Hillside Service Co. v. Alcorn

673 P.2d 392, 105 Idaho 792, 1983 Ida. LEXIS 553
CourtIdaho Supreme Court
DecidedDecember 7, 1983
Docket14481
StatusPublished
Cited by1 cases

This text of 673 P.2d 392 (Hillside Service Co. v. Alcorn) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hillside Service Co. v. Alcorn, 673 P.2d 392, 105 Idaho 792, 1983 Ida. LEXIS 553 (Idaho 1983).

Opinion

SHEPARD, Justice.

This is an appeal from a declaratory judgment in favor of the defendants-respondents, in a class action involving the interpretation of restrictive covenants per *793 taining to real property which plaintiffs had sold to defendants. We affirm.

Plaintiffs-appellants developed certain real property subdivisions in Kootenai County, Idaho. 1 In approximately 1974, plaintiffs developed the two real property subdivisions involved herein, i.e., Hayden View Estates and Woodland Heights, both of which are on hills south of Hayden Lake, between Hayden Lake and Dalton Gardens, and which together constitute 88 individual parcels of land. At the outset, the developers determined that the area was not suitable for individual septic tanks for each lot and a community sewage treatment facility was designed, consisting of a basic drain field with sand filters. Since that system was self-operating, it involved no maintenance, and thus, after the installation, plaintiffs-appellants did not anticipate that there would be continuing costs for sewage treatment.

■ As adjacent subdivisions were constructed, health authorities determined it was necessary to upgrade the sewer system. In about 1977, at a cost of $150,000, plaintiffs installed a new and more sophisticated sewer system called a “rock upflow detoxification filter,” which was capable of removing substantially all of the nitrates and nitrogen gas from the waste water of the subdivisions.

From the start, in selling lots, plaintiffs-developers had drafted documents entitled “Declaration of Restrictive Covenants,” to which defendants-purchasers were required to agree. Those “covenants” included, at Covenant 11, the following provision:

“Hayden View Estates [Woodland Heights] shall install, furnish and maintain a sewage disposal system that will meet all requirements of and be approved by the Idaho Department of Health and Welfare. The sewage disposal system may be transferred by agreement and the obligations assumed by a sewer district to be formed to serve the area. Hayden View Estates [Woodland Heights] shall remedy defects in the system and shall be responsible to individual lot owners and other affected persons for any failures in the system.” (Emphasis supplied.)

As indicated by the language, the developers contemplated the formation of a sewer district to which they would turn over both the sewer system itself and their obligations respecting the sewer system. An attempt was made to organize such a sewer district in 197A-75, but the plan was abandoned when another sewer district preempted part of the area in late 1975. We are not asked to, nor do we, reach the question of such a proposed district’s ability to charge the defendants here for the service of maintaining a sewer system.

In 1978, plaintiffs began sending bills of $11.84 per month to defendants, for costs of servicing the sewer system. The billed amount is not an issue on this appeal and not necessary to our decision. Approximately half of the property owners paid the billed amount, the rest refused to pay, and this action resulted.

In this appeal, we are presented only with interpretation of plaintiffs-developers’ promise to “install, furnish and maintain a sewage disposal system.” Defendants-homeowners argue that the term “maintain” is clear and unambiguous and, therefore, that the plaintiffs-developers are obliged to keep the sewer system operational and to bear the expenses thereof. On the other hand, plaintiffs-developers argue that the word “maintain” in the covenant does not include service charges, but rather in this context and under these facts means to uphold in a particular condition without allowing failure or decline.

The trial court, in finding for defendants, stated:

“Considering that a water and sewer district is permitted by law to charge maintenance and operation costs; that the covenant itself anticipates a transfer of the sewage disposal system to a sewer *794 district; and that the covenant itself provides that prior to such a transfer that the developers ‘shall install, furnish and maintain a sewage disposal system’; and that at the very least, it was represented to the purchasers that until such transfer to a sewer district, there would be no charges for sewer service, it would appear that there was a meeting of the minds between the parties that no such charges would be levied until a sewer district took over the system.
“The language of Covenant 11 is not ambiguous or uncertain. The words ‘install, furnish and maintain’ are words of common meaning and understanding, and the definitions provided by Words and Phrases. Permanent Edition, define the word ‘install’ as, to set in place. The word ‘furnish’ means to provide what is necessary for or to supply, and the word ‘maintain’ means to keep up and preserve as a continuing obligation.
“The evidence further showed, by Defendants’ Exhibit A, that in subdivisions sold after the two here concerned by these same developers that the Restrictive Covenant, referring to sewer service, specifically provided for usage charges.
“Under these circumstances, the Court can only conclude that the developers are obligated to furnish sewer service to the lot owners of Woodland Heights and Hayden View Estates without cost until such time as a sewer district would assume the obligation to maintain the system and which by law would have the power to charge reasonable service charges.”

That interpretation of plaintiffs-developers’ promise to “maintain” the sewer system is supported by substantial evidence and will not be disturbed on appeal. It is within the province of the trial judge to decide the meaning of the contractual term, according to his view of the circumstances surrounding the formation of the contract and his determination of the intent of the parties. Clark v. St. Paul Property and Liab. Ins. Cos. 102 Idaho 756, 639 P.2d 454 (1981); Glenn Dick Equipment Co. v. Galey Const., Inc., 97 Idaho 216, 541 P.2d 1184 (1975).

Here, the testimony at trial indicated that the parties’ agreement, as reflected in their oral and written promises, was for plaintiffs to provide sewer services without charge, unless and until a sewer district was formed which would assume those obligations. There was adequate testimony from the defendant property owners to that effect and, while that testimony might appear somewhat self-serving, it is clearly supported by testimony from plaintiffs-developers.

George Anderl, one of the primary developers of the two subdivisions here involved, testified:

“Q ... [Y]ou are quite sure there were no hookup fees for sewer?
“A Absolutely.
“Q Did you ever represent to anyone that there would be no service charges for the sewer service for any purchaser of Hayden View or Woodland Heights First Addition?

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673 P.2d 392, 105 Idaho 792, 1983 Ida. LEXIS 553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hillside-service-co-v-alcorn-idaho-1983.