Appel v. Presley Companies

806 P.2d 1054 (N.M. 1991)

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Nature of the Case

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Facts

Appels (P) owned a home in a subdivision owned by Presley (D). Wolfe is a developer and the owner of a tract of land on which it intends to build four townhomes. A replat for the subdivision was recorded on January 3, 1979. On October 8, 1982, D recorded a set of restrictive covenants regulating land use, building type, quality, and size of the residential single-family dwellings that were to be placed on the property. In November 1982, P met with D for the purpose of buying one of the lots. P alleges representations regarding the restrictive covenants were made and those covenants were used as a sales tool upon which P relied upon in purchasing their lot. On April 25, 1984, the Architectural Control Committee, which consisted of three members, all of whom were D employees, executed an amendment to the restrictive covenants. This amendment deleted nine lots from the plan. Since the covenants were amended, some of the lots have been subdivided into smaller lots and townhomes have been constructed on them. D sold a lot to Wolfe in April 1988 and Wolfe is replatting the lot into four lots for single-family residences. P sued to enjoin Wolfe’s proposed replatting and to enjoin the construction of any building on a Lot 30. The restrictive covenants were to run with the land for 30 years but the Architectural Control Committee had the right to make changes. The trial court found the language in the restrictions unambiguous and that it permitted the Committee to make exceptions and remove individual lots from the covenants. The court granted summary judgment to D and P appealed.