Leigh v. Village of Los Lunas

2005 NMCA 025, 108 P.3d 525, 137 N.M. 119
CourtNew Mexico Court of Appeals
DecidedAugust 11, 2004
Docket23,674, 23,731
StatusPublished
Cited by14 cases

This text of 2005 NMCA 025 (Leigh v. Village of Los Lunas) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leigh v. Village of Los Lunas, 2005 NMCA 025, 108 P.3d 525, 137 N.M. 119 (N.M. Ct. App. 2004).

Opinion

OPINION

CASTILLO, Judge.

{1} In this ease, we are asked to decide if restrictive covenants are considered property for purposes of eminent domain. Specifically, the question before this Court is whether Defendant Village of Los Lunas (Village) must compensate Plaintiffs Mondy Leigh and Sylvia Leigh (Leighs), owners of Tract 2 in a subdivision, based on the Village’s construction of a drainage pond on Tract 1 in violation of the restrictive covenants imposed on both properties. The Village additionally argues that the district court erred by admitting an appraiser’s report and challenges the sufficiency of the evidence for the damages award. We hold that the government is required to compensate for the diminution in value of the property benefitted by the restrictive covenants. We agree with the Village that the award was unsupported by the evidence; we therefore reverse the district court’s judgment and remand for recalculation of damages in accordance with this opinion.

I. BACKGROUND

{2} In 1995, the Leighs purchased Tract 2 for $21,000. Tract 2 is a lot in a subdivision containing five lots, all of which are subject to covenants restricting use of the land to residential purposes. There is no dispute that the restrictive covenants are valid and run with the land of all lots in the subdivision. The Village acquired Tract 1 for $30,000 for the purpose of constructing a storm drainage pond. The subdivision is located outside the Village, but it is undisputed that the Village may condemn property outside its boundaries “to protect its inhabitants from damage by flood waters.” Tract 1 is adjacent to the Leighs’ Tract 2. On September 26, 2000, the Village began construction of a storm drainage pond on Tract 1; the pond was substantially completed by February 14, 2001. No part of the storm drainage pond was built on the Leighs’ Tract 2.

{3} On January 19, 2001, the Leighs filed an action for damages against the Village, claiming breach of restrictive covenants, inverse condemnation, and trespass. The jury trial was limited to the breach of restrictive covenants and inverse condemnation claims. At the close of the Leighs’ case, the Village moved for judgment on the breach of restrictive covenants claim on the ground that inverse condemnation was the Leighs’ exclusive remedy; the motion was granted. Following trial, the district court entered judgment against the Village, awarding the Leighs $50,000 in inverse condemnation damages for the diminution in the value of their land caused by the Village’s violation of the restrictive covenants. The Village appealed this judgment and filed a motion for judgment notwithstanding verdict (JNOV), remittitur, or new trial. The district court denied the Village’s motion, and the Village appealed that order as well. The Village’s two appeals were consolidated under case number 23,674.

II. DISCUSSION

{4} This case relates to the power of eminent domain, under which a government may take or damage private property. City of Sunland, Park v. Santa Teresa Servs. Co., 2003-NMCA-106, ¶ 43, 134 N.M. 243, 75 P.3d 843. This power is limited by the constitutional requirement that just compensation be paid to the owner of the property. Id.; see also N.M. Const, art. II, § 20; NMSA 1978, §§ 42A-1-1 to -33 (1981, as amended through 2001) (setting forth the procedure for condemnation). The usual procedure is for the appropriate governmental entity to condemn property it wishes to put to public use. See § 42A-1-2(C). When a property owner believes property has been taken or damaged by the government but no condemnation petition has been filed, the property owner may institute an inverse condemnation action against the condemnor for taking or damaging the property. See § 42A-1-29. The Leighs proceeded in their claim against the Village under this inverse condemnation provision.

A. Restrictive Covenant as a Compensable Property Right

{5} Article II, Section 20, of the New Mexico Constitution mandates that “[pjrivate property shall not be taken or damaged for public use without just compensation.” Whether the taking of a restrictive covenant falls within the constitution’s mandate presents a purely legal issue. As such, we review it de novo on appeal. See Fed. Express Corp. v. Abeyta, 2004-NMCA-011, ¶2, 135 N.M. 37, 84 P.3d 85 (stating that legal issues are reviewed de novo).

{6} The subdivision in question is known as the “Lands of Jayson Epstein,” Epstein being the owner who established and recorded restrictive covenants binding on all purchasers of his land and on their successors in interest. The portion of the covenant at issue specifies that “[n]o lot shall be used except for residential purposes.” The Village constructed a storm drainage pond on the lot but nevertheless asserts that the use of property by a public entity in contravention of a restrictive covenant does not result in a compensable taking under the New Mexico Constitution.

{7} Restrictive covenants are sometimes described as equitable easements or negative easements. Montoya v. Barreras, 81 N.M. 749, 751, 473 P.2d 363, 365 (1970) (stating that restrictions on the use of land are mutual; reciprocal, equitable easements in the nature of servitudes); Restatement (Third) of Prop.: Servitudes § 1.3 cmt. c, at 25 (2000) (referring to restrictive covenants as negative easements). It is well established in New Mexico that restrictive covenants in a subdivision’s general plan convey property rights in the lots burdened by the covenant. See Cunningham v. Gross, 102 N.M. 723, 725, 699 P.2d 1075, 1077 (1985) (stating that restrictive covenants “constitute valuable property rights of all lot owners therein”); Montoya, 81 N.M. at 751-52, 473 P.2d at 365-66 (“Where the covenants manifest a general plan of restriction to residential purposes, such covenants constitute valuable property rights of the owners of all lots in the tract.”); Gorman v. Boehning, 55 N.M. 306, 310, 232 P.2d 701, 704 (1951) (“A restrictive covenant is something of value to all lots in a tract____”); Aragon v. Brown, 2003-NMCA-126, ¶ 10,134 N.M. 459, 78 P.3d 913 (“[W]e have repeatedly recognized that reliance on restrictive covenants is a valuable property right.”); Wilcox v. Timberon Protective Ass’n, 111 N.M. 478, 485, 806 P.2d 1068, 1075 (Ct.App.1990) (“Restrictive covenants ... constitute valuable property rights for all lot owners within the restricted area.”). The purpose of a subdivision’s general plan of restrictions is “to assure uniformity of development and use of a residential area to give the owners of lots within such an area some degree of environmental stability.” Montoya, 81 N.M. at 751, 473 P.2d at 365.

{8} Without question, easements constitute valuable property rights, and their taking requires compensation. See, e.g., Yates Petroleum Corp. v. Kennedy, 108 N.M. 564, 567-68, 775 P.2d 1281, 1284-85 (1989) (determining proper compensation for the partial condemnation of private property for an easement); 2 Julius L.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. City of Rio Rancho
New Mexico Court of Appeals, 2025
Castlewood Terrace Homeowner's Ass'n v. Public Building Comm'n for Chicago
2024 IL App (1st) 220453 (Appellate Court of Illinois, 2024)
Premier Trust of Nevada, Inc. v. City of Albuquerque
2021 NMCA 004 (New Mexico Court of Appeals, 2020)
View Co. v. Town of Monument
2020 CO 52 (Supreme Court of Colorado, 2020)
Town of Monument v. State of Colorado
2018 COA 148 (Colorado Court of Appeals, 2018)
Morales-Murillo v. City of Las Cruces
New Mexico Court of Appeals, 2018
Agua Fria Save the Open Space Ass'n v. Rowe
2011 NMCA 054 (New Mexico Court of Appeals, 2011)
City of Steamboat Springs v. Johnson
252 P.3d 1142 (Colorado Court of Appeals, 2010)
State v. Lopez
2009 NMCA 044 (New Mexico Court of Appeals, 2009)
Castillo v. City of Las Vegas
2008 NMCA 141 (New Mexico Court of Appeals, 2008)
Gregory Rockhouse Ranch, L.L.C. v. Glenn's Water Well Service, Inc.
2008 NMCA 101 (New Mexico Court of Appeals, 2008)
PRIMETIME v. City of Albuquerque
168 P.3d 1087 (New Mexico Court of Appeals, 2007)
Primetime Hospitality, Inc. v. City of Albuquerque
2007 NMCA 129 (New Mexico Court of Appeals, 2007)
Jones v. Schoellkopf
2005 NMCA 124 (New Mexico Court of Appeals, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
2005 NMCA 025, 108 P.3d 525, 137 N.M. 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leigh-v-village-of-los-lunas-nmctapp-2004.