248 P.3d 614
Wyo.2011Background
- Cash and others own property in Granite Springs Retreat; covenants recorded before the developer had legal title to the second filing; dispute over enforceability.
- Miller recorded a Declaration of Protective Covenants on October 4, 1976; Miller did not hold legal title to the second filing when recorded.
- Preliminary plat for Granite Springs Retreat, First Filing, was recorded August 1, 1975; Second Filing plat was recorded August 11, 1977; covenants contemplated application to both filings.
- Amended covenants were filed in 1983 and later challenged as invalid in separate actions; GSRA formed in 1983 to administer the development.
- District court held covenants enforceable as equitable servitudes despite lack of legal title at recording; Cash appealed; Wyoming Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Miller have equitable title to second filing when he recorded the covenants? | Miller had an oral handshake; no legal title thus no covenants running with land. | Equitable servitudes bind purchasers with notice even if not run with the land. | Yes; equitable servitudes attach with notice. |
| Do the DPC provisions apply to Granite Springs Retreat, Second Filing when not platted and not expressly encumbered before/after platting? | Second filing lands not bound since not described in title; no encumbrance. | Equitable servitude can bind without being a running covenant if there is a common plan and notice. | Yes; covenants bind second filing via equitable servitude. |
| Did plaintiffs have notice of the DPC encumbring their land when purchasing? | Purchasers had no notice of covenants binding second filing. | Affidavits of intention and development disclosures gave actual or inquiry notice to buyers. | Yes; plaintiffs had notice at purchase. |
| Are plaintiffs estopped by laches from contesting the covenants? | Long delay and reliance on amended covenants should bar claims. | Laches not necessary to address since dispositive issues remain. | Not necessary to decide; outcome based on other rulings. |
Key Cases Cited
- Streets v. JM Land & Developing Co., 898 P.2d 377 (Wyo. 1995) (equitable servitudes enforceable against purchasers with notice; three-element test)
- Bowers Welding and Hotshot, Inc. v. Bromley, 699 P.2d 299 (Wyo. 1985) (notice-based enforcement of covenants; common scheme considerations)
- Comet Energy Services, LLC v. Powder River Oil & Gas Ventures, LLC, 239 P.3d 382 (Wyo. 2010) (statute of frauds doctrine not used to defeat fully performed contract rights)
- Hein v. Lee, 549 P.2d 286 (Wyo. 1976) (record or notice considerations do not relieve purchaser from covenants)
- Sanborn v. McLean, 206 N.W.2d 496 (Mich. 1925) (common scheme/plans and notice can bind purchasers)