Kraushaar v. Bunny Run Realty Co.

298 N.W. 514, 298 Mich. 233, 1941 Mich. LEXIS 543
CourtMichigan Supreme Court
DecidedJune 2, 1941
DocketDocket No. 53, Calendar No. 41,551.
StatusPublished
Cited by12 cases

This text of 298 N.W. 514 (Kraushaar v. Bunny Run Realty Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kraushaar v. Bunny Run Realty Co., 298 N.W. 514, 298 Mich. 233, 1941 Mich. LEXIS 543 (Mich. 1941).

Opinion

North, J.

The defendant Lake Homes Bealty Company is a Michigan corporation. In 1924, through its incorporators it purchased on contract the so-called Porritt farm property in the vicinity of Long Lake, Orion township, Oakland county, for the purpose of subdividing the same and selling lots as sites for cottages and summer homes. For the same purpose, it later acquired six neighboring farms, each being purchased on a separate land contract from different vendors. Bach farm was platted and subdivided and lots sold therein by the Lake Homes Bealty Company as grantor or vendor. Thereafter, the Lake Plomes Bealty Company defaulted on its contract for the purchase of the first parcel, the Porritt farm. The vendors started summary proceedings before the circuit court commissioner in July, 1935, and on September 19, 1935, judgment for restoration of possession was entered. No writ of restitution was issued; but possession of the premises was peacefully surrendered by the corporation. Shortly after taking possession, the vendors of the Porritt farm caused the defendant, Bunny Bun Bealty Company, to be incorporated, and by quitclaim deed conveyed title to the Porritt farm to the last-mentioned corporation. This corporation continued to sell lots and to manage the property. In addition to the two corporate defendants above mentioned, the plaintiffs have also joined as defendants the individual incorporators of the Lake Homes Bealty Company and one James Palmer, who has been placed in control by the Bunny Bun Bealty Company of certain facilities located on the Porritt farm.

Plaintiffs are lot owners, one from each of the seven subdivisions platted from the farms which *236 the Lake Homes Realty Company was buying on land contracts. The lots in question had been purchased by plaintiffs from this company before the 1935 summary proceedings in which it lost possession of the Porritt farm, as above noted. Joined with them as plaintiff is the Bunny Run Protective Association, a nonprofit corporation organized in 1937, composed of and claiming to represent lot owners in the various parcels above mentioned.

It appears to have been the plan of the Lake Homes Realty Company to call the entire development, as composed of the seven parcels, the Bunny Run Country Club. In soliciting sales of lots the purchasers were referred to as “members of Bunny Run Country Club” and promised exclusive rights and privileges. Plaintiffs claim that the Lake Homes Realty Company and its officers promised prospective purchasers that:

“ (a) They would have privileges of the large lake or Long Lake, the beaches, the athletic fields, tennis courts and clubhouse.

“(b) That they would have access to the clubhouse; that it would be open for them and their guests; to make it exclusive, cards were issued to the lot owners for the use of themselves and guests.

“(c) That it was to be a ‘Country Club’ as its name signified, exclusively for the lot owners, their friends and guests.

“(d) That it would maintain the streets, athletic fields, parks, beach, promenades, et cetera. Lot owners paid $4 yearly for this.”

The record shows that to this end, each purchaser was given with his land contract a membership certificate in the Bunny Run Country Club in the following form.

“Membership Certificate

“This is to certify that * * * of * * * is a life member of Bunny Run Country Club with all priv *237 ileges and rights in the nse of the athletic grounds, golf course, park promenades, and lake shore so long as the land contract for lots * * * section * * * of Bunny Run Country Club subdivision are observed.

“ (Signed) Lake Homes Realty Co.”

And the land contracts as executed between these purchasers and the Lake Homes Realty Company contained the following language:

“The first party [realty company] agrees to furnish right of way to and from the lake to the premises herein described and to furnish docking space for a boat, and to give a permanent interest in the parks and athletic grounds of the said Bunny Run Country Club, according to the certificate of membership hereto attached and which is a part hereof, so long as the restrictions provided herein are maintained. ’ ’

The present difficulties arise from the fact that most of the recreational facilities in which a permanent interest was thus promised to the exclusive use of purchasers were located on a portion of the Porritt farm known as Elizabeth Park. This park was immediately adjacent to Long Lake and contained a bathing beach, bathhouse, and clubhouse, as well as picnic grounds. After possession of the Porritt farm had been taken from the Lake Homes Realty Company in the 1935 summary proceedings, and after management and operation thereof had been transferred to the Bunny Run Realty Company, the latter put James Palmer in control of the bathhouse, beach, and clubhouse, and the events transpired which have resulted in the instant suit.

It is complained of the defendants that advertise-’ ments were inserted in newspapers inviting the public to come and bathe at Bunny Run at a price of 25 cents per person and giving special rates to picnics. *238 Plaintiffs testified that the public responded in great numbers; that on week ends and holidays, there were such crowds that owners and their friends were crowded out from the beach; that the water became unfit for swimming and the parks strewn with paper and picnic refuse. Plaintiffs also claimed that the concession to operate the clubhouse was sold to Palmer, who operated it for his own profit instead of for the comfort and convenience of lot owners, their families, and guests. A fence was built along the edge of the lake shutting off the bathing beach from the rest of Elizabeth Park, a turnstile installed so that the general public could not have access to the lake without paying therefor. In short, plaintiffs complain that instead of the seclusion, privacy, and exclusive use of the premises which was promised to them, “Bunny Run Country Club became a public park, accessible to any one who had 25 cents to spend.”

Plaintiffs file this bill in equity, alleging that the general plan of the Lake Homes Realty Company to maintain these facilities exclusively for lot owners was well known to the vendors of the Porritt farm, and that since the Bunny Run Realty Company has taken possession, it has deprived the plaintiffs of rights and privileges to which they are entitled under their contracts as purchasers from the Lake Homes Realty Company. They ask that the defendants be restrained from continuing the conduct complained of, and that title to Elizabeth Park and the facilities therein be conveyed by the Bunny Run Realty Company to the Bunny Run Protective Association in trust for the use and benefit of all the lot owners, their families and guests.

After hearing in the circuit court a decree was entered dismissing plaintiffs’ bill of .complaint. Decision was based largely, if not wholly, on the fact *239

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Cite This Page — Counsel Stack

Bluebook (online)
298 N.W. 514, 298 Mich. 233, 1941 Mich. LEXIS 543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kraushaar-v-bunny-run-realty-co-mich-1941.