Cash v. Granite Springs Retreat Ass'n, Inc.

In the 1970s, Abraham Lorenz orally agreed to sell property to Deward H. Miller. Lorenz conveyed the property to Miller in two parcels. The first parcel was conveyed on August 14, 1972. It became known as Granite Springs Retreat, First Filing (First Filing). The second parcel was conveyed in March 1977, and became known as Granite Springs Retreat, Second Filing (Second Filing). On August 4, 1975, Miller applied for the subdivision of both parcels. The subdivision was to contain sixty lots and was to be known as Granite Springs Retreat. An environmental impact report was also prepared. The report indicated that certain covenants would attach to all tracts within the subdivision. Miller filed a plat for the First Filing on October 1, 1976. On October 4, 1976, Miller filed a Declaration of Protective Covenants governing the Granite Springs Retreat. Miller subsequently acquired legal title to the Second Filing and filed the plat for the Second Filing on August 11, 1977. Miller later conveyed the entire property to Happy Jack Stable & Lounge, Inc., a corporation owned by Lorenz and himself. On February 23, 1978, Miller filed an Amended Declaration of Protective Covenants (Amended Covenants). Miller signed the Amended Covenants on behalf of Granite Springs Retreats, but did not reference Happy Jack Stable & Lounge, Inc. as the proper owner of the property. On July 29, 1983, Miller filed an Affidavit of Intention stating that he intended the covenants to apply to all lots in both filings. The owners of the developed lots subsequently joined to form a homeowner’s association known as the Granite Springs Retreat Association (GSRA) (defendant). In February 2009, Cash, Maturi, McCune, Nelson, and Hilliker (plaintiffs) brought suit against the GSRA, arguing that the covenants did not restrict the lots in the Second Filing. The district court granted the GSRA summary judgment.