Syverson v. Kuhn CA4/1

California Court of Appeal·Decided November 23, 2015·No. D067263·Unpublished

Opinion

Filed 11/23/15 Syverson v. Kuhn CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE

STATE OF CALIFORNIA

KORTNEY SYVERSON, D067263

Plaintiff, Cross-defendant and Respondent, (Super. Ct. No. 37-2011-00102504-

v. CU-OR-CTL)

R. DAVID KUHN, Individually and as Trustee, etc.,

Defendant, Cross-complainant and Appellant;

MICHAEL B. EMERY, Individually and as Trustee, etc. et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of San Diego County, Randa Trapp, Judge. Affirmed.

Vantage Law Group and Michael H. Riney for Defendant, Cross-complainant and Appellant R. David Kuhn and for Defendants and Appellants Michael B. Emery and Linda G. Emery.

Steven J. Roberts and Steve J. Roberts for Plaintiff, Cross-defendant and Respondent.

This case involves four northern and four southern neighboring hillside properties.

Grant deeds on the southern properties contained restrictions limiting residences thereon to a single story. We conclude the use restrictions, which were enforceable by a power of termination, expired due to the northern property owners' failure to record a notice of intent to preserve their interest under the Marketable Record Title Act (Civil Code, § 880.020 et seq.) (the Act). (Undesignated statutory references are to the Civil Code.) We also conclude the use restrictions were not alternatively enforceable as equitable servitudes.

FACTUAL AND PROCEDURAL BACKGROUND The Parties R. David Kuhn, Michael B. Emery, and Linda G. Emery (together, Appellants)

own four hillside lots in the Clairemont area of San Diego, California (the northern lots). The northern lots have views of Mission Bay. In 2009, Kortney Syverson purchased a home to the south of the northern lots, which he intended to remodel to add a second story. Janice Sopher, Bradley and Kim Johnson, and Ruth Crowell also own properties south of the northern lots (together with Syverson's property, the southern lots).

Use restrictions in grant deeds on Syverson's property limited any residence on the property to a single story. Syverson sued Appellants and the owners of the other southern lots to invalidate the restrictions on his property. The trial court entered default against the southern lot owner defendants. They are not parties to this appeal. Thus, this dispute is between Syverson (owner of one of four southern lots) and Appellants (owners of the northern lots).

History of the Properties In 1949, Betty Rotner acquired the southern lots through two grant deeds from Evelyn Wurzell and Union Title Insurance and Trust Company. Both deeds contained use restrictions that ran with the land and limited the properties such that they could "be used for residential purposes only and such residence will be a single story with shed- type roof, or if gabled roof, the height of said gabled roof to be no more than two feet" (Union/Wurzell Restrictions). A violation of these restrictions would cause the land to revert and revest in the grantor, its successors, or assigns.

Rotner subsequently transferred Lot 5, which is now Syverson's property, to Valentine Putman and Alice Putman. That grant deed also included restrictions (Rotner Restrictions): "Any residence placed on this property must be single story with shed type roof or with a Gable roof providing the Gable shall not be more than two feet high." (The Rotner Restrictions and Union/Wurzell Restrictions are collectively referred to as the Use Restrictions.)

In 1951, Kuhn's parents purchased the northern lots. Approximately one year later, they sold two of the four northern lots to the Emerys' family. The northern lots have remained in the Kuhn and Emery families since that time.

Syverson acquired his property in 2009. The grant deed to him did not include or reference the Use Restrictions. The Prior Action In 1976, Sopher's predecessor in title, John P. Suitts, Jr., filed an action to invalidate the Union/Wurzell Restrictions (the Prior Action). Michael Emery was a party to that action. Suitts alleged the grant deed upon which he took title did not reference the

Union/Wurzell Restrictions. He argued the restrictions should not be interpreted as conditions subsequent with right of reverter and instead were covenants, which could not be enforced against him.

Michael Emery argued in his trial brief that the Union/Wurzell Restrictions "reserved a valid and enforceable reversionary interest (called a 'right of re-entry' or 'power of termination') in the grantors" and their successors and assigns. He specifically took the position that the Union/Wurzell Restrictions did not create restrictive covenants or equitable servitudes because those concepts leave no reversionary interest in the grantor and thus the grantor could not regain title upon a breach.

In 1977, the trial court entered judgment, concluding the Union/Wurzell Restrictions were valid and enforceable conditions subsequent. The trial court found the conditions subsequent "reserved in the Grantors, their heirs, successors and assigns, a reversionary interest ('right of re-entry')," which was now held by Michael Emery. The Current Action In 2011, Syverson sued Appellants and the other owners of the southern lots for declaratory relief to invalidate the Use Restrictions. In his original complaint, Syverson stated that "[d]uring the course of the purchase of [his] [p]roperty, [he] became aware of a grant deed recorded on August 26, 1949, which transferred the [p]roperty from Evelyn Rose Wurzell to Betty Rotner." That grant deed contained the Union/Wurzell Restrictions. Syverson subsequently amended his complaint multiple times. In the operative second amended complaint, Syverson asserted causes of action for declaratory relief and to quiet title. He alleged that to the extent the court construed the Use Restrictions as conditions subsequent with right of reverter, they were invalid, void and

unenforceable under the Act, and enforcement of the Use Restrictions was unjust, oppressive and inequitable.

Kuhn cross-complained against Syverson, alleging Syverson planted a row of cypress trees along the border of Syverson's and Kuhn's properties, which partially obstructed Kuhn's view of Mission Bay. Kuhn also sought declaratory relief regarding utility and sewer easements over Syverson's property. The Emerys were not parties to the cross-complaint.

In May 2013, Syverson moved for summary adjudication on each cause of action in the second amended complaint. He argued that because the judgment in the Prior Action concluded the Use Restrictions were conditions subsequent with right of reverter, the Use Restrictions expired under the Act due to Appellants undisputed failure to record a notice of intent to preserve their interest. Syverson also asserted that he was unaware of the Use Restrictions until after he purchased his property.

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