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Harksen v. Peska
581 N.W.2d 170
S.D.
1998
Check Treatment

*1 supervisors repair out of meeting statutory Ordering their duties. statute, compliance, removal with signs, repairs

minimum maintenance expected

make the road usable under condi- tions, scope all were within the of mandamus. requiring

But the road to be raised and

crowned, dug, along or moved with ditches mandating repairs in line with the coun-

ty highway superintendent’s opinion, went

beyond legal scope of mandamus relief

and hence constituted an abuse discretion. part Affirmed in reversed

part. MILLER, C.J., SABERS, GILBERTSON, JJ.,

AMUNDSON and

concur.

1998 SD 70 Bryant HARKSEN,

Laurie Jean as Admin

istrator of the Estate of John C. Hark sen, Harksen, Deceased, J.C. Plain a/k/a

tiff, PESKA, Appellant,

Gene Defendant and Johnson, Johnson,

Warren Carter Janet Johnson, Johnson,

Steven M. Dave R. Warder,

Robert A. Jo Anna C. Warder, Trustee, Robert A. and Robert Warder, individually,

A. Defendants Appellees, Howe, Kelts,

Everett P. Susan M. T. Ash Ashworth,

worth and E. Ruth Martens Lamont, Gordon O. Gavin and Donna J.

Gavin, Scott L. McCaskell and Sharia R.

McCaskell, Goudy, Betty Peska, Judith

Defendants.

No. 20092.

Supreme Court South Dakota.

Argued Jan. 1998.

Decided 1998.

Rehearing Aug. Denied

Gregory A. Eiesland and Michael C. Loos Eiesland, Barker, Rapid Quinn, Day & of appellant. City, for defendant and Johnson, Johnson of Heide- Steven M. Falls, Marlow, & priem, Miner Sioux appellees defendants and Johnsons. Warder, Office, A. Law Robert Warder City, appellees Hill for defendants and Ward- ers.

MILLER, Chief Justice. purchased a tract of

[¶ 1.] Gene land Black Hills of and in the Dakota built South neighboring property a “cabin”1 thereon. A owner, Harksen, brought suit John later enforce restrictive covenants that limited the buildings number of that could be built on trial, the land. a bifurcated determined the restrictive covenants ambiguous, mandatory that a injunction for the removal of the cabin should appeals. part issue. Peska We affirm part. and reverse and remand

FACTS 30, 1969, April Farrar On John C. [¶2.] Ray purchased Aldrich 210 acres of J. land in the Black Hills. Title scenic names, but it taken their was understood ownership the land would be that actual partnership informal known as held Each member of The The Creek Club.2 Slate one lot for Club was to receive Slate Creek participation. their 13, 1973, Farrar and On November filed a Declaration of Protective and Aldrich Pennington in the Restrictive Covenants The County Register of Office. Dec- Deeds’ para- prefatory consisted of two laration ownership and intent graphs of recitals owners,3 by sev- purpose of the followed nuisances, later, purposes only, noted cabin is a summer mer home 1. As will be $100,000. approximately impairment at valued the attractiveness of residence property, tone of the to maintain the desired of The Club were: 2. The members Slate Creek thereby community, to each site secure Aldrich, Gunderson, Farrar, Robert W. Michael enjoyment of his the full benefit and sum- owner DeMersseman, They, A. Warder. B. Robert home, greater restriction mer no partners Rapid City, law South all were also undisturbed of his site than neces- free and use Dakota. advantages other sary site to insure same [.] owners intent and of the covenants 3. The stated property for sum- "to insure the use of the specific covenants. enteen Three these dence thereon. He received a letter on 8.1993, applicable controversy, covenants are to this A. Robert member provide: Club, the Slate Creek who acting was also as attorney Harksen’s at that time. The letter Restrictive covenants herein contained specifically advised Peska that “if there is period fifty shall continue in for a force *3 any attempt (50) or construct build on this years from the date hereof and are property in violation of the covenants on this applicable any deed recorded after the property, Mr. ... Harksen enforce date of these covenants. where residences in excess of one are tract after than (11) grantee. grantee after the date of these covenants any parcel (2) No more residences [******] There shall conveyed specified date of these covenants to a property conveyed be no grantee the deed to the first subdivision of and recorded be built on except to a per- any residence. Peska received a permit on August construction thereafter. relief.” Peska and the realtor who sold including, ances from Buckwheat after [¶ 8.] receiving Peska was but not limited to property all legal did not contact an 19, 1993, letter, served with the summons that he could build a but did seek assur- equitable and commenced county injuctative attorney means [sic] complaint in this September action on mitted the deed. Despite lawsuit, pending Peska 22.1993. 22, 1974, January 4.] On Harksen [¶ and his home, continued construction on the summer Cynthia4 purchased wife ten acres of the finally finishing three months later mid- 210-acre tract from Farrar and Aldrich. December of 1993. He valued the cabin at Cynthia quitclaimed later her interest $130,000.6 Harksen. A pur- [¶ 5.] short time after Harksen The trial pro- court bifurcated the tract, chased his ten-acre Farrar and Aldrich ceedings, having first a trial as to whether warranty executed and delivered a deed for a violated, the restrictive covenants were fol- twenty-seven and one-half acre site Aid- lowed a second trial ap- to ascertain the rich and his wife Lucille. previ- Aldrichs had propriate remedy. The trial court held the ously site, erected a residence on their unambiguous covenants were and that provision deed to them did not contain a applied November, deed issued after allowing for an additional 1973, residence. when the covenants went into effect. It thus determined that the “deed to the first Aldrichs sold their land to grantee” was the one from Aldrich and Far- Peggy Buckwheat. The deed to her stated: rar to Aldrich and his wife. The court then (1) “Not more than one additional residence prohibited held covenant number 11 fur- shall be constructed premises ther subdivision Aldrichs’ and cove- fifty above-described for a term years nant 2 prohibited number building any more after the date hereof.” Buckwheat sold residences on the land. under the twenty acres of the tract Goudy to Judith ruling, court’s Peska’s seven and one-half May of remaining seven and acre tract and his cabin on that tract were in one-half acres to Betty Gene and Peska in violation of the covenants. August, 1992.5 purchased Peska had property separate After hearing on the with the intention of building remedies, a summer resi- issue of the trial court issued passed away $130,000 prior 4. Harksen Cyn- 6.Actually, to trial and placed value Peska thia, estate, as cabin, executor or $100,000 administrator of his about was attributable to the plaintiff. was substituted as For ease of refer- itself, structure and the remainder was attribut- ence, plaintiff we will continue to refer to the remedy able to the hearing, land. At the later appellee appeal in this as Harksen. n Peskaalso testified that the cabin cost him about $75,000 to build. title, Betty quitclaimed Peska right, all of her and interest in this land to Peska in 1995. merely ambiguous parties because two do not injunction requiring the removal mandatory proper agree as to its construction. Duche appeals, raises Peska’s cabin. (S.D. Miller, neaux following issues: 1992). Rule, Plain if a Meaning Under the court erred in deter- 1. Whether the trial “appears plain unambiguous term to be covenants were mining the restrictive face, meaning on its its must be determined unambiguous. from the four corners the instrument with court erred in issu- 2. Whetlier extrinsic na out resort evidence of injunction ordering ing mandatory Acres, Spring ture.” Brook N.W.2d at physically remove his cabin. (citation n. 2 quotations and internal omitted). OP REVIEW STANDARD *4 in question this is whether [¶ 16.] The case appeal a as we we read covenant On phrase meaning grantee” the “first can is, contract, any pre that without would a looking be determined from at the whole sumption that trial court correct. the document itself. offers several possi- Ass’n, Inc. Spring Brook Acres Users Water interpretations of who the grantee” ble “first (S.D.1993) 778, George, 780 v. 505 N.W.2d First, argues he first could be. that the Wilburn, 304, v. (citing Baker grantee Aldrich and Farrar as could be (S.D.1990)). a contract is am 306 Whether Next, partnership. the he first took title for (citations Id. question is a of law. biguous that, apply to all claims since the covenants omitted). Questions are de of law reviewed acres, grantee any 210 the first could be ¶75, 7, Roth, v. 565 Roth 1997 SD novo. person to tract of who was the first receive a 782, 784. N.W.2d argues land' from Aldrich and Farrar. Peska issue, our As to review 12.] the second [¶ person’s all that deed would then control “(1) injunction granting court’s is: a trial Next, maintains the first others. he that by the any of the facts found trial court Were person the to grantee have been first could (2)[i]f not, taking the erroneous? and, like- after the covenants were filed take true, abuse facts as did the court its discre wise, deed control all person’s this would Mary injunction?” in the granting tion that, claims Finally, others. since house, Hamilton, v. N.W.2d 474 Inc. 473 partners, refer to the first covenants do not (S.D.1991). grantee “non-partner” mean the first could a

receive deed. DECISION suggested Peska has several [¶ 17.] While examples “first that possible grantees,” in the trial court erred 13.] Whether [¶ ambi- fact is not sufficient create an alone determining the restrictive covenants Ducheneaux, A guity. 488 N.W.2d at 909. unambiguous. that plain reading of the covenants indicates argues that restric [¶ 14.] Peska person persons is the grantee” the “first Specifically, ambiguous. tive covenants were a covenants who first received deed after the language issue of covenant he takes with the specifically 1 were filed. Covenant number provides: number which are applicable states covenants the. may more be built on No residences the cove- after date of deed recorded a conveyed grantee parcel property Therefore, that Peska’s assertions covenants than is after date of these to one could be limited grantee” the “first first specified grantee. to the deed Also, specific lan- person unfounded. grantee” is am- 2 Peska claims the term “first that the guage number states of covenant biguous. agree. We do not “after the of these cove- critical time is date nants.” ambiguous 15.] “A contract is when

[¶ that, argument because interpretation a application leave Peska’s rules the cove- partnership not mentioned in of two or genuine uncertainty as to which nants, apply until after covenants do meanings Spring Brook more is correct.” Acres, non-partner executed A a deed to a has been at 780. contract is not N.W.2d provision holders, Aldrich fails. He states that no and Farrar. Since first

also prev partners from “specify” Dakota law mts the South deed did not of resi- number excluding themselves from the covenants. could tract of dences that be built on the true, partners but the did not This already no more could be built than very themselves. The fact that the exclude Thus, existed. Peska’s built in cabin was partners are not mentioned violation of covenants. This is meant indicates the covenants were reading give fair to the covenants and partners, apply too. will not We read protects also the intent behind instrument, especially exceptions into the those covenants. we affirm the language when the is clear on its face.7 court on this issue. Finally, Peska maintains [¶ purpose of real restrictive covenants is the 2. Whether the trial erred in court and, protection property since values there issuing mandatory injunction order- testimony that his cabin increased ing physically Peska to his remove land, it in a reading value of the should result cabin.8 of the covenants favorable to him. See Pie argues 22.] Peska the trial (S.D. Case, chowski issuing mandatory erred re 1977). Our decision in Piechowski was cen quiring physically his cabin remove subdivision, very tered around a residential *5 that, any argues from the land. He if reme setting different than what we have here. dy necessary, it money damages is should be primary ais rule of that “[I]t construction injunction. and not an parties, particularly the intention of real the grantor, the sought that of should and be generally provides SDCL 21-8-14 possible.” out whenever carried Northwest permanent injunction may granted: that a be Chicago Ry. ern Pub. Serv. Co. v. & N.W. (1) pecuniary compensation Where would Co., 480, 484, S.D. 87 160 relief; adequate not afford (1973) (citation omitted). Here, the Declara (2) it extremely Where would be difficult tion of Protective and Restrictive Covenants to the compensation ascertain amount of specifically purpose states that the intent and relief; adequate which would afford of the owners was to use of the insure the (3) necessary the Where restraint is to

property for only, summer home use and prevent multiplicity judicial a proceed- of basically preserve to the attractiveness and ings; or community. reading tone of the Our of the complements this intent. (4) obligation Where the from a arises “ trust. ‘A [¶ 20.] contract be consid should parts a ered as whole and all of its and There are four basic factors to

provisions will be to the examined determine guide in exercising our courts con discretion Piechowski, meaning any part.”’ of 255 cerning injunctive relief: McKeown, at 74 (quoting N.W.2d Eberle v. (1) party enjoined the Did to be cause the (1968)). 345, 349, 393 S.D. damage? reviewing whole, In the covenants as a the (2) irreparable Would harm result without interpretation phrase fair of the “first because of lack of ade- grantee” holding applies mandates a that complete quate remedy at law? to all issued deeds after the covenants were (3) property, party enjoined acting executed. As to Peska’s “first Is the to be grantees” were Aldrich his wife who bad faith or is its injury-causing behavior property original received from the title an “innocent mistake”? earlier, testimony

7. Peska also relies on some of the 8. As stated our standard of review for partners to as to their to this issue is ascertain whether facts intentions not be bound. by trial found and, court were erroneous We not and need cannot this outside consider not, whether the trial its if court abused testimony, ambiguous. as the instrument is not issuing mandatory injunction. discretion Inc., Maryhouse, 473 N.W.2d at 474. know, know, presume “hard- You or to balancing equities, is the party] Protective by [enjoined Declaration of and Restrictive be ship to suffered upon property, copy to this to the ... benefit Covenants disproportionate ... you. I injured party”? which have enclosed Your atten- gained Maryhouse, tions caused the omitted). There damage. Inc., is 473 N.W.2d at no doubt Peska’s He responsible actions [cita- tion is nants, covenants. # drawn and also to n Paragraph n Paragraph [*] 2 of the cove- [*] 11 of the n cove- building the in violation of the cabin you This is to if is any advise there question answered the first is attempt prop- or on this construct build affirmatively. erty in of the covenants on violation court also found an award The trial property, Harksen own- Mr. other money inadequate would be damages that so er chooses enforce the cove- , hearing After all the testi- see no error. we legal equitable nants all means in- viewing property, mony and eluding, injuctative but not limited [sic] opinion in its memorandum court stated relief. 2for damages inappropriate “an award attorney, please you If have an advise him money anyone enough First: with reasons: to contact me. damages pay could violate the restrictive 2, 1993, July This letter was written Second, cove- impunity. covenant than received 8. Other property placed on the nants were realtor, visiting with Buckwheat he did punish compensate for or violations Furthermore, nothing. despite service cove- of the violations.” Given Septem- complaint summons and him in to maintain the desired tone nants ber of continued build struc- nuisances, secure the *6 and to though ture for three more months even land, “minor” attractiveness of the even along. construction less than a month was irrepara- the covenants could be violation the 29.] Peska claims letter from Ward- aesthetically pleasing [¶ No matter how ble. some, not he could build on it er does indicate not the the is that cabin be to fact the portion the letter land. He focuses on the in cove- knowingly built violation of the was that states Harksen will enforce the cove- cove- and in defiance of the nants stands any attempt if to build “in nants there is nants, land effecting the natural look of the violation of the covenants.” preserved.9 to be attempts portion 30.] Peska [¶ take argues building the 27.] Peska his [¶ appear ambig- make it the Warder letter he was an “innocent mistake” because cabin However, spe- two the letter refers to uous. violating not think he was the covenants. did “any” attempt states that cific covenants and provided his for the He claims contract land in to build violation the .covenants also could on it and the seller that he build even Harksen to seek relief. The letter force Furthermore, there. him he could build told lawyer suggests have his contact that Peska okay him it was claims his realtor told Peska considered, Everything Peska’s ac- Warder. cabin, that from the a letter to build mistake.” not an “innocent tions do constitute also and attached Peska’s deed Aldrich prevent him the covenants did not indicated guide a court in The last factor [¶ 31.] building. from balancing of' issuing injunction an is the However, is known as' the “relative equities, construc- what began before . Foley City Yank hardship v tion, a letter from test.” See Peska received ton, 160, 165-66, 230 letter, S.D. attorney. The which Harksen’s (1975). his is wife, cabin worth his Peska claims to Peska and stated directed $100,000, removing totally it would part: about salient damages damages damages appropriate, argues or no money for mere nominal claims 9. Peska point adequate. He at all. what would but cannot be it, comply have destroy existing it would to be re- with all the It because covenants. due to narrow could from pieces making moved in entrance him additions or changes claims exterior of cabin property. road to the He also there is and to hardship by property. no Harksen as the rest of the The trial suffered court that, barely prop- require cabin Harksen’s could also remaining is visible for the from n effect, erty. years the covenants are the cabin the property only long can remain on so as it A in balancing critical [¶ factor 32.] Peska or owned member of his equities party being enjoined is that family. immediate This would violating knew that he was the covenant. profiting from knowingly violating the Foley, 89 at 230 N.W.2d at S.D. 479 covenants. It would also be sensitive to the (stating additional factor the court “[a]n directly fact that does the cabin not burden should is the of mind of consider state the Harksen. We remand to court to party against mandatory injunc whom modify injunction consistent with this Here, sought.”).10 tion is knew he was opinion. covenants, however, violating fact part, Affirmed in and reversed barely remains that cabin is visible from part. remanded edge of Harksen’s visible at all from Harksen’s site. SABERS, AMUNDSON hold the trial did not We GILBERTSON, JJ., concur. injunction, an issuing

abuse its discretion but the too simply harsh con- WALD, Judge, [¶ 37.] VON Circuit sidering intangibility the harm suf- dissents. fered Harksen.11 it constitutes abuse of be inequitable discretion. It would WALD, Judge, sitting [¶ 38.] VON Circuit $100,000 require the destruction of a sum- KONENKAMP, Justice, disqualified. really mer residence when there is no burden Similarly, ineq- Harksen. would also be WALD, VON Circuit Judge (dissenting). pay uitable to let mere nominal dam- agree majority I with the on issue all, ages damages or no at he built when one, disagree but issue two the in- knowing violating structure he was the cove- junction ordered the circuit court was an *7 abuse of discretion. remand, On we direct trial court modify injunctive to doing, relief. so function [¶ 40.] Our on review is not to the court should consider that the covenants determine whether Court would issue the only in to twenty-five type injunction, be effect for about same of but to determine years. injunction more A new could be en- whether there was an abuse of discretion in tered which would be until issuing injunction. effective the cove- an An of abuse discretion expire, nants require to strictly “refers to a discretion to an exercised end or knowledge prevented 10. Such has only even some 11. The we dissent claims should not at look applying hardship courts from Harksen, relative test. by the harm suffered also the but harm 166, Foley, 89 at (stating S.D. 230 N.W.2d at 479 by suffered the other cabin in the owners Slate equities that "the the not balance where development. Creek We did to the extent of the willfully actions of defendant taken joined evidence. None of the other owners in knowledge plaintiff's rights and with full of Peska, against Harksen's suit and some of the ensue.”) consequences might (citing which original developers supported right had Peska’s County Sarpy, Co. Concrete v. Wilson 189 Neb. of to build. The other landowners were named as 312, (1972)). Morgan 202 597 N.W.2d See v. defendants, agreed some with Harksen that Veach, 682, 976, Cal.App.2d 59 139 P.2d 980-8 1 the Peska, against restrictive covenants are enforceable (1943) (holding deliberately that "one who vio apparently but none articulated how Pes- building placed upon lates restrictions his lot ... damages property. ka's cabin their own The mandatory injunction cannot avoid a so to build restrictions, only bring testify comply one to suit and as to as to harm theory with the on the and, Harksen, thus, disproportionate that the loss caused it will be suffered was that is all we (citation good accomplished.”) to the and inter can consider. omitted). quotations nal

177 against, looking should be at the harm suffered justified by, and purpose not Maryhouse, every Inc. v. other cabin in the owner Slate and evidence.” reason (S.D.1991). Hamilton, 472, development, many 474 of whom are Creek joining trial court majority parties request not believe the named Harksen’s The did injunction, relief, issuing an person trying its discretion other abused of ordered type The but believed the enforce restrictive covenants. of the abuse of discretion because of this restrictive covenant was question The of outweighing nuisances, harm to Peska. prevent impairment of the at- need not even be ad- balancing equities property, tractiveness of the and to maintain was, case, I in this but even if it do dressed community. thé of -the The desired tone requiring removal of cabin not believe instability majority’s holding breeds into the was an abuse discretion. of property by permitting law Peska’s of cabin is, knowingly to remain as which cabin was The trial court did not need [¶41.] built in violation of a covenant. Is restrictive parties equities between the be weigh the Court, by placing simple a of restriction recognized Dakota has cause South not allowing Peska to sell the cabin for the apply hardship” does not when “relative test covenant, en- remainder restrictive willfully and with full the defendant acted couraging intentionally violate others cove- .plaintiff’s rights of knowledge anticipation minimal nants some restric- might Foley v. consequences which ensue. Many in the tions? other landowners Slate 160, Yankton, City 230 89 S.D. N.W.2d development could in contraven- Creek build 476, (citing 479 Concrete Com Wilson tion of the restrictive with little covenants County Sarpy, 189 Neb. pany v. destroy completely the cove- deterrence (1972)). Morgan See also purpose. , nant’s Veach, 139 P.2d Cal.App.2d (1943) (holding deliberately vio that one who SDCL'21-8-14(3), perma- Under [¶44.] placed building lot restrictions his lates injunction may granted nent be where mandatory injunction ... cannot avoid a prevent multiplicity necessary be would theory it will be the loss caused judicial proceedings. present Other accomplished). good disproportionate to future Creek landowners could build Slate cabins violation the restrictive cove- new injunction requiring Thé litigation. causing multiplicity of nants harsh, may be but it is his cabin remove though injunction requiring Peska Even warranted because Peska was warned of this his would a substantial to remove cabin remedy. possible Before Peska commenced him, injunc- loss to it is the reasonable construction, he received a letter from imposed to tion the circuit court could have pointed attorney, which Harksen’s ' future landowners from out the restrictive applicability in violation restrictive cove- homes his advised him that if property, and If the the fact that Court considers property, Harksen would constructed *8 or could have verified whether not he legal equita- all enforce building, violating covenant before including, but to in- ble means not limited building process once have halted the could junctive began relief. After Peska construc- started, considers the this action was tion, he was served the summons litigation potential floodgates of that will be matter, complaint in but continued to this cab- opened requiring not removal months. Peska build for three additional in, disproportionate not equities on notice that the covenants ex- mandatory injunction by the instituted enforced, yet would be isted and circuit court. Therefore, ignore warnings. chose weighing this not be the hard- Court should appropriate injunction The is one injunction is ship to if the enforced stop wrongful action undo that will against gained to Harksen. the benefit act conform to the covenant. wrongful Furthermore, that more residences majority only covenant stated no The parcel particular this built on Harksen while looks at harm suffered Therefore, property. if a residence is built covenant,

in contravention

appropriate injunction require is to the viola- tear it

tor move the residence or down.

Peska’s cabin was

have a home in Creek in summer Slate irrespective

Black Hills of the restrictive cov-

enant, majority stopping not doing that. The circuit court did

abuse its discretion and its should

be enforced.

1998 SD 71 GUILFORD,

John Plaintiff Appellant, SERVICE,

NORTHWESTERN PUBLIC corporation, Dakota South

Defendant, Industries, Inc.,

Dakota Pork South Da- corporation, Heuston,

kota and Mark

individual, Appellees. Defendants and

Nos. 20165.

Supreme Court South Dakota. April

Argued 1998.

Decided *9 Tonner,

Thomas M. Tobin of Tobin and Aberdeen, King, plaintiff appellant. Hoglund Evans, Sandra and Edwin E. Evans, Davenport, Smith, Hurwitz & Sioux Falls, for defendants and appellees Dakota Pork and Heuston.

Case Details

Case Name: Harksen v. Peska
Court Name: South Dakota Supreme Court
Date Published: Jul 1, 1998
Citation: 581 N.W.2d 170
Docket Number: None
Court Abbreviation: S.D.
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