Miller v. Miller's Landing, L.L.C.

29 So. 3d 228, 2009 Ala. Civ. App. LEXIS 401, 2009 WL 1887436
CourtCourt of Civil Appeals of Alabama
DecidedJuly 2, 2009
Docket2080033
StatusPublished
Cited by4 cases

This text of 29 So. 3d 228 (Miller v. Miller's Landing, L.L.C.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Miller's Landing, L.L.C., 29 So. 3d 228, 2009 Ala. Civ. App. LEXIS 401, 2009 WL 1887436 (Ala. Ct. App. 2009).

Opinion

*230 THOMAS, Judge.

This appeal concerns the validity of an amendment to a restrictive covenant governing the minimum square footage of single-family homes in a residential subdivision. The essential facts are undisputed.

Miller’s Landing, L.L.C. (“the company”), is an Alabama limited liability company with four members — three physicians and a trust. Each member owns 25% of the company. The physicians are Dr. Christopher Miller, Dr. James A. Robeson, and Dr. J. Ryan Conner, who practice together in a medical partnership located in Dothan. The trust is the Miller Real Estate Trust (“the trust”), which was established by Christopher Scott Miller (hereinafter referred to as “Scott Miller” in order to differentiate him from Dr. Chris Miller), with Scott Miller’s father-in-law, Gary Anderson, designated as the trustee.

The trust and the physicians each invested $55,000 in the company, and the company then purchased 41 acres of real property in Dale County for the purpose of developing a subdivision called “Bethlehem Fields.” Scott Miller and the investors planned to build their own homes on lots in the subdivision, and they planned to offer the remaining lots for sale to the public through the company. Scott Miller and each individual investor chose a building lot. On September 8, 2004, the company recorded its subdivision plat in the Dale Probate Court. The plat shows 18 lots ranging in size from slightly larger than 1 acre to slightly larger than 2½ acres. A notation on the plat states that the “[m]ini-mum house size for each lot is 3,500 square feet.”

On September 30, 2004, Scott Miller recorded a deed conveying Lot 9 of the subdivision, comprising 2.45 acres, to him and his wife, Mary J. Miller. Shortly thereafter, Scott and Mary Miller began constructing a 7,500-square-foot home on the lot. According to Scott Miller, Dr. Chris Miller was supposed to have been the next to build in the subdivision, but, he said, Dr. Miller decided not to build his home until some of the available lots had been sold to the public so that he could use the sales proceeds to defray the construction costs on his own home.

On November 19, 2004, the company filed subdivision restrictions setting forth, among other things, a minimum building size of 3,500 square feet for each house in the subdivision. There was no provision for amending the subdivision restrictions. On August 10, 2005, the company filed a second set of subdivision restrictions, reducing the minimum building size and linking it to the size of the lots in the subdivision. A house built on a lot smaller than 1.4 acres was to have no less than 3,000 square feet; a house built on a lot larger than 1.4 acres but smaller than 2 acres was to have no less than 3,200 square feet; and a house built on a lot of 2 or more acres was to have no less than 3,400 square feet. Scott Miller consented to the second set of restrictions. Those restrictions also contained no provision for further amendment.

On June 13, 2006, the four members of the company executed a third set of subdivision restrictions, leaving intact the previous square-footage requirements but providing, for the first time, a procedure for amending the restrictions: § E~8 provided that the “covenants and restrictions may be amended by an instrument executed by 75% of the property owners recorded in the public records of Dale County ....” At that time, the company and Scott and Mary Miller were the owners of all the lots in the subdivision. Dr, Chris Miller had not built a house in the subdivision, and one of the other physician members of the company had purchased a house in another *231 neighborhood. The evidence indicated that the company’s real-estate agent had been suggesting for some time that the company consider reducing the square-footage requirement of the building restrictions because, the agent said, although she had received a number of inquiries concerning the lots, potential buyers lost interest in buying when they were made aware of the building restrictions.

The third set of restrictions was filed in the Dale Probate Court on June 21, 2006. On June 29, 2006, Gary Anderson recorded a warranty deed conveying Lot 10 in the subdivision to him and his wife, Patricia Anderson. The Andersons’ lot is adjacent to the lot owned by Scott and Mary Miller.

On March 20, 2007, the property owners held a meeting to discuss an amendment to the subdivision restrictions. At that time, 16 of 18 lots were owned by the company, 1 lot was owned by Scott and Mary Miller, and 1 lot was owned the Andersons. The owners voted to amend the building requirement to reflect that a house built on a lot of 2 or more acres was to have no less than 2,500 square feet and that a house built on a lot smaller than 2 acres was to have no less than 2,300 square feet. The company cast 16 votes, or 88.8% of the eligible votes, in favor of the amendment; the Andersons cast 1 vote against the amendment; and Scott and Mary Miller neither attended the meeting nor voted on the amendment. The evidence was undisputed that Scott and Mary Miller had been given proper notice of the time, place, and purpose of the property owners’ meeting. The amended restrictions were filed in the Dale Probate Court on April 27, 2007.

On June 19, 2007, Scott and Mary Miller and the Andersons sued the company, the physicians, and SunSouth Bank, alleging fraud and breach-of-contract claims and seeking a judgment declaring that the last amended subdivision restrictions were null, void, and unenforceable. The company and the physicians answered and counterclaimed, alleging fraud and breach-of-contract claims, and also filed a third-party breach-of-contract action against the trust. Before trial, the parties stipulated that SunSouth Bank had been joined as a party only because it was the holder of the mortgage on the lots in the subdivision, that it had consented to the amended subdivision restrictions, and that it would not participate in the trial. The witnesses at trial included Scott Miller, Gary Anderson, Craig Griffin, a local real-estate developer, Dr. Miller, Dr. Miller’s wife, and Dr. Robeson.

Scott Miller testified that he and the physicians had originally envisioned Bethlehem Fields as an exclusive, gated community where they would build their own homes and from which they would make a profit by selling lots to the public. He stated that, in his opinion, the square-footage reduction in the building requirements would result in diminishing the value of his house and altering the general scheme or plan of development of the subdivision. He concluded that, once the physicians had decided not to build their own homes in the subdivision, their motivation had become solely profit-driven, and, thus, he said, they were determined to reduce the square-footage requirement in order to make the subdivision more marketable to the general public without considering the impact upon the character of the neighborhood. Scott Miller acknowledged that he had signed the resolution agreeing to the amendment procedure outlined in § E-8, but, he said, he was under the impression that amendments were to be used only for purposes of effecting “cosmetic” changes, such as “flowers and stuff’ to the subdivision restrictions.

Craig Griffin, the developer of the Griffin Gate subdivision, which is located *232

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

Related

Elliott Builders, Inc. v. Timbercreek Property Owners Ass'n
128 So. 3d 755 (Court of Civil Appeals of Alabama, 2013)
Auburn's Gameday Center at Magnolia Corner Owners Association, Inc. v. Murray
138 So. 3d 317 (Court of Civil Appeals of Alabama, 2013)
R. Douglas Hughes v. New Life Development Corporation
387 S.W.3d 453 (Tennessee Supreme Court, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
29 So. 3d 228, 2009 Ala. Civ. App. LEXIS 401, 2009 WL 1887436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-millers-landing-llc-alacivapp-2009.