Bellarmine Hills Ass'n v. Residential Systems Co.

269 N.W.2d 673, 84 Mich. App. 554, 1978 Mich. App. LEXIS 2519
Michigan Court of Appeals·Decided July 6, 1978·No. Docket 77-3989·Published·Cited by 37 cases

Opinion

Bashara, P. J.

Defendants appeal from a summary judgment granted to plaintiff. That judgment permanently enjoined defendants from using a certain residence for treatment of six or less mentally retarded children. Treatment was rendered under an arrangement whereby six or fewer retarded children would live with a resident foster parent.

Plaintiff is an incorporated association of homeowners having their residences in the same subdivision as the foster care facility. The subdivision is comprised entirely of single-family residences, one of which is leased by defendant Residential Systems from defendant Hopping. Residential Systems is a charitable organization, within the meaning of the Internal Revenue Code, 1 that locates and leases residential property for the operation of foster care facilities for mentally retarded children.

The facility with which this litigation is concerned is licensed by the Department of Social Services pursuant to the child care organizations act. 2 At the time this action was initiated, four mentally retarded children and one foster parent lived in the residence on a permanent basis. Other personnel would visit the home during the day to *557 render care and treatment to the children. The children also attend special classes at the local public schools.

At such time as a child has sufficiently responded to treatment that he can return to the care of his parents, his residency at the facility terminates, and another child is assigned to the home by the Department of Social Services. Two additional children were scheduled to be assigned to the residence by the Department when this suit commenced. That assignment is being held in abeyance pending the resolution of this controversy.

All property in the subdivision is subject to a restrictive covenant limiting the type of structures built thereon to single-family residences. 3 Plaintiff alleged that defendants’ use of the property was in violation of that covenant. The theory underlying that allegation was that six mentally retarded children residing with a foster parent for the purpose of receiving care and treatment of their affliction does not constitute a family as that term is used in the covenant.

Both parties moved for summary judgment. Each claimed that there was no genuine issue of material fact, and that the legal definition of family entitled them to prevail as a matter of law.

Defendants maintain that the judgment for plaintiff is erroneous, because the restrictive covenant controls only the type of structure that may be constructed, not the use and occupancy of the property. Further, defendants contend that the *558 trial court erred in defining "family” to preclude defendants’ use of the property as violative of the covenant, and that such result is contrary to this state’s declared public policy.

Unquestionably, promoting the development and maintenance of quality programs and facilities for the care and treatment of the mentally handicapped is a settled public policy of our state. That policy has both a constitutional 4 and legislative 5 foundation. But we must also recognize that restrictive covenants may constitute valuable prop *559 erty rights. Kaplan v Huntington Woods, 357 Mich 612, 617; 99 NW2d 514 (1959), Monroe v Menke, 314 Mich 268, 273; 22 NW2d 369 (1946). Further, it has been the policy of our judiciary to protect property owners who have complied with the restrictions from violations of the covenants by others. Wood v Blancke, 304 Mich 283, 287-288; 8 NW2d 67 (1943).

Where restrictive covenants describe the character of permissible structures to be erected upon the property, they also contemplate that use and occupancy of the property shall be commensurately restricted. Bassett Building Co v Jehovah Evangelical Lutheran Church, 371 Mich 459, 463; 124 NW2d 236 (1963), Wood v Blancke, supra. Covenants of restriction, especially those pertaining to residential use, preserve not only monetary value, but aesthetic characteristics considered to be essential constituents of a family environment. Consequently, failure to give complete eifect to restrictive covenants in accordance with their import works a great injustice to the property owners. Wood, supra.

In the case under review, as the trial court correctly held, the property is restricted to single family use. As a result, the foregoing public policies confront one another in contest, with the legal concept of "family” resting at the fulcrum of determination.

Concerned with the legal definition of family, our Supreme Court, in the seminal case of Carmichael v Northwestern Mutual Benefit Ass’n, 51 Mich 494, 496; 16 NW 871 (1883), stated:

"Now this word 'family,’ contained in the statute, is an expression of great flexibility. It is applied in many ways. It may mean the husband and wife having no children and living alone together, or it may mean *560 children, or wife and children, or blood relatives, or any group constituting a distinct domestic or social body. It is often used to denote a small select corps attached to an army chief, and has even been extended to whole sects, as in the case of the Shakers.”

Our examination of subsequent cases and authority from other jurisdictions discloses no more specific definition of the term. Rather, the word family denotes a concept, the application of which is dependent upon the basis of affiliation of the group being analyzed juxtaposed with the public policies invoked by the particular circumstances of the case being reviewed.

For example, in Carmichael the Court construed family to encompass an unmarried man residing with an unrelated young woman so as to entitle her to the benefits from his life insurance policy. The Court observed that the man and girl had lived together since her early youth, and that he considered and cared for her as a daughter. Apparently, the Court perceived the man’s voluntarily offered support and care for the child as a relationship favored by public policy.

That relationship was compared and contrasted by the Court with the situation presented in Mutual Benefit Association of Michigan v Hoyt, 46 Mich 473; 9 NW 497 (1881). In that case, the plaintiff attempted to secure the benefits from the decedent’s life insurance policy. Although he resided with decedent, the Court found that he was endeavoring to obtain a financial advantage from the decedent’s ailing health by acquiring insurance under which plaintiff named himself as beneficiary and paid the premiums. As noted by the Carmichael Court, the transaction was tainted by fraud and bad faith and was to be discouraged as a matter of public policy. Carmichael, supra, at 496.

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Bellarmine Hills Ass'n v. Residential Systems Co., 269 N.W.2d 673, 84 Mich. App. 554, 1978 Mich. App. LEXIS 2519 (Mich. Ct. App. 1978).

269 N.W.2d 673 (Bellarmine Hills Ass'n v. Residential Systems Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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