SUBURBAN REALTY CO. v. CANTLEY
2021 OK CIV APP 27
| Okla. Civ. App. | 2021Background
- Suburban Realty owned Lot 1, Block 9 in the Country Crossing plat (a commercial-zoned ~2-acre lot preserved as nonresidential on the plat).
- The recorded Deed of Dedication contained paragraph D.1 stating: "No lot shall be used for business or professional purposes..." (broadly barring commercial use).
- Suburban sued to reform the Deed of Dedication (to insert the word "residential" before "lot") and alternatively sought to vacate the plat as to Lot 1, Block 9; the trial court reformed the deed to limit the restriction to "residential lot[s]."
- After prevailing on reformation (affirmed in a companion appeal), Suburban sought attorneys' fees and costs under 60 O.S. § 856 (statute authorizing fees for actions to enforce covenants among owners in a real estate development).
- The trial court denied fees, concluding § 856 did not apply because the action was one for reformation (mistake), not an action to enforce a restrictive covenant; Suburban appealed the fee denial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 60 O.S. § 856 authorizes an award of attorney fees for Suburban's action | Suburban: § 856 awards fees to the prevailing party in actions concerning restrictions or covenants among owners, so fees are recoverable here | Homeowners: The suit was for reformation due to mistake, not an enforcement action under § 856; statute therefore does not apply | Court: § 856 does not apply because the underlying suit sought reformation, not enforcement of a restrictive covenant; fees denied |
Key Cases Cited
- Barnes v. Oklahoma Farm Bureau Mut. Ins. Co., 11 P.3d 162 (Okl. 2000) (reaffirms American Rule: fees require statute or contract)
- Brisco v. State ex rel. Bd. of Regents of Agric. & Mech. Colleges, 394 P.3d 1251 (Okl. 2017) (statutes awarding fees strictly construed; exceptions to American Rule narrow)
- Eagle Bluff, L.L.C. v. Taylor, 237 P.3d 173 (Okl. 2010) (caution against liberal fee awards that chill access to courts)
- Comanche Nation of Oklahoma v. Coffey, 480 P.3d 271 (Okl. 2020) (statutes granting fees are strictly construed)
- TXO Prod. Corp. v. Stanton, 847 P.2d 821 (Okla. Civ. App. 1992) (determine applicability of fee statutes by underlying nature of suit)
- Oklahoma Oncology & Hematology, P.C. v. US Oncology, Inc., 160 P.3d 936 (Okl. 2007) (distinguishes reformation from amendment)
- Dennis v. American-First Title & Trust Co., 405 P.2d 993 (Okl. 1965) (reformation rectifies instrument to reflect antecedent agreement; court cannot make new contract)
- Amundsen v. Wright, 240 P.3d 16 (Okla. Civ. App. 2010) (reformation remedies where written instrument differs from prior agreement)