Mary O'Neill-Marnecheck and Philip A. Marnecheck v. Val's Property Development LLC

CourtCourt of Appeals of Mississippi
DecidedMarch 24, 2026
Docket2023-CA-01110-COA
StatusPublished

This text of Mary O'Neill-Marnecheck and Philip A. Marnecheck v. Val's Property Development LLC (Mary O'Neill-Marnecheck and Philip A. Marnecheck v. Val's Property Development LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mary O'Neill-Marnecheck and Philip A. Marnecheck v. Val's Property Development LLC, (Mich. Ct. App. 2026).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI

NO. 2023-CA-01110-COA

MARY O’NEILL-MARNECHECK AND PHILIP APPELLANTS A. MARNECHECK

v.

VAL’S PROPERTY DEVELOPMENT LLC APPELLEE

DATE OF JUDGMENT: 09/11/2023 TRIAL JUDGE: HON. RANDI PERESICH MUELLER COURT FROM WHICH APPEALED: HARRISON COUNTY CIRCUIT COURT, FIRST JUDICIAL DISTRICT ATTORNEYS FOR APPELLANTS: JOHN PAUL BARBER HARRISON MAGEE SMITH ATTORNEYS FOR APPELLEE: MATTHEW WARD McDADE OWEN REX McNALLY LEWIE G. “SKIP” NEGROTTO IV NATURE OF THE CASE: CIVIL - REAL PROPERTY DISPOSITION: AFFIRMED IN PART; REVERSED AND RENDERED IN PART; REVERSED AND REMANDED IN PART - 03/24/2026 MOTION FOR REHEARING FILED:

BEFORE WILSON, P.J., McDONALD AND LASSITTER ST. PÉ, JJ.

McDONALD, J., FOR THE COURT:

¶1. In 2020, Val’s Property Development LLC (VPD) sued Mary and Philip Marnecheck

in the Harrison County Chancery Court for violating subdivision covenants when the

Marnechecks made home renovations and repairs without approval from the Architectural

Control Committee. After a temporary restraining order had been issued, the Marnechecks

counterclaimed that VPD had misrepresented the condition of the home to them when they

purchased it in 2019. In November 2020, the chancery court transferred the case to the Harrison County Circuit Court, where the circuit court severed the claims. The court heard

testimony on the covenant-violations claim first and rendered judgment in favor of VPD.

The court ordered the Marnechecks to restore their home to its condition prior to the

unauthorized improvements, which had cost the Marnechecks over $80,000. The court also

ordered the Marnechecks to pay VPD $220,939.19 in attorney’s fees.

¶2. The Marnechecks appeal and raise the following issues: (1) whether the circuit erred

in finding that they breached the covenants, (2) whether the court erred in finding VPD was

entitled to pursue injunctive relief for the Marnechecks’ alleged breach of the covenants, (3)

whether the court erred in granting a permanent mandatory injunction, and (4) whether the

court abused its discretion in awarding VPD $220,939.19 in attorney’s fees and expenses.

Having reviewed the record, the written and oral arguments of the parties, and relevant

precedent, we affirm in part, reverse and render in part, and reverse and remand in part.

Facts

VPD

¶3. On March 5, 2007, Val Mueller, her husband Glenn Mueller, and Richard Galloway

(Val’s father) formed Val’s Property Development LLC (VPD) for the purpose of developing

property and selling homes in the Estates of Penny Lane Subdivision (Penny Lane) in Long

Beach, Mississippi. Val was designated as VPD’s manager. The record does not reflect how

many homes were constructed in the subdivision between 2007 and 2012, but Val’s and

Galloway’s two homes were constructed prior to the covenants.

Covenants Creating HOA and ACC

2 ¶4. On April 17, 2012, Val, Glenn, and Galloway signed a “Declaration of Covenants,

Conditions, and Restrictions for Estates of Penny Lane Subdivisions” (covenants), and

through it formed the “Estates of Penny Lane Homeowners Association, Inc.” (HOA). The

covenants were filed and recorded in the office of the Chancery Clerk for Harrison County,

First Judicial District. Val also filed articles of incorporation with the Mississippi Secretary

of State’s office to form the HOA as a non-profit corporation. However, the HOA adopted

no by-laws, elected no formal board of directors, held no formal meetings, created no budget

reports, recorded no minutes, and provided no annual reports to homeowners.

ACC

¶5. Article IV, Section 1 of the covenants created an Architectural Control Committee

(ACC), independent of the HOA, that was to be composed of at least three and not more than

five members who would serve until they died or resigned. That section also required that

all exterior changes to any of the lots first be submitted to and approved by the ACC “as to

the harmony of external design and location in relation to surrounding structures and

topography.” Article IV, Section 2 named Glenn, Val, and Jim Mihalik as the three original

members of the ACC.1 That section also provided that if the committee fell below the three-

member minimum, the remaining member or members were vested with the authority to

appoint additional members. Additionally, that section stated that “the Declarant [of the

covenants] shall have the authority to appoint committee members in addition to the three

1 Mihalik was the contractor who built the homes in the subdivision. The covenants provided that the remaining members of the committee may remove him if he ceased to construct homes in the subdivision.

3 original members at Declarant’s sole option.”2 The “Declarant” was the company VPD,

whose manager was Val.

¶6. The covenants stated that all requests to the ACC must contain “the site plan, floor

plan, exterior elevations of all pending structures or alterations, plans for materials, color

schemes, lighting schemes, plans for landscaping and other details that may affect the

exterior appearance of the structure.” Further, Article IV, Section 1 provided that a majority

vote of the committee was required for a project to be approved, but if the committee failed

to approve or disapprove a proposal within thirty (30) days of submission, then approval was

not required. Article IV, Section 4 stated that review and approval of any plans was “made

on the bases [sic] of aesthetic considerations only.” The ACC never adopted any standards,

guidelines, or instructions for homeowners to follow other than what appeared in the

covenants.3

¶7. Between June 2012 and January 2019, the ACC functioned with all three original

members. Mihalik built several homes through his construction company, and purchasers

could choose from several house plans offered by Mihalik that were pre-approved for

construction by the ACC, or they could present their own customized plans. In January 2019,

2 The only other entity authorized to appoint ACC members was the Board of the HOA, but only after all lots had been sold and the original members had died or resigned. 3 The covenants separately addressed some specific elements, such as basketball goals and recreational equipment, maintaining building condition, building setbacks, clotheslines, garbage receptacles, driveways, fences, flagpoles, antennas, satellite dishes, landscaping, mailboxes, roofs, siding, swimming pools, and wells, but nothing on porches or dormers.

4 Glenn Mueller resigned,4 and a year later, in January 2020, Mihalik also resigned, leaving

Val as the only remaining member of the ACC. According to both Glenn and Mihalik,

during their tenure on the ACC, they only reviewed plans for new construction because no

requests for additions to existing homes were made. In other words, the ACC never had to

consider plans for a home improvement project prior to the Marnechecks’ renovations and

repairs in this case. Mihalik also testified that the ACC (usually he and Val) had met with

potential homeowners to review plans and discuss any modifications.

¶8. Val claimed that she did not fill the vacancies left by Glenn in 2019 or Mihalik in

January 2020 because allegedly there were no submissions for the ACC to consider.

However, the record includes an affidavit VPD submitted to support a motion in the later

litigation that contradicts this claim. In the affidavit, Matthew Elias stated the ACC approved

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Mary O'Neill-Marnecheck and Philip A. Marnecheck v. Val's Property Development LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mary-oneill-marnecheck-and-philip-a-marnecheck-v-vals-property-missctapp-2026.