Richards v. Abbottsford Homeowners Ass'n

809 S.W.2d 193, 1990 Tenn. App. LEXIS 907
CourtCourt of Appeals of Tennessee
DecidedDecember 28, 1990
StatusPublished
Cited by19 cases

This text of 809 S.W.2d 193 (Richards v. Abbottsford Homeowners Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richards v. Abbottsford Homeowners Ass'n, 809 S.W.2d 193, 1990 Tenn. App. LEXIS 907 (Tenn. Ct. App. 1990).

Opinion

OPINION

KOCH, Judge.

This appeal arises out of a dispute concerning the assessment of maintenance fees at an exclusive planned unit development in Nashville. The owners of a home built on two consolidated lots filed an action in the Chancery Court for Davidson County, seeking a declaration that the development’s restrictive covenants did not permit the homeowners’ association to assess a maintenance fee on each lot. The [194]*194trial court, sitting without a jury, found that the homeowners were required to pay maintenance fees on both lots because they had not obtained the homeowners’ association’s approval to consolidate their lots. On this appeal, the homeowners take issue with the trial court’s interpretation of the restrictive covenants. We find that the trial court misconstrued the covenants dealing with the assessment of maintenance fees and, therefore, reverse the judgement.

I.

Abbottsford is an exclusive planned unit development located on 38 acres in the Green Hills section of Nashville. On April 19, 1985, its developer, Abbott Martin Corporation, recorded the development’s plat and Declaration of Covenants, Conditions and Restrictions in the register of deeds’ office. Both the plat and the declaration of covenants showed that Abbottsford, as originally designed, contained 129 lots varying between 5,200 and 15,000 square feet in size.

As is customary with projects of this sort, the declaration of covenants contained provisions relating to the transition of management responsibility between the developer and the homeowners’ association. It also contained routine provisions permitting the assessment of periodic fees for the maintenance, landscaping, and beautification of the common areas. These provisions are at the heart of this case.

In March, 1987, James and Barbara Richards bought a house in Abbottsford that was already under construction. They also bought the adjoining lot where they intended to build a swimming pool, pool house, and gardens. The declaration of covenants required the Richards to obtain the developer’s approval for the pool since, at that time, the development had not been turned over to the homeowners’ association.1 Therefore, the Richards presented their plans for the pool to Fred R. Webber, Jr., the president of the company developing Abbottsford. Mr. Webber approved the plans and authorized the Richards to construct the pool, pool house, and gardens on the lot next to their house.

Several months later, the Abbottsford Homeowners’ Association was established. Mr. Webber relinquished control of the development in May, 1987. The residents elected the association’s first board of directors in June, 1987 and held their first association meeting one month later. The Richards did not seek the association’s approval for their pool since they had already obtained Mr. Webber's approval.

The Richards’ contractor could not begin the pool because the city would not issue a building permit until the Richards’ two lots were consolidated into a single lot.2 On October 20, 1987, the planning commission approved consolidating the lots, and the Richards’ engineer filed a plat in the register’s office showing that the two lots had been consolidated into a single 13,160 square foot lot. The plat stated specifically that “the recording of this plat void[s], vacates and supersedes the recording of lots 408 and 134.” Once the plat was filed, the Richards’ contractor constructed the pool and other improvements.

The Richards ceased paying two maintenance fees in January, 1988. In February, 1988, Abbottsford’s management company, at the direction of the homeowners’ association, notified them that their maintenance fee account was delinquent and that a lien would be placed on their property if the account was not made current within ten days. The Richards explained to the management company, and later to the board of directors, that they had obtained the developer’s approval to build their pool and that their two lots had been consolidated into a single lot. When the home[195]*195owners’ association continued to insist on the payment of two maintenance fees, the Richards filed suit to obtain a declaration of their rights under the declaration of covenants.

II.

Both parties rely upon Abbottsford’s declaration of covenants to support their positions. Thus, we must look first to the declaration of covenants itself to resolve this dispute.

A.

Covenants such as the one involved in this case are valid and are binding on all purchasers with notice. Ridley v. Haiman, 164 Tenn. 239, 246-47, 47 S.W.2d 750, 753 (1932); Laughlin v. Wagner, 146 Tenn. 647, 653, 244 S.W. 475, 476-77 (1922). They are, however, strictly construed because they are in derogation of a property owners right of unrestricted use of their property. Land Developers, Inc. v. Maxwell, 537 S.W.2d 904, 918 (Tenn.1976); Shea v. Sargent, 499 S.W.2d 871, 872-73 (Tenn.1973).

Like other contracts, covenants should be enforced according to the parties’ clearly expressed intentions. Waller v. Thomas, 545 S.W.2d 745, 747 (Tenn.1976); Hamilton v. Broyles, 57 Tenn.App. 116, 123-24, 415 S.W.2d 352, 355 (1966). They should be interpreted in light of their fair and reasonable meaning, McDonald v. Chaffin, 529 S.W.2d 54, 57 (Tenn.1975), but should not be extended to cover circumstances not plainly included within their terms. Turnley v. Garfinkel, 211 Tenn. 125, 130, 362 S.W.2d 921, 923 (1962); Southern Advertising Co. v. Sherman, 43 Tenn.App. 323, 326-27, 308 S.W.2d 491, 493 (1958). All doubts concerning a covenant’s applicability should be resolved against the covenant. See Land Developers, Inc. v. Maxwell, 537 S.W.2d at 918.

B.

The mechanics of Abbottsford’s maintenance assessments are set out in detail in the declaration of covenants. In order to maintain the development’s common areas and shared amenities, the declaration of covenants provides for periodic maintenance assessments against each “lot” or “site” and requires all property owners to pay these assessments in the manner required by either the declaration of covenants or by the board of directors of the homeowners’ association. See Covenant for Maintenance Assessments, Article V, Section 1.

The maintenance assessments are governed by the declaration of covenants as long as the developer controls the property. After the homeowners’ association assumes control of the development, however, its board of directors has the sole authority to set the maintenance assessments and to define the manner of their payment. See Covenant for Maintenance Assessments, Article V, Section 7.

The record reveals little concerning the manner in which the board of directors has used its authority to set Abbottsford’s maintenance fees.

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Bluebook (online)
809 S.W.2d 193, 1990 Tenn. App. LEXIS 907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richards-v-abbottsford-homeowners-assn-tennctapp-1990.