Cosby v. Holcomb Trucking, Inc.

The Kings developed land in rural Louisiana into a subdivision and incorporated building restrictions into the development. These restrictions provided that no commercial vehicles or trucks were to be kept, repaired, or maintained on any lot in the subdivision in a way that would detract from the appearance of the subdivision. Another provision of the restrictions prohibited the operation of any commercial activity in the subdivision unless approved by the Kings. In 1992, Harry and Joyce Holcomb acquired a lot from the Kings, and they eventually built a home and a large outbuilding to use in conjunction with their trucking business, Holcomb Trucking, Inc. (defendants). Mr. King signed an agreement with the Holcombs that purported to grant the Holcombs an exemption to the prohibition on operating a commercial activity in the subdivision, in order to allow the Holcombs to operate their business from the property. In the spring of 2001, neighbors in the development began noticing commercial trucks entering the Holcombs’ property and being maintained, pressure washed, and stored on the property, along with other trucking-business activity. A group of these neighbors (the neighbors) (plaintiffs) sued Holcomb Trucking, alleging that it was violating the building restrictions against storing and maintaining commercial trucks on the property. The Holcombs claimed that the action was prescribed because more than two years had passed since the activity had become noticeable and that the building restrictions had therefore been extinguished for their property. The trial court held for the neighbors and granted an injunction. The Holcombs appealed, and the court of appeal reversed the trial court’s judgment. The Louisiana Supreme Court granted certiorari.