Case Title: Goode v. Village of Woodgreen Homeowners Ass'n

Citation: 662 So. 2d 1064

Docket Number: 94-CA-00325-SCT

State: mississippi

Court: Mississippi Supreme Court

Date: 1995-10-19T00:00:00Z

Document:
662 So. 2d 1064 (1995) Karen GOODE and Paul Crimm d/b/a Happy Homes, Inc. v. VILLAGE OF WOODGREEN HOMEOWNERS ASSOCIATION. No. 94-CA-00325-SCT. Supreme Court of Mississippi. October 19, 1995. *1066 James H. Herring, Herring Long & Ward, Canton, for appellants. Bentley E. Conner, Canton, for appellee. Before HAWKINS, C.J., and PITTMAN and BANKS, JJ. PITTMAN, Justice, for the Court: The Village of Woodgreen Homeowners Association brought suit for injunctive relief against Karen Goode and Paul Crimm. The Association sought a permanent injunction to halt the further construction on Goode's residence until such time as construction proceeded in accordance with the building plans approved by the Architectural Control Committee of the Village of Woodgreen Homeowners Association. On November 17, 1993, a trial was held and Chancellor Ray Montgomery of the Chancery Court of Madison County granted a permanent injunction in favor of the Association. The court on January 7, 1994, entered an order that Crimm and Goode were permanently enjoined from further construction on Goode's residence until they complied with the protective covenants of the subdivision, including the submission and approval of appropriate plans and specifications by the Architectural Control Committee of the Village of Woodgreen Homeowners Association. On April 1, 1994, Goode and Crimm filed their Notice of Appeal to this Court. The issues on appeal to this Court are as follows: On the March 17, 1993, Karen Goode acquired title by special warranty deed to Lot 16, Part 1-A of the Village of Woodgreen Subdivision located within the City of Madison in Madison County, Mississippi. The deed contained language stating that Goode acknowledged and assumed all the obligations described in the protective covenants for the subdivision and that she specifically acknowledged the receipt of a copy of the protective covenants of the subdivision and of the bylaws of the Village of Woodgreen Property Owners Association. Goode also signed the deed acknowledging that she accepted the conditions of the deed and consented to the terms and conditions found in the protective covenants and bylaws of the Property Owners Association. The deed was subsequently filed in the Office of the Chancery Clerk of Madison County on March 31, 1993. The appellee, the Village of Woodgreen Homeowners Association (hereinafter "Association"), is a nonprofit corporation which was created pursuant to the restrictive covenants adopted by the subdivision developer, Summertree Land Company, Ltd., on October 17, 1980, and recorded in the land records in the office of the Chancery Clerk of Madison County, Mississippi. These covenants have been amended, and the relevant restrictive covenants to this action were filed and recorded in the land records in Madison County on September 2, 1981. Both sets of covenants were referenced in Goode's deed. The amended covenants restated and declared the creation of an Architectural Control Committee ("Committee") and gave the Committee broad powers as shown by the following relevant excerpts: The restrictive covenants also provide as follows: Article VI of the restrictive covenants is reiterated verbatim in the bylaws of the Village of Woodgreen Property Owners Association. On February 21, 1993, approximately one month before she purchased the lot, Goode submitted a set of house plans for approval to the Committee of the Association. This set of plans, dated March 1983, had been previously approved for construction in the Sherlock subdivision in the Village of Woodgreen. Sherlock subdivision is composed entirely of contemporary style homes, while Victoria Square, the subdivision where Goode's house is located, consists of only Victorian styled houses. According to Roger Dennis, property manager for the Association *1069 and chairman of the Committee, this first set of plans was rejected by the Committee, and Goode was asked to get a set of Victorian plans or to have the home redesigned with a steeper roof pitch and higher elevations and to make the house a Victorian style house and resubmit the plans. Also, Dennis testified that at that first meeting, Paul Crimm, Goode's builder and supervisor for the construction of her home, assured the Committee that he would modify the roof line and do other things to change the house to a Victorian style. Doug Thornton, architectural consultant for the Committee, testified that the first set of plans was rejected by the Committee because the elevation of the house had to be increased to fit the architectural scheme of Victoria Square and the foundation was inadequate to give the house stability. Minutes of the February 21, 1993, meeting indicate that Goode was asked to have the elevations redrawn to a Victorian style and also to have the foundation redrawn to provide stronger support for the house. Goode indicated that she was only asked to incorporate a new foundation plan. Goode had the plans redrawn and had Wayne Caldwell, her uncle and a civil engineer, redraw the foundation. At a Committee meeting held on March 30, 1993, Goode submitted the new set of plans redrawn as the first three sheets attached on top of the old plan. The new plans included the foundation sketch dated March 30, 1993, and stapled onto page 1, and new elevations demonstrating a steeper 10 to 12 roof pitch on the roof line of the garage and of the main part of the house, instead of the 8 to 12 roof pitch that was drawn on the original set of plans. Pages 1 through 3 of Goode's plan submitted on this occasion were dated March 15, 1993, while the remaining pages (4 through 11) of that plan were dated August 1983. Goode testified that she did not notice the roof pitch changes on the newer plans which she had redrawn. On March 30, 1993, the Committee approved Goode's building plan which had three pages dated March 15, 1993, attached on the front of the old plan. Minutes of the meeting held on March 30, 1993, verified that the elevations had been redrawn to Victorian style and that the foundation was now adequate. Dennis testified that there could be no confusion as to which plans were approved because Goode and Crimm were the ones who attached the new plan to the old plan. On March 31, 1993, Crimm applied to the City of Madison, Mississippi for a building permit for construction of Goode's house. Crimm subsequently submitted the plan approved by the Committee to Madison. The plan was approved by Madison, and a building permit was issued by Madison on or around April 2, 1993. Construction on Goode's house began during the first part of April 1993. Although the exact date was not known, Dennis testified that framing began on Goode's house on a Monday and was essentially completed by Saturday of the same week. During the weekend that framing was completed, two residents of Victoria Square and one member of the Committee contacted Dennis and told him that Goode's house had the wrong roof on it. Dennis went to the house the following Monday morning where he saw a crew working on the roof. He then located Crimm at the site of another house and told Crimm that the roof pitch on Goode's house was wrong and would have to be changed. At that point, Dennis indicated that only the decking was on the roof and that when he saw the house again on Wednesday, shingles were on the roof and it was basically complete. Goode testified that the roof, including shingles, was completed on May 22, 1993. On the day that Dennis confronted Crimm about the roof, Dennis told Crimm that Crimm needed to come to a meeting that afternoon with the Association. The meeting was held on June 1, 1993, according to Goode. Crimm informed Goode and both of them went to the meeting that afternoon where Crimm stated that he had already finished the roof and could not change the pitch and would refrain from building for a week or two weeks. During the meeting, Goode was told that the roof was not high enough and should be corrected. On June 14, 1993, Goode, accompanied by her house designer, went to another meeting with the Committee. Crimm testified that at this meeting, Goode had her designer make some sketches of what could be done to the *1070 house to bring it into harmony with the other houses in Victoria Square and that the architect on the Committee stated that he would recommend acceptance if all of the proposed changes were made. Minutes from the meeting indicate that Goode proposed changes to bring the house up to acceptable standards and was asked to produce to scale drawings for future consideration. Following that meeting, Crimm testified that Goode told him about what was proposed at the meeting and the reaction of the Committee, to which Crimm replied, "Okay, we'll go ahead and finish it then." Crimm continued building. On June 21, 1993, Goode met once again with the Committee to submit her proposed changes to the plan. Minutes from that meeting indicate that the Committee reviewed the changes that were proposed to correct the builder's mistakes, and the changes were not approved. Yet, Crimm continued to build the house. On July 2, 1993, Dennis wrote a letter to the city of Madison indicating the discrepancy between the house as built and the plans approved. The next day, July 3, 1993, a stop work order was issued by the Director of the Department of Public Works to Happy Homes, Inc. (owned by the builder, Crimm) directing that Crimm cease construction of Goode's house in order to give the city authorities time to evaluate the house and its deviation from the approved plans. On July 16, 1993, the Association filed suit against Goode and Crimm, d/b/a Happy Homes, Inc., in the Chancery Court of Madison County, Mississippi, seeking a temporary restraining order to prevent further construction on the house. On July 22, 1993, the Association filed suit against the appellants seeking a preliminary injunction and a permanent injunction to enjoin the appellants from continuing the construction of the house until they comply with the plans as approved by the Committee. The hearing on the request for a preliminary injunction was held on July 26, 1993. After hearing testimony, the trial court denied the request for a temporary restraining order. Crimm and Goode contested the stop work order before the Mayor and Board of Aldermen for the City of Madison. After investigation and inspection of the house by the City, the stop work order was confirmed and ratified by that order dated August 11, 1993. The Mayor and Board of Aldermen for the City of Madison found that the house as constructed substantially deviated from the plans approved by the City and that the stop work order should remain in effect until the house is brought into compliance with the approved plans, "specifically including but not limited to a 10:12 roof pitch." Goode appealed the decision of Madison concerning the stop work order to the Circuit Court of Madison County, Mississippi. By agreement of the parties, that action has been abated until this Court renders its decision in the present case. On November 17, 1993, a hearing regarding the permanent injunction was held, and after hearing testimony in this action, the trial court granted a permanent injunction. The permanent injunction prevented Goode and Crimm from conducting any further construction on Lot 16 until they complied with the protective covenants of the subdivision, including getting the approval of the Committee on plans submitted to correct the builder's mistakes. This Court will not disturb findings of the chancellor unless the chancellor was manifestly wrong, clearly erroneous or applied *1071 an erroneous legal standard. Tinnin v. First United Bank of Miss., 570 So. 2d 1193, 1194 (Miss. 1990). Where there is substantial evidence to support the chancellor's findings, this Court is without the authority to disturb his conclusions, although this Court might have found otherwise as an original matter. In re Estate of Harris, 539 So. 2d 1040, 1043 (Miss. 1989). In addition, where the Chancellor has made no specific findings, this Court will proceed on the assumption that he resolved all such fact issues in favor of the appellee. Newsom v. Newsom, 557 So. 2d 511, 514 (Miss. 1990); PMZ Oil Co. v. Lucroy, 449 So. 2d 201, 205 (Miss. 1984). The appellant argues that the trial court conceded jurisdiction of this case to an unrelated action by the City of Madison. In supporting its argument that the trial court based its decisions on the binding effect of the stop work order issued by Madison, the appellant references statements made by the chancellor during his ruling which denied the appellant's motion to dismiss the petition for a permanent injunction and in his bench opinion granting a permanent injunction. Specifically, the appellant charges that the chancellor, in his ruling denying the appellant's motion to dismiss the petition for a permanent injunction, "clearly stated that it had no choice but to uphold the Stop Work order halting construction of the Goode home which had been issued by the city of Madison" and that the "[t]rial court later restated its conclusion that it was bound by the Stop Work Order when it rendered its final decision granting the Permanent Injunction." The entire ruling by the chancellor denying the appellants' motion to dismiss the petition for a permanent injunction is set out as follows: The appellants' statement that the "[c]ourt clearly stated that it had no choice but to uphold the Stop Work Order" is located nowhere within the ruling. Nowhere in the ruling does the trial court concede jurisdiction of this case to the city of Madison in any way. In fact, the trial court in its ruling stated that the parties to the present case *1072 have no control over the appeal of the stop order issued by the city of Madison and that the trial court in the present case had no jurisdiction over the appeal of the stop work order. Further, the chancellor in his ruling stated that the circuit court would rule on the appeal of the stop work order issued by the city of Madison. In his ruling on the motion to dismiss, the chancellor did state that his overruling of the motion to dismiss the petition for a permanent injunction, as a practical matter, had no force and effect as long as the stop order issued by Madison was in existence. Taken in its context, this statement merely referred to the fact that the appellants' ability to continue building would still be barred by the stop order even if the motion to dismiss was sustained. Appellants' argument that the trial court's decision to grant the permanent injunction was based on the binding effect of the stop work order is also without support. The appellants construe part of the chancellor's bench opinion granting a permanent injunction as indicating that only the city of Madison had the authority to stop construction of Goode's house. The relevant portion of the chancellor's bench opinion is set out as follows: In the bench opinion, the chancellor referred to the fact that the homeowners association did not have the authority on its own to stop construction of Goode's house, but that only the "[c]ity of Madison authorities" or a "court of competent jurisdiction" had that authority. To interpret this statement as an affirmation that the chancellor was basing his opinion to grant the injunction on the stop work order is ludicrous. The chancellor, in the first sentence of his bench opinion, stated that, "based upon the testimony and the evidence and the admission of the defendant, Karen Goode, ... the plans submitted and approved were not followed." Furthermore, the chancellor signed an Order which granted a permanent injunction and which contained a statement that the chancery court had jurisdiction over the parties and subject matter of the suit. Nothing in the chancellor's opinion demonstrates that he abdicated his authority to the city of Madison or to the circuit court wherein the action concerning the stop work order was pending. Appellants also argue that the chancellor's decision in this case should be reversed because it is incomplete and ambiguous as to its meaning. This Court has held that a chancery court decree must be reasonably certain in its terms. William W. Bond, Jr. & Associates, Inc. v. Lake O'The Hills Maintenance Ass'n, 381 So. 2d 1043, 1046 (Miss. 1980); Norris v. Norris, 157 Miss. 457, 459, 128 So. 342, 342 (1930). In Lake O'The Hills, this Court cited Justice Griffith's statements in Mississippi Chancery Practice that: Lake O'The Hills, 381 So. 2d at 1045. To support the argument that the chancellor's opinion in this case was uncertain in its terms, the appellants point to language in the chancellor's bench opinion granting the permanent injunction, which language is set out as follows: The appellants contend that the chancellor suggested that the parties get together and seek a middle ground, and that the court essentially placed the action on hold until some agreement could be reached. However, the chancellor clearly determined that the appellants failed to follow the plans that had been approved by the Committee, that according to the defendant, the house built is not the house on the plans submitted and approved by the Association, and that Goode and Crimm were permanently enjoined from further construction on Lot 16 until they complied with the protective covenants for the subdivision, "including the submission and approval of appropriate plans and specifications by the Architectural Review Committee of the Village of Woodgreen Homeowners Association." The chancellor's decision was reasonably certain in its terms and left no room for any other interpretation; the appellants had to comply with the protective covenants for the subdivision for the permanent injunction to be lifted. To comply with article VI of the covenants, the appellants had to get approval of their building plans from the Committee and then build in accordance with those approved plans. While the chancellor did state that there might be a middle ground, it is this Court's opinion that this statement referred to the possibility that perhaps the appellants could work with the Association on getting plans approved that would not call for the reconstruction of the entire roof. The possibility that the appellants might negotiate with the Committee to get approved a particular plan that would bring the house into conformity with other Victorian-styled houses in no way confuses the chancellor's opinion that the appellants must comply with the protective covenants. Appellants argue that the home as built does not violate the covenants of the subdivision because the covenants place no limitation on architectural design, floor space, or roof line of a home built in the Village of Woodgreen. The law in Mississippi favors the free and unobstructed use of real property. City of Gulfport v. Wilson, 603 So. 2d 295, 299 (Miss. 1992); Kinchen v. Layton, 457 So. 2d 343, 345 (Miss. 1984). "[Restrictive] covenants are subject more or less to a strict construction and in the case of ambiguity, construction is most strongly against the person seeking the restriction and in favor of the person being restricted." Kemp v. Lake Serene Property Owners Ass'n, Inc., 256 So. 2d 924, 926 (Miss. 1971). Andrews v. Lake Serene Property Owners Ass'n, 434 So. 2d 1328, 1331 (Miss. 1983). The applicable provision of the restrictive covenants for the Village of Woodgreen provides that, "[n]o structure ... shall be constructed ... unless complete plans, specifications, and site plans therefore, showing the exterior design, height, building material and color scheme thereof ... shall have been submitted to and approved in writing by the Architectural Control Committee... ." Construing this restrictive covenant in its "ordinary sense" and according to its "apparent purpose," Mendrop v. Harrell, 233 Miss. 679, 688, 103 So. 2d 418, 422 (1958), the covenant clearly and plainly states that before a house can be constructed in the subdivision, the Committee must approve of the building plans. To state that this covenant places no limitation on the construction and architectural design of a house is simply an erroneous statement. The appellants also had notice of this covenant. Goode's deed contained language stating that she acknowledged and assumed all of the obligations described in the protective covenants for the subdivision and that she specifically acknowledged the receipt of a copy of the protective covenants of the subdivision and of the bylaws of the Association. Goode also signed the deed acknowledging that she accepted the conditions of the deed and consented to the terms and conditions found in the protective covenants and bylaws of the Association. Furthermore, both Crimm and Goode testified that they knew that the Committee had to approve any building plans prior to construction in the subdivision. Based on the testimony, the evidence and the admission of Goode, the chancellor found that the building plans that were submitted and approved were not followed. The appellants' actions in not building in accordance with the building plans that were approved runs afoul of the plain language found in the restrictive covenant. Appellants contend that the broad powers given to the Committee through the restrictive covenants are unenforceable as a matter of law. The Committee is appointed by the board of directors of the Association, and as such, the Committee is an extension of the Association. This Court has addressed the powers of a homeowner association. Perry v. Bridgetown Community *1075 Ass'n, Inc., 486 So. 2d 1230 (Miss. 1986); See also Kemp, 256 So. 2d at 925-26 (restrictive covenant requiring plans for construction to be approved by the building committee of the homeowner's association was not violated where the completed building conformed to the plans that were approved). One such power is the power to control the use and enjoyment of the property. Perry, 486 So. 2d at 1233. "The extent of the power is defined in the declaration [of covenants], but usually encompasses use and size of buildings upon individual lots and regulation of the property commonly enjoyed by all lot owners." Id. at 1233. As to the limits of this power, this Court has stated that: Id. at 1234. No Mississippi case has ever declared as unenforceable a covenant which requires builders to get approval of their plans from a homeowners association before they can begin construction in a subdivision to which the covenants apply. Applying a reasonableness standard to the restrictive covenants, powers granted the Association through the restrictive covenants are enforceable and were reasonably applied in requiring Goode to build in compliance with the plans as approved by the Committee. The apparent intent of the restrictive covenants was to "preserve the values and amenities" of the Village of Woodgreen community for the "benefit of said property and each owner thereof." Considering "the rights of the other association members who expect maintenance in keeping with the general plan of development for the subdivision," to allow Goode to deviate from her approved plans would unfairly and unjustly make ineffective the restrictive covenants in reliance upon which the remaining homeowners have made a lifelong investment. Perry, 486 So. 2d at 1234. In light of the testimony and evidence which shows that Goode had notice of the architectural design required in Victoria Square before Goode purchased the lot, and considering the fact that Goode submitted both the original plans which were rejected and the amended plans which were approved, it follows that the Committee's requirement that Goode build in accordance with the approved plan showing the 10 to 12 pitch roof is not unreasonable. Appellants contend that Crimm was confronted with inconsistent house plans that he attempted to harmonize in order to build a house that was Victorian in appearance. Crimm's "harmonizing" of the plans amounted to nothing more than the appellants' refusal to build the house in accordance with the plans that they submitted and that the Committee approved. At a hearing on July 26, 1993, for a preliminary injunction, Crimm testified that he noticed that the roof pitch had been changed from 8 to 12 to 10 to 12 on page 1 of the approved plan, that he knew that differences existed between the old section of the plan and the new section of the plan, that he had to build according to what the owner likes, also, and that maybe he should have contacted Dennis regarding changes desired by Goode in the house plan. In addition, Dennis testified that Crimm, at the first Committee meeting on February 21, 1993, assured the Committee that he would modify the roof line and otherwise change the house to a Victorian style. When the Committee approved the plan calling for a 10 to 12 roof pitch and Crimm was aware of the required change, there was nothing inconsistent *1076 about the roof for Crimm to "harmonize." In his bench opinion granting the permanent injunction, the chancellor stated: Appellants argue that the chancellor committed reversible error when he failed to consider the testimony given at the hearing for a preliminary injunction by Crimm. At a hearing held on July 26, 1993, for a preliminary injunction, Crimm testified that he was aware that the Committee had to approve plans before a house could be built in the subdivision and that he noticed the different roof pitches in the old section of the plan and the new section of the plan. Crimm also testified that he stopped construction on the house after Dennis informed him of the roof problem and continued with construction when Goode told him what was said at a Committee meeting. In addition, Goode admitted that maybe he should have contacted Dennis regarding changes that Goode desired in the house plan, but that he tried to just use a little common sense concerning the construction. Appellants contend that the testimony given by Crimm at the hearing for a preliminary injunction should have been considered by the trial court in rendering its decision on whether to grant a permanent injunction based on Mississippi Rule of Civil Procedure 65 and its Comments, which states in part as follows: M.R.C.P. 65, Comment. However, the chancellor's error, if any, was harmless because nothing prevented Crimm from testifying at the hearing for a permanent injunction, Crimm's testimony contained some information adverse to his case, and the chancellor based his decision to grant a permanent injunction, in part, on the admission of Goode that the plans submitted and approved were not followed. Therefore, the chancellor committed no reversible error in failing to consider Crimm's testimony presented at the hearing for a preliminary injunction when the chancellor made his decision to grant a permanent injunction. Appellants raise, for the first time on appeal, the affirmative defense of laches. However, this Court has held that it need not address issues raised for the first time on appeal. R & S Development, Inc. v. Wilson, 534 So. 2d 1008, 1012 (Miss. 1988). Furthermore, Rule 8(c) of the Mississippi Rules of Civil Procedure provides that: M.R.C.P. 8(c). For a party to rely on an affirmative defense, the party must affirmatively *1077 plead the defense. Wholey v. Cal-Maine Foods, Inc., 530 So. 2d 136, 138 (Miss. 1988). Affirmative defenses that are neither pled nor tried by consent are deemed waived. Id. "Affirmatively pleading the defense of laches ordinarily calls for a full hearing of testimony of both sides." Allen v. Mayer, 587 So. 2d 255, 260 (Miss. 1991). In the present case, the appellants failed to affirmatively plead the defense of laches and also failed to raise the defense at any time during the hearings. Therefore, appellants are procedurally barred from raising the defense of laches for the first time on appeal. Based upon the evidence and testimony presented, it does not appear that the chancellor was manifestly wrong in granting a permanent injunction against the appellants to enjoin them from further construction on the house until they comply with the restrictive covenants of the subdivision. The chancellor based his opinion upon testimony and other evidence and the admission of Goode that the plans submitted and approved were not followed. In rendering his decision, the chancellor's opinion was reasonably certain in its terms and left no room for any other interpretation; the appellants had to comply with the protective covenants for the subdivision for the permanent injunction to be lifted. The restrictive covenants clearly and plainly state that before a house can be constructed in the subdivision, the Committee must approve of the building plans. The appellants' actions in not building in accordance with the building plans that were approved runs afoul of the plain language found in the restrictive covenants. No Mississippi case has ever declared as unenforceable a covenant which requires builders to get approval of their plans from a homeowners association before the builder can begin construction in a subdivision to which the covenants apply. Furthermore, in light of the testimony and evidence which shows that Goode had notice of the architectural design required in Victoria Square before Goode purchased the lot, and especially considering the fact that Goode submitted both the original plans which were rejected and the amended plans which were approved, the Committee's requirement that Goode build in accordance with the approved plan showing the 10 to 12 pitch roof is reasonable. Goode should not be able to hide behind alleged inconsistencies in the plans when she was the person who submitted all versions of the building plans and caused the inconsistencies of which she now complains. Crimm's "harmonizing" of the plans amounted to nothing more than the appellants' refusal to build the house in accordance with the plans that they submitted and that the Committee approved. Finally, appellants are procedurally barred from raising the affirmative defense of laches for the first time on appeal, especially in light of the fact that appellants failed to plead the defense or raise the defense at any time during the hearings. Therefore, the judgment of the lower court is affirmed. AFFIRMED. HAWKINS, C.J., DAN M. LEE and PRATHER, P.JJ., and SULLIVAN, BANKS, McRAE, JAMES L. ROBERTS, Jr. and SMITH, JJ., concur.