McHuron v. Grand Teton Lodge Company

The McHurons (defendants) bought a lot in a subdivision subject to a declaration of protective covenants, which provided that, prior to building or altering any structures, lot owners were required to obtain written approval from the Architectural Review Committee of the Grand Teton Lodge Company (the committee) (plaintiff). The declaration states the purpose of the covenants as the establishment and imposition of a general plan for development of the property in order to maintain the attraction and value of the development. The covenants further prohibited the committee from withholding reasonable approval of plans, but provided that disapproval might be justified if the committee determines that the proposed plans are not consistent with the surrounding landscape and natural beauty of the area. Years after purchasing their lot, the McHurons sought approval from the committee to construct a home with fiberglass roof shingles. After the committee disapproved the request because the shingles were aesthetically unattractive, and directed the McHurons to use the cedar shakes used throughout the neighborhood, the McHurons installed the fiberglass anyway. Thereafter, the committee informed the McHurons they could keep the shingles so long as at least 80 percent of the subdivision’s tenants agreed. The McHurons did not gain enough support and the Grand Teton Lodge Company brought suit. The court found in the Grand Teton Lodge Company’s favor, concluding that the committee’s disapproval was reasonable, and directing the McHurons to replace the fiberglass shingles with standard cedar. The McHurons appealed.