Ark. St. Hwy. Comm'n v. McNeill
Arkansas Supreme Court
381 S.W.2d 425 (1964)
The McNeills (plaintiffs) own a home in a development subject to restrictive covenants. The covenants provide that the properties will be used only for residential purposes. The Arkansas State Highway Commission (defendant) plans to build a highway across several properties that adjoin the McNeill property. The McNeills filed suit, seeking to enjoin the construction of the highway unless the Commission filed a bond to secure any damages to their property. They claimed that the presence of the highway would reduce the value of their property, and that the Commission’s violation of the restrictive covenant would likewise reduce the property value. At the trial court, they introduced evidence that the highway would reduce the value of their property by $10,000. The trial court held that the first claim did not state a cause of action under state law, but awarded damages on the second claim. The Commission appealed.
Rule of Law
Holding and Reasoning
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