Mark Lewington, Etal, V Frank And Nancy Parsons, Appelllants

Court of Appeals of Washington·Decided May 3, 2016·No. 47022-5·Unpublished

Opinion

Filed

Washington State

Court of Appeals

Division Two

May 3, 2016

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

MARK C. LEWINGTON, a Washington No. 47022-5-II resident; NOEL P. SHILLITO and LAURIE A. SHILLITO, husband and wife and Washington residents; DANIEL P. OSTLUND and MARIE F. OSTLUND, husband and wife and Washington residents; and ELIZABETH T. WIGHT, a Washington resident, UNPUBLISHED OPINION

Respondents,

v.

FRANK I. PARSONS and NANCY A. PARSONS, husband and wife, and Washington residents,

Appellants.

BJORGEN, C.J. — Frank and Nancy Parsons (the Parsons) appeal the trial court’s order granting summary judgment to Mark Lewington, Noel and Laurie Shillito, Daniel and Marie Ostlund, and Elizabeth Wight (the Neighbors).

The parties all live in the Narrowmoor Third Addition in Tacoma, which has a set of restrictive covenants that apply to all residents living there. Covenant A prohibits homes from exceeding “two stories in height.” Clerk’s Papers (CP) at 17. The Parsons constructed an

additional story on top of their one-story home with a daylight basement, contending that the daylight basement does not constitute a story under Covenant A. The Neighbors disagreed and brought suit. The trial court granted summary judgment to the Neighbors, ruling that the language of Covenant A was unambiguous and a daylight basement counted as a story; that the Parsons’ equitable defenses of collateral estoppel, acquiescence, and abandonment failed as a matter of law; and that the Parsons were enjoined from constructing an additional story over their home.

On two threshold matters, we hold that (1) the trial court erred in failing to dismiss the Shillitos from this lawsuit for lack of standing and (2) the trial court did not err in granting summary judgment in favor of the Neighbors on the issue of collateral estoppel.

However, we also hold that (3) the trial court erred in finding that the language of Covenant A was unambiguous and that a daylight basement constitutes a story. Because the Parsons submitted uncontroverted evidence that their daylight basement does not constitute a story under applicable contemporaneous law, we hold that their two-story home with a daylight basement does not violate Covenant A, and we reverse the trial court’s ruling to the contrary. Because the Parsons’ home does not violate Covenant A, we do not reach the trial court’s grant of summary judgment in favor of the Neighbors on the issues of abandonment and acquiescence and we vacate the trial court's injunction against the Parsons' construction.

Accordingly, we affirm that part of the trial court’s order granting summary judgment in favor of the Neighbors on the issue of collateral estoppel, and we reverse that part of the trial court’s order granting summary judgment in favor of the Neighbors on the issue of whether the daylight basement constitutes a story.

FACTS

I. HISTORICAL AND PROCEDURAL BACKGROUND 1. Creation of Narrowmoor Third Addition Beginning in 1944, Eivind Anderson1 began the platting and creation of the Narrowmoor communities. In total, there are four Narrowmoor additions with the final one platted in 1954. Each Narrowmoor addition has its own set of governing restrictive covenants, but all are largely similar. At issue in this case is Covenant A from the Narrowmoor Third Addition, which reads:

Except as otherwise herein specifically stated, no structure shall be erected, place[d]

or permitted to remain on any residential building plat other than one detached single family dwelling not to exceed two stories in height, and a private garage.

CP at 236 (emphasis added). 2. Prior Lawsuit: Lester v. Willardsen Spencer M. and Ann Willardsen owned a one-story home with a daylight basement located on the uphill portion of the Narrowmoor Third Addition. With approval from the city of Tacoma, they decided to build another story on top of their home. In 1985, homeowners located in the Narrowmoor Third Addition filed a lawsuit against the Willardsens for violation of Covenant A, which continued as a class action lawsuit (the Lester Class).2 Notice of the class action was given to all the Narrowmoor Third homeowners and allowed each homeowner to opt out.

1 There were other drafters involved in this process, but we only refer to Anderson for ease of reading this opinion. 2 The lawsuit also involved allegations against the city of Tacoma for violating the homeowners’ due process and equal protection rights.

After a bench trial, the trial court entered an order with findings of fact and conclusions of law, requiring the Willardsens to remove the third story from their home.3 On appeal, this court in Lester v. Willardsen4 reversed the trial court’s decision, holding that the Willardsens’ home did not constitute “a conventional two-story house.” CP at 351. The Lester court reasoned that Covenant A’s language was ambiguous and that the Lester Class failed to meet their burden of showing that a more restrictive interpretation was intended. Without the requisite evidence, the Lester court employed the general interpretative rule that doubts in the meaning of a covenant must be resolved in favor of the free use of land and held that there was no support in the record to find the intention that a daylight basement constitutes a story. After the Washington Supreme Court denied review,5 the trial court entered judgment in favor of the Willardsens.

II. THE CURRENT LAWSUIT

In March 2014, the Parsons purchased a home in the Narrowmoor Third Addition. At the time, the home had a daylight basement plus one story. The Parsons decided to build a second story on top of the home; all-in-all, the construction of the second story is 4.62 feet above the

3 The trial court specifically stated in finding 10 that it did not need to find the lowest floor to the Willardsen home as a “[s]tory” or “[b]asement.” CP at 427. Rather, because the Willardsens had conceded that the upper two floors constituted stories and that the daylight basement “contribute[d] to the height],” this “cause[d] the residence to be in excess of two stories” in height contrary to Covenant A. Id. 4 Lester v. Willardsen, 58 Wn. App. 1068, 1990 WL 318860 (Aug. 1990) (unpublished opinion).

5 Lester v. Willardsen, 116 Wn.2d 1004, 803 P.2d 1309 (1991).

height of their old roof. The Parsons assert that in the months before construction began they were “up front about [their] plans to renovate [their] home” with the Neighbors. CP at 231. However, the Neighbors dispute how “upfront” the Parsons were, suggesting that the Parsons only told them that they were adding a garage or that any addition would only make “the roof . . . go up a little bit in the middle.” CP at 406.

On July 22, 2014, construction of the additional story commenced. On August 4 the Parsons sent a letter to the Ostlunds, assuring that they would comply “absolutely” with the Narrowmoor Third Addition covenants. CP at 413. Shortly thereafter, the Neighbors saw an “enormous roof ridge beam” delivered to the construction site of the Parsons’ home, CP at 406, which prompted Lewington to send a letter to the Parsons. The letter dated August 13 stated that the Neighbors believed the Parsons might be violating Covenant A and that they should meet to discuss how the Parsons might revise their construction plans to minimize view impacts and comply with Covenant A. The Parsons did not meet with the Neighbors. They also did not stop construction, because to do so would have required them to incur great expense.

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