In a complex legal battle over property rights, the Valle Cay Property Owners Association, Inc. has taken its case to the Court of Appeals of North Carolina. On February 4, 2026, the association filed an appeal against Slocum Mountain Real Estate, LLC and its owners Benjamin and Karen Slocum in Watauga County Superior Court. The appeal challenges a previous court decision that dismissed their complaint alleging breach of contract related to land use restrictions.
The roots of this legal dispute trace back to May 15, 1987, when Appster Properties acquired a significant tract of land known as the “Appster Property” in Watauga County. Shortly thereafter, Appster Properties established a set of covenants intended to govern the use of this land, leading to the formation of the Valle Cay Property Owners Association. Over time, various parcels from this original property were sold off, including the Farmhouse Tract which eventually came into possession of Frank and Gaye Lopez-Luaces before being transferred to Slocum Mountain Real Estate, LLC.
Central to this case is a Memorandum of Settlement and Consent Judgment agreed upon by multiple parties in 2002. This document outlined specific restrictions for properties within Valle Cay Development but explicitly released the Farmhouse Tract from these general covenants while imposing its own unique conditions. The Valle Cay Property Owners Association claims that Slocum Mountain Real Estate violated these terms by altering the property’s use without proper notification or adherence to stipulated residency requirements.
The defendants responded with a motion to dismiss under Rule 12(b)(6), arguing that no valid claim was presented. The trial court sided with them regarding Benjamin and Karen Slocum individually but found merit in reviewing claims against Slocum Mountain Real Estate further. The appellate court’s task is now to determine whether sufficient grounds exist for these allegations under North Carolina law.
The plaintiffs seek judicial recognition that their breach of contract claim is valid against Slocum Mountain Real Estate based on alleged violations tied directly to real covenants running with the land—a concept wherein certain property restrictions bind not just current owners but future ones as well if properly recorded and referenced.
Legal representation for Valle Cay comes from Joseph T. Petrack and Stacy C. Eggers IV at Eggers, Eggers & Eggers PLLC; meanwhile R. Jeremy Sugg and Marc E Gustafson from Bell Davis & Pitt PA defend Slocum interests before Judge Daniel A Kuehnert presiding over Case No COA25-532 alongside Judges Arrowood Gore concurring opinions on partial affirmations reversals remands throughout proceedings ensuring fair adjudication amidst intricate matters involving historical deeds agreements spanning decades influencing modern interpretations applicable laws impacting community governance expectations today tomorrow alike
Source: COA255321_Valle_Cay_Property_Owners_Association_Inc_v_Slocum_Mountain_Real_Estate_LLC_Opinion_North_Carolina_Court_of_Appeals.pdf
