Court Opinion

ID: 9600852
Source: CourtListenerOpinion
Date Created: 2023-08-22 01:32:06.159596+00
Date Added: 2024-06-11T18:01:53.806992
License: Public Domain

*43GOLDEN, Chief Justice,
dissenting, with whom MACY, Justice, joins.
I respectfully dissent. The majority approves the committee’s argument that its discretion is unlimited, its decision is final without articulated reason to a lot owner, and a lot owner is precluded from any legal recourse for an arbitrary decision. Aesthetic covenants are generally upheld, however, under a rule which offers dual protection to both parties. By resolving the reasonability issue as a question of law, the majority opinion fails to afford due process protection to a lot owner, a process other jurisdictions do find legally tenable.
Courts uphold aesthetic covenants as enforceable guarantees to a purchaser of a subdivision lot that his house will be protected against adjacent construction which will impair its value and that a general plan of construction will be followed. Rhue v. Cheyenne Homes, Inc., 168 Colo. 6, 449 P.2d 361, 362 (1969). Committee approval is an accepted method of accomplishing and maintaining guarantees of value and general plan. The corollary to enforceability of a covenant requiring committee approval is protection and due process of law to a lot owner, namely, that a committee’s refusal to approve plans must be reasonable and made in good faith and must not be arbitrary or capricious. Rhue, 449 P.2d at 363.
Whether a particular aesthetic covenant is valid and enforceable is a question of law, but better reasoned cases consider the question whether the committee was reasonable or arbitrary in exercising its power of refusal a factual question to be considered in light of the circumstances. Trieweiler v. Spicher, 254 Mont. 321, 838 P.2d 382, 385 (1992) (collecting cases). Such approval may not be unreasonably withheld without legal recourse on the part of the party subject to the restriction. See La Vielle v. Seay, 412 S.W.2d 587, 592-93 (Ky.1966).
The McHurons are contending, first, that the restriction is invalid and, second, that consent has been unreasonably withheld. Their first contention, that the aesthetic covenant was so vague as to deny due process, is properly resolved against them and found valid. The clear purpose and intent of the aesthetic covenant was to establish a general scheme and then empower a committee to preserve the subdivision against homes inharmonious with the surroundings to such an extent that property value is diminished or the general plan is violated.
The specifics of the McHurons’ second contention are the committee is unreasonably rejecting a material (fiberglass shingle) without proof of diminished property value or a disturbed general plan. Generally, a refusal can be proved to be reasonable by a showing the building plans or materials will diminish the value of the subdivision, or so conflict with the architecture of other nearby homes that it causes damages to the property value of those homes, or is specifically prohibited by the covenants or the committee’s own lists. See LeBlanc v. Webster, 483 S.W.2d 647, 650 (Mo.App.1972); Syrian Antiochian Orthodox Archdiocese v. Palisades Associates, 110 N.J.Super. 34, 264 A.2d 257, 262 (1970). McHurons contend none of these harms are present and the committee’s refusal unreasonably denies them the use of an attractive, quality, harmonious material safer and more suitable to the surroundings.
A proper ruling by the majority would state the McHurons are entitled to legal recourse when material questions of fact exist on the issue of unreasonably withheld approval. Other jurisdictions require that a committee’s power of refusal be exercised objectively, honestly and reasonably and the committee’s whims or aesthetic tastes are not subjectively imposed on lot owners. Trieweiler, 838 P.2d at 386. Under this standard, a committee’s refusal of a roofing material which does not diminish the value and general plan of the subdivision; which does not violate a specific restriction either of the covenants or the committee’s lists; and which is not in conflict with the other homes so that it creates damages would be unreasonable.
McHurons presented summary judgment materials demonstrating material questions of fact exist concerning the issue of reasonableness and, in opposition, the committee only claimed that the roofing material is aesthetically unattractive because it is syn*44thetic. With the barest of assertions, the committee declared that property values would be harmed. Applying the standard articulated above, at trial the committee may very well prevail but only after proving that the variation would be unsightly, causing diminished values, or inharmonious to the extent that the general plan was disturbed. It is difficult to believe that the McHurons would not be able to counter that a fiberglass shingle designed as a cedar shake look-alike does not disturb the general plan, is not unsightly, and actually enhances property values because it is safer, fire resistant and, therefore, more suitable to a wooded area. Regardless, due process requires they be afforded a proper opportunity to present evidence of the roofing material’s harmony and suitability with the surroundings. The committee’s discretion is not unlimited and the reasonableness of their decision is a material question of fact which should be tried.
I would reverse and remand for a trial on the issue of reasonableness.