Deghetto V Beaumont's Seven Harbors White And Duck Lack Association Summary

In this essay, the author

• Explains that the michigan court of appeals recently ruled that a homeowners' association could not continue to collect assessments after the restrictive covenant expired.
• Explains that the plaintiffs were the owners of multiple lots in six separate subdivisions in highland township, michigan that contained over 650 lots.
• Explains that the restrictive covenants that governed sp1 and sposh indicated that purchasers would automatically become a member of the seven harbor white and duck lack association.

• Explains that the michigan court of appeals recently ruled that a homeowners' association could not continue to collect assessments after the restrictive covenant expired.
• Explains that the plaintiffs were the owners of multiple lots in six separate subdivisions in highland township, michigan that contained over 650 lots.
• Explains that the restrictive covenants that governed sp1 and sposh indicated that purchasers would automatically become a member of the seven harbor white and duck lack association.
• Explains that the beaumonts sold the lots in the next three subdivisions, sp5, sp6, and pposhr, in late 1950s and early 1960s. the deeds contained language by which the original purchasers agreed to pay to the association a yearly fee to be capped at $15 per year.
• Explains that the 1956 and 1959 deed restrictions were not extended without the written consent of 75% of the membership. the association continued to charge lots owners a fee between $185 and $225 per lot.
• Argues that the 1956 and 1959 deed restrictions were extended past their stated expiration date of january 1, 1986, because the 1959 amendments to the articles of incorporation were approved by 75% of the membership.
• Explains that a covenant can be personal to the original parties or run with the land. any subsequent purchaser will also be bound if that purchaser has actual or constructive notice of the covenant.
• Analyzes how the association argued that the doctrine of laches should apply to bar plaintiffs' claims that they were not required to pay assessments.
• Explains that courts will often enforce restrictive covenants as written even if the practical consequences may be harsh.
• Explains that the plaintiffs paid the bi-annual assessments for six consecutive years and availed themselves of the services provided by the association, including road repair and snow removal.
• Cites sullivan v gibbs, no. 07 misc 357629 cwt, 2010 wl 2623674, at *5 (mass land ct june 30, 2010).
• Explains how the massachusetts court found that the doctrine of equitable servitudes required the lot owners to pay assessments.
• Argues that plaintiffs' obligation to the trust is not a restriction or covenant, but an equitable servitude.
• Analyzes how the plaintiffs paid the bi-annual assessments until 1983, while the remaining members of the association continued to act as if the restrictions were still valid.
• Opines that michigan recognizes the doctrines of implied contract, unjust enrichment and equitable servitudes, but it does not appear that the homeowners' association asserted a counterclaim to collect any assessments or common expenses based on equitable grounds in deghetto v beaumont’s seven harbors white and duck lack association.