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Commonwealth Savingshares Corp. v. Fayetteville Holdings, LLC

Citation: 250 So. 3d 592Docket: 2150916

Court: Court of Civil Appeals of Alabama; June 30, 2017; Alabama; State Appellate Court

Narrative Opinion Summary

This case involves a dispute over the continued validity and use of an industrial easement comprising a conveyor and access road, following changes in property ownership, annexation, and zoning. The plaintiff, as successor to the servient tenement, sought declaratory judgment, injunctive relief, and damages against the holders of the easement and the city, contending that the easement had been abandoned and that municipal zoning ordinances, enacted after annexation, prohibited the conveyor’s existence, thereby constituting a nuisance. The defendants counterclaimed for declaratory and injunctive relief, asserting the continued validity of the easement and their right to use and maintain the conveyor for industrial purposes. After complex procedural realignment, the case was tried as a bench trial. The trial court found that the plaintiffs failed to prove abandonment by clear and convincing evidence, as the easement was consistently maintained and not relinquished by its holders. The court determined that the conveyor qualifies as a permissible nonconforming use under the zoning ordinance, as maintenance and intent to use persisted despite periods of inactivity. Claims of nuisance and trespass were rejected, as activities were within the easement’s scope, and plaintiffs had acquired their property with notice of its existence. The trial court affirmed the easement’s validity, enjoined interference by the servient owner, and denied all relief to plaintiffs. On appeal, the judgment was affirmed, with the appellate court holding that the zoning ordinance did not extinguish the easement, nor did the facts support claims of abandonment or nuisance.

Legal Issues Addressed

Declaratory and Injunctive Relief in Easement Disputes

Application: The court affirmed the grant of declaratory and injunctive relief in favor of the easement holder, enjoining interference with the easement by the servient tenement owner and denying the plaintiffs' requests for removal of the conveyor.

Reasoning: Furthermore, the Easement qualifies as a variance under Alabama law and is permitted for industrial use, with any interference by Christopher, SOUTHBank, or others enjoined. Should Awesome Properties reclaim its title through redemption, it retains the right to use the Easement and conveyor system. The trial court found no trespass or nuisance claims by SOUTHBank or Christopher, denying the Plaintiffs' relief.

Effect of Failure to Register Nonconforming Use

Application: Failure to register a nonconforming use under the zoning ordinance creates only a rebuttable presumption of abandonment and does not extinguish the nonconforming status absent proof of intent to discontinue use.

Reasoning: However, the ordinance only establishes a rebuttable presumption of abandonment without proof of intent to discontinue use. Commonwealth also cites Section 5.33, which addresses cessation of non-conforming land use for over thirty days, but notes that the conveyor is a structure. Section 5.55 specifies that if a non-conforming structure is abandoned for six consecutive months or eighteen months over three years, it must comply with district regulations. Commonwealth argues the conveyor has not transported industrial materials since 1982, asserting it was not in continuous use. However, they do not argue that maintenance lapsed beyond the specified periods.

Nonconforming Use under Zoning Ordinance

Application: The court found that the conveyor qualifies as a permissible nonconformity under the zoning ordinance, as it was maintained and not abandoned, regardless of whether it was actively used at the time the ordinance took effect.

Reasoning: Despite the conveyor not being actively used in 2004, evidence from John Williamson indicates it was maintained, suggesting no intent to abandon its industrial use. The critical question remains whether the easement's use continued when the ordinance applied, with existing use defined by the owner's intent and any discontinuance requiring a voluntary act. A temporary cessation due to uncontrollable circumstances does not equate to abandonment. Therefore, the conveyor is deemed a permissible nonconformity under the ordinance.

Nuisance Claims and Rights of Easement Holders

Application: The court rejected the nuisance claim, holding that activities within the rights of a valid easement, such as maintaining a conveyor structure, do not constitute a private nuisance to the servient tenement owner who purchased the property with notice of the easement.

Reasoning: Activities within the rights of an easement do not constitute unlawful interference with property. The law in Alabama holds that purchasers of land with notice of an easement take the land subject to that easement. Commonwealth acknowledges it purchased its property with awareness of the easement and fails to present evidence that Awesome Properties or Fayetteville exceeded the easement's scope. Consequently, it cannot demonstrate the requisite duty for its nuisance claim.

Preservation and Abandonment of Easements

Application: The court held that the deeded easement for a conveyor, access road, and barge terminal remains valid and has not been abandoned, as plaintiffs failed to show intent to abandon by clear and convincing evidence.

Reasoning: On June 24, 2016, the trial court ruled on the easement, determining that the Plaintiffs did not meet their burden of proof to show by clear and convincing evidence that the Easement had been abandoned, as established in relevant Alabama case law. The court affirmed that the deeded Easement for a conveyor, access road, and barge terminal remains valid and is owned by Fayetteville Holdings, which cannot trespass on its own property.

Zoning Ordinance Applicability and Equitable Estoppel

Application: The court held that the zoning ordinance does not prevent the use of the easement and that the City and the plaintiffs are equitably estopped from using the ordinance to interfere with the easement.

Reasoning: The court claimed jurisdiction to assess the zoning ordinance's relevance, concluding that it does not prevent the use of the Easement, and that the City and Plaintiffs are equitably estopped from using the ordinance to interfere with the Easement.