
    number of each unit, in compliance with section 47C-2-
    105(a)(5) of the Act; (6) a description of limited common
    elements and areas, as required under section 47C-2-
    105(a)(6) of the Act; (7) a description of reserved
    development and declarant rights, including an
    explanation of which fixed portions are subject to those
    rights, in accordance with section 47C-2-105(a)(8) of the
    Act; (8) allocations for interests in the common elements,
    liability for common expenses, and voting rights, as
    required under sections 47C-2-105(a)(11) and -107 of the
    - 13 -
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    Act; (9) restrictions on the use and occupancy of the units,
    pursuant to section 47C-2-105(a)(12) of the Act; (10) a
    recitation of easements and licenses affecting the
    condominium, in compliance with section 47C-2-105(a)(13)
    of the Act; and (11) plans and a plat for the condominium,
    as required under section 47C-2-109. See In re Williamson
    Vill. 
    Condos., 187 N.C. App. at 557
    -58, 653 S.E.2d at 902-
    03 (noting declaration at issue complied with each of these
    provisions).
    {64} The Declaration also includes the following
    nonmandatory information: (1) rules regarding unit
    additions, alterations, and improvements, pursuant to
    section 47C-2-111 of the Act; (2) rules for amending the
    Declaration and bylaws, as provided under sections 47C-2-
    117 and 3-106 of the Act; (3) procedures for terminating the
    condominium, as delineated in section 47C-2-118 of the
    Act; (4) provisions regarding the condominium association
    and executive board, in accordance with sections 47C-2-
    101, -102, and -103 of the Act; (5) provisions governing an
    initial period of declarant control over the condominium
    association, as contemplated in section 47C-3-103(d) of the
    Act; (6) terms regarding upkeep and damages, pursuant to
    section 47C-3-107 of the Act; (7) provisions regarding
    insurance, as provided under section 47C-3-113 of the Act;
    (8) provisions regarding assessments for common
    expenses, as contemplated in section 47C-3-115 of the Act;
    and (9) provisions for levying against units for unpaid
    assessments, in accordance with section 47C-3-116 of the
    Act. See id. at 
    558, 653 S.E.2d at 903
    (noting the
    declaration at issue complied with each of these
    nonmandatory provisions).
    Once again, we agree with the trial court’s analysis. The Declaration here is
    comprehensive and demonstrates Skybridge’s substantial compliance with the
    Condominium Act. However, we must still determine whether Skybridge’s (1) failure
    - 14 -
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    to include on the plat its reservation of withdrawal rights; and (2) omission in the
    Declaration of the time limit for the exercise of these rights, were material.
    The official comment to N.C. Gen. Stat. § 47C-2-109 sheds light on the
    underlying purpose of the requirement in subsection (b)(3) that the reserved
    development rights be described on the plat, stating that “[s]ince different portions of
    the real estate may be subject to differing development rights — for example, only a
    portion of the total real estate may be added as well as withdrawn from the project
    — the plat must identify the rights applicable to each portion of that real estate.” 
    Id. cmt. 5.
    Here, the concern identified in the official comment as the rationale behind
    subsection (b)(3) is not implicated because both of the only two existing phases of the
    Condominium were subject to the same right of withdrawal at the time the
    Declaration was recorded. The only other development right reserved by Skybridge
    in the Declaration was to add property to the Condominium, including a possible
    Phase III.    However, the fact that Phase III was not presently part of the
    Condominium was identified on the plat by the hard line of demarcation and the label
    “NEED NOT BE BUILT.” Thus, because the same right of withdrawal applied to
    each of the two phases of the property that were actually part of the Condominium,
    we are unable to conclude that the failure to explicitly state this on the plat was a
    material omission.
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    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    We reach the same result regarding the omission from the Declaration of a
    time limit within which the right to withdraw could be exercised that this Court
    addressed in Williamson Village Condominium. In holding that the omission of a
    time limit on the declarant’s reserved development right was not material in that
    case, this Court examined the evidence of record and concluded that there was “no
    evidence in the record that the timing of the construction of Building Two was a
    disputed issue at any time during the business relationship of Plaintiff and
    Defendants.” Williamson Vill. Condos., 187 N.C. App. at 
    558, 653 S.E.2d at 903
    .
    Likewise, here — as the trial court noted — Defendants “purchased units in
    Skybridge Terrace without regard to the omission of the time limit in the
    Declaration[.]”   The trial court properly based this conclusion on the fact that
    Defendants “failed to present or forecast evidence that any of the current unit owners
    disputed or were concerned with the lack of time limit on Declarant’s right to
    withdraw any portion of the condominium.”
    Finally, Defendants assert that they were misled by the language in the public
    offering statement providing that “[t]he Declarant has retained no option to withdraw
    withdrawable real estate from the Condominium.” However, this argument fails to
    take into account the following additional language included in the public offering
    statement.
    This Public Offering Statement consists of seven (7)
    separate parts, which together constitute the complete
    - 16 -
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    Public Offering Statement.         This first part, entitled
    “Narrative”, summarizes the significant features of the
    Condominium and presents additional information of
    interest to prospective purchasers. The other seven (7)
    parts contain respectively: schematic drawings of the
    Condominium site plan and unit layouts, the form
    Purchase Agreement for the individual Units (the
    “Purchase Agreement”), the current versions of the
    proposed Declaration for the Condominium, the Bylaws for
    the Condominium, (attached as Exhibit B to the
    Declaration), the Articles of Incorporation for the
    Condominium Association, and the projected Budget for
    the first year of operation of the Condominium.
    This Narrative is intended to provide only an
    introduction to the Condominium and not a complete or
    detailed discussion. Consequently, the other parts of this
    Public Offering Statement should be reviewed in depth,
    and if there should be any inconsistency between
    information in this part of the Public Offering Statement
    and information in the other parts, the other parts will
    govern. . . .
    (Emphasis added.)
    Thus, Defendants were on notice from the plain wording of the public offering
    statement that in the case of any conflict between it and the Declaration, the
    Declaration would control.3 Accordingly, we reject Defendants’ argument on this
    issue.
    3The Condominium Act expressly provides that false and misleading statements made in a
    public offering statement are actionable under N.C. Gen. Stat. § 47C-4-117 and that “any person or
    class of person adversely affected . . . has a claim for appropriate relief.” N.C. Gen. Stat. § 47C-4-117
    (2015). Therefore, while a potential remedy exists for misrepresentations contained in a public offering
    statement, Defendants have not asserted any claim against Skybridge alleging a violation of § 47C-4-
    117.
    - 17 -
    IN RE SKYBRIDGE TERRACE, LLC
    Opinion of the Court
    Conclusion
    For the reasons stated above, we affirm the trial court’s 25 March 2015 order
    and judgment.
    AFFIRMED.
    Judges CALABRIA and TYSON concur.
    - 18 -
    

Document Info

Docket Number: 15-810

Citation Numbers: 786 S.E.2d 5, 246 N.C. App. 489

Filed Date: 4/5/2016

Precedential Status: Precedential

Modified Date: 1/12/2023