Mark Avolio v. Cedars Golf, Llc

CourtCourt of Appeals of Washington
DecidedNovember 15, 2016
Docket48016-6
StatusUnpublished

This text of Mark Avolio v. Cedars Golf, Llc (Mark Avolio v. Cedars Golf, Llc) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mark Avolio v. Cedars Golf, Llc, (Wash. Ct. App. 2016).

Opinion

Filed Washington State Court of Appeals Division Two

November 15, 2016

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II MARK AVOLIO; JOHN BAKER; No. 48016-6-II MAUREEN DeARMOND; and ANDREW MERKO,

Appellants,

v.

CEDARS GOLF, LLC, UNPUBLISHED OPINION

Respondent.

JOHANSON, J. — This case involves a dispute over the effect of restrictive covenants in a

residential neighborhood in Battle Ground. In 2014, Cedars Golf LLC (CG) applied to the City of

Battle Ground (the City) requesting approval to alter the plat and to subdivide two lots it owned in

the neighborhood. The appellants1 opposed CG’s efforts. After the hearing examiner ruled for

CG and the superior court affirmed, the appellants chose not to appeal further. Appellants later

sued for declaratory judgment and injunctive relief.2 The superior court granted summary

1 We refer to the plaintiffs/appellants collectively as “appellants” for clarity because the names of each individual are important at various stages in the analysis. 2 Although the appellants sought both a declaratory judgment and injunctive relief, we frequently refer to the second lawsuit as “the declaratory judgment action” for ease of reference. No. 48016-6-II

judgment for CG and dismissed the declaratory judgment action. The appellants appeal from this

dismissal order. We hold that the doctrine of collateral estoppel bars the appellants’ declaratory

judgment action. We affirm the superior court’s summary judgment ruling.

FACTS

I. BACKGROUND

Appellants Mark Avolio, John Baker, Maureen DeArmond, and Andy Merko are property

owners in a subdivision known as “The Cedars.” The Cedars has been developed and platted over

multiple “phases” since the early 1970s. CG owns two lots—lots “1” and “8” in The Cedars “Phase

II.”

In 1972, developers platted “Phase I,” comprising 40 total lots. In March 1973, the

declaration of covenants, conditions, and restrictions (CCRs) was recorded. The Cedars Phase II

is an upscale 8-lot planned unit development in Battle Ground platted by recording in June 1980.

Avolio, DeArmond, and Merko also own lots of real property in Phase II, and Baker owns a lot in

Phase I of the development.

In 1973, the CCRs encumbered only the Phase I properties because only Phase I was

developed. Among the restrictions in the CCRs was a provision that prohibited any further

subdivision of properties to which they applied.

Although the CCRs applied to only Phase I lots, the declaration also contained provisions

that envisioned potential future extension of the CCRs to other phases of the development.

Specifically, the section titled “Annexation” provided that

[a]dditional residential property and Common Area may be annexed to the Properties by a two-thirds (2/3) vote of the members. Provided, however, that [certain additional properties] may be annexed by the Declarant or assignee without the consent of the members within seven (7) years of the date of this instrument.

2 No. 48016-6-II

Clerk’s Papers (CP) at 217.

II. 2014 SUBDIVISION APPLICATION AND OPPOSITION

In 2014, CG applied to alter The Cedars Phase II subdivision plat and to subdivide lots 1

and 8 of The Cedars Phase II. CG sought to subdivide their 2 lots, which had a “townhomes”

designation, into 13 buildable lots for single-family residences. The appellants believed that the

CCRs proscribed further subdivision of the lots, and they voiced their opposition to the application.

In part, the appellants believed that CG should not be permitted to subdivide its lots because the

“face of the plat of The Cedars Phase II incorporates by reference the [CCRs].” CP at 102. As

support for this contention, the appellants rely on a notation on the Phase II plat document that

provides,

--Nature Trails-- The Cedar Pacific Properties, Inc., in recording this plat of the “Cedars Phase-II” has designated certain areas of land as Nature Trails intended for use by the Homeowners in “The Cedars-Phase II” for recreation and other related activities. The designated areas are not dedicated for use by the general public but are dedicated for the common use and enjoyment of the Homeowners of “The Cedars-Phase II” as more fully provided for in the Declaration of Covenants, Conditions and Restrictions applicable to “The Cedars-Phase I” dated February 23, 2973 [sic], and is incorporated in, and made a part of this plat.

CP at 68-69.

Because the appellants believed that the CCRs precluded any further subdivision of CG’s

lots, they also believed that RCW 58.17.215, which governs the procedure required for subdivision

alterations, required that CG obtain the agreement of all parties subject to the CCRs to accomplish

the proposed alteration of the subdivision or portion thereof.

3 No. 48016-6-II

A. PUBLIC HEARING

A hearing examiner held a public hearing to consider CG’s application, at which each of

the appellants participated. An attorney represented Avolio, DeArmond, and Merko and sent

letters detailing their opposition to community development representatives before the hearing.

The attorney also appeared at the public hearing on behalf of his clients and urged the hearing

examiner to deny CG’s applications for the reasons mentioned above. Baker, DeArmond, and

Merko also submitted e-mails or letters expressly requesting to be parties of record and to be

notified of decisions and appeal rights relating to CG’s application.

B. HEARING EXAMINER FINAL ORDER

After hearing testimony and considering accompanying exhibits, the hearing examiner

rendered a final decision approving CG’s application. The hearing examiner memorialized his

decision in detailed findings, including, relevant to this appeal:

3. The examiner finds that the plat alteration application complies with RCW 58.17.215. a. The applicant is requesting alteration of the plat to remove the “townhomes” designation on Lots 1 and 8. Lots 1 and 8 of Cedars Phase II are the only portion of the subdivision proposed to be altered. Therefore RCW 58.17.215 only requires the signature of the majority of persons with an ownership interest in Lots 1 and 8 of Cedars Phase II. The further division of these platted lots is not a “plat alteration” subject to RCW 58.17.215. b. The proposed subdivision will not result in violation of a covenant applicable to The Cedars Phase II subdivision. As discussed in Exhibit 31, the CC&Rs for “The Cedars” dated February 23, 1973 were never adopted by The Cedars Phase II subdivision. There is no substantial evidence to the contrary. i. The CC&Rs authorize “the Declarant,” the original developer of The Cedars, to annex certain additional properties without the consent of the members. . . . However such annexation must occur within seven years form [sic] the date of the CC&Rs. The CC&Rs were executed on March 2, 1973. The Cedars Phase II subdivision was platted June 6, 1980, more than seven years after the CC&Rs were signed. Therefore the Declarant had no authority to unilaterally include The Cedars Phase II subdivision in the CC&Rs.

4 No.

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