Davis v. Canyon Creek Estates Homeowners Ass'n
350 S.W.3d 301
| Tex. App. | 2011Background
- Canyon Creek Estates adopted restrictive covenants restricting use to residential purposes in 1957 and reaffirmed them in 1963; covenants run with the land and require majority consent to modify.
- Edward and Rosaura Davis and Elare acquired Lots 6, 7, and 8 along Blanco Road in 1997–2000; Luis Davis and family moved into Lot 8, then Lots 6 and 7 after Elare’s acquisition.
- In 2001 Canyon Creek Estates recorded covenants adopting the prior 1957 and 1963 restrictions and other changes; majority of owners approved the revised covenants.
- In 2005 Luis Davis purchased an interior lot and moved his family there; later, deed conveyances to the Trust reflecting ownership of Lots 6–8 surfaced only as unrecorded deeds dated 2006 but notarized 2008.
- The Trust filed suit in 2006 seeking declaratory relief to end residential-use restrictions; Association moved to dismiss for lack of standing/capacity and trespassers; partial dismissals and a partial summary judgment followed on various issues.
- On remand, the Association moved for summary judgment on remaining 2001 covenants and trust’s claimed “changed conditions” defense; the trial court granted, and later awarded attorney’s fees to the Association under §5.006, which the Trust challenges on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether changed conditions can void the 2001 covenants | Davis Trust argues changes post-acquisition render covenants radical | Association argues no radical change proof; only 1957/1963 covenants at issue | No genuine evidence of radical change; 2001 covenants survive = judgment affirmed on this issue |
| Whether attorney's fees under §5.006 are recoverable | Trust contends no anticipatory breach shown; no recoverable fees | Association asserts anticipatory breach evidence supports §5.006 recovery | Anticipatory breach not proven; fee award reversed in part |
Key Cases Cited
- Lebo v. Johnson, 349 S.W.2d 744 (Tex.Civ.App.-San Antonio 1961) (radical change must be proven to void restrictive covenants)
- Simon v. Henrichson, 394 S.W.2d 249 (Tex.Civ.App.-Corpus Christi 1965) (radical change standard; scope of changed conditions)
- Cowling v. Colligan, 312 S.W.2d 943 (Tex. 1958) (change of conditions must be radical and great)
- Hemphill v. Cayce, 197 S.W.2d 137 (Tex.Civ.App.-Fort Worth 1946) (increased traffic/commerce alone not enough to void covenants)
- Oldfield v. City of Houston, 15 S.W.3d 219 (Tex.App.-Hou. [14th Dist.] 2000) (cannot rely on existing changed conditions known at purchase)
- Traeger v. Lorenz, 749 S.W.2d 249 (Tex.App.-San Antonio 1988) (considerations for radical change in conditions)
- King Ranch, Inc. v. Chapman, 118 S.W.3d 742 (Tex. 2003) (framework for reviewing evidence of changed conditions)
- Wal-Mart Stores, Inc. v. Rodriguez, 92 S.W.3d 502 (Tex. 2002) (no evidence standard; burden on movant)
- Pollack v. Pollack, 39 S.W.2d 853 (Tex.Com.App.1931) (anticiapatory breach requires unequivocal repudiation)
- Jenkins v. Jenkins, 991 S.W.2d 440 (Tex.App.-Fort Worth 1999) (anticiapatory breach criteria)
- El Paso Prod. Co. v. Valence Operating Co., 112 S.W.3d 616 (Tex.App.-Hou. [1st Dist.] 2003) (recognizes anticipatory breach standards)
- Van Polen v. Wisch, 23 S.W.3d 510 (Tex.App.-Hou. [1st Dist.] 2000) (definitions of repudiation in contract)
- Kilgore v. Nw. Tex. Baptist Educational Society, 37 S.W. 600 (Tex. 1896) (early anticipatory breach standard)
