334 P.3d 1207
Wyo.2014Background
- Leisure Valley, Inc. developed Star Valley Ranch with 21 plats; covenants were recorded in 11 phases, covering all plats; amendments require 70% of the then-record lot owners and recording in Lincoln County.
- From 2010, the Association sought to amend the eleven covenants into a single, uniform set for the entire subdivision, circulating proposed amendments to owners for approval.
- 1,476 lot owners approved, representing 73% subdivision-wide, but only 60% of owners in Plats 1–2 and 63% in Plat 3 approved.
- Clerk refused to record the signatures as instruments; the Association filed an affidavit alleging 70% approval and the Clerk recorded the amended covenants.
- Appellees sued for declaration of invalidity and injunction; district court granted summary judgment for Appellees, holding amendments failed for Plats 1–3 and were invalid as to those plats.
- Court held each covenant set applies only to its listed plats; aggregate 70% across all plats does not satisfy per-plat approval; impracticability and standing issues addressed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did aggregate approval over all plats satisfy the 70% requirement for Plats 1–3? | Association: aggregate 73% subdivision-wide suffices. | Appellees: per-plat approval needed; Plats 1–3 below 70%. | Amendments invalid for Plats 1–3; per-plat approval required. |
| Was impracticability a valid defense to filing a written agreement? | Association: impracticable due to clerk’s refusal to record signatures. | Appellees: impracticability not; noncompliant filing defeats validity. | Impracticability defense rejected; amendments invalid regardless of clerk’s action. |
| Do Appellees have standing to challenge amendments affecting plats where they are not owners? | Association: lack of stake outside owned plats. | Appellees: ownership in some plats and unified challenge to whole subdivision; standing present. | Appellees have standing to challenge as to multiple plats and to challenge the amendments as a whole. |
Key Cases Cited
- American Holidays, Inc. v. Foxtail Owners Ass’n, 821 P.2d 577 (Wy. 1991) (contract interpretation—intention and entire context control)
- Bowers Welding & Hotshot, Inc. v. Bromley, 699 P.2d 299 (Wy. 1985) (contract interpretation—notice and binding covenants)
- Kindler v. Anderson, 433 P.2d 268 (Wy. 1967) (interpretation of restrictions; plain meaning if unambiguous)
- Arnold v. Ommen, 201 P.3d 1127 (Wy. 2009) (contract interpretation—reading provisions together)
- Riverview Heights Homeowners’ Ass’n v. Rislov, 205 P.3d 1035 (Wy. 2009) (amendment by instruments executed/acknowledged requirement)
- Mortenson v. Scheer, 957 P.2d 1302 (Wy. 1998) (impracticability doctrine—supervening impracticability defense)
- Claman v. Popp, 279 P.3d 1003 (Wy. 2012) (contract interpretation and standing considerations)
