John Mikolasko (defendant) was a principle of J.J.M. Partnership, which developed a subdivision called Chapel Woods, II. Mikolasko recorded a subdivision plat for Chapel Woods II, which showed the development of 25 lots. Mikolasko also recorded a Declaration of Covenants, Easements, Conditions, and Restrictions for the plat. The Declaration imposed restrictive covenants on Lots 1-5 and 8-25, including that each lot must be used for residential use and contain no more than a single residential structure. Lots 6 and 7 were not included in the restrictions. The contract of sale for each of the 23 lots to which the restrictions applied referred to the declaration and contained an integration clause, stating that no other promises or representations had been made. Mikolasko retained ownership of Lot 7 and decided to further subdivide that lot. Seven couples who had purchased lots in the original subdivision (plaintiffs) sued Mikolasko, asserting that the restrictive covenants also applied to Lot 7. The plaintiffs claimed that Mikolasko and the real estate broker told them that Lot 7 would be part of the community. The trial court determined that Lot 7 was meant to be part of the common scheme of development and that the restrictive covenants also applied to Lot 7. Mikolasko appealed.