S23C-10-027 CAK
Del. Super. Ct.Feb 28, 2025Background
- Alfred and Teresa Mousley purchased a home at Vincent Overlook, subject to HOA deed restrictions barring the parking of commercial or oversized vehicles outside enclosed garages.
- Mr. Mousley, a master plumber, operated his business from the property and parked his business-use commercial truck in the driveway, as it could not fit in the garage.
- The HOA cited the Mousleys multiple times for violation, imposed daily fines, and assessed attorney’s fees, threatening a statutory lien against the property for nonpayment.
- Plaintiffs filed suit seeking declaratory judgment that the restriction was vague, unenforceable, and that the HOA had selectively enforced the rule.
- Cross motions for summary judgment were filed, with both sides agreeing there were no material disputes of fact.
- The court had to interpret whether the truck fit the "commercial vehicle" prohibition and address enforceability, fines, fees, and civil extortion claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is "commercial vehicle" too vague to enforce? | The term is ambiguous and thus unenforceable, especially since truck has no signage. | The term is sufficiently precise and vehicle clearly fits within it. | Not ambiguous; clear a reasonable person would find the truck a commercial vehicle. |
| Selective enforcement | HOA singled out Mousleys compared to others. | Other vehicles were similarly cited under the rule. | No evidence of disparate treatment; no selective enforcement. |
| Civil extortion by HOA | HOA’s fines and charges constitute civil extortion by pressuring payment. | Delaware doesn’t recognize such a cause; no wrongful threat. | Delaware does not recognize civil extortion; claim rejected. |
| Imposition of fines and attorneys’ fees as lien | Fines/fees were improper; procedure not followed and shouldn’t create a lien. | Fines/fees imposed per declaration, can be liens. | Fines and attorney’s fees not awarded; no lien—each party bears own costs. |
Key Cases Cited
- Farmers for Fairness v. Kent County, 940 A.2d 947 (Del. 2008) (standard for summary judgment and contract interpretation principles)
- Bernstein v. TractManager, Inc., 953 A.2d 1003 (Del. 2007) (cross-motions for summary judgment and addressing absence of material fact)
- Seabreak Homeowners Ass'n, Inc. v. Gresser, 517 A.2d 263 (Del. Ch. 1986) (rules governing enforcement of restrictive covenants, rejecting vague enforcement authority)
- Maurer v. Int'l Re-Ins. Corp., 95 A.2d 827 (Del. 1953) (Delaware follows the "American Rule" on attorneys’ fees)
- Goodrich v. E.F. Hutton Grp., Inc., 681 A.2d 1039 (Del. 1996) (delimiting exceptions for fee-shifting in Delaware)