Utah HOA Case Law
Non-exhaustive Compilation
THE VIEW
CONDOMINIUM OWNERS ASSOCIATION, a Utah condominium association,
Plaintiff,
Respondent, and Cross-Petitioner,
v.
MSICO, L.L.C., a Utah limited liability
company; and the Town of Alta, a political subdivision of the State of Utah,
Defendants, Petitioners, and Cross-Respondents.
127 P.3d 697 (Utah 2005)
Supreme Court of Utah
December 30, 2005
PARRISH,
Justice:
¶ 1 The View
Condominium Owners Association ("The View") sued the Town of Alta and
MSICO, L.L.C. ("MSI"), seeking to prevent construction of single
family homes on lots 5 and 9 of the Sugarplum Planned Unit Development
("Sugarplum"), both of which are owned by MSI and located in Alta.
With respect to lot 5, The View argued that restrictive covenants governing
Sugarplum designated lot 5 as a parking area and that a subsequent amendment to
the Sugarplum plat map did not alter that designation. With respect to lot 9,
The View argued that Alta effectuated an unconstitutional taking of its
property without just compensation when it amended a plan designating lot 9 for
snow storage. The district court entered summary judgment against The View on
both issues. The court of appeals affirmed the summary judgment on the parking
issue, but concluded that disputed issues of material fact precluded summary
judgment on the snow storage issue. The parties cross-petitioned this court for
writs of certiorari, which we granted. We hold that the restrictive covenants
were not abrogated by the recording of the amended plat and accordingly reverse
the court of appeals' ruling on the parking issue. We similarly reverse the
court of appeals' ruling on the snow storage issue, concluding that The View cannot
establish the elements necessary to succeed on its claim of regulatory taking.
FACTUAL
BACKGROUND
¶ 2 The
Sugarplum Planned Unit Development comprises approximately twenty-five acres in
Alta, Utah. On August 12, 1983, Sorenson Resources Company ("Sorenson"),
the developer of Sugarplum, simultaneously recorded two documents with the Salt
Lake County Recorder. The first was a Master Declaration of Covenants,
Conditions and Restrictions (the "Declaration") governing Sugarplum.
The second was a plat map ("original plat") defining the location and
dimensions of the individual Sugarplum lots and specifying their anticipated
dwelling densities.
¶ 3 As
originally envisioned, Sugarplum was divided into nine individual lots with
common areas for roads and other shared uses. Under the Declaration, a planned
road running roughly north and south provided access to lots 4 through 9. Lot 4
abutted the road's eastern edge, while lot 5 abutted the road's western edge.
Lots 8 and 9 were also located west of the road, but they were offset so that
access to them was available only by passing through lot 5.
¶ 4 The
Declaration designated lot 5 as a parking area for the benefit of the units to
be constructed on lot 4 and on lots 6 through 9. Sorenson retained the airspace
rights above lot 5, to be developed as it saw fit; potential uses included
"commercial, retail, residential, recreational."
¶ 5 The original
plat also anticipated the use of lot 5 for parking. It contained a table
entitled "Anticipated Dwelling Density," which listed the estimated
number of residential units to be constructed on each of the nine lots. All
lots, except lot 5, were assigned a tentative number of units. Lot 5 Page 700 was assigned no units. Rather,
the entry for lot 5 stated "Parking and Commercial Development of Air
Space."
¶ 6 Before
selling any of the lots, Sorenson recorded an amended plat map, which
significantly altered the configuration, size, and spatial relationships of the
nine lots. The amended plat moved lot 5 across the street so that it occupied
land that previously had been part of lot 4. Lots 8 and 9 were shifted toward
the road into the space previously occupied by lot 5 so that these two lots
then abutted the planned road.
¶ 7 The amended
plat also included changes to the table. The designation of lot 5 for
"Parking and Commercial Development of Airspace" found on the
original plat was eliminated, and lots 4 and 5 were listed together, with
sixty-five units allocated between them. Sorenson, however, failed to make
corresponding amendments to the Declaration, which designated lot 5 for parking
and the development of airspace.
¶ 8 On January
4, 1985, The View's predecessor in interest purchased lot 8 as described in the
amended plat. Despite the restrictive covenants contained in the Declaration,
the parties did not contemplate a parking right on lot 5. Walter Plumb,
Sorenson's corporate secretary, testified that the amended plat reflected plans
to eliminate lot 5 as a parking structure and that Sorenson never intended to
convey a parking right in that lot. Russell Watts, president of The View's
predecessor in interest, who was directly involved in the purchase of lot 8
from Sorenson, testified that he neither bargained for nor intended to acquire
a parking interest in lot 5.
¶ 9 After acquiring
lot 8, The View's predecessor in interest sought a building permit from Alta.
Because of the heavy annual snowfall in the Alta area, Alta required an
acceptable plan for storing the snow on lot 8 as a condition of the permit. To
facilitate the application process, Plumb wrote a letter to Alta dated February
27, 1985, in which he sought to clarify Sorenson's intent with regard to snow
storage at Sugarplum. The letter stated that, during the development of lots 6
and 8, snow would be stored in the appropriate designated areas and that if
there should "be any excess snow, it may be stored on lot 9 as
recorded." It also stated that areas designated for snow storage were
subject to change and that any such changes would be submitted to Alta for
approval when Sorenson applied for additional development in Sugarplum.
¶ 10 The Alta
Planning Commission approved The View's application for a building permit on
lot 8, contingent on its understanding that substantial snow storage had been
planned for lot 9. On April 27, 1985, on the basis of the Commission's
recommendation, Alta approved an official snow removal plan for The View that
designated lot 9 for overflow snow storage, and The View began using lot 9 for
that purpose.
¶ 11 On December
31, 1988, Sorenson deeded lots 4, 5, and 9 to MSI. Thereafter, various disputes
arose between MSI and Alta regarding development of the three lots, culminating
in MSI's filing a lawsuit against Alta in September 1996. One of the disputes
related to Alta's refusal to allow MSI to develop lot 9 while that lot was
designated as a snow storage area for use by The View. As part of that dispute,
Alta sent The View a letter indicating that, if The View were to lose its
ability to store snow on lot 9, Alta "would have little choice but to take
legal action to protect the public safety and welfare," as "[s]now
storage is a life-safety issue in Alta." The letter stated that
"protect[ing] the public safety and welfare" would necessitate
"an injunction precluding the occupancy of The View of lot 8 or portions
thereof during snow periods."
¶ 12 MSI and
Alta settled the suit in November 2000. As part of the settlement, Alta
approved an alternate snow storage plan for lots 4, 5, 8, and 9. The alternate
plan removed lot 9 as the designated location for snow storage for The View and
allowed snow from lots 4, 5, 8, and 9 to be stored on five separate locations
in and around Sugarplum. Under the settlement agreement, Alta also approved a
development plan authorizing construction of ten single family homes on lots 4,
5, and 9.
¶ 13 In December
2000, The View sued MSI and Alta seeking to prevent construction Page 701 on lots 5 and 9. The View
sought to prevent construction on lot 9 under various legal theories, all of
which were designed to establish that The View had a permanent right to store
snow on that lot. Specifically, it argued that MSI and Alta breached a contract
allowing it to use lot 9 as overflow snow storage and that MSI and Alta also
breached the implied covenant of good faith and fair dealing that inhered in
the contract. The View alternatively argued it had an easement to store snow on
lot 9 and that the doctrine of estoppel prevented MSI and Alta from denying its
right to store snow there. Finally, The View claimed that Alta's adoption of
the revised snow storage plan constituted an unconstitutional taking of its
property without just compensation.[1]
[1]
MSI counterclaimed, arguing that The View had improperly used lot 9 to store
snow without MSI's permission and without paying MSI appropriate compensation.
MSI requested payment for the reasonable value of The View's use of lot 9 and
an order requiring that The View cease using lot 9 for snow storage. The
district court held that MSI's counterclaim was mooted by its grant of summary
judgment in favor of MSI on The View's takings claim. Because we affirm the
summary judgment in favor of MSI on that issue, and because neither party
disputes the conclusion that summary judgment in favor of MSI on The View's
takings claim rendered MSI's counterclaim moot, we do not address MSI's
counterclaim further.
¶ 14 Following
discovery, The View, MSI, and Alta all moved for summary judgment. The district
court denied The View's motion for summary judgment on the parking and the snow
removal issues and granted MSI/Alta's motion for summary judgment on both
issues.
¶ 15 The court
of appeals affirmed the district court's entry of summary judgment against The
View with respect to its claim for parking on lot 5 and its contractual claims
to store snow on lot 9. The View Condo.
Owners Ass'n v. MSICO, L.L.C., 2004 UT App 104, ¶ 38, 90 P.3d 1042. But it
reversed the summary judgment entered against The View on its other claims
relating to the snow storage issue. Id.
Specifically, it found that disputed issues of material fact made summary
judgment inappropriate on The View's claims of implied easement, estoppel, and
taking without just compensation and remanded those claims to the district
court for further proceedings. Id.
¶ 16 MSI and
Alta jointly petitioned for a writ of certiorari, arguing that the court of
appeals erred in denying summary judgment in its favor on The View's claims of
implied easement, estoppel, and a constitutional taking. The View
cross-petitioned, alleging that the court of appeals erred in affirming summary
judgment in favor of MSI on its claim to a parking right on lot 5. We granted
certiorari to consider only two issues.[2] First, did the court of appeals err
in holding that the restrictive parking covenant for lot 5 was terminated by the
plat amendment? Second, did the court of appeals err in holding that Alta's
termination of the snow storage designation for lot 9 gave rise to a
constitutional takings claim? We have jurisdiction pursuant to Utah Code
section 78-2-2(3)(a). Utah Code Ann. § 78-2-2 (3) (a) (2002).
[2]
Neither The View's claim of an implied easement to store snow on lot 9 nor its
claim that Alta and MSI are estopped from denying it permission to store snow
on lot 9 was encompassed within our order granting certiorari review.
Disposition of those issues is therefore governed by the court of appeals'
opinion, which directed that they be remanded to the district court for further
consideration.
ANALYSIS
¶ 17 When reviewing a case on certiorari, we review the court of appeals' decision for correctness. State v. Peterson, 2005 UT 17, ¶ 8, 110 P.3d 699; State v. Corwell, 2005 UT 28, ¶ 10, 114 P.3d 569. " The correctness of the court of appeals' decision turns on whether that court correctly reviewed the trial court's decision under the appropriate standard of review." State v. Dean, 2004 UT 63, ¶ 7, 95 P.3d 276. When reviewing the trial court's interpretation of the Declaration, which presents a legal question, the court of appeals was obligated to apply a correctness standard. Cf. Fairbourn Commercial, Inc. v. Am. Hous. Partners, Inc., 2004 UT 54, ¶ 6, 94 P.3d 292. In reviewing a grant or denial of summary judgment, the court of appeals was obligated to "view the facts and all reasonable inferences drawn therefrom in the Page 702 light most favorable to the nonmoving party" and to review the district court's legal conclusions, as well as the grant of summary judgment as a whole, for correctness. Fericks v. Lucy Ann Soffe Trust, 2004 UT 85, pp 2, 10, 100 P.3d 1200 (citation omitted). Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to a judgment as a matter of law. Id. ¶ 10; Utah R. Civ. P. 56(c).
¶18 The View
contends that the court of appeals erroneously affirmed the district court's
grant of summary judgment in favor of MSI on the lot 5 parking issue. Alta
argues that the court of appeals erred in reversing summary judgment in its
favor on the lot 9 takings claim. We address each contention in turn.
I.
THE VIEW'S RIGHT TO USE LOT 5 FOR PARKING
¶ 19 We first
consider whether the court of appeals erred in holding that the plat amendment
terminated the restrictive parking covenant applicable to lot 5. The court of
appeals approached this issue by analyzing whether the lot 5 parking covenant
qualified as a covenant "running with the land." The View Condo. Owners Ass'n v. MSICO, L.L.C., 2004 UT App 104, pp
16-29, 90 P.3d 1042. The court concluded that the covenant did not run with the
land because the covenanting parties did not intend it to do so. Id. ¶ 18. In reaching this conclusion,
the court of appeals began with the proposition that the relevant time for
determining intent was that point when Sorenson first conveyed a parcel subject
to the Declaration. Id. pp16-18. The court of appeals then examined
the language of the Declaration in light of the amended plat, found that it was
ambiguous, and therefore looked to extrinsic evidence of intent. Id. pp 20-26. From the extrinsic
evidence, the court of appeals concluded that the parties did not intend the
parking covenant to run with the land. Id.
pp 25-26. It therefore upheld the district court's summary judgment in favor of
MSI. Id.
¶ 20 The View
argues that the court of appeals erred when it considered extrinsic evidence.
It asserts that the Declaration unambiguously demonstrates the parties' intent
to create a restrictive covenant burdening lot 5 and that it is entitled to
enforce the Declaration according to its terms. At the heart of The View's
argument is the notion that the amendment to the plat map, which reconfigured
the sizes and locations of the Sugarplum lots, did not effectuate an amendment
to the corresponding Declaration. We agree.
¶ 21 A servitude,
such as a restrictive covenant, "is created . . . if the owner of the
property to be burdened . . . conveys a lot or unit in a general-plan
development or common-interest community subject to a recorded declaration of
servitudes for the development or community." Restatement (Third) of
Property: Servitudes § 2.1 (2000). We interpret the provisions of the
Declaration as we would a contract. Swenson
v. Erickson, 2000 UT 16, ¶ 11, 998 P.2d 807. If the Declaration is not
ambiguous, we interpret it according to its plain language. Fairbourn Commercial, Inc. v. Am. Hous.
Partners, Inc., 2004 UT 54, ¶ 11, 94 P.3d 292. We may resort to extrinsic
evidence as an aid to construction only where there is an ambiguity. See Swenson, 2000 UT 16, pp 10-11. An
ambiguity exists if the Declaration is "capable of more than one
reasonable interpretation because of uncertain meanings of terms, missing
terms, or other facial deficiencies." Fairbourn
Commercial, 2004 UT 54, ¶ 10, 94 P.3d 292; (internal quotation marks
omitted).
¶ 22 The
Declaration's initial recitals plainly state that the covenants, servitudes,
and restrictions contained in the Declaration "shall constitute covenants
to run with the land." Article 12.12 of the Declaration similarly provides
that the "Declaration shall run with the land, and shall continue in full
force and effect for a period of fifty (50) years." Article 3.1 of the
Declaration states: "Lot 5 shall be reserved for and improved with a
parking facility for the owners of Lot 4 and Lots 6-9 and the Units constructed
thereon, subject to Declarant's reservation of the air space rights to Lot 5
...." Finally, the restrictive covenants of the Declaration expressly
apply to lots 1 through 9 "as shown on that [plat map] . . . as the same
may be Page 703 amended from time to
time." We conclude that this; language unambiguously creates a restrictive
covenant that came into effect when Sorenson conveyed lot 5 to MSI.[3]
[3]
We note that the court of appeals' focus on whether the parking covenant was
one "running with the land" is extraneous to the resolution of this
issue. The question of whether a restrictive covenant "runs" with its
appurtenant land arises only when a landowner seeks to convey the burdened land
to another. See, e.g., Flying Diamond Oil
Corp. v. Newton Sheep Co., 776 P.2d 618, 620-23 (Utah 1989). In that
circumstance, the restrictive covenant that encumbers the land is already in
force. Here, however, while lot 5 was subject to article 3.1 of the
Declaration, it was not encumbered until Sorenson actually conveyed it to MSI,
thereby creating the servitude. See restatement (Third) of Property: Servitudes §
2.1 cmt. c.
¶ 23 In urging
us to conclude otherwise, MSI relies on the plat amendment. While it concedes
that the Declaration and original plat contemplated the use of lot 5 for
parking, it argues that the amended plat eliminated the original lot 5, redrew
the boundaries of the several lots, and used land from other lots to create a
new lot 5 devoid of any use restrictions. Because the Declaration incorporates
the amended plat by reference, [4] MSI argues that the plat amendment effected
an amendment to the Declaration as well, a result that is consistent with the
intent of the parties at the time Sorenson conveyed lot 8.
[4]
The Declaration defines "Map" to mean the recorded plat, "as the
same may be amended from time to time, and which is incorporated herein by this
reference."
¶ 24 While we
agree with MSI's core contention that the Declaration must be construed
together with the amended plat, see
Rowley v. Marrcrest Homeowners' Ass'n, 656 P.2d 414, 417 (Utah 1982), we
disagree with the way in which MSI attempts to apply that principle here.
First, MSI's argument ignores the language of the Declaration specifying that
the restrictive covenants apply by their terms to any amended plats. Second,
the argument presumes that the terms of the Declaration are in conflict with the
amended plat. But they are not.
¶ 25 Nothing in
the amended plat is inconsistent with use of the lot 5 surface area for
parking. The table on the amended plat does not require that any units be
constructed on lot 5. It specifies only that a maximum of sixty-five units may
be distributed between lots 4 and 5. Moreover, the Declaration reserves the air
space above lot 5 to Sorenson. Article 2.1.3 provides:
[Sorenson]
hereby reserves unto itself, its successors and assigns, the exclusive right to develop, build upon, lease, sell and otherwise
use the air space above Lot 5 . . . . [Sorenson] and/or transferee of the
Air Space shall have the right to construct
any improvements therein for commercial, residential, retail, recreational or
any other use permitted by applicable state and local law. No owner of Lot
5 or any part thereof shall impair or restrict development of the Air Space,
but shall cooperate fully with such development and execute any such further
documents or agreements deemed necessary by [Sorenson] for the development of
such space.
(Emphasis
added.) Article 2.1.3 also provides for an easement over lot 5 for ingress and
egress "by any other owners, lessees, guests, employees, contractors,
invitees or customers of [Sorenson] or
any subsequent owner(s) of the Air Space or any improvements constructed thereon" (emphasis added). In
other words, the Declaration did not contemplate that lot 5 would be used
exclusively for parking. Rather, it bifurcated lot 5 into two horizontal
levels. While the bottom level was to be used for parking, the upper level
could be used for any purpose selected by Sorenson or its successors in
interest. In short, under the Declaration, parking and development on lot 5 are
not mutually exclusive. Because the amended plat is not inconsistent with the
restrictive parking covenant contained in the Declaration, we must reject MSI's
claim that the plat amendment modified the Declaration, thereby eliminating its
designation of lot 5 as a parking area.
¶ 26 As
additional support for its amendment by implication theory, MSI points to
provisions in the Declaration allowing the developer to unilaterally amend the
Declaration and the plat "for the purpose of Page 704 allocating density to Lots owned by the [developer] or
changing the configuration, size or location of [such lots]." Relying on
those provisions, MSI argues that the Declaration could be modified simply by
amending the plat. We reject this argument as well. The fact that the
Declaration vested the developer with the unilateral authority to amend the
Declaration and the plat in order to alter the configuration, size, or location
of the developer's own lots does not suggest that the developer could
unilaterally terminate restrictive covenants through a plat amendment alone. Nor
does it suggest that amendments to the plat would constitute de facto
amendments to the Declaration itself--particularly where, as here, the amended
plat is not inconsistent with the Declaration. While Sorenson may have had the
right to unilaterally amend the Declaration prior to the sale of lot 8, the
undisputed fact is that it never did so. And under the explicit terms of the
Declaration, amending the Declaration subsequent to the sale of the first lot
requires "the vote or written assent of a majority of the total voting
power of the Master Association."
¶ 27 MSI also
argues that the plat amendment demonstrates the intent and understanding of
both The View and MSI that lot 5 not be subject to a restrictive parking
covenant. Intent, however, is irrelevant because we conclude that the
Declaration and the amended plat, when construed together, are subject to only
one plausible meaning, namely, that the amended plat's reference to building
units refers to development of lot 5's air space rather than to a revocation of
the restrictive parking covenant. Well-settled law precludes us from
considering extrinsic evidence to vary the terms of an unambiguous written
agreement. The policy behind such law is particularly compelling here, where
the written agreement, which concerns real property, has been recorded in the
public records. Parties should be able to rely on documents of record without
fear that their unambiguous provisions may be set aside on the basis of
contrary extrinsic evidence of intent. See
Fairbourn Commercial, 2004 UT 54, pp 10-11, 94 P.3d 292 . We accordingly
hold that there are no disputed issues of material fact and that The View, not
MSI, is entitled to a judgment as a matter of law with respect to the existence
of the lot 5 parking covenant. Utah R. Civ. P. 56(c).
¶ 28
Notwithstanding the existence of the parking covenant, MSI suggests that we
affirm the result reached by the court of appeals on the alternative basis that
the parking covenant has been abandoned. Because both the district court and
the court of appeals ruled in favor of MSI on the parking claim, neither court
reached MSI's alternative abandonment defense, and we decline to consider it in
the first instance on certiorari review. MSI may, however, present it on
remand.
II.
THE VIEW'S RIGHT TO STORE SNOW ON LOT
¶ 29 We now turn
to The View's constitutional takings claim against Alta. The View alleged that
Alta's approval of the revised snow storage plan constituted a taking of The
View's property without just compensation in violation of article I, section 22
of the Utah Constitution.[5] Utah Const. art. I, § 22. The court of appeals
ruled in favor of The View on this issue, holding that the trial court erred in
entering summary judgment in favor of Alta. In doing so, the court of appeals
erred.
[5]
In supporting their respective positions on the takings claim, The View and
Alta rely solely on our takings jurisprudence under article I, section 22 of
the Utah Constitution. Neither party relies on the Fifth Amendment to the
United States Constitution, made applicable to the states by the Fourteenth
Amendment, Chicago, Burlington &
Quincy R.R. Co. v. Chicago, 166 U.S. 226, 241 (1897). Similarly, neither
attempts to delineate whether the Utah Constitution provides any more
protection against a regulatory taking than does the United States
Constitution. Consequently, we analyze the issue solely under our article I,
section 22 jurisprudence. See Bernat v.
Allphin, 2005 UT 1, ¶ 38, 106 P.3d 707 (refusing to address an issue
inadequately briefed by the appellant).
¶ 30 A takings
claim presents two distinct inquiries:
First, the
claimant must demonstrate some [protectable] interest in property. If the
claimant possesses a [protectable] property interest, the claimant must then
show that Page 705 the interest has
been taken or damaged by government action. A taking is any substantial
interference with private property which destroys or materially lessens its
value, or by which the owner's right to its use and enjoyment is in any
substantial degree abridged or destroyed.
Strawberry
Elec. Serv. Dist. v. Spanish Fork City, 918 P.2d 870, 877 (Utah 1996)
(citations and internal quotation marks omitted).
¶ 31 Constitutional takings claims fall into two categories: physical takings and regulatory takings. A "physical taking occurs . . . when there is [either] a condemnation or a physical appropriation of property." Philip Morris, Inc. v. Reilly, 312 F.3d 24, 33 (1st Cir. 2002). In contrast, "[a] regulatory taking transpires when some significant restriction is placed upon an owner's use of his property for which 'justice and fairness' require that compensation be given." Id. The View's claim falls into the latter category inasmuch as it argues that Alta's modification of the snow removal plan hampered its enjoyment of its property interest in lot 8.[6]
[6]
In analyzing the takings issue, we focus solely on The View's claim that Alta's
adoption of the revised snow storage plan damaged its right to the use and
enjoyment of lot 8. While The View also asserts a protectable property interest
in lot 9, The View's ability to establish such an interest is dependent upon
the outcome of its easement and estoppel claims, which await further development
in the district court. In any event, The View's claim that Alta engaged in an
unconstitutional taking of its interest in lot 9 was not an issue encompassed
within the scope of our certiorari review. See
Coulter & Smith, Ltd. v. Russell, 966 P.2d 852, 856 (Utah 1998) (review
on certiorari is circumscribed by the issues raised in the petitions).
¶ 32 Pursuant to
their police power, state and local governments may enact regulations that do
not constitute an unlawful taking. In Colman
v. Utah State Land Board, 795 P.2d 622 (Utah 1990), we recognized:
Many statutes and ordinances regulate what a property owner can do with and on the owner's property. Those regulations may have a significant impact on the utility or value of property, yet they generally do not require compensation under article I, section 22. Only when governmental action rises to the level of a taking or damage under article I, section 22 is the State required to pay compensation.
Id. at 627. In
other words, a taking is not merely any interference with private property, but
is a "substantial interference with private property which destroys or
materially lessens its value, or by which the owner's right to its use and
enjoyment is in any substantial degree abridged or destroyed." Id. at 626 (citation omitted). Indeed,
the police power allows government, "without compensation," to
"regulate and restrain the use of private property when the health,
safety, morals, or welfare of the public requires or demands it." Id. at 627. Regulations promulgated
under that power "are not considered as appropriating private property for
a public use, but simply as regulating its use and enjoyment." Id.
¶ 33 In light of
these principles, we conclude that the court of appeals erred when it reversed
the trial court's summary judgment in favor of Alta on The View's takings
claim. While The View unquestionably has a protectable property interest in lot
8, there was no evidence that Alta's adoption of the revised snow storage plan
substantially abridged or destroyed that right.
¶ 34 In
reversing the summary judgment, the court of appeals relied on the possibility
that Alta might initiate litigation seeking to enjoin The View from occupying
lot 8 during snow periods. The View,
2004 UT App 104, 1 36, 90 P.3d 1042 . But the possibility of such litigation
was premised on The View's inability to obtain suitable alternative snow
storage. The November 2000 settlement between Alta and MSI provided for such
storage, thereby eliminating any basis for interfering with The View's use and
enjoyment of lot 8 during winter months.
¶ 35 The court
of appeals also found "conflicting evidence as to the validity and
cost-impact of the revised snow storage plan" approved as part of the
settlement between Alta and MSI. Id.
The court of appeals therefore found itself "obligated to conclude that
The View would be damaged by the removal of the Lot 9 snow storage
designation." Id. Mere
"damage" to a landowner caused by a Page 706 municipal regulation, however, does not rise to the level
of a taking. An increase in cost caused by revision of the snow removal plan
does not make the revision a compensable taking, as it does not substantially
interfere with lot 8 or destroy or materially lessen its value. Colman, 795 P.2d at 627.
¶ 36 In summary,
the revised snow storage plan and its attendant cost do not prevent The View
from engaging in any and all permissible uses of lot 8. Accordingly, even when
viewed in the light most favorable to The View, the facts are insufficient to
establish a regulatory taking. Alta was consequently "entitled to a
judgment as a matter of law," Utah R. Civ. P. 56(c), and the court of
appeals erred in concluding otherwise.
CONCLUSION
¶ 37 The court
of appeals erroneously concluded that the plat amendment modified the provisions
of the Declaration. In fact, the Declaration and amended plat are consistent
with one another and recognize The View's right to park on lot 5. The court of
appeals also erroneously concluded that issues of material fact precluded
summary judgment in favor of Alta on The View's takings claim. Even when viewed
in the light most favorable to The View, the facts are insufficient to
establish a taking, as Alta was acting squarely within its police powers when
it modified the snow storage plan. We therefore reverse the court of appeals on
both issues and remand the case for further proceedings consistent with this
opinion. Specifically, we remand for entry of judgment in favor of Alta on the
constitutional takings claim and in favor of The View on the lot 5 parking
claim, subject only to MSI's abandonment defense. The View's claims of easement
and estoppel on the parking issue, which were not encompassed in our grant of
certiorari, are remanded for consideration on their merits in accordance with
the opinion of the court of appeals.
¶ 38 Associate
Chief Justice Wilkins, Justice Durrant, and Justice Nehring concur in Justice
Parrish's opinion.
¶ 39 Having
disqualified herself, Chief Justice Durham does not participate herein.