Hayes v. Marshall

501 S.W.2d 269, 1973 Ky. LEXIS 133
CourtCourt of Appeals of Kentucky
DecidedNovember 9, 1973
StatusPublished
Cited by2 cases

This text of 501 S.W.2d 269 (Hayes v. Marshall) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayes v. Marshall, 501 S.W.2d 269, 1973 Ky. LEXIS 133 (Ky. Ct. App. 1973).

Opinion

CULLEN, Commissioner.

The purposes of this action were (1) to enjoin the developers of a subdivision from erecting buildings in the subdivision in violation of the restrictive covenants that were recorded when the subdivision was platted, (2) for damages, and (3) for a declaration of invalidity of the county planning and zoning commission’s approval of abolishment of the lot lines in the original subdivision and the making of a resub-division of the tract for less restricted uses (which did not involve any rezoning). The action originally was commenced in the name of the owner of the only lot in the original subdivision that had been sold by the developers, and in the names of six other persons who had taken an option to purchase from the owner of that lot. A motion to dismiss the action as to the latter six persons was made on the ground that they had no standing to maintain the action. The six persons then bought the lot from the owner and moved for permission to file an amended complaint in which they were designated as the sole plaintiffs and asserted their rights as owners of the lot. The circuit court sustained the motion to dismiss the original complaint as to the six persons, but also sustained their motion for permission to file the amended complaint. However, the court then entered judgment dismissing the amended complaint, on the basis of findings of fact and conclusions of law in which the court ruled that the plaintiffs had no standing to maintain the action, but in which the court nevertheless held that the restrictions as to the original subdivision had effectively been abolished and even if not, would not be violated by the developers’ plans to build an extensive apartment-building complex on the tract. The plaintiffs have appealed from the judgment.

It appears that the ground on which the plaintiffs were held not to have standing to maintain the action was that their maintaining of the action constituted champerty or maintenance. It is true that the plaintiffs’ interest in enforcing the restrictions is traceable to the fact that they own lots in adjoining subdivisions, the value of which might be depreciated if the subdivision in question were developed for an apartment-building complex. It also might be considered that the plaintiffs’ original participation in the action partook of champerty or maintenance, because they agreed to finance the action brought in the name of the original lot owner. However, the question is whether their maintaining of the action, after having bought the lot outright, falls within the category of cham-perty or maintenance.

In a firm line of cases this court has held that the mere fact that property is involved in litigation does not render a purchase of that property champertous, and that the subsequent prosecution of the litigation by the purchaser does not constitute maintenance. See Chiles v. Conley’s Heirs, 9 Dana 385; Frasure v. Northern Coal & Coke Co., 189 Ky. 574, 225 S.W. 479; White v. Pond Creek Coal Co., 201 Ky. 212, 256 S.W. 30; Pond Creek Coal Co. v. Hatfield, 228 Ky. 806, 16 S.W.2d 442. Under those cases the plaintiffs in the instant case were not barred from prosecuting the action, after they had purchased the lot, and the trial court therefore erred in holding that they did not have standing to maintain the action.

It does not follow, however, that the plaintiffs are entitled to the relief they sought — a matter which we shall now discuss.

We think no significance need be attached to the purported abolishment of the lot lines, by the planning and zoning commission, because such action could not and did not destroy or impair the contractual obligation of the developers, to the lot owner, to conform to the restrictions. See Bellemeade v. Priddle, Ky., 503 S.W.2d 734 (1973). Therefore, there is no need for a judgment declaring the action of the zoning commission to be invalid, it being inconsequential as concerns any rights of the plaintiffs.

[271]*271With respect to the claimed violation of the restrictions, by the developers, we think there is no basis at the present time for relief by way of damages, because no damages have yet occurred; there is only the threat of damages from future violation of the restrictions.

This leaves the question of whether the plaintiffs are entitled to injunctive relief. The governing principles are, as stated in 20 Am.Jur.2d, Covenants, Conditions, Etc., sec. 313, p. 876:

“Broadly speaking, the enforcement of building restrictions is governed by equitable principles, and will not be decreed if, under the facts of the particular case, it would be inequitable and unjust, or not in furtherance of public interest. Whether injunctive relief will be granted to restrain the violation of such restrictions is a matter within the sound discretion of the trial court, to be determined in the light of all the facts and circumstances, and the appellate court will not interfere unless such discretion is manifestly abused. The complainant’s right to insist on the restrictive covenant and to invoke the injunctive power of the court must be clear and satisfactory * *

While the trial court, in its findings of fact and conclusions of law, spoke of the plaintiffs’ having “no standing to maintain this action because of insufficient interest” and of their being “barred by waiver and estoppel,” we think it is plain that the court simply was weighing the equities, and finding that under all of the facts and circumstances relief by injunction was not warranted. We find no basis for interfering with that decision.

It is to be remembered that only one lot had been sold out of the 50 originally platted. The original hopes and plans for the subdivision had not materialized, and the developers were concerned about the future of their investment. Their substantial economic interests would be promoted by redesigning the subdivision. As against those interests was the interest of the owner of the one lot that had been sold, in protecting the value of that lot. That value, as evidenced by the price paid by the plaintiffs, was around $18,000. It would seem that any impairment of that value that might occur could adequately be compensated for by payment of damages, and that the protectable interest of the plaintiffs in the single lot is not of such magnitude as to warrant a permanent enforcement by injunction of the restrictions on the remainder of the subdivision.

Another factor entering into the consideration is that the plaintiffs purchased the lot in the midst of the litigation, with full knowledge of the efforts made and expense incurred by the developers in seeking to change the use of their land. Also, some significance may be given to the fact that the plaintiffs’ main interest is to protect the value of their property located outside the subdivision, which interest the restrictions in question were not designed to protect.

Although we are upholding the trial court’s decision to deny injunctive relief, and although we are holding that no basis for present recovery of damages has been shown, we believe it is proper for us to review the trial court’s ruling on the question of whether the proposed use of the land by the subdividers will violate the restrictions. We quote the relevant portion of the restrictions:

“RESTRICTIONS:
1.

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Bluebook (online)
501 S.W.2d 269, 1973 Ky. LEXIS 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayes-v-marshall-kyctapp-1973.