Camelback Del Este Homeowners Ass??™n v. Warner (1987)
Facts:
A Phoenix residential subdivision borders what is now a very busy road, and Warner would like to develop an office complex on nine of the lots. The subdivision, however, is subject to deed restrictions, which only allow for a two story single family dwelling. Trial Ct. granted Camelback declaratory and injunctive relief and Warner appeals.
Issue:
Whether the restrictive covenant is enforceable against commercial encroachment.
Holding:
Ct. affirms for Camelback and upholds restrictive covenants.
Reasoning of ct. based on:
Continental Oil Co. v. Fennemore (1931)
Ct. held that where residential character of neighborhood remains intact, ct. will not disengage certain lots from restrictive covenant bc business encroachment would then be gradual and steady.
Decker v. Hendricks (1968)
Test for whether restrictive covenant should be enforced is whether the conditions have changed so much that it is impossible to secure the benefits intended by the covenant.
Lebo v. Johnson (1961)
The outer tier of residences must bear the brunt of onslaughts of businesses or the entire residential area will soon erode.
Ct says:
* Even though Camelback Road is quite busy now, subdivision has maintained residential character.
* Balance test inapplicable bc Warner was aware of the restrictions of the subdivision before he incurred most of the expenses.
* Camelback is not estopped from enforcing the covenants because of Warner??™s reliance since: Warner was aware of the existence of the covenants, and of at least one of the homeowners??™ intention to enforce them, and a poll he conducted indicated a lack of support for the complex.
Ct. also grants Camelback??™s cross-appeal seeking declaratory judgment that the restrictions had to apply uniformly to all lots, since rule of law In Arizona is that any amendment to restrictive covenants must apply to every lot unless otherwise provided for in the restrictions.
Editors. JB 4/19/05.
Per website: http://74.125.155.132/search?q=cache:XOrqlmJnJycJ:lawquad.squarespace.com/the-donahue-project/11%2520-%2520Covenants.doc+camelback+del+este&cd=14&hl=en&ct=clnk&gl=us&client=firefox-a