Fox Farm Estates Landowners Ass'n v. Kreisch

947 P.2d 79, 285 Mont. 264, 54 State Rptr. 1142
CourtMontana Supreme Court
DecidedOctober 29, 1997
Docket97-057
StatusPublished
Cited by12 cases

This text of 947 P.2d 79 (Fox Farm Estates Landowners Ass'n v. Kreisch) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fox Farm Estates Landowners Ass'n v. Kreisch, 947 P.2d 79, 285 Mont. 264, 54 State Rptr. 1142 (Mo. 1997).

Opinions

JUSTICE LEAPHART

delivered the Opinion of the Court.

Fox Farm Estates Landowners Association (Fox Farm), appeals from the decision of the Eighth Judicial District Court, Cascade County, denying Fox Farm’s action to enjoin preliminarily and permanently Troy and Denise Kreisch’s (Kreisches’) installation of a manufactured home contrary to a restrictive covenant prohibiting temporary structures. We reverse and remand.

Fox Farm raises two issues on appeal. We conclude that the first issue is dispositive and, therefore, do not reach the second issue.

Issue Presented

Did the District Court err in holding that Kreisches’ factory built “manufactured home” was not a mobile home prohibited by the applicable restrictive covenants?

Standard of Review

Fox Farm appeals only the District Court’s conclusions of law. The standard of review of a district court’s conclusions of law is whether the court’s interpretation of the law is correct. Knudson v. McDunn (1995), 271 Mont. 61, 64, 894 P.2d 295, 297 (citing J.M., Jr. [267]*267v. Montana High School Ass'n (1994), 265 Mont. 230, 235, 875 P.2d 1026, 1030).

Background

In 1996, the Kreisches purchased a lot in Ptarmigan Acres (the lot), a subdivision of Cascade County managed by Fox Farm. Ptarmigan Acres, including the Kreisches’ lot, is subject to restrictive covenants which prohibit temporary structures including mobile homes. The Kreisches, fully aware of the restrictive covenants, purchased a manufactured home from a Great Falls mobile home dealer, The Home Place. They intended to install their new home on the lot.

The home consists of two mobile units, each with permanent steel chassis, and a special framing that allows for the installation of springs, axles, wheels, a tongue mechanism and other accessories associated with mobile homes which allow the units to be towed from one location to another. The Kreisches arranged to have the retailer haul the units to the lot and place them on a concrete foundation. The units would then be bolted and welded together pursuant to the manufacturer’s suggestions. Electrical services would be installed with the meter on a utility pole, instead of on the home itself, because of the mobile quality of the home. Finally, upon completion of their purchase, the Department of Justice, Motor Vehicle Division would issue a Certificate of Ownership to the Kreisches.

Fox Farm, contending that the manufactured home violates the restrictive covenants, filed for a Temporary Restraining Order (TRO) to enjoin the Kreisches from moving the home onto the lot. The District Court entered a TRO and held a hearing to show cause why a preliminary injunction should not be granted pending a full trial on the merits. Following the hearing, the District Court denied Fox Farm’s prayer for preliminary injunction and dissolved the TRO concluding that the manufactured home was not a “mobile home” and, thus, did not violate the restrictive covenants. The District Court also held that Fox Farm failed to show that irreparable injury would result from its denial of the preliminary injunction.

Discussion

In two recent decisions, Newman v. Wittmer (1996), 277 Mont. 1, 917 P.2d 926, and Toavs v. Sayre (1997), [281 Mont. 243], 934 P.2d 165, this Court interpreted restrictive covenants similar to those presented in this case. The Kreisches contend, however, that the facts of this case are distinguishable from Newman and Toavs, but suggest [268]*268that, if not distinguishable, this Court should reexamine those decisions. We recognize that with the increase in popularity of prefabricated and manufactured housing, the amount of litigation regarding such structures has also increased and that there is a split of authority among courts. See, e.g., Starr v. Thompson (N.C. App. 1989), 385 S.E.2d 535 (holding that whether a dwelling is a mobile home under a covenant depends on its characteristics and a factory built dwelling, designed and constructed to travel on wheels from place to place is a “mobile home”); Albert v. Orwige (Tenn. App. 1987), 731 S.W.2d 63 (holding that a structure was a “mobile home” notwithstanding that it might be a “double-wide” mobile home and notwithstanding the fact that it may be constructed of different materials than many mobile homes); Atkins v. Fine (Tex. App. 1974), 508 S.W.2d 131 (focusing on a ready built home’s “conventional construction,” the court held that a mobile home violated a restrictive covenant providing that “no buildings ... are to be moved onto said property ... except new ready built homes); Parry v. Hewitt (Wash. Ct. App. 1992), 847 P.2d 483 (finding that the mobile home is of the same quality and size as stick built homes and is therefore not prohibited by restrictive covenants prohibiting structures of a temporary character). However, we reaffirm our decisions in Newman and Toavs and determine that those decisions control the resolution of this appeal.

An applicant seeking a preliminary injunction for a violation of a restrictive covenant must “establish a prima facie case, or show that it is at least doubtful whether or not he will suffer irreparable injury before his rights can be fully litigated.” Porter v. K & S Partnership (1981), 192 Mont. 175, 181, 627 P.2d 836, 839. Additionally, in determining whether an applicant has established a prima facie case, “the court should decide merely whether a sufficient case has been made out to warrant the preservation of the property or rights in status quo until trial, without expressing a final opinion as to such rights. An applicant need not make out such a case as would entitle him to final judgment on the merits.” Porter, 627 P.2d at 840.

This Court interprets restrictive covenants by looking first to the language of the covenant to ascertain its meaning. If the language is clear and explicit, the language will govern. The language of restrictive covenants should be understood in its ordinary and popular sense. Toavs, 934 P.2d at 166-67. Restrictive covenants should be strictly construed and ambiguities resolved to allow free use of the property. Newman, 917 P.2d at 929. However, such free use must be balanced against the rights of other purchasers. Newman, [269]*269917 P.2d at 929. Generally, restrictive covenants are considered valid if they maintain or enhance the character of the subdivision. Newman, 917 P.2d at 929.

The relevant portions of the restrictive covenants at issue in this case state:

I. Statements of Purpose and Application.

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Fox Farm Estates Landowners Ass'n v. Kreisch
947 P.2d 79 (Montana Supreme Court, 1997)

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Bluebook (online)
947 P.2d 79, 285 Mont. 264, 54 State Rptr. 1142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-farm-estates-landowners-assn-v-kreisch-mont-1997.