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Walters v. Colford
297 Neb. 302
| Neb. | 2017
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Background

  • Adamy platted the 14-lot Adamy subdivision in 1976 and recorded a plat/declaration of restrictive covenants limiting structures on those lots. The founder (Adamy) owned large adjacent acreage including a 5-acre parcel later sold to the Colfords.
  • Plaintiffs (neighbors in the Adamy subdivision) sued the Colfords and Adamy after the Colfords built a large metal building on their 5-acre parcel, asserting the building violated the Adamy subdivision covenants.
  • The Colford parcel was conveyed without the Adamy subdivision covenants; Adamy later negotiated different, separate restrictions with the Colfords and testified he never intended the Colford parcel to be subject to the Adamy subdivision covenants.
  • Plaintiffs argued the doctrine of implied reciprocal negative servitudes (an implied restrictive covenant doctrine) made the Colford parcel subject to the Adamy subdivision restrictions based on a common grantor and marketing materials.
  • The district court granted summary judgment to defendants, concluding the Adamy declaration/plat controlled and the implied-servitude doctrine did not apply; the Nebraska Supreme Court affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the Colford property is subject to Adamy subdivision covenants via implied reciprocal negative servitudes Walters: a common grantor and promotional materials manifested a general plan so the Colford lot should be bound by the subdivision restrictions Colford/Adamy: the Adamy subdivision restrictions were imposed by a recorded plat/declaration that did not include the Colford parcel; Adamy did not intend to include the parcel Court: No — implied servitudes do not apply where a recorded declaration/plat defines the development and excludes the parcel
Whether promotional brochures and sales conduct created a material issue on grantor intent / inclusion of the Colford parcel in the plan Walters: brochures and agent marketing created reasonable inference that the general plan included adjacent parcels Colford/Adamy: Adamy disavowed the brochures and the recorded declaration/plat was the controlling record Court: No material fact; recorded declaration placed purchaser on notice and rebutted any claim that Colford parcel was part of plan
Whether nuisance and conspiracy claims based on alleged covenant violations survive if covenants do not apply Walters: nuisance/conspiracy stem from alleged covenant violation and should proceed Defendants: claims fail if covenants don’t run to Colford property Court: Dismissed — because covenants do not apply, related nuisance and conspiracy claims fail as matter of law
Standard for applying implied reciprocal servitudes where developer used a declaration of restrictions Walters: implied servitude should still be recognized given representations in marketing Defendants: Restatement and precedent limit implied servitudes where developer records a declaration for the plan Court: Adopted Restatement approach — doctrine is a gap-filler and generally does not apply when restrictions were imposed by a recorded declaration/plat

Key Cases Cited

  • Skyline Woods Homeowners Assn. v. Broekemeier, 276 Neb. 792 (2008) (discusses elements and caution in applying implied reciprocal servitudes)
  • Egan v. Catholic Bishop, 219 Neb. 365 (1984) (addresses common-grantor general plan and recording/notice principles)
  • Plumb v. Ruffin, 213 Neb. 335 (1983) (recognizes enforcement of restrictive covenants among property owners)
  • Pierce v. Landmark Management Group, Inc., 293 Neb. 890 (2016) (summary judgment standard and appellate review principles)
Read the full case

Case Details

Case Name: Walters v. Colford
Court Name: Nebraska Supreme Court
Date Published: Jul 28, 2017
Citation: 297 Neb. 302
Docket Number: S-16-641
Court Abbreviation: Neb.