Foster v. Orchard Development Co., LLC

705 S.E.2d 816, 227 W. Va. 119, 2010 W. Va. LEXIS 145
CourtWest Virginia Supreme Court
DecidedNovember 23, 2010
Docket35308
StatusPublished
Cited by10 cases

This text of 705 S.E.2d 816 (Foster v. Orchard Development Co., LLC) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foster v. Orchard Development Co., LLC, 705 S.E.2d 816, 227 W. Va. 119, 2010 W. Va. LEXIS 145 (W. Va. 2010).

Opinions

[121]*121PER CURIAM:

I.

FACTUAL AND PROCEDURAL HISTORY

This appeal arises from the denial of a permanent injunction to stop the building of townhouses as well as a grant of summary judgment in favor of the appellees, Orchard Development Company, LLC (hereinafter referred to as “Orchard”) and Peteler, LLC (hereinafter referred to as “Peteler”), and against the appellant Jason Foster, regarding the applicability and meaning of certain restrictive covenants and other regulations affecting The Gallery subdivision (hereinafter referred to as “The Gallery”) in Martinsburg, Berkeley County. The appellant, Jason Foster (hereinafter referred to as “Foster”) is the owner of a single-family residence in The Gallery. He purchased this house in June or July of 2007, for the sum of $282,500. Orchard is the developer of The Gallery Subdivision. Peteler is a builder who purchased several tracts of land from Orchard with the intention of constructing 100 townhouses within The Gallery subdivision.

The Gallery subdivision was established after Orchard purchased a tract of land from the C.J. Seibert Orchard Company. Orchard began developing The Gallery in 2004, with plans calling for a mix of single family homes and townhouses. Orchard marketed this subdivision as Martinsburg’s premier subdivision and as a planned community1, within the definition of W. Va.Code § 36B-1-101(2005), et seq.2 A maximum of 2,000 units were planned for The Gallery subdivision. When this litigation began, Orchard was still the owner of a majority of the lots and development was continuing within the subdivision.

After its first acquisition of property, Orchard wrote and recorded a document entitled “Declaration of Covenants, Conditions and Restrictions for the Gallery Subdivision,” (hereinafter referred as the Covenants) in the Berkeley County Clerk’s office. After later property acquisitions, Orchard recorded a supplemental document acknowledging the applicability of the Covenants to every unit in the subdivision, regardless of whether the deed specifically references the Covenants.

The Covenants established The Gallery as a planned community, and tracked the language of the Uniform Common Interest Ownership Act, W. Va.Code § 36B-1-101 (hereinafter referred to as “the Act.”) Throughout the Covenants, individual homes within the subdivision were referred to as “units.” The word unit applies to single family homes as well as townhouses.

In order to establish a mechanism for control of the common interest areas of the subdivision, the Covenants established a homeowners’ association known as “The Gallery Subdivision Unit Owners Association, Inc.,” (hereinafter referred to as the Association). The association was incorporated by G. Timothy Shaw, a member of Orchard, as a non-profit West Virginia corporation on January 10, 2005. While each unit owner in The Gallery subdivision was a member of the Association, the actual management of the Association fell to an Executive Board. The initial members of the Executive Board were G. Timothy Shaw and Robert C. Adams, members of Orchard Development; James M. Siebert, a realtor; and Telena A. Spies, another realtor.

The Covenants established in Article VIII Section 8.10, that “there shall be a period of Orchard Development control of the Association, during which Orchard Development, or [122]*122persons designated by Orchard Development, may appoint and remove officers and members of the Executive Board.” It was only after seventy-five percent (75%) of the lots were sold, or two years after Orchard ceased selling lots within The Gallery subdivision that control of the Executive Board would be granted to the unit owners as opposed to Orchard, the developer.

The Covenants also reserved certain rights to the Orchard Development, which must be exercised within 15 years after the recording of the Covenants. These rights were enumerated in Section VIII as follows:

ARTICLE VIII

Development Rights and Other Special Declarant Rights

Section 8.1 Reservation of Development Rights. The Declarant reserves the following Development Rights which may be exercised individually or in any combination:
(a) The right by amendment to add real estate to the Common Interest Community.
(b) The right by amendment to create Units, Common Elements, or Limited Common Elements within the Common Interest Community.
(e) The right by amendment to subdivide and combine Units or convert Units into Common Elements.
(d) The right by amendment to withdraw real estate from the Common Interest Community.
(e) The real estate to which the Development Rights specified in Paragraph D is shown on Schedule 7.3

Section 8.4 reserved Special Declarant Rights, including the right to appoint or remove an officer of the Association or Master Association or an Executive Board or Master Executive Board member during a period of Declarant control subject to the provisions of 8.10 of the Covenants.

The Covenants also established land use and restriction rules in Article X, Section 10.1. The first restriction is that “All units shall be used for single-family residences only. No commercial or retail businesses shall be permitted on any Unit.” Also restrictions included prohibitions against subdivision of lots, commercial vehicles, unregistered vehicles, campers, above-ground storage tanks, yard art, clotheslines as well as other requirements.

The Covenants detailed a mechanism by which the covenants themselves could be modified. In Article XIV, Section 14.1 of the Covenants the amended procedure is as follows:

[Tjhis Declaration, including the Plan and Plans, may be amended only by vote or agreement of Unit Owners of Units to which at least sixty-seven percent (67%) of the votes in the Association are allocated.

In Article XIV, Section 16.4(a) of the Covenants, document amendment is detailed as follows:

Document changes. Notwithstanding any lower requirement permitted by this Declaration or the Act, no amendment of any material provision of the Documents by the Association or Unit Owners described in this Subsection 16.4(a) may be effective without the vote of at least sixty-seven percent (67%) of the Unit Owners.

The word “documents” is defined in Article 1, Section 1.16 of the Covenants as:

The Declaration, Plan and Plans recorded and filed pursuant to the provisions of the Act, the Bylaws, Articles and the Rules of the Association as they be amended from time to time. Any exhibit, schedule or certification accompanying a Document is part of that Document.

The Covenants themselves did not reference minimum unit size or other particulars about the construction of homes in The Gallery Subdivision. Instead, the Covenants established a committee known as The Gallery Subdivision Architectural and Development [123]*123Review Committee, known generally as the “Review Committee”, in Article I, Section 1.32, as the entity responsible for approving the plans for each unit with The Gallery Subdivision. The Executive Board of the Association was charged with establishing the Review Committee.

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Bluebook (online)
705 S.E.2d 816, 227 W. Va. 119, 2010 W. Va. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foster-v-orchard-development-co-llc-wva-2010.