Utah HOA Case Law
Non-exhaustive Compilation
J. Howard ROWLEYand Nanette B. Rowley,
his wife,
Plaintiffs and Appellants,
v.
MARRCREST HOMEOWNERS' ASSOCIATION,
John C. Woods, Clegg Construction Co., Inc.; and John Does I through XII,
Defendants and Respondents.
656 P.2d 414
Supreme Court of Utah.
Oct. 25, 1982.
Summary by Curtis G. Kimble:
Property owner brought action for damages and an injunction to prevent HOA from blocking access to their driveway. The Supreme Court held that: (1) plats demonstrated that parking area was designated as part of common area (but not part of the roads), and therefore, property owners could be restricted by association from using parking area to gain access to driveway; (2) association did not waive its power to restrict property owners' use of parking area by approving site plan for construction of property owners' home and driveway, because directors of association who signed plat gave their approval on condition that parking area not be used as part of driveway, and subsequently informed property owners that they could not utilize their driveway as they had planned, so that association did nothing to relinquish its right to regulate site plan design; and (3) the fact that HOA approved use of parking areas for access to driveways of certain owner's lots did not preclude it from denying plaintiff owner same privilege; association had right to require that all plans for construction be submitted and approved to prevent driveways from being built which required access across parking areas, and to make such determinations on a case-by-case basis.
Where property owners' planned use of common area in planned unit development for access to their driveway was an illegal one, homeowners' association could properly construct planter boxes to block driveway and render driveway and carport useless.
--End of Summary.
STEWART, Justice:
Plaintiffs, Howard and Nanette Rowley,
brought this action for damages and an injunction to prevent Marrcrest
Homeowners' Association (hereinafter Marrcrest) from blocking Rowleys' access
to their driveway. The trial court found that Rowleys' site plan for
construction of their home and driveway had been approved upon the condition
that they not use a specific Marrcrest common area for access to their
driveway. The court ruled that the Rowleys had not complied with that
condition, had an adequate remedy at law, and therefore were not entitled to an
injunction. On appeal, the Rowleys seek reversal of the trial court's judgment.
Marrcrest is a planned unit development in
which the developer sold individual lots in a plat approved by the city, rather
than building all the houses himself. All property owners become members of the
Marrcrest Homeowners' Association, which regulates development by requiring
compliance with a set of restrictive and protective covenants and conditions.
These covenants include plan approval before building, payment of annual
assessments, and exterior maintenance of all buildings and grounds.
Marrcrest has thirty-foot wide streets,
which are too narrow for parking. The developer provided some offstreet parking
in turnouts, most of which provide parallel parking space for two or three
cars. Of ten such turnout parking areas, six also provide access to private
driveways, and two have been landscaped to conform to the adjoining property.
On the original plat, there is no designation that these turnout areas were
reserved for parking. It is commonly understood, however, that they are not
driving areas and are to be distinguished from the street.
The Rowleys purchased two adjacent lots in
the development and proposed to build a duplex, which is not restricted by the
Marrcrest covenants. At a time when plaintiff Howard Rowley was president of
the Marrcrest Homeowners' Association, he presented a plan to the architectural
control committee, made up of Marrcrest's Board of Directors, to construct one
large home with its primary driveway from the home exiting to the north into a
cul-de-sac. As part of the duplex plan, however, he proposed a second driveway
which would exit to the west into a turnout parking area and then into the
street. The parking area into which the Rowleys' proposed driveway would exit
is larger and deeper than most in the development, allowing parking of eight or
nine cars. The access to Rowleys' proposed driveway would take at least one of
these parking spaces.
The Rowleys' plan was not promptly
approved by the architectural committee because the additional “apartment”
driveway would cross a parking area. The Rowleys claim that the committee
members promised to approve their proposed driveway and building plan for the
duplex if they narrowed the apartment driveway to take only one parking space
and if they agreed to construct and maintain other parking spaces at their
expense. In November 1977, by taking the plans to the homes or offices of the
committee members, Howard Rowley secured a majority of the committee members'
signatures on the building plan. At trial two committee members testified, and
the trial court found, that the signatures were obtained on the condition that
the Rowleys provide access to the apartment by extending the original driveway
from the north. The Rowleys contended that this solution was not discussed and,
if implemented, would result in no front lawn for the apartment.
The Rowleys began construction of their
home, and when it appeared they were planning to use the parking area for
access to the apartment driveway, other homeowners filed complaints with
Marrcrest's Board of Directors. On May 29, 1979, when Howard Rowley was still
on the board but no longer Marrcrest's president, the issue of the Rowleys'
driveway was discussed in a board meeting. The new board decided “not to
overturn the approval given by the prior board,” and left the situation
unchanged. In the June 5, 1979 meeting, the board decided to obtain legal
advice on the Rowleys' driveway. A letter from Marrcrest's attorney was read at
the June 12, 1979 board meeting and suggested that Marrcrest stand by the
decision of the prior board and take no further action. The letter was entered
into the meeting's minutes, and the board elected to accept the attorney's
recommendations. As a board member, Howard Rowley received copies of all board
meeting minutes and was informed of the board's actions.
The Rowleys constructed their apartment
driveway and carport in June, 1979. Several of the homeowners formally objected
to the board, and a special meeting of all Marrcrest's members was called. On
August 15, 1979, at this special meeting, the *417 property owners voted to
require the Rowleys to abide by the restrictive covenants and the conditional
plat approval that required them to provide access to the apartment from the
north driveway. By this time the concrete for the Rowleys' driveway and carport
had been poured, and they took no action to change the situation. On February
20, 1980, Marrcrest authorized construction of a berm and planter box across
the entrance to the apartment's driveway while the Rowleys were out of town.
The trial court made findings of fact that
the Rowleys' plan was approved only on the condition that they extend the north
driveway for use by the apartment; that the Rowleys understood this condition;
and that there was no written authorization for the Rowleys' use of the “common
area” for their driveway. These findings are supported by the evidence, and
therefore cannot be disturbed. Tanner v. Baadsgaard, Utah, 612 P.2d 345 (1980);
McBride v. McBride, Utah, 581 P.2d 996 (1978).
The first issue on appeal is whether the
Rowleys could be restricted from using the parking area to gain access to the
apartment driveway. The Rowleys allege that the parking area was designated as
part of the development's roads and not as common area. By this distinction,
the Rowleys attempt to persuade the Court that all residents in Marrcrest have
access to their homes from the roadways, and to restrict the Rowleys from
similar access would be unfair and discriminatory.
The plats offered by the Rowleys fail to
justify this distinction. The Marrcrest streets are designated as “Home Owner's
Association Roadway,” and all other property not depicted as building lots are
entitled “Home Owner's Association Property.” The plat legend contains a
section called “Owners' Dedication,” which states in part that the property
owners “hereby dedicate the streets, walkways, and other Association properties
to Marrcrest Home Owner's Association.” Marrcrest's Declaration of Restrictive
Covenants and Conditions defines common area as “all real property owned by the
Association for the common use and enjoyment of the members of the
Association.” Another section in the Declaration divides all the property
within the Marrcrest development into only two classifications, dwelling units
and common areas. The parking area, along with all other common areas, belongs
to Marrcrest, which is responsible for protecting the common ownership for the
benefit of all Marrcrest members.
The Rowleys also contend that the plats
are writings and that parol evidence relating to the purpose of the “parking
areas” was inadmissible. Plats are writings and parol evidence is inadmissible
to explain or modify an unambiguous plat. Milliken v. Smith,120 Okl. 211, 251
P. 84 (1926); Swanson v. Gillan, 54 R.I. 382, 173 A. 122 (1934). As in all parol
evidence cases, oral testimony may not be admitted to vary or contradict the
terms of a document; however, it is admissible to clarify the meaning of
ambiguous provisions. The turnout areas shown on the plats do not clearly or
obviously portray their purpose. It was therefore proper to admit evidence to
clarify the intended purposes and uses of these particular areas. The testimony
did not contradict or change anything depicted on the plat and was therefore
not in violation of the parol evidence rule.
The next issue raised is whether Marrcrest
waived its right to enforce the restrictive covenants and is therefore estopped
from excluding the Rowleys' use of the parking area. First, the Rowleys deny
the existence of a restrictive covenant that prevents them from having access
to the street across the parking area. The Declaration of Restrictive and
Protective Covenants contains few references to the ownership or regulation of
the common areas. Nevertheless, the common area is owned by Marrcrest for the benefit
of all the members. One means of protecting the members' ownership interest in
the common areas was the creation of a board of directors to perform several
functions, one of which is to supervise the architectural committee. Before any
structure can be constructed *418 within the development, the architectural
committee must approve the plans in writing. The common areas may be protected
from private acquisition, impairment, or devaluation through the regulation of
the architectural committee. The Rowleys, therefore, are correct in asserting
that no specific restrictive covenant prohibits access to the street across the
parking area. Nevertheless, Marrcrest has the legal right to control access
through parking areas by granting or denying proposed site plans.
Rowleys further contend that the 1977
approval of their plans and the other similar uses of the parking areas in the
development constituted a waiver and estopped Marrcrest from denying them
access across the parking area.
“A waiver is the intentional
relinquishment of a known right. To constitute a waiver, there must be an
existing right, benefit, or advantage; a knowledge of its existence' and an
intention to relinquish it. It must be distinctly made, although it may be
express or implied.” Phoenix Insurance Co. v. Heath, 90 Utah 187, 194, 61 P.2d
308, 311–12 (1936). See also Bjork v. April Industries, Inc., Utah, 547 P.2d
219 (1976); American Savings & Loan Association v. Blomquist, 21 Utah 2d
289, 445 P.2d 1 (1968). Estoppel has been defined as:
a doctrine of equity purposed
to rescue from loss a party who has, without fault, been deluded into a course
of action by the wrong or neglect of another. The measure we apply to
plaintiffs' claim of estoppel is an adaptation to this case of the standard
heretofore approved by this court: Estoppel arises when a party ... by his
acts, representations, or admissions, or by his silence when he ought to speak,
intentionally or through culpable negligence, induces another ... to believe
certain facts to exist and that such other ... acting with reasonable prudence
and diligence, relies and acts thereon so that he will suffer an injustice if
the former ... is permitted to deny the existence of such facts.
Morgan v. Board of State Lands, Utah, 549
P.2d 695, 697 (1976).
We hold that Marrcrest did not waive its
power to restrict the Rowleys' use of the parking area. The directors who
signed Rowleys' plat in 1977 gave their approval on the condition that the
parking area not be used as part of the Rowleys' driveway. The Rowleys were
informed at the May 29, 1979 board meeting that there was no change in the
approval given in 1977. Nevertheless, the Rowleys proceeded with construction
in June, and were informed on August 15, 1979 that they could not utilize their
driveway in that manner. Under these circumstances, Marrcrest did nothing to
relinquish its right to regulate the site plan design.
The instant facts also preclude the
Rowleys' reliance on estoppel. The conditional approval of the site plan and
the representations that the requested changes had been made show that the
Rowleys were not without fault in proceeding with the construction. Neither the
May 29, June 5, nor June 12 board meetings did anything to modify the previous
conditional approval, but rather reaffirmed it. Marrcrest did not intentionally
or negligently induce the Rowleys to proceed with their construction. The
attorney's letter of June 11, 1979 recommended no further action against the
Rowleys, and advised that relying on the previous board's decision was “the
safest route for [the Board] to take.” This certainly did not induce the
Rowleys to proceed in the belief that the board of directors approved their
proposed plans.
The Rowleys' claim that other homeowners
in the development utilize parking areas for access to their driveways. That
does not preclude Marrcrest from denying the Rowleys the same privilege.
Although it is correct that Marrcrest has approved use of parking areas for
access to driveways in some instances, it is not true that Marrcrest was
required to do so. Marrcrest clearly has the right to require that all plans
for construction be submitted and approved to prevent driveways from being
built which require access across the parking areas, and such determinations will
necessarily be made on a case by case basis. Although the *419 Rowleys
correctly argue that restrictive covenants which are habitually violated and
apparently abandoned are not enforceable, Sandy Point Improvement Co. v. Huber,
26 Wash.App. 317, 613 P.2d 160 (1980), waiver and estoppel do not apply in this
case because Marrcrest has consistently required all construction to be
approved before it was commenced.
Finally, it is argued that Marrcrest
cannot construct planter boxes for the sole purpose of injury to a homeowner.
The Rowleys claim that the planter boxes were constructed to block the driveway
and render the driveway and carport useless. As a general proposition, one who
erects an otherwise useless structure for the sole purpose of injuring a
neighbor makes an improper use of his property. Sundowner, Inc. v. King, 95
Idaho 367, 509 P.2d 785 (1973); Burke v. Smith, 69 Mich. 380, 37 N.W. 838
(1888). However, the planter boxes are on Marrcrest property and block an
illegal use of the common area by the Rowleys. The general rule, stated above,
does not apply in this case.
There is substantial evidence to support
the conclusion that the Rowleys knew of the condition imposed upon the approval
of their proposed plans, but nonetheless constructed their carport and driveway
in violation of that condition. Marrcrest is under no obligation to grant
access to the Rowleys' additional apartment driveway. Marrcrest may use the
common area for any appropriate use, including installing planter boxes to beautify
the parking facility. The Rowleys may not force Marrcrest to cooperate in
implementing their unapproved plan.
Affirmed. Costs to respondents.
HALL, C.J., and OAKS and DURHAM, JJ.,
concur.
HOWE, Justice (concurring and dissenting):
I concur in the majority opinion except in
that part dealing with waiver by the Association of its right to enforce the
restrictive covenants. I would remand the case to the trial court for more
definite findings of fact on that issue.
In paragraph 12 of his complaint, the
plaintiffs alleged that the Association had waived any rights which it may have
had to prevent the plaintiffs from gaining access to their property across the
common area because the Association had repeatedly allowed similar continuing violations
by other individuals in Marrcrest. In support of that allegation, Mr. Rowley
testified that in eight of the ten other parking areas there were driveway
entrances. He testified that he had long been a member of the homeowners'
association, had served three times on the board of trustees, had served as
president and secretary and had attended many homeowners' meetings, but he had
never heard that any resident had been told that he was not to obtain access to
his property through the common area. The inference of his testimony was that
the Association had never given permission for any owner to so use the common
area. Clinton Harding, president of the Association in 1979, testified that the
plaintiffs had been “treated differently” than had other individuals in like
circumstances in the installation of driveways. On the other hand, the
Association adduced testimony that it had given express approval in the eight
other cases although in some of them permission was given only for temporary
use.
The trial court made no specific finding
of fact whether the other uses of the common area for entrance to driveways was
with or without the consent of the Association. Neither was the subject
mentioned in his memorandum decision. The majority opinion states that “waiver
and estoppel do not apply in this case because the Association has consistently
required all construction to be approved before it was commenced.” I fail to
find anything in the Findings of Fact to that effect.
As stated in the majority opinion, restrictive
covenants which are habitually violated and apparently abandoned will not be
enforced by a court of equity. I believe that the plaintiff properly raised
that issue in this case and that the Findings of Fact *420 made by the trial
court do not specifically address that issue. A Conclusion of Law states that
the “plaintiffs did not sustain their burden to prove the allegation set forth
in their complaint.” That statement is so general and conclusory that it is not
helpful here. I would remand this case to the trial court for a specific
finding as to whether the use of the common area by others as an entrance to
driveways was with or without the prior consent of the Association and to amend
the judgment accordingly if necessary.
It should be further noted that assuming
the other uses were with the consent of the Association, the Association could
not arbitrarily and capriciously deny the same privilege to the plaintiffs.
This claim, however, was not pleaded by the plaintiffs and is not properly before
us for decision.