Opinion ID: 613273
Heading Depth: 3
Heading Rank: 1

Heading: Severance and Vested Rights

Text: Covenant first argues that its claims for injunctive relief are not moot because, under Georgia law, its right to a building permit vested before the enactment of the 2008 Ordinance, and thus subsequent changes to the 2004 Ordinance did not affect its entitlement to a building permit. This argument, as we understand it, is based on three contentions: First, the 2004 Ordinance violates the equal terms provision of RLUIPA by treating religious assemblies and institutions less favorably than non-religious assemblies and institutions. Second, because the 2004 Ordinance violates RLUIPA, it must be severed, not by striking language allowing non-religious assemblies in residential areas (as the district court did), but by adding language allowing churches in residential zones. Third, after the 2004 Ordinance is severed to allow churches in residential zones, Covenant has a vested right under Georgia law to build its church in a residential zone. We agree with Covenant that the 2004 Ordinance facially violates the equal terms provision of RLUIPA. [5] But, we conclude that the district court did not err in severing the 2004 Ordinance in a manner that prohibits Covenant from building its church in the R-2 residential zone. As a result, Covenant obtained no vested right under Georgia law to build a church in the residential zone. Severability of a local ordinance is a question of state law. Artistic Ent. Inc. v. City of Warner Robins, 331 F.3d 1196, 1204 (11th Cir.2003). Under Georgia law, provisions of a statute or ordinance can be severed if those provisions are not mutually dependent on the remaining provisions and legislative intent is not compromised. Mason v. Home Depot, Inc., 283 Ga. 271, 658 S.E.2d 603, 608 (2008); see also Union City Bd. of Zoning Appeals v. Justice Outdoor Displays, 266 Ga. 393, 467 S.E.2d 875, 884 (1996) (When a statute cannot be sustained as a whole, the courts will uphold it in part when it is reasonably certain that to do so will correspond with the main purpose which the legislature sought to accomplish.). The district court first concluded that the 2004 Ordinance facially violates the equal terms provision of RLUIPA because it treats religious assemblies and institutions on less than equal terms with non-religious assemblies and institutions. In particular, the court noted that the 2004 Ordinance permitted private parks, playgrounds, and neighborhood recreation centers while prohibiting religious assemblies. To remedy this unequal treatment, the district court severed the 2004 Ordinance by striking private parks, playgrounds, and neighborhood recreation centers from the list of permitted uses in the R-2 residential classification. After severance, the ordinance prohibited all places of assembly, both religious and non-religious, in residential zones. Covenant claims that this severance methodology was erroneous. According to Covenant, the 2004 Ordinance must be severed, not by striking private parks, playgrounds, and neighborhood recreation centers as permitted uses, but by adding language allowing churches in residential zones. We conclude that the district court did not err in severing the 2004 Ordinance. The striking of private parks, playgrounds, and neighborhood recreation centers from the list of permitted uses in the R-2 zone is consistent with the purpose of the zoning restrictions in the R-2 zone. The 2004 Ordinance contains a specific purpose for the R-2 zoning classification: The R-2 district is intended to be used for low density single-family detached housing and residentially compatible uses requiring large amounts of open space. City of Marietta, Ga. Zoning Ordinance, Code § 708.02(A) (2004); Dkt. 96-10 at 7. By striking private parks, playgrounds, and neighborhood recreation centers, the district court remedied the unequal treatment problem while maintaining the residential character of the R-2 zone. The district court did not err in the manner in which it severed the 2004 Ordinance. Because we find no error in the district court's severance analysis, the 2004 Ordinance, after severance, prohibited Covenant from building a church in the R-2 residential zone. Having concluded that the 2004 Ordinance, after severance, prohibits the building of a church in the R-2 zone, the next question is whether Covenant nonetheless has a vested right to a development permit. We hold that Covenant has no such right. State law governs whether a plaintiff has a vested right to a building permit. Coral Springs St. Sys. Inc., v. City of Sunrise, 371 F.3d 1320, 1333-34 (11th Cir.2004). The parties agree, as do we, that Georgia law governs whether Covenant has a vested property right to build a church in a residential zone. The vested rights doctrine under Georgia law recognizes that, in some circumstances, a property owner has a vested right to use land in a particular manner, and that land use can continue even if a zoning ordinance is later changed to prohibit that use. To acquire a vested right to development under Georgia law, a property owner must prove one of four conditions: (1) the property owner actually obtained a valid building permit authorizing a specific use under an existing ordinance; (2) the property owner actually applied for a building permit authorizing a specific use under an existing ordinance that authorizes the use, or the purchaser of land contracts to buy land based on the condition that it will be rezoned to allow a specific use; (3) the property owner had a development plan that was approved either formally or informally by the zoning authority, and the property owner expended money in reliance on the development plan; or (4) the property owner made a substantial change in position by expenditures in reliance upon the probability of the issuance of a building permit, based on an existing zoning ordinance and the assurance of zoning officials. See WMM Props., Inc. v. Cobb Cnty., 255 Ga. 436, 339 S.E.2d 252, 254-55 (1986). It is apparent ... that all the bases enumerated in WMM Properties for the accrual of vested rights involve some species of estoppel. Union Cnty. v. CGP, Inc., 277 Ga. 349, 589 S.E.2d 240, 242 (2003). Under the Georgia rules for vested property rights, Covenant has failed to show that it acquired a vested right to develop a church in the R-2 residential zone. None of the conditions necessary to acquire a vested right to development are present in this case. First, Covenant has never actually received a building permit from the City authorizing the building of its church campus. Second, Covenant did not apply for or attempt to apply for a building permit when the City's zoning regulations allowed it to build its church campus on the property; Covenant attempted to apply for a permit in February 2006 (when the City directed Covenant to seek rezoning), but at that time the 2004 Ordinance, as severed, prohibited the building of the church. Third, no development plan was ever approved in this case upon which Covenant could reasonably rely. Fourth, the City has never made any assurances that Covenant would receive a building permit. [6] Covenant does not take issue with this straightforward application of the vested rights doctrine under Georgia law. Instead, Covenant argues that an applicant has a vested right under Georgia law to a building permit when he or she applies for the permit under an ordinance that is later ruled to be partially invalid. Specifically, Covenant contends that it is entitled to build its church on the property because it attempted to apply for a building permit under the November 2004 Ordinance, and the district court later ruled that ordinance to be partially invalid. We reject Covenant's vested rights argument. Covenant's vested rights argument does not square with the equitable principles of estoppel on which the vested rights doctrine is based. Under Georgia law, the vested rights doctrine is derived from the principle of equitable estoppel in that the landowner, relying in good faith, upon some act or omission of the government, has made a substantial change in position or incurred such extensive obligation and expenses that it would be highly inequitable and unjust to destroy the rights he has acquired. Cohn Cmtys., Inc. v. Clayton Cnty., 257 Ga. 357, 359 S.E.2d 887, 889 (1987) (citation omitted). In this case, the City of Marietta has not done anything suggesting that Covenant would be entitled to build a church on its property. In fact, when Covenant attempted to apply for a permit in February 2006, the 2004 Ordinance, as severed, prohibited the building of a church. And, because the vested rights doctrine is an equitable concept, it is relevant that Covenant did not investigate the zoning status of its property until after closing the purchase of the property. Because Covenant did not reasonably rely on any act or omission by the City of Marietta and did not investigate the zoning status of its property until after closing, it cannot invoke equitable principles to block the City's enforcement of the 2008 Ordinance. [7] Nor can Covenant contend that it somehow reasonably relied on the illegality of the 2004 Ordinance when it attempted to apply for a permit in February 2006. Even if the 2004 Ordinance is partially invalid, Covenant should have known that the City could always amend its ordinance to comply with the equal terms provision of RLUIPA; and compliance with the equal terms provision does not necessarily translate to a church's right to build in a particular zone. See Petra Presbyterian Church v. Vill. of Northbrook, 489 F.3d 846, 849 (7th Cir.2007) (noting that zoning authority could comply with equal terms provision of RLUIPA by either permitting religious organizations in a particular zone or by forbidding all organizations in that zone). Given that amendment to the 2004 Ordinance was a real possibility throughout this litigation, we reject the idea that Covenant reasonably relied on the illegality of the November 2004 Ordinance and thereby acquired immunity from all subsequent zoning regulation. Further weakening Covenant's vested rights argument is its premise that a property right can vest the moment a district court enters a non-final, interlocutory order declaring an ordinance to be partially invalid. That premise makes little sense because an interlocutory order is subject to reconsideration at any time prior to entry of final judgment. Harper v. Lawrence Cnty., Ala., 592 F.3d 1227, 1231 (11th Cir.2010); cf. Fed.R.Civ.P. 54(b) (providing that interlocutory orders that resolve fewer than all claims may be revised at any time before the entry of a [final] judgment). And, the ordinance that the interlocutory order declares to be invalid may not even exist at the time of final judgment, which is precisely what happened in this case. Thus we reject the contention that a vested right under Georgia law permanently arises based on an interlocutory order. [8]