Opinion ID: 2832664
Heading Depth: 3
Heading Rank: 4

Heading: The Agreement of Principles

Text: [¶10] Subsequent to the execution of the deeds, Pew, Nickles, Sayler, and the predecessors of Hincks and Cooke signed an “Agreement of Principles for Mouse Island” (AOP). The court found that [t]he original owners, including the Pews, the Saylers and the Nickleses, entered into [the AOP]. . . . They executed the document proximate in time to when they bought the island. Although Cooke and the Hinckses acquired their ownership interest after the original owners signed the AOP, they considered themselves to be bound by it. The court therefore treats all of the present owners as parties to the agreement. Although the Cooke Trustees challenge the court’s construction of the AOP, they do not contest its finding that they are bound by it. [¶11] The AOP created six voting shares, two for each of the three houses. As a result, Pew has two voting shares and Cooke and the Other Owners each have one. The AOP states, in relevant part: The undersigned, who are the owners of Mouse Island, express their intention that the Island be maintained essentially as it is today and 6 that the working island atmosphere be maintained and enhanced. . . . The parties also take this occasion to reaffirm the covenants in their deeds respecting the right of first refusal accorded individual property co-tenants or Island co-tenants. .... The parties agree that any significant changes affecting the Island require a two-thirds vote of the parties, i.e., four shares. Similarly, any change in the principles established by this Agreement shall be by two-thirds vote of the parties.