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Smith v. Butler Mountain Estates Property Owners Association, Inc.

North Carolina Court of Appeals

90 N.C. App. 40 (1988)

Facts

Butler Mountain Estates was a residential development with a number of restrictive covenants. One covenant required all houses to have a habitable floor space on the main level of at least 1100 square feet. Another covenant stated that all housing plans had to be approved by the Butler Mountain Estates Property Owners Association, Inc. (the association) (defendant). The association created an architectural-review committee, which was responsible for reviewing all proposed housing plans. Daniel and Alice Smith (plaintiffs) owned a lot in Butler Mountain Estates. The Smiths submitted plans for a geodesic-dome house to the review committee, but the plans were rejected for not meeting the minimum square-footage requirement. The committee also stated that the Smiths’ proposed house was a marked departure from the existing houses in the development. Indeed, the proposed house had an irregular, domed roofline, whereas the existing houses had conventional, horizontal rooflines. The Smiths subsequently brought suit against the association, seeking a declaratory judgment and injunctive relief. The trial court granted the association’s motion to dismiss, and the Smiths appealed.

Rule of Law

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Issue

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Holding and Reasoning (Johnson, J.)

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