Opinion ID: 1302079
Heading Depth: 1
Heading Rank: 5

Heading: The District Court's Designation of the Common Areas.

Text: Sky View believes the district court erred in determining what the common areas were. It maintains the covenants designated only various roads in the development as common areas. In our de novo review, we find by the preponderance of clear, satisfactory, and convincing evidence that Patten agreed to convey all of the areas the district court delineated in its original findings as modified by the following: (1) its orders following the ancillary hearings, and (2) exhibit A attached to the decree. Exhibit A legally describes the common areas. We earlier set out the documentary evidence and testimony establishing the proof of Patten's agreement to convey the common areas. A general description of the common areas as finally determined by the district court includes the following: all lots and gazebos designated by Patten in the December 1, 1989, letter to the assessor; the roads; the lake; the picnic area (lot 500 and picnic area by the volleyball court); the tennis court; one swim and beach area; and the clubhouse. A. Deletions from the common area designation. In its cross-appeal, SVILA contends the district court erred in not awarding it the boat slips, the maintenance building, and the campgrounds. SVILA argues (1) the transfer agreement designated the boat slips as a common area, and (2) Patten's former sales personnel testified that Patten had designated the boat slips, maintenance building, and campgrounds as common areas. The district court in its original findings explained these deletions this way: The developer also made an area lying west of the lake and platted ground available for use as a camping area for the lot owners, and a maintenance building has also been used by both the developer and the association. There is no documentation indicating that the maintenance building or the western camping area were designated as or intended to be common areas. There was also testimony that certain boat slips should be considered common property, but the testimony about the slips is confused as to location and identification, and although mentioned in the transfer agreement there is no other documentation supporting the association's contention. According to these findings, the district court was not convinced that Patten intended the common areas to include the boat slips, maintenance building, and campgrounds. On our de novo review, we agree and adopt these findings as our own. B. Deletion of the swim and beach area previously awarded. In its original findings, the district court found two swim and beach areas (one west of lot 1075 and one by the picnic area) were part of the common areas to be awarded to SVILA. Later, following the second ancillary hearing, the court amended its original findings by deleting one of the beach areas. It found there was only one area commonly used as a beach. In its cross-appeal SVILA also complains about this deletion. It contends the second ancillary hearing was limited to testimony about the legal description regarding the clubhouse and the surrounding amenities. SVILA thinks the court erred by re-opening the record without a rule 179(b) motion. See Iowa R.Civ.P. 179(b). The district court has broad discretion to re-open the record and consider additional testimony. See In re J.R.H., 358 N.W.2d 311, 318 (Iowa 1984). Given the difficulty of establishing accurately the common areas and the additional testimony concerning the swim and beach area, we find no abuse of discretion here. C. Conveyance following filing of suit. Following the second ancillary hearing, the district court included as part of the clubhouse a parcel of land extending 250 feet east of the clubhouse. Sky View had deeded this parcel of land to Sun Valley Lake, Inc., Quenton's corporation. The deed was recorded several days after this lawsuit was filed. Sky View challenges the court's designation of this disputed area as a common area because Sun Valley Lake, Inc., was not a party to these proceedings. In its second ancillary order, the district court acknowledged (1) it could only determine the interests of the parties to this disputed parcel, and (2) Sun Valley Lake, Inc., was not a party. Contrary to Sky View's contention, therefore, the district court did not determine Sun Valley Lake, Inc.'s interest in the disputed parcel. The district court's order preserved whatever rights SVILA had in the disputed parcel. The order also preserved for SVILA a remedy against Sky View if Sun Valley Lake, Inc., later establishes a superior claim to the disputed parcel.