Madison Addition Architectural Committee v. Youngwirth

2000 MT 293, 15 P.3d 1175, 302 Mont. 302, 57 State Rptr. 1244, 2000 Mont. LEXIS 296
CourtMontana Supreme Court
DecidedNovember 28, 2000
Docket00-122
StatusPublished
Cited by6 cases

This text of 2000 MT 293 (Madison Addition Architectural Committee v. Youngwirth) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madison Addition Architectural Committee v. Youngwirth, 2000 MT 293, 15 P.3d 1175, 302 Mont. 302, 57 State Rptr. 1244, 2000 Mont. LEXIS 296 (Mo. 2000).

Opinions

CHIEF JUSTICE TURNAGE

delivered the Opinion of the Court.

¶1 The Madison Addition Architectural Committee brought this action in the Eighteenth Judicial District Court, Gallatin County, to enjoin Bill Youngwirth from maintaining a fourth apartment in his multi-family building in violation of restrictive covenants. Although the Committee prevailed in District Court, it appeals the court’s failure to assess sanctions against Youngwirth. Youngwirth cross-appeals. We affirm.

¶2 The issues are:

¶3 1. Did the District Court err in refusing to impose Rule 11, M.R.Civ.R, sanctions?

¶4 2. Did the court err in failing to find that the enforcement of covenants against Youngwirth constituted selective and inequitable enforcement?

¶5 The Madison Addition Architectural Committee is a committee of property owners established by the protective covenants of the Madison Addition to the town of West Yellowstone, Montana. Youngwirth owns a 9,500-square foot lot in the Madison Addition. The Committee approved Youngwirth’s plans to construct a building on his lot consistent with a covenant requiring a minimum lot size for multi-family dwelling units of 3,000 square feet per living unit. Youngwirth constructed a triplex.

¶6 Youngwirth rented out two units in the triplex and lives in the third. He admits that since 1995 he has also rented out the basement of the unit in which he lives. The basement contains a bedroom, bathroom, and combination kitchen and living room. The upstairs unit in which Youngwirth lives also has a kitchen, bedrooms, bathrooms, and [304]*304a living room. Entry to the basement unit may be attained through a garage, without passing through Youngwirth’s living unit.

¶7 Beginning in 1996, the Committee and the Madison Addition’s owners association sent a series of letters to Youngwirth alleging that in renting out the basement of his unit, he was maintaining four “dwelling units” on his property and thus violating the density zoning provisions in the restrictive covenants. Youngwirth disagreed. The matter eventually went to trial, where Youngwirth argued that even if he was in violation of the covenants, others were also in violation but were not being held to compliance like he was.

¶8 The District Court noted in its conclusions of law that the Madison Addition’s protective covenants define “dwelling unit” as “a building or portion thereof providing separate cooking, eating, sleeping, and living facilities for one family.” The court concluded that the restrictive covenants were clear and unambiguous and that Youngwirth’s construction and rental of the basement unit in his building constituted a violation of the covenant providing that the maximum number of dwelling units on a lot the size of his was three. Stating that Youngwirth’s claim of selective enforcement of the covenants was not supported by the evidence, the court granted a permanent injunction prohibiting Youngwirth from maintaining a fourth apartment in his building.

Issue 1

¶9 Did the District Court err in refusing to impose Rule 11, M.R.Civ.R, sanctions?

¶10 Rule 11, M.R.Civ.R, provides:

Rule 11. Signing of pleadings, motions, and other papers — sanctions. Every pleading, motion, or other paper of a party represented by an attorney shall be signed by at least one attorney of record in the attorney’s individual name, whose address shall be stated. A party who is not represented by an attorney shall sign the party’s pleading, motion, or other paper and state the party’s address. Except when otherwise specifically provided by rule or statute, pleadings need not be verified or accompanied by affidavit. The signature of an attorney or party constitutes a certificate by the signer that the signer has read the pleading, motion, or other paper; that to the best of the signer’s knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is [305]*305not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. If a pleading, motion, or other paper is not signed, it shall be stricken unless it is signed promptly after the omission is called to the attention of the pleader or movant. If a pleading, motion, or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, motion, or other paper, including a reasonable attorney’s fee.

This Court has stated that Rule 11 provides two grounds for sanctions: a pleading or other paper which is not well-grounded in fact or warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; or a pleading or other paper which is interposed for an improper purpose such as harassment, delay, or increasing the cost of litigation. D’Agostino v. Swanson (1990), 240 Mont. 435, 445, 784 P.2d 919, 925. This Court’s standard of review of a decision on whether to impose Rule 11 sanctions is a combined standard: whether the trial court’s findings of fact are clearly erroneous and whether its conclusions constitute an abuse of discretion. D’Agostino, 240 Mont. at 446, 784 P.2d at 926.

¶11 The Committee argues on appeal that Youngwirth must have known that his Answer to the Complaint contained false denials and that his answers to the Plaintiffs First Discovery Requests and the positions he took in the Pretrial Order were also false. In his Answer to the Complaint, Youngwirth denied that with the addition of the basement unit, his building exceeded the maximum number of units allowed on the property. The Committee asserts that it was forced to go through discovery and trial in a case which should have been resolved at the pleading stage, and that Youngwirth should be sanctioned by being ordered to pay the Committee’s reasonable attorney fees.

¶12 Youngwirth admits that in his Answer to the Complaint, he denied having four dwelling units on his property, which in hindsight seems clearly untrue in light of the covenants’ definition of a “dwelling unit.” However, Youngwirth’s answer to the complaint also alleged that the Committee had failed to enforce restrictive covenants as to other structures in the Madison Addition and had thereby [306]*306waived or forfeited its right to enforce the covenants as to him. By the time the Pretrial Order was entered, Youngwirth’s primary argument had distilled to one that the Committee had failed to enforce the subdivision covenants as to numerous other owners in the subdivision and therefore lost the right to enforce them against him. In support, Youngwirth introduced at trial numerous photographs which he had taken of other properties in the subdivision, showing what he claimed were uncorrected violations of the subdivision’s restrictive covenants.

¶13 In denying the motion for Rule 11 sanctions, the District Court stated, “[t]he Defendant correctly asserts that the Pre-Trial Order supersedes the pleadings,” citing Rule 16(e), M.R.Civ.P, and Benson v. Heritage Inn, Inc., 1998 MT 330, ¶ 17, 292 Mont.

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

Related

West v. State Farm Mutual Automobile Insurance
2013 MT 146 (Montana Supreme Court, 2013)
Marriage of Yager
2009 MT 206N (Montana Supreme Court, 2009)
Horn v. Little
182 P.3d 761 (Montana Supreme Court, 2008)
Byrum v. Andren
2007 MT 107 (Montana Supreme Court, 2007)
Ponderosa Pines Ranch, Inc. v. Hevner
2002 MT 184 (Montana Supreme Court, 2002)
Madison Addition Architectural Committee v. Youngwirth
2000 MT 293 (Montana Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
2000 MT 293, 15 P.3d 1175, 302 Mont. 302, 57 State Rptr. 1244, 2000 Mont. LEXIS 296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madison-addition-architectural-committee-v-youngwirth-mont-2000.