1515-1519 Lakeview Boulevard Condominium Ass'n v. Apartment Sales Corp.

9 P.3d 879, 102 Wash. App. 599
CourtCourt of Appeals of Washington
DecidedSeptember 18, 2000
DocketNo. 45241-0-I
StatusPublished
Cited by6 cases

This text of 9 P.3d 879 (1515-1519 Lakeview Boulevard Condominium Ass'n v. Apartment Sales Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1515-1519 Lakeview Boulevard Condominium Ass'n v. Apartment Sales Corp., 9 P.3d 879, 102 Wash. App. 599 (Wash. Ct. App. 2000).

Opinion

Webster, J.

— The appellants (Homeowners) own real property severely damaged by a landslide that occurred in early 1997. Homeowners brought suit against the City of Seattle and others. In its motion for summary judgment, the City argued that a recorded covenant waived all their negligence claims. The City also argued that the public duty doctrine and the assumption of the risk doctrine bar the Homeowners’ negligent permitting claims. The trial court granted summary judgment in favor of the City. Homeowners appeal arguing: (1) the Covenant does not waive all their negligence claims; (2) the public duty doctrine does not bar their negligent permitting claims; and (3) they did not assume the risk of a landslide. We reverse because the Covenant does not run against Homeowners. Although the public duty doctrine bars their claim against the City for negligent permitting, only partial summary judgment is appropriate because the claim that the City negligently maintained the public storm drain remains an issue.

FACTS

The City of Seattle issued a permit to Apartment Sales Corporation (the developer) to construct three condominium units, but only after the developer recorded a covenant promising to warn future purchasers that the site was a potential landslide area. In addition, the Covenant waived any claims by the owners of the property against the City arising from soil movement and issuance of the permit, except for losses directly caused by the sole negligence of the City:

Owner(s) on his/her own behalf and on behalf of his/her heirs, successors and assigns hereby waives any right to assert any claim against the City for any loss, or damage to people or [603]*603property either on or off the site resulting from soil movement by reason of or arising out of issuance of the permit(s) by the City for development on the property except only for such losses that may directly result from the sole negligence of the City.

Clerk’s Papers (CP) at 284. Title insurance reports issued to the Homeowners show that the developers recorded the Covenant. All the reports clearly state in their summaries that the property is a potential slide area.

Soon after purchasing one of the condominium units, Frank and Penny Fukui experienced numerous flooding incidents caused by surface water entering their unit from the street. On at least one occasion, the City settled a claim for damages brought by the Fukuis. The City also attempted to remedy the problem by installing new curb drains in front of the unit. These improvements, however, did not stop pooling of surface water in front of the condominiums or overflow of the public storm drain system.

After severe storms produced record setting precipitation in Seattle in late 1996, the land beneath the condominium units began to slide. Within a period of 24 hours, the property sunk four to six feet and moved westward about two feet. Homeowners sued the City as well as the developer, the geotechnical engineer, the architect, the contractor, and the structural engineers. The trial court granted summary judgment in favor of the City. Around the same time, Homeowners settled their case against the developer. Homeowners timely appeal the grant of summary judgment.

DISCUSSION

I

Covenant

Homeowners argue that the Covenant does not run with the land and therefore does not prevent them from bringing this negligence action against the City. For a covenant to run with the land, it often depends on what type of covenant it is. There are two types of restrictive or running covenants: Real covenants and equitable restric[604]*604tions. Hollis v. Garwall, Inc., 137 Wn.2d 683, 691, 974 P.2d 836 (1999); 17 William B. Stoebuck, Washington Practice: Real Estate: Property Law § 3.1 (1995). Traditionally, real covenants run at common law while equitable restrictions run in equity. 1 Washington State Bar Ass’n, Real Property Deskbook § 14.2 (3d ed.1997) (citing Spencer’s Case, 5 Co. 16a, 77 Eng. Rep. 72 (Q.B. 1583); Tulk v. Moxhay, 2 Phil. 774, 41 Eng. Rep. 1143 (Ch. 1848)). Homeowners argue that the Covenant is not enforceable because it does not meet all the elements required for a real covenant to run at common law. In contrast, the City contends that the Covenant meets the less stringent requirements for an equitable restriction to run in equity as set out in Hollis, 137 Wn.2d at 691.

To run at common law, a real covenant must meet five elements: (1) the covenant must be enforceable as a contract between the original parties; (2) the covenant must touch and concern estates in land with which the burdens and benefits run; (3) the covenanting parties must have intended to bind their successors in interest; (4) there must be vertical privity of estate; and (5) there must be horizontal privity of estate. Lake Arrowhead Community Club, Inc. v. Looney, 112 Wn.2d 288, 295, 770 P.2d 1046, 7 A.L.R. 5th 1034 (1989); Mountain Park Homeowners Ass’n. v. Tydings, 72 Wn. App. 139, 145, 864 P.2d 392 (1993), aff’d, 125 Wn.2d 337, 883 P.2d 1383 (1994); Stoebuck, Washington Practice §§ 3.2-3.6; Deskbook, § 14.2(2)(a).

To run in equity, an equitable restriction requires all of the above elements except horizontal privity of estate. Deskbook, § 14.2(2)(a); Stoebuck, Washington Practice §§ 3.10-3.15. Instead, the successor of the covenantor must have actual or constructive notice of the equitable restriction. Deskbook, § 14.2(2)(a); Stoebuck, Washington Practice § 3.16. As Homeowners correctly assert, the Hollis court slightly misstated the elements for an equitable restriction.1 Hollis, 137 Wn.2d at 691-92; Cf. Lake Arrowhead, 112 Wn.2d at 295 (elements for real covenants). In [605]*605Hollis, the Washington Supreme Court combined the second and third elements into one element and said that an equitable restriction met the combined element either if it touches and concerns the land or if the parties intended to bind successors. Hollis, 137 Wn.2d at 691-92 (citing William B. Stoebuck, Running Covenants: An Analytical Primer, 52 Wash. L. Rev. 861, 909-10 (1977)). Yet, Professor Stoebuck makes clear that a mere intent to bind successors cannot replace the essential touch and concern requirement. Stoebuck, Washington Practice, § 3.13, at 148 (citing Mullendore Theatres, Inc. v. Growth Realty Investors Co., 39 Wn. App. 64, 691 P.2d 970 (1984)). Rather, it is the parties’ intent that may be inferred if the equitable restriction touches and concerns the land, not the other way around. Stoebuck, Washington Practice, § 3.13, at 147. In the end, the Hollis court correctly applied the touch and concern element to the equitable restriction. Hollis, 137 Wn.2d at 692. Contrary to the City’s position, the touch and concern requirement is not optional.2

In any case, Hollis is distinguishable because it involved an equitable restriction. Hollis, 137 Wn.2d at 691. Because the original parties in

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9 P.3d 879, 102 Wash. App. 599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1515-1519-lakeview-boulevard-condominium-assn-v-apartment-sales-corp-washctapp-2000.