Wessel v. Hillsdale Estates, Inc.

266 N.W.2d 62, 265 N.W.2d 62, 200 Neb. 792, 1978 Neb. LEXIS 728
CourtNebraska Supreme Court
DecidedMay 10, 1978
Docket41522
StatusPublished
Cited by33 cases

This text of 266 N.W.2d 62 (Wessel v. Hillsdale Estates, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wessel v. Hillsdale Estates, Inc., 266 N.W.2d 62, 265 N.W.2d 62, 200 Neb. 792, 1978 Neb. LEXIS 728 (Neb. 1978).

Opinion

Spencer, J.

This is an action for declaratory and injunctive relief by landowners in Hillsdale Estates, a platted subdivision in the city of Lincoln, on behalf of themselves and other homeowners, against Austin Realty Co. and Hillsdale Estates, Inc., its officers and directors. Defendant Austin Realty Co. appeals from an order of the District Court which enjoined defendants from proceeding with a plan to construct 40 townhouse units on Lot 19, Block 5, Hillsdale Es *794 tates, and directed them to provide a reasonable area for park and recreation purposes. We affirm as modified.

Austin Realty Co. had replatted the area as Hills-dale Estates, 1st Addition. It will be referred to as Lot 19. The principal issue herein is whether the class represented by plaintiffs had acquired a vested right to the use of a reasonable portion of the real estate in question for park and recreational purposes.

On July 10, 1967, the Lincoln city council gave preliminary approval to Austin Realty Co. for construction and development of a community unit plan in the northeast section of the city. The city council approved special permit No. 383 on December 4, 1967, providing for construction of 162 units on the property. The property was platted and designated as Hillsdale Estates. The plat was approved by ordinance No. 9375, passed January 8, 1968.

Exhibit 28, introduced by the defendants, is a plat dated May 1967. It indicates Hillsdale Estates was divided into 122 lots for single-family dwellings, and one area with four 10-plexes, making a total of 162 dwelling units. The four 10-plexes on exhibit 28 were located in the western portion of Lot 19, on approximately 1 y2 acres. Lot 19 comprised approximately 4.35 acres. The 1 y2 acres was bounded on the east by a dead-end street and comprised an area of approximately 40 feet in width, the east 15 feet of which were marked “parking.” The area to the east of the parking area appears to be outlined by trees or shrubs. This area, with the street and parking area, would comprise approximately 2.85 acres of Lot 19. The plat also shows a 30-foot walkway crossing the east 1 y2 acre-portion on which the four 10-plexes are indicated.

Exhibit 29, introduced by the defendants, indicates representations were made to the Buists, purchasers of a lot in Hillsdale Estates, that Lot 19 would be used for a private park. It also referred to multiple *795 units, which we interpret to be those shown on exhibit 28. It is dated March 22, 1968.

Lot 19 is located in the extreme northeast corner of Hillsdale Estates. It is an irregularly shaped piece of land, bounded on the west and south sides by 12 single-family dwellings. The walkway referred to connects Lot 19 with the street, which runs in front of the residences on the west side.

On January 23, 1968, Austin recorded protective covenants affecting all the lots in Hillsdale Estates. Those lots set aside for single-family dwellings are referred to as the “Properties,” and Lot 19, is referred to as the “Commons.” The document places several restrictions upon the use of the “Properties.” Of importance herein are the provisions pertaining to the “Commons.”

As a part of the preamble to the protective covenants, it is stated: “WHEREAS, Austin Realty Co. desires to create within the Commons parks, playgrounds, recreational areas and facilities, scenic areas, and such building, structures, improvements and personalty as may be incident thereto; * * *.” It is further recited that a nonprofit corporation, known as Hillsdale Estates, Inc., has been created “for the purpose of enforcing the covenants and restrictions created and established against and upon the Properties and for the purpose of administering and maintaining the Commons.” Articles of incorporation for Hillsdale Estates, Inc., were filed with the Secretary of State on January 17, 1968. Every property owner in Hillsdale Estates is a member of the corporation and is entitled to vote at the meetings.

Clause XIV of the protective covenants provides: “The Company (Austin) may retain legal title to the Commons until such time as the initial development thereof has been completed and may subdivide portions of the Commons into lots for the construction of multiple dwellings. Such multiple dwelling lots, *796 when subdivided, shall cease to be a part of the Commons; provided however, that any such subdivision shall be made so as to preserve and maintain the sidewalk access from the Properties to the Commons, as shown on the recorded plat of Hillsdale Estates.”

Clause XVIII states: “Each member of the Corporation shall have the right to use and enjoy the Commons and shall have an easement over and upon the Commons for the use and enjoyment thereof, which shall be appurtenant to and shall pass with the interest requisite for membership held by such member.”

Other provisions give the board of directors of Hillsdale Estates, Inc., the right, after the Commons has been conveyed to the corporation, to levy annual assessments of up to $50 against the members. Assessments for a greater amount, or special assessments for capital improvements, require approval of two-thirds of the members. The corporation is also granted the right to charge reasonable admission and other fees for use of the Commons. With member approval, all or part of the Commons may be dedicated or transferred to a public agency.

Clause XXIII provides the covenants shall run with the land and be binding for a period of 25 years, after which time they will be extended automatically for successive 10-year periods, unless terminated or modified by a vote of the property owners. Clause XXIV provides: “The enforcement of these covenants and restrictions shall be by proceedings at law or in equity against any person or persons violating or attempting to violate any provision or provisions hereof. Such proceedings may be to restrain such violation, or to recover damages and, by the Corporation, may be to enforce any lien or obligation created hereby.”

On June 9, 1969, the Lincoln city council granted special permit No. 465, permitting the number of *797 units to be increased to 170. In 1973, Austin applied for another special permit to amend the plan to provide for the construction of 40 townhouse units on Lot 19, and to reduce the amount of open area on the lot. This special permit was approved by the city council on January 29, 1973. On the same day, the city council considered and rejected an application by Leighton Wessel and Darrell E. Feit, plaintiffs herein, for the revocation of special permit No. 465.

On March 11, 1974, subsequent to the filing of the present action, the Lincoln city council accepted and approved a plat designated as Hillsdale Estates, 1st Addition. This is a replat of Lot 19, Hillsdale Estates, providing for the subdivision of 40 townhouse lots.

Plans for the development of Lot 19, changed several times over the years. As designated in exhibit 28 in 1967, 4 apartment buildings, each containing 10 living units, would be built on the western portion of the lot. The remaining land, comprising approximately 2.85 acres, would be a street and park area.

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Bluebook (online)
266 N.W.2d 62, 265 N.W.2d 62, 200 Neb. 792, 1978 Neb. LEXIS 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wessel-v-hillsdale-estates-inc-neb-1978.