West Neck Community Association, Inc. v. JBWK, LLC

Court of Appeals for the Fourth Circuit·Decided February 24, 2026·No. 25-1562·Unpublished

Opinion

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 25-1496

WEST NECK COMMUNITY ASSOCIATION, INC., Plaintiff - Appellee,

v.

JBWK, LLC, Defendant - Appellant.

No. 25-1562

WEST NECK COMMUNITY ASSOCIATION, INC., Plaintiff - Appellant,

v. JBWK, LLC, Defendant - Appellee.

Appeals from the United States District Court for the Eastern District of Virginia, at Norfolk. Elizabeth W. Hanes, District Judge. (2:22-cv-00491-EWH-LRL)

Argued: December 10, 2025 Decided: February 24, 2026

Before NIEMEYER, THACKER, and BERNER, Circuit Judges.

Affirmed by unpublished per curiam opinion.

ARGUED: John D. McIntyre, MCINTYRE STEIN, PLLC, Norfolk, Virginia, for Appellant/Cross-Appellee. Mark R. Baumgartner, PENDER & COWARD, PC, Virginia Beach, Virginia, for Appellee/Cross-Appellant. ON BRIEF: Jeffrey A. Hunn, Scott B. Ingram, PENDER & COWARD, PC, Virginia Beach, Virginia, for Appellee/Cross- Appellant.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

This case involves a dispute about the meaning of the Declaration of Covenants, Conditions, and Restrictions (the “Declaration”) for a Virginia Beach residential golfing community. After attempting to resolve some of the issues through mediation, the parties chose to litigate.

The district court entered summary judgment and granted partial wins to both sides.

It held that the developer could not operate a commercial tree farm on the community’s golf course and that the golfing community’s community association may enforce the Declaration’s rules against the developer. But the district court also held that the community association could not unilaterally amend the Declaration and that it had waived its own claims by failing to exhaust its contractual remedies. Neither party was satisfied. So, this cross-appeal followed.

For the reasons set out below, we affirm.

I.

A.

The Declaration

West Neck is a 300 acre golf development in Virginia Beach, Virginia, reserved for residents aged 55 and older. The Baymark Construction Corporation (“Baymark”) built West Neck in 2002 subject to an agreement with a group of landowner-investors. Baymark and the landowner-investors agreed that Baymark would execute and record a deed of covenants to govern the development and preserve its character as a golf community for older individuals. What resulted was the 102 page Declaration that is the subject of this

appeal. The Declaration recognizes three types of entities within the development: the Declarant, the Association, and the Owners.

The Declarant is entitled to certain unilateral rights in West Neck governance and land use. Most relevantly, the Declarant has the right to veto proposed amendments to the Declaration. It also has the power to assign its rights and designate a successor Declarant. But before the designation may take effect, the Declarant must do so in a recorded instrument, and the successor must separately “take title to [a] portion of [West Neck] for the purpose of development and/or sale.” J.A. 59. 1 Baymark served as the initial Declarant.

The West Neck Community Association (“the Association”) is an organization governed by a Board of Directors and consists of all West Neck “Owners.” It too has special powers. The Declaration describes the Association as “[a]n integral part of the development plan,” and specifically tasks it with “administer[ing] and enforc[ing the] Declaration and the other Governing Documents.” J.A. 55. To carry out that mandate, the Declaration grants the Association the power to impose “reasonable monetary fines,” suspend Owners’ voting rights, and “bring[] suit at law or in equity to enjoin any violation.” Id. at 84–85. Before imposing fines or other sanctions, however, the Association must give the offending party “notice and a hearing” on the alleged violations. Id. at 84.

An “Owner” is any person or business organization that owns a “Unit” in West Neck. Property in West Neck includes: (1) Units, which are parcels intended for single-

1

Citations to the “J.A.” refer to the Joint Appendix filed by the parties in this appeal.

family occupancy; (2) Common Areas, which include any lands the Association owns, and which must be used “for the common use and enjoyment of the Owners”; and (3) “Private Amenities,” which include any lands “owned and operated by [entities] other than the Association for recreational and related purposes . . . and shall include, without limitation, the golf course.” J.A. 58–61.

The Declaration has many rules, only a few of which are relevant to this appeal.

The Declaration states clearly and repeatedly that all land and entities within West Neck are subject to all the Declaration’s rules. It also states unambiguously that land within West Neck “shall be used only for residential, recreational, and related purposes” and not for “[a]ny business, trade . . . or similar activity.” J.A. 125, 127. Those rules are binding on the Declarant, the Association, and anyone who owns property within West Neck. Additionally, the Declaration sets out its own dispute resolution procedures. Per this procedure, an interested party -- including the Association -- may only litigate a claim arising from the Declaration if it has attempted in good faith to negotiate and mediate that claim for at least 60 days before filing suit.

B.

The Dispute

Baymark served as the Declarant for nearly two decades. In that time, it developed and sold hundreds of homes surrounding the centerpiece golf course at West Neck. But Baymark went bankrupt in September 2019, and closed the golf course. Then, in April 2020, Baymark sold the golf course to WC Capital LLC (“WCC”) at a foreclosure sale. Notably, that sale did not include an assignment of Baymark’s Declarant rights. The

owners of WCC have variously claimed that they intended to sell the golf course or to redesign it and add new residential components. Indeed, WCC initially planned to sell the land to the Association -- which it considered the most logical buyer. But when those plans fell through, WCC leased the golf course to JBWK, LLC (“JBWK”) so that it could temporarily defray the costs of its purchase of West Neck. JBWK is a New Mexico corporation with the same owners as WCC. JBWK describes itself as “an agri-business specializing in the production and sale of sports-turf sod, ornamental trees & shrubs, clumping bamboo, hemp, and similar agri-products.” J.A. 567.

JBWK began feuding with West Neck residents almost immediately. JBWK claims that it initially allowed the residents to “utilize the [golf course] for walking, biking, and other recreational activities.” Appellant’s Br. at 5. But, JBWK claims, in an attempt to pressure WCC into selling the property, the residents began lobbying the city to impose “impossible” landscaping requirements. 2 Appellant’s Br. at 5. JBWK also claims that there were numerous incidents of “vandalism” on the golf course, though the only specific instance it mentions is one in which a resident appears to have installed a bird feeder near one of the greens. J.A. 404; Aff. of Chris Coleman at 4, Dkt. No. 13-2, Case No. 2:22-cv- 00491-EWH-LRL, (Jan. 10, 2023, E.D. Va.). For its part, the Association claims that

2

The city required WCC to keep all the grass on the golf course trimmed, rather than only mowing places with high visibility. JBWK argues that it would have been “impossible” to do so because (1) WCC lacked appropriate landscaping equipment; (2) “COVID restrictions” would have prevented the work; and (3) the landscaper WCC employed charged $0.02 per square foot, and consequently, mowing the entire 0.2 square mile golf course would cost approximately $120,000. J.A. 793–94; Appellant’s Br. at 5.

JBWK stopped maintaining the golf course, and that “weeds began to take over.” Appellee’s Br. at 5.

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