SECOND DI VI SI ON
BA RNES, P. J.

, BOGGS and RI CKM A N, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a l s .us /r ule s

Septem ber 14, 2016



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 6 A0 82 6

. LEND A HAND CHARITY, INC. et al

. v

. THE FORD PLANTATION CLUB, INC.

B O G G S , J u d g e.

Len d A H an d Ch ari t y , In c. ap p eal s fro m t h e t ri al co u rt ’ s o rd er fi nd i n g i t l i ab l e

t o t h e Fo rd Pl an t at i on A s s o ci at i o n , In c. (“ t h e As s o ci at io n ”) fo r as s es sm en t s , ch arg es ,

an d i n t eres t

. Len d A Han d an d Ket h es p aran Sri k an t han (co l l e c t i v el y “ ap pel l an t s ”)

ap p eal fro m t h e t ri al co u rt ’ s co n cl u s i o n i n t h e sam e o rd er t h at t h ey a r e l i ab l e t o t h e

Fo rd Pl an t at i o n Cl u b

, I n c

. (“ t h e Cl u b ”) fo r p as t d u e as s es s m en t s , ch arg es , an d

i n t eres t

. Ap p el l an t s co n t en d t h at t h e t ri al co u rt erred by (1 ) fai li n g t o p erm i t t h em “ to

p res en t ev i den ce o n q u es t i o n s o f fact ”; (2 ) fai li n g t o v o i d t h e “ Cl u b ’ s Decl arat i o n as

a co l l at eral o r pers o n al co ven an t wh i ch d i d n o t ru n wi t h t he l a n d

, an d t h u s anad h es i v e co n t ract v o i d ab l e b y Ap p el l an ts ”; an d (3 ) award i n g i n t eres t t o t h e Cl u b at

a rat e o f 1 8 %. Fo r t he reas o n s ex p l ai n ed b el ow, we affi rm i n p art an d v acat e i n p art

.

1

. In t h ei r fi rs t en u m erat i o n o f erro r, ap p el l an t s as s ert th at th e t ri al co u rt erred

b y fai l i n g t o p erm i t th em to p res en t ev id en ce on q u es t i o ns o f fact , b u t t hey p o i n t t o

n o p l ace i n t he reco rd wh ere th e t ri al co urt t o o k an y s u ch act io n

. 1 “ T hi s i s a co u rt fo r

t h e co rrect i o n o f erro rs o f l aw m ad e b y t he t ri al co u rt s , an d an erro r o f l aw has as i t s

b as i s a s p eci fi c ru l i n g m ad e b y t h e t ri al co u rt

. In t h e ab sen ce o f s u ch a s p eci fi c ru l i n g,

t h e r e i s n o t h i ng fo r us t o rev iew.” (Ci t at i o n s an d p u nct u at i o n o m it t ed .) Ho wel l v.

Bea ul y, In c. , Ga. Ap p . (2 ) (Cas e No . A1 6A0 3 2 7 , d eci ded J u ly 1 2 , 2 0 16 ).

2

. Ap p el l an t s al s o as s ert t h at t h e tri al co u rt erred b y “ fai l i n g t o v o i d Ap p el l ee

Cl u b ’ s Decl arat io n as a co l l at eral o r p ers on al co ven an t wh i ch d i d n o t ru n wi t h t h e

l an d , an d t h u s an ad h es i v e co n t ract v o id ab l e b y Ap p el lan t s .”

(a) To t h e ex t en t ap p el l an t s cl ai m t h e t ri al co u rt erred b y fai l i n g t o affi rm at i v el y

v o i d t h e Cl u b D ecl arat i o n , w e can n o t rev i ew it b ecau s e t he reco rd b efo re u s d o es n ot

i n cl u d e s u ch a req u es t . Id

.

1 W e n o t e t h at t h e reco rd b efo re us d o es n o t i n cl u d e a t ran s cri pt o f t h e m o t i o n h eari n g an d th at ap p el lan t s req u es t ed t h at n o tran s cri p ts b e in cl u d ed i n t h e reco rd o n

ap p eal

.

2(b ) To t h e ex t en t ap p el lan t s are as s ert i n g t h at t h e t ri al co u rt erred b y i m p l i ci t l y

co n cl u d in g t h at t h e cl u b co v en an t ran wi th t he l an d , we d i s ag ree.

Th e reco rd s h o ws t h at o n J an u ary 4

, 2 0 11

, L en d A Han d Ch ari t y , In c. recei v ed

Lo t 27 5 i n t h e Fo rd Pl an tat i o n su b d i v i s i o n b y g i ft d eed

. In 1 9 9 8, t h e d ev el o p er/ o wn er

o f t h e Fo rd Pl an t at i o n s u bd i v i s i o n fi l ed a “ Decl arat i o n o f Co v en an t s , Co nd i t i o n s , an d

Res tri ct io n s ” fo r t h e s u b di v i s i o n

. Th e p ream b l e o f t h e Decl arat io n st at es : “ Decl aran t

h ereb y d ecl ares t h at al l o f th e p ro pert y

. . . s h al l b e h el d

, s o ld

, u s ed an d co n v ey ed

s u b j e c t t o t h e fo l l o w i n g eas em en t s , res t ri ct i o n s , co v en an ts

, an d co n d i t i o n s , wh i ch

s h al l ru n wi t h t h e t i t l e t o t h e real p ro p ert y s u b ject ed to t h is D ecl arat i o n

. ” Art i cl e 3 o f

Decl arat i o n , t i t l ed “ M em b ers h ip an d Vo ti n g Ri g h t s ,” p ro v i d es :

Ev ery Own er s h al l b e a M em b er o f t h e [Fo rd Pl an t at i o n ] As s o ci at io n

.

. . . Th e m em

b ers h ip ri g h t s o f an O wn er wh i ch i s n o t a nat u ral p ers o n

m ay b e ex erci s ed by an y o ffi cer, di rect o r, m an ag er, part n er o r t ru s t ee o f

s u ch Own er, o r b y a n y i n d i vi d u al des i g nat ed fro m t im e t o t im e b y th e

Own er i n a wri t t en i n s t ru m en t p r o v i d ed t o t h e s ecret ary o f th e

As s o ci at i o n

.

Th e D ecl arat i o n fu rt her p ro v i d ed t h at t h e As s o c i a t i o n was res p on s i b l e fo r

“ m an ag em en t

, m ai n ten an ce, o p erat i o n an d co n t ro l ” o f co m m o n areas o f t h e

s u b d iv i s i o n an d t hat t h e co st o f m ai n t en an ce an d rep ai r o f t h e co m m on areas wo u ld

3b e a co m

m o n ex pen s e al l o ca t e d am o n g al l u n i t s in th e s u b di v i s i on

. In t h e

“ As s es s m en t s” s ect i o n, t h e d ecl arat i o n au t h ori zed t h e As s oci a t i o n t o co l l ect

as s es s m en t s . Ad d i t i o n al l y ,

Each Own er, b y accep t i n g a d eed o r en t eri n g i n t o a co n tract o f s al e fo r

an y p o rt i o n o f t h e Pro p ert i es , i s d eem ed t o co v en an t an d ag ree t o p ay

t h es e as ses s m en t s

.

. . .

No Own er m ay ex em

p t h i m s el f o r hers el f fro m l i ab i l i t y fo r as s es s m en t s

b y n o n -u s e o f Co m

m o n A r e a

. . . , ab an d o n m en t o f h i s o r h er Un i t

, o r

an y ot h er m ean s. Th e o b l i gat i o n t o p ay as s es s m en t s is a sep ara t e an d

i n d ep en d en t co v en an t o n t h e p art o f each Own er.

Fo l l o wi ng o t h er art i cl es g o v ern i n g m at t ers s u ch as arch it ect u ral s t an d ard s , u s e

res t ri ct i o n s , eas em en t s , an d m o rt g ag ee p ro vi s i o n s , t h e Decl arat i on co n t ai n s an art i cl e

g o v ern i n g t h e Cl u b . Th i s art i cl e s t at es :

Nei t her m em

bers h i p i n t h e As s o ci at i o n n o r o wn ers h i p o r o ccu p an cy o f

a U n i t s h al l co n fer an y own ers h i p i n t eres t in o r ri g h t t o u s e t h e Cl ub

. Ri g h t s t o us e t he Cl ub wi l l b e gran t ed o n l y t o s u ch p ers o ns , an d o n s u ch

t e r m s an d co n d it i o n s , as m ay b e d et erm i ned fro m t i m e t o ti m e by th e

Cl u b , s u b j ect t o t h e t erm s o f t h e Cl ub m em b ers h i p ag reem en t s

.

4Ap p ro x im at el y t wo m on th s aft er fi l i ng th e g en eral “ Decl arat i o n of Co v en an t s ,

Co n d i t i o ns , an d Res t ri ct io n s ,” t h e sam e o wn er/ dev el o per fi l ed a Cl u b Decl arat i o n fo r

t h e s u b d i v i s i o n. It s p u rp o s e, as s t at ed i n t h e p ream b le, fo l l o ws :

Decl aran t i s t h e cu rren t o w n er an d d ev el o p er o f t h at cert ai n g at ed

co m m u n i t y

. . . k n o wn as Th e Fo rd Pl an t at i o n.

. . . Decl aran t i s al s o th e

o wn er o f cert ai n real p ro p ert y an d i m p ro v em en t s l o ca t e d wi t h i n th e

Pl an tat i o n wh i ch wi l l b e co n v ey ed to Th e Fo rd Pl an t at i on Cl u b

, In c.

. .

. an d o p erat ed a s a p ri v at e, eq u i ty o wn ers h ip

, s o ci al an d recreat i o nal

cl u b

. . .

In es t ab li s hi ng t h e P l a n t a t i o n , Decl aran t i n t en d s t o creat e an

ex cl us iv e res i d en t i al co m m u n i ty wi t h s oci al an d recreat i o n al faci l i t i es

. It i s th e g o al o f t h e Decl aran t t h at th e Cl u b Faci l i t i e s b e u ti l ized

p red om in an t l y b y h o m eo w n ers i n th e Pl an t at i o n an d t h ei r fam i l i es t o

m ai n t ai n t h e co n cep t s o f ex cl u s i v i t y an d co m m u n it y

.

In o rd er t o en s u re t h at m em b ers h i p rem ai n s pred o m i n an t l y w i t h

t h e ho m eo w n ers i n t h e Pl an t at i o n , t h e Decl aran t i s r e q u i r i n g t h at al l

p u r ch as ers o f res i den ces an d / o r res i d en t i al l ot s i n t h e Pl an t at i o n ap p l y

fo r m em b ers h i p i n t h e Cl u b

, an d i f ap p ro ved

, b eco m e m em b ers o f th e

Cl u b

. . . Th i s Cl u b Decl arat i o n s h a l l r u n wi t h t i t le t o an d s hal l be

b i n d i n g o n al l Pers o n s h a v i n g an y ri gh t

, ti t le, or i n teres t i n al l o r an y

p o rt io n o f s u ch real p ro p ert y

. . . an d sh al l i n u r e t o t h e b en efi t o f each

an d ev ery o wn er o f al l o r an y p o rt i o n t h ereo f.

5Acco rd in g t o t h e Cl u b ’ s by l aws , i t o p erat es “ a pri v at e fi sh i n g , g ol f, eq u es t ri an , t en ni s ,

s wi m m i n g an d s o ci al l y o ri en t ed cl u b o f un i fo rm l y h i g h q u al i ty .” Th e Cl u b

Decl arat i o n req u i res al l o w n ers t o ap p l y fo r m em bers h i p an d au t h ori zed t h e Cl u b to

l ev y as s es s m en t s ag ai n s t l o t o w n ers . Ad d it i on al l y ,

No Own er o f M em

b er m ay wai v e o r ot h erwi s e ex em p t h i m s el f o r h ers el f

fro m l i ab i l i t y fo r As s es s m en t s

. By way o f i l l u s t rat i o n an d n ot li m i tat i o n ,

t h ere s h al l b e n o wai v er o r ex em p t io n of As s es s m en t s d u e t o n o n -u se o f

t h e Cl ub Faci l i t i es , fai l u re t o s u b m i t a M em b ers h i p Ap p l i c a t i o n , o r

ab an d o nm en t of t h e Lo t

. T h e o b l ig at i o n t o pay t h e As s es s m en t s i s a

s ep arat e an d i n d ep en d en t co v en an t o n t h e p art o f each Own er.”

Pu rs u an t t o a Fi ft h Am en d m en t t o t h e Cl u b Decl arat i o n fi l ed o n Ap ri l 2 3 , 2 0 0 3 , n o

as s es s m en t s co u l d b e l ev i ed ag ai n s t an y own er w h o se m em b ers h ip ap p l i cat i o n was

n o t ap pro v ed b y

t h e Cl u b

.

Bas ed o n t h e ab o v e, t h e tri al co u rt d i d n o t err b y i m pl i ci t l y co n cl u d i n g t h at t h e

Cl u b Decl arat i o n ran wi t h t h e l an d an d was bi n d i n g ag ai ns t s u b s eq u en t lo t o wn ers

.

Co v en an t s r e l a t i ng t o lan d

, o r i t s m o d e of u s e o r en jo y m en t

, are

en fo rceab l e ag ai n s t s ub s eq u en t g ran t ees wi t h n o t ice, wh et h er n am ed i n

t h e i n s t ru m en t o r n o t

, an d t h o u g h t here i s n o p ri vi t y o f es t at e. It i s

i m m at eri al in s u ch cas es wh et h er t he co v en an t ru n s wi t h t h e l an d o r n ot

,

t h e g en eral ru l e b ei n g t h at i t wi l l b e en fo rced acco rd i n g t o t h e in t en t i o n

o f t h e p art i es

. It i s o n l y n eces s ary th at t h e co v en an t co n cern t h e l an d o r

6i t s u s e, an d t h at th e s u bs eq u en t gran t e e h as n o ti ce o f it

. Co ven an t s are

s o en fo rced o n t h e p ri n ci p l e o f p rev en t i n g a p art y h av i ng k n o w l ed g e o f

t h e ju s t ri gh t s o f an ot h er fro m d efeat i ng s u ch ri gh t s

.

Ti mb er st o n e Ho meo wn er ’s As s o c. v. S u mmer l i n , 2 6 6 Ga. 3 2 2 , 3 2 3 (4 67 SE2 d 3 3 0 )

(1 9 9 6). Th e Geo rg i a Su p rem e h as prev i o us l y rec o g n i z ed t h at a d eed p ro v i s i o n

reg ard i n g a recreat i on al cl u b

, s i m i l ar t o th e d ecl arat i o n fi l ed h ere, co n cern ed t h e l an d

o r i t s u s e an d creat ed a co v en an t ru n n i n g wi t h th e l an d bi n d i n g o n a s u b s eq u en t

g ran t ee u p o n accep t an ce o f t he d eed

. Lo wr y v. No r r i s La ke S

ho r es Dev. Co r

p

. , 2 3 1

Ga. 5 4 9 (2 0 3 SE2 d 1 7 1) (1 97 4 ). W e s ee n o reas o n t o reach a co n t rary res ul t h ere.

3

. In t h ei r rem ai n in g en um erat i o n o f er r o r, ap p el lan t s co n t en d t h at t h e t ri al

co u rt e r r e d b y award i ng t h e Cl u b i n t eres t at a rat e o f 1 8 %

. Bas ed up o n t hi s co urt ’ s

r e c en t d eci s io n i n No r th s id e Ba n k v. Mo un t ai n b r o o k & c. , Ga. Ap p. (Cas e No

.

A1 6 A0 00 5

, d eci d ed J u l y 14

, 2 01 6 ), we ag ree. In No r t h s id e Ba n k

, we co n cl u d ed t h at

t h e d ecl arat i o n o f co v en an t s , co n d i t i o n s , res t ri ct io n s an d eas em en t s fo r a s u b d i v i s i o n

g o v ern ed t h e h o m eo w ner as s o ci at i on ’ s ri g h t t o co l l ect i n t eres t o n p as t d u e

as s es s m en t s

. Sl ip o p

. a t 4 ( 1 )

. I n t h at cas e an d t h e on e p res en t l y b efo re u s , t h e

d ecl arat io n p ro v i d ed t h at i n t eres t co u l d b e co l l ect ed at t he m ax i m u m l eg al rat e. As

t h i s i s n o t a d efi n i t e rat e, we co n cl u d ed i n No r t h s id e Ba nk t h at th e s ev en p ercen t p er

7y ear rat e m an d at ed by OCGA § 7 -4 -2 (a) (1 ) (A) g o v ern ed t h e rat e o f i nt eres t al l o wed

b y t he d ecl arat i o n

. S l i p o p

. a t 5 -6 (1 ). In s o h o l d i n g , w e ex p res s ly reject ed t h e

h o m eo wn er as s o ci at i on ’ s arg u m en t t hat i t was en t i t l ed t o 1 8 percen t in t eres t p u rs u an t

t o OCGA § 7 -4 -1 6

, a s t at u t e g ov ern i n g co m m erci al acco u n t s ari s i n g o u t o f t h e s al e

o f g o o d s o r s erv i ces o t h er t h an a ret ai l i ns t al l m en t t ran s act i o n

. Id

. Acco rd i n g l y , we

v acat e t h e p ort io n o f t h e ju d g m en t award i ng in t eres t at a rat e g reat er t h an t he s ev en

p ercen t pro v i d ed fo r b y OCGA § 7 -4 -2 an d rem an d t h is cas e fo r recal cu l at io n o f t h e

i n t eres t at t h e co rrect rat e. Id

.

Ju d g men t a f f ir med i n p a r t

, va ca t ed i n p a r t

, a n d ca s e rema n ded wi t h d i r ect i o n.

Ba r nes , P. J., a n d

Ri ckma n , J., co n cu r

.

8