990 N.W.2d 884
Neb.2023Background
- Pine Tree subdivision (32 lots) had original restrictive covenants that expired in 2010; a new Declaration was recorded in 2010 by the Pine Tree Neighborhood Association (PTNA) and 22 lot owners.
- The Declaration (Article I ¶9) forbids boats/campers/trailers/mobile homes/camper trucks or similar chattels from being stored outside on any lot for more than 48 hours; only vehicles driven regularly by occupants may be parked outside.
- Charles Moses and Melissa Hill purchased Lot 13 (one of the 22 bound lots) in Dec. 2019 and continuously parked an RV outside their driveway beginning mid-2020.
- PTNA notified the homeowners to remove the RV; they did not, and PTNA sued for a permanent injunction in Feb. 2021.
- The parties filed cross-motions for summary judgment; the district court found the covenant enforceable, rejected the homeowners’ waiver/selective-enforcement defenses, granted PTNA summary judgment, and enjoined the homeowners.
- The homeowners appealed; the Nebraska Supreme Court reviewed de novo and affirmed the district court.
Issues
| Issue | Plaintiff's Argument (PTNA) | Defendant's Argument (Homeowners) | Held |
|---|---|---|---|
| Whether the paragraph 9 covenant prohibits the homeowners’ RV parking | Paragraph 9 is unambiguous and prohibits storing/parking an RV outside >48 hours; homeowners violated it | Homeowners admitted parking but argued other defenses | Held: Covenant is plain and was violated; PTNA established prima facie entitlement to relief |
| Whether the Declaration is enforceable though only 22 of 32 lot owners signed | Covenants created by contract among signatories run with the land and are enforceable | Covenants are per se unenforceable because not all subdivision lots signed | Held: Not per se unenforceable; parties may create covenants by contract; enforceability sustained |
| Whether PTNA waived enforcement by selective or non-enforcement of other covenants | Waiver requires substantial, general noncompliance and knowledge; enforcement history here does not show abandonment | PTNA selectively enforced other covenants and failed to enforce paragraph 9 against other lots, so it waived enforcement | Held: Homeowners failed to show PTNA had knowledge of prior paragraph 9 violations or widespread, intentional nonenforcement; no waiver |
| Whether summary judgment was appropriate on cross-motions | PTNA: evidence undisputed; entitled to judgment as matter of law | Homeowners: raised genuine factual issues re: enforceability and waiver | Held: Court reviewed cross-motions separately; PTNA met its burden and homeowners failed to raise a material factual dispute; summary judgment for PTNA affirmed |
Key Cases Cited
- Farmington Woods Homeowners Assn. v. Wolf, 284 Neb. 280 (2012) (waiver requires evidence of substantial and general noncompliance and knowledge of violations)
- Pool v. Denbeck, 196 Neb. 27 (1976) (waiver and acquiescence principles for restrictive covenants)
- Lund v. Orr, 181 Neb. 361 (1967) (change of neighborhood conditions can defeat covenant enforcement where original purpose destroyed)
- Estates at Prairie Ridge Homeowners Assn. v. Korth, 298 Neb. 266 (2017) (principles for construing and enforcing restrictive covenants)
- State Bank v. Scoular-Bishop Grain Co., 217 Neb. 379 (1984) (waiver requires voluntary and intentional relinquishment of a known right)
- Nelssen v. Ritchie, 304 Neb. 346 (2019) (ordinary waiver principles require clear, unequivocal acts and knowledge of material facts)
