Wild Quail Golf & Country Club Homeowners' Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt

CourtCourt of Chancery of Delaware
DecidedJune 3, 2021
Docket2019-0768-PWG
StatusPublished

This text of Wild Quail Golf & Country Club Homeowners' Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt (Wild Quail Golf & Country Club Homeowners' Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wild Quail Golf & Country Club Homeowners' Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt, (Del. Ct. App. 2021).

Opinion

COURT OF CHANCERY OF THE STATE OF DELAWARE PATRICIA W. GRIFFIN CHANCERY COURTHOUSE MASTER IN CHANCERY 34 The Circle GEORGETOWN, DELAWARE 19947

Date Submitted: April 7, 2021 Draft Report: May 19, 2021 Final Report: June 3, 2021

Gary R. Dodge, Esquire Curley, Dodge, Fitzgerald & Funk, LLC 250 Beiser Boulevard, Suite 202 Dover, Delaware 19901

Peter K. Schaeffer, Jr., Esquire Avenue Law 1073 South Governors Avenue Dover, Delaware 19904

RE: Wild Quail Golf & Country Club Homeowners’ Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt C.A. No. 2019-0768-PWG

Dear Counsel:

Pending before me is an action by a homeowners’ association to enforce

deed restrictions under 10 Del. C. §348. The homeowners constructed an addition

to their house, which the association alleges violates the deed restrictions because

the color of the addition’s roof did not conform to the plans submitted to the

association, or to the conditional approval granted by the association. I

recommend the Court deny the homeowners’ motion for summary judgment

because there are material facts in dispute concerning whether the association

applied the deed restrictions’ standard reasonably in imposing its conditional Wild Quail Golf & Country Club Homeowners’ Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt C.A. No. 2019-0768-PWG June 3, 2021

approval, and it is desirable to inquire more thoroughly into the facts to clarify the

application of the law to the circumstances. This is a final report. 1

I. Background

On September 23, 2019, Plaintiff Wild Quail Golf & Country Club

Homeowners’ Association, Inc. (“the Association”) filed a complaint against

Defendants Mark and Lucienne Babbitt (“the Babbitts”) asserting that the Babbitts

violated the Wild Quail Golf & Country Club development (“Wild Quail”)’s

Declaration of Restrictions (“Restrictions”) related to the addition (“Addition”)

they built on their property (“Property”) located at 57 Teal Lane, Camden-

Wyoming, Delaware. 2 Prior to building the Addition, the Babbitts submitted plans

for the Addition to the Association’s Architectural Committee (“AC”) as required

by the Restrictions, including drawings dated March 7, 2018.3 On March 10, 2018,

the AC sent an email to the Babbitts and their contractor entitled “Final approval,”

which imposed a number of conditions as a part of its approval, including the

condition at issue here – that “[t]he roof color must match as closely as possible to

the existing metal roof on the residence” (“Roof Condition”).4 The Association

1 This report makes the same substantive findings and recommendations as my May 19, 2021 draft report, to which no exceptions were filed. 2 Docket Item (“D.I.”) 1. 3 Id., ¶ 12; Ex. E. 4 Id., Ex. F.

2 Wild Quail Golf & Country Club Homeowners’ Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt C.A. No. 2019-0768-PWG June 3, 2021

argues that the roof on the Addition, as constructed, fails to conform to its

conditional approval or to the Addition’s plans, which depicted a dark color roof.5

The Association asks that the Court direct the Babbitts to modify the addition to

conform to the conditional approval, and award attorneys’ fees under 10 Del. C.

§348.

On October 22, 2019, the Babbitts filed an answer denying the Association’s

claims and seeking judgment in their favor and attorneys’ fees. 6 The case was

dismissed on December 21, 2020 for lack of prosecution.7 The Association’s

January 20, 2021 motion to reopen the case was granted on January 27, 2021. 8

On March 2, 2021, the Babbitts filed a motion for summary judgment

contending that the Association has not met its burden of proof regarding the

applicable Restrictions’ enforceability and the reasonableness of the AC’s actions. 9

The Association’s April 1, 2021 response claims that color is an essential aspect of

5 Id., ¶¶ 12, 13, 15. 6 D.I. 5. 7 D.I. 9. 8 D.I. 14. 9 D.I. 17, Resp’ts’ Opening Br. in Supp. of its Mot. for Summ. J. (“Resp’ts’ Opening Br.”), at 11; D.I. 20, Resp’ts’ Reply Br. in Supp. of its Mot. for Summ. J., at 2-3. 3 Wild Quail Golf & Country Club Homeowners’ Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt C.A. No. 2019-0768-PWG June 3, 2021

architectural review, and that the Babbitts defied the Restrictions by failing to

abide by the architectural review process. 10

II. Standard for Review

Under Court of Chancery Rule 56, the court grants a motion for summary

judgment when “the moving party demonstrates the absence of issues of material

fact and that it is entitled to a judgment as a matter of law.”11 The moving party

bears the burden of demonstrating that no material issues of fact are in dispute and

that it is entitled to judgment as a matter of law. 12 Once the moving party has

satisfied that burden, it falls on the non-moving party to show that there are factual

disputes. Evidence must be viewed “in the light most favorable to the non-moving

party.”13 Summary judgment may not be granted when material issues of fact exist

10 D.I. 19, Pet’r’s Answering Br. in Opp’n to Resp’ts’ Mot. for Summ. J. (“Pet’r’s Answering Br.”), at 3-4, 29-31. 11 Wagamon v. Dolan, 2012 WL 1388847, at *2 (Del. Ch. Apr. 20, 2012); see also Pine River Master Fund Ltd. v. Amur Fin. Co., Inc., 2017 WL 4023099, at *6 (Del. Ch. Sept. 13, 2017) (citation omitted); Cincinnati Bell Cellular Sys. Co. v. Ameritech Mobile Phone Serv. of Cincinnati, Inc., 1996 WL 506906, at *2 (Del. Ch. Sept. 3, 1996), aff’d, 692 A.2d 411 (Del. 1997). 12 Cain v. Sussex Cty. Council, 2020 WL 2122775, at *6 (Del. Ch. May 4, 2020); Dieckman v. Regency GP LP, 2019 WL 5576886, at *11 (Del. Ch. Oct. 29, 2019) (citation omitted); Wagamon, 2012 WL 1388847, at *2. 13 Williams v. Geier, 671 A.2d 1368, 1389 (Del. 1996) (citing Merrill v. Crothall- American, Inc., 606 A.2d 96, 99 (Del. 1992)); see also Pine River Master Fund Ltd., 2017 WL 4023099, at *6 (citation omitted).

4 Wild Quail Golf & Country Club Homeowners’ Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt C.A. No. 2019-0768-PWG June 3, 2021

or if the Court determines that it “seems desirable to inquire more thoroughly into

the facts in order to clarify the application of law to the circumstances.”14

III. Analysis

Deed restrictions requiring approval of an association, or its architectural

committee, before a homeowner can erect a structure on her property, are

enforceable if they articulate “a clear, precise and fixed standard the reviewing

body must apply.”15 However, such restrictions “are viewed with suspicion due to

the tendency of such review to be arbitrary, capricious and therefore

unreasonable,” and are strictly construed.16 If a restriction is “vague, imprecise, or

unclear, the grant of authority normally is not enforceable.” 17 And, in reviewing

requests under the restrictions, an association or its architectural committee cannot

unreasonably withhold approval, and “any doubts as to [the architectural review

14 Williams, 671 A.2d at 1388-89; see also Ebersole v. Lowengrub, 180 A.2d 467, 470 (Del. 1962); In re Estate of Turner, 2004 WL 74473, at *4 (Del. Ch. Jan. 9, 2004) (citation omitted). 15 Benner v.

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Williams v. Geier
671 A.2d 1368 (Supreme Court of Delaware, 1996)
Lorillard Tobacco Co. v. American Legacy Foundation
903 A.2d 728 (Supreme Court of Delaware, 2006)
Ebersole v. Lowengrub
180 A.2d 467 (Supreme Court of Delaware, 1962)
Seabreak Homeowners Ass'n, Inc. v. Gresser
517 A.2d 263 (Court of Chancery of Delaware, 1986)
Estate of Osborn Ex Rel. Osborn v. Kemp
991 A.2d 1153 (Supreme Court of Delaware, 2010)
Merrill v. Crothall-American, Inc.
606 A.2d 96 (Supreme Court of Delaware, 1992)
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82 A.3d 731 (Court of Chancery of Delaware, 2013)

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Wild Quail Golf & Country Club Homeowners' Association, Inc. v. Mark Gary Babbitt and Lucienne Carter Babbitt, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wild-quail-golf-country-club-homeowners-association-inc-v-mark-gary-delch-2021.