Cordogan v. Union National Bank of Elgin

Wauchope (defendant) developed a subdivision named Riverside Manor No. 1 and established a restrictive covenant on the lots of the subdivision that allowed only single-family dwellings to be built on the lots. Soon after, Wauchope purchased land surrounding the subdivision, developed Riverside Manor No. 2, and sold some of the land to commercial developers. The property around the Riverside Manor No. 1 was developed into a variety of commercial establishments, including several hotels, a manufacturing building, a trailer camp, a college campus, and other commercial buildings. These properties, all once owned by Wauchope, were sold to developers without restrictive covenants. Wauchope still owned lots 18, 19, and 20 of Riverside Manor No. 1, all of which remained vacant. These lots were the closest to a highway frontage road and near the service area of a hotel. Wauchope was unable to sell these lots as single-family dwellings, so he began the process to build a duplex apartment building on these lots. The owners of other lots in Riverside Manor No. 1 (plaintiffs) filed a lawsuit seeking an injunction to prevent Wauchope from building the apartment building on lots 18, 19, and 20 based on the restrictive covenant that had been established for the lots. The trial court ruled in favor of the owners and granted a permanent injunction to prevent Wauchope from building anything other than single-family dwellings on the lots. Wauchope appealed.