Kline v. Shearwater Ass'n

830 N.E.2d 235, 63 Mass. App. Ct. 825, 2005 Mass. App. LEXIS 663
CourtMassachusetts Appeals Court
DecidedJuly 11, 2005
DocketNo. 04-P-89
StatusPublished
Cited by3 cases

This text of 830 N.E.2d 235 (Kline v. Shearwater Ass'n) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kline v. Shearwater Ass'n, 830 N.E.2d 235, 63 Mass. App. Ct. 825, 2005 Mass. App. LEXIS 663 (Mass. Ct. App. 2005).

Opinion

Kantrowitz, J.

In this case we review a number of issues related to restrictive covenants applicable to a Cape Cod [826]*826development. Specifically, we consider (1) whether the trial court judge’s finding that those covenants were enforceable was erroneous; (2) whether the trial judge erred in finding that a proposal by Donald Kline violated the covenants; (3) whether the judge’s finding that the directors of the Shearwater Association, Inc. (association), owed no fiduciary duty to Kline was error; and, on cross appeal, (4) whether the trial judge erred by excluding evidence of the association’s legal fees in connection with its counterclaim for abuse of process resulting in a directed verdict against it. We affirm.

Facts. In 1978, Harold Harris established the Shearwater subdivision in the Cape Cod town of Truro, laying out a total of sixty lots, and setting aside a twenty-one acre lot for himself. On that lot, which overlooked Cape Cod Bay, he built his own home and a separate one-room artist’s studio.2 The floor area of the main home totaled 2,950 square feet, while that of the studio totaled 530 square feet.

When he established the Shearwater subdivision, Harris drafted and recorded a declaration of protective covenants (Shearwater covenants) to govern its development.3

Three of the restrictive covenants are of particular significance here: (1) article DJ, sections 2 and 3, limiting each lot to one single family residential dwelling no larger than 4,000 square feet4; (2) article IV, section 1(b), prohibiting “excavation or fill which would be visible from neighboring property and which would change the topography of the Lot” except as necessary during approved construction; and (3) article TV, section 1(h)(7), requiring that the “massing and height ... of structures shall conform to the Developer’s guidelines which shall include considerations for the views of other Lots in the subdivision and the effect of the proposed structure on the rest of the subdivision.” Neither the “guidelines” nor “construction [827]*827specifications,” mentioned elsewhere in the covenants,5 were ever established.

Harris oversaw the development and enforced the Shearwater covenants until the mid-1990’s, when he transferred his authority to the newly incorporated Shearwater Association, Inc.6 The association was managed by a board of directors (board) which operated pursuant to the association’s bylaws and oversaw the approval process for construction by owners in the subdivision. The board established a design review committee (committee) to administer the review process. Article V, section 1(a), of the Shearwater covenants provided that payments from lot owners would cover expenses incurred in the enforcement of the covenants.

When Harris sold his twenty-one acre lot at Shearwater to Donald Kline in 1997, twenty years of exposure to the elements had taken their toll on the property. As the trial judge described it, “[t]he studio was close to toppling over the bank to the beach below” and “[cjoastal erosion had eaten away at the bank to the very edge of the deck on the main residence. The wind and sand had buffeted both structures.”

After acquiring the Harris property, Kline applied to the committee for permission to remove the studio and replace it with a 1,284 square foot7 structure sixty feet back from the shore. The committee, composed of association members Murray Sackman, Phil Nexon, and Alan Marasco,8 was skeptical that Kline intended to maintain the structure as an artist’s studio, since the proposed structure contained multiple rooms with undesignated purposes. Suspecting that Kline had future plans for the entire [828]*828property, the committee eventually demanded that Kline submit his plans not only for the studio, but also for the main house. Kline maintained that he had no plan for the main house. In fact, Kline had already employed the design firm Geiger-Phillips to prepare detailed plans for a guest house that would replace the artist’s studio, and preliminary plans for an entirely new main house.

The committee ultimately denied approval for the proposed studio in December, 1997. Kline submitted another application in January, 1998, which the committee also rejected. Kline, who had obtained building permits from the town, decided to go forward with his plan without the committee’s approval and began construction in February, 1998. The association sought a preliminary injunction and a declaratory judgment. A Superior Court judge denied that request,9 with the proviso that Kline might be required to remove the structure if he lost at trial, and Kline completed the guest house. The 1,320 square foot structure contained two bedrooms, two bathrooms, a large living/dining room area, and a full kitchen.10

Kline revealed his plan for the main house to the committee in October, 1998. The plan described the complete removal of the original house, and its replacement with a larger two-level structure. The first level of the structure, which the plan described as a “basement,” was to be built on the same level as the existing structure. Kline would bring in approximately 10,225 cubic yards of fill to cover all sides of the building’s first floor, except for the southernmost comer containing the garage. All residential functions would be on the building’s second level. The site plan showed that the main house would ultimately be connected to the guest house by large areas of decking with a pool in the middle. Additionally, as proposed, the roof of the new residence would be higher than the existing structure by several feet, affecting the water views of many of the Shearwater subdivision’s residents.

[829]*829After extensive consideration of his application, the committee rejected Kline’s plan in December, 1998, and January, 1999, on the basis of noncompliance with the covenants.11 The committee obtained the advice of architects and designers, and went to great lengths to determine the space that would be occupied by Kline’s proposed building so that the affected homeowners could visualize its impact. In order to pay the fees for these services, members of the committee contributed their own money as gifts or loans to the association. Committee member Sackman, who on two prior occasions had given money to the association for similar purposes in cases not involving Kline, alone contributed over $75,000.

In August, 1999, Kline filed an eight-count complaint against the association and individual members of its board of directors.12 The judge dismissed various counts from which Kline does not appeal,13 leaving only Kline’s claims for civil conspiracy, ultra vires acts, breach of fiduciary duty and an accounting. The association filed counterclaims for a judgment declaring that the covenants were valid and applicable to Kline’s property, and for abuse of process. The parties’ claims were bifurcated, with the cross claims for declaratory judgment and the breach of fiduciary duty claim to be heard jury-waived, and Kline’s civil conspiracy and the association’s abuse of process claims to be tried to a jury.

[830]*830The nonjury claims were heard over the course of thirteen days.

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Bluebook (online)
830 N.E.2d 235, 63 Mass. App. Ct. 825, 2005 Mass. App. LEXIS 663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kline-v-shearwater-assn-massappct-2005.