Haug v. Carter

Facts

A twenty-seven lot residential subdivision was created which had a homeowner's park on a lake that would allow recreational activities such as 'picnicking, swimming, sunbathing, fishing, and similar recreational activities, including the launching of watercraft and associated automobile and watercraft trailer parking.' The Declaration of Covenants, Conditions, and Restrictions for the subdivision provided that the developer would convey a 'lakeside park area easement and an access easement for the usage by all Owners' to the Thurman Bend Property Owners Association ('Owners Association'). D was a licensed real estate agent working at Southwest Properties, the company that was selling the subdivision lots. In 1996, D Lot 18. Lot 18 was the lot that was to be reserved for recreation. D had actual knowledge that the one-acre park was located on Lot 18 and that recreational activities would be allowed at the park. D knew about the representations being made about the park and that he had received at least one version of a flyer sent out that described the easement to prospective lot buyers. A handwritten provision in the earnest money contract 'reserved the right to retain a 1-acre recreational easement (Dimensions 100' x 400') along the east boundary line. Before the final sale of Lot 18, and contrary to the earnest money contract, D requested that Trotter's attorney, change the language of the proposed park easement on Lot 18 from a 'lakeside park easement' to 'boat launch easement.' On February 26, 1996, a Grant of Easements--referring to a 'Right-of-Way Easement' and a 'Boat Launch Easement'--was executed on Lot 18. The land area comprised in the metes and bounds description for the Boat Launch Easement was of 10,934 square feet (approximately 92 feet by 110 feet), rather than the approximately 40,000 square feet described in the earnest money contract. The Grant of Easements also referred to an easement strip twenty feet in width, abutting the high-water line of Lake Travis for the purpose of passage and use by the public for public sports and amusements. The Right-of-Way easement describes a pedestrian and vehicle ingress and egress easement across Lot 18 to the easement along the lakeside. In a letter dated April 2000, D notified his fellow lot owners that the boat launch easement on his property was 'provided for the immediate loading and unloading of watercraft, but does not provide for a park or picnic area.' He further wrote that the boat launch easement included a 'limitations of use' section that prohibited 'parking, fishing, picnicking, loitering, camping, including fires, [and] swimming.' The Thurman Bend Estates lot owners (P) filed suit against D seeking the reformation of the easement. The Owners Association joined the case. D filed a counterclaim, seeking a declaration to enforce the Grant of Easements as written and attorney's fees. The court found that the developer intended to allow the Owners Association to adopt rules and regulations governing the use of the lakeside park area easement on Lot 18 and to allow improvements within the easement, such as 'picnic tables, barbecue pits, a boat dock and/or swimming platform.' It found a failure arose from a lack of coordination or clear communication between the attorney who prepared the Grant of Easement, and the surveyor who prepared the legal description. The legal description of the easement on Lot 18 was a mistaken description that is not consistent with the agreement, understanding, and intent of the parties at the time D purchased Lot 18. The trial court then reformed the legal description of the easement to conform to the intent of the parties. Ps were also awarded reasonable attorney's fees of $76,246.89, with seventy-five percent of the judgment totaling $57.185.17 due from D. D appealed.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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