First Securities Company v. Dahl

560 N.W.2d 327 (1997)

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Nature of the Case

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Facts

P platted a subdivision. Outlot A was platted entirely out of Lot 20 and contains a two-acre lake and a dam. There is a fifteen-foot easement for access to Outlot A leading from a street and cul de sac serving Lots 21 and 22. This easement connects to a p'52-foot road and utility easement' crossing Outlot A. D owns Lot 1 and Robert, and Jeanne Nakamaru (D) own Lot 2. Lots 1 and 2 were formerly Lot 16. The Homeowners Association filed an action against P. As part of the settlement Evelyn Guenther signed an affidavit as P's secretary purporting to restrict use of the 52-foot easement for access to Lot 20. The affidavit provided that P relinquished any right to improve Outlot A and the outlot would continue to be used for recreational purposes. The affidavit further stated, 'Nor shall said lot be used as access to any other property, by P or their heirs, successors, and assigns.' The affidavit was recorded on October 30, 1984. Evelyn and John Guenther sold their interests in Lot 1 to D. The company subsequently became interested in selling Lot 20 for residential development. The company asked Ds to execute releases of any restriction to access to Lot 20 across Outlot A. Ds refused to do so. P filed for declaratory relief holding that Evelyn Guenther's affidavit did not create a restrictive covenant preventing use of the easement across Outlot A, or, it was void and unenforceable because it failed to serve a valid purpose, violates public policy by creating a landlocked parcel, is contrary to the public's easement contained in the plat, and does not prevent the company from accessing Lot 20 across Outlot A so long as it owns both parcels. The court held Evelyn's affidavit is binding to the extent the restriction inhibits the company's use of the road easement over Outlot A. P appealed.