Regency Homes Association v. Egermayer

United of Omaha developed a large residential, commercial, and recreational complex called the Regency subdivision. The Regency’s declaration required all owners within the development to be members of the Regency Homes Association (RHA) (plaintiff), which was tasked with operation and maintenance of property entrances, boat docks, lakes, parks, and other recreational facilities. RHA also provided nuisance control and security services for the development. RHA financed the provision of services via the collection of dues and fees from both lot-owning RHA members and non-landowners who were permitted to use the facilities upon payment of a fee. Pursuant to the declaration, RHA was permitted to fix a reasonable charge as a lien against a lot owner’s property in the event of non-payment of dues. In 1987, RHA billed lot owner George Egermayer (defendant) for the dues. After Egermayer refused to pay, RHA brought suit to foreclose a lien on Egermayer’s lot. Egermayer contended that he was not bound by the covenant requiring payment of dues because the covenant did not “touch and concern” the land. Egermayer testified regarding his belief that the services offered by RHA did not add any value to his property. The district court found in RHA’s favor, concluding that the covenant requiring payment was valid and binding on Egermayer, and that RHA was therefore entitled to foreclose on its lien. Egermayer appealed.