Horton v. Mitchell

• Citation: 200 Ariz. 523,29 P.3d 870
• Decision Date: 31 July 2001
• Docket Number: No. 1 CA-CV 00-0500.,1 CA-CV 00-0500.
• Parties: Roy E. HORTON and Leslie Horton, husband and wife, Plaintiffs, Counterdefendants-Appellants, v. Charles E. MITCHELL, a single man; the successors in interest to Charles E. Mitchell in and to the real property known as Lot 2, Ann-Lynn Estate, MCR 187/2, Maricopa County, Defendants, Counterclaimants-Appellees.
• Court: Arizona Court of Appeals

29 P.3d 870

200 Ariz. 523

Roy E. HORTON and Leslie Horton, husband and wife, Plaintiffs, Counterdefendants-Appellants, v. Charles E. MITCHELL, a single man; the successors in interest to Charles E. Mitchell in and to the real property known as Lot 2, Ann-Lynn Estate, MCR 187/2, Maricopa County, Defendants, Counterclaimants-Appellees.

No. -0500.

Court of Appeals of Arizona, Division 1, Department C.

July 31, 2001.

Kessler Law Offices by Eric W. Kessler, Mesa, Attorneys for Plaintiffs, Counterdefendants-Appellants.

Law Offices of Charles E. Maxwell, P.C. by Charles E. Maxwell, Mesa, Attorneys for Defendants, Counterclaimants-Appellees.

OPINION

GARBARINO, Presiding Judge.

¶ 1 Roy E. Horton and Leslie Horton appeal from the trial court's denial of their requested injunctive relief and the trial court's award of attorneys' fees in favor of Charles E. Mitchell. For the reasons that follow, we reverse and remand.

FACTUAL AND PROCEDURAL HISTORY

¶ 2 The facts in this matter are largely undisputed. In June 1998, the Hortons acquired Lot 1 in Ann Lynn Estates, a deed restricted, nine-lot subdivision in Mesa, pursuant to a tax lien foreclosure action and resulting judgment quieting title in the Hortons' favor.¹ A treasurer's deed after suit was issued to the Hortons, and they recorded the deed on September 29, 1998. Lot 1 lies in the southwest corner of the subdivision, bounded to the west by Val Vista Drive, bounded to the south by McLellan Road, and bounded to the north by Indigo Circle, a residential street within the subdivision. Lot 1 is bounded to the east by Lot 2. See Appendix 1, attached hereto. At the time the Hortons purchased Lot 1, both Lots 1 and 2 were unimproved. The Hortons thereafter constructed their home on Lot 1.

¶ 3 Mitchell owned two lots within Ann Lynn Estates, one of which was Lot 2.² Shortly after acquiring Lot 1, the Hortons were approached by Mitchell, who advised them that all of the other owners in Ann Lynn Estates planned to close Indigo Circle at Val Vista Drive, the only ingress and egress for Ann Lynn Estates. Mitchell also stated that the community intended to construct a private roadway across Lot 2 that would connect to McLellan Road, and turn Ann Lynn Estates into a gated community. The Hortons objected to the plan, mainly because they "were going to lose the road in front of [their] home and beautiful entrance into Ann Lynn," they would be "backed into a corner," and their home would be "surrounded by asphalt."

¶ 4 Ultimately, the other property owners in the subdivision abandoned the private road plan and decided to make the roadway a public thoroughfare. Over the Hortons' objections, the property owners approached the City of Mesa seeking the formation of a Special Improvement District, which would assist Ann Lynn Estates in completing the public roadway project. The Mesa City Council approved the Special Improvement District.

¶ 5 The Hortons then filed suit against Mitchell and his successors-in-interest seeking a permanent injunction preventing the construction of the roadway and the dedication of Lot 2 to the City of Mesa for purposes of constructing the roadway. The Hortons based their complaint on Ann Lynn Estates' recorded Declaration of Restrictions (Restrictions) that forbids the construction of any structure on the lots except for one single-family dwelling. Mitchell filed a counterclaim seeking to enjoin the Hortons from completing the construction begun on their home for having failed to obtain the written approval of Ann Lynn Estates' architectural committee in compliance with the Restrictions. The Hortons prevailed on Mitchell's counterclaim and were awarded their costs and attorneys' fees.³ After a bench trial, the trial court summarily denied the Hortons' request for injunctive relief, dismissed their complaint, and granted Mitchell $2958.30 in costs and $18,393.95 in attorneys' fees. The Hortons timely appealed, and we have jurisdiction pursuant to Arizona Revised Statutes (A.R.S.) section 12-2101(B) and (F)(2) (1994).

ISSUES

¶ 6 The Hortons raise the following issues on appeal:

1. Whether the trial court erred by denying the Hortons an injunction preventing the construction of the roadway across Lot 2; and

2. Whether the trial court erred by determining that Mitchell was the "successful" party in the underlying proceedings and thereby awarding him a portion of his costs and attorneys' fees pursuant to A.R.S. sections 12-341 (1992) and 12-341.01 (Supp.2000).

¶ 7 Because we reverse the trial court's dismissal of the Hortons' complaint and remand with directions to enter judgment in favor of the Hortons for the requested injunctive relief, we need only tangentially address the second issue regarding attorneys' fees.

DISCUSSION

I. The Existence of a Contract Between the Parties

¶ 8 The Restrictions are "a contract between the subdivision's property owners as a whole and the individual lot owners." Ariz. Biltmore Estates Ass'n v. Tezak, 177 Ariz. 447, 448, 868 P.2d 1030, 1031 (1993). Mitchell argues on appeal that the Hortons were not record title owners, and, therefore, were not entitled to enforce the Restrictions until September 1998 because they had no interest in Lot 1 until such time as their deed was recorded. Mitchell contends that this is fatal to the Hortons' appeal because the Restrictions were not contractual obligations between the parties when the Hortons learned of Ann Lynn Estates' plan to construct the roadway across Lot 2-that is, the Hortons took all right, title, and interest in Lot 1 with notice of the intent to build the roadway-and, therefore, they should be denied equitable relief because, at the very least, the Hortons "came to the nuisance."

¶ 9 Mitchell raised this argument below. The trial court determined that the Hortons were the "owners" of Lot 1 pursuant to the judgment quieting title in the Hortons' favor. Mitchell has not cross-appealed the trial court's determination that the Hortons were "owners" entitled to enforce the Restrictions upon the entry of judgment quieting title in their favor. Mitchell has failed to preserve this issue for appeal and we lack the jurisdiction to entertain it. Davis v. Cessna Aircraft Corp., 182 Ariz. 26, 37, 893 P.2d 26, 37 (App.1994) (recognizing that this Court lacks jurisdiction to review an issue that lessens an appellant's rights on appeal— here, the Hortons' right to enforce the Restrictions—unless a cross-appeal has been taken pursuant to Arizona Rules of Civil Appellate Procedure 9(a)). Even if a cross-appeal had been filed, however, Mitchell's argument lacks merit.

¶ 10 First, the record demonstrates that the Hortons filed their complaint for injunctive relief after they had recorded their treasurer's deed. When the complaint was filed, under either party's interpretation of the Hortons' status as owners, the Hortons were entitled to enforce the Restrictions. Simply put, the Hortons' purported taking of Lot 1 with notice of the proposed roadway is a red herring and of no consequence. The Restrictions were never amended to allow for the roadway prior to the time the Hortons recorded their deed. Indeed, the record does not reflect that the Restrictions have been amended since the Hortons recorded their deed. Even under Mitchell's theory regarding the Hortons' status as "owners," the Hortons were still entitled to enforce the Restrictions because they took title to Lot 1 with actual and constructive knowledge of the provisions in the Restrictions, notwithstanding any notice of the intent to derogate from those provisions by the other owners in Ann Lynn Estates.

¶ 11 Additionally, the trial exhibits indicate that Mitchell and all the other owners within Ann Lynn Estates considered the Hortons to be the owners of Lot 1 when, prior to the Hortons recording their deed, the other owners sought to impose the Restrictions' requirements that the Hortons obtain written approval for the design plans of their home. According to Mitchell's argument, the Hortons were not the record owners at that time and they were not parties to the contractual obligations contained in the Restrictions and, therefore, the other owners had no right to demand that the Hortons comply with the Restrictions. Nonetheless, clearly the Hortons, Mitchell, and the other homeowners considered themselves bound by the Restrictions before the Hortons recorded their deed.

II. Injunctive Relief

¶ 12 The grant or denial of injunctive relief "is within the sound discretion of the trial court, and its decision will not be reversed absent an abuse of that discretion." Valley Med. Specialists v. Farber, 194 Ariz. 363, 366, ¶ 9, 982 P.2d 1277, 1280 (1999). The Hortons claim that the trial court abused its discretion because the Restrictions clearly preclude the construction of a roadway over Lot 2. The provisions of the Restrictions on which the Hortons rely state that

1. All of said Lots in said ANN LYNN ESTATES shall be known and described as single-family residential lots. R-1-35.

....

4. No structure shall be erected, altered, placed or permitted to remain on any of said lots other than one detached single[-]family dwelling not to exceed two (2) stories in height, or tri-level single[-]family dwelling and a private garage not to exceed one (1) story in height for not more than three (3) cars.

(Emphasis added.)

¶ 13 Neither party to this action requested that the trial court make findings of fact or conclusions of law. When there is no request for findings and the trial court does not make specific findings of fact, "we `must assume that the trial court found every fact necessary to support its [ruling] and must affirm if any reasonable construction of the evidence justifies the decision.' " In re Estate of Shumway, 197 Ariz. 57, 61, ¶ 9, 3 P.3d 977, 981 (App.1999) (alteration in original) (quoting Stevenson v. Stevenson, 132 Ariz. 44, 46, 643 P.2d 1014, 1016 (1982)),vacated in part on other grounds, 198 Ariz....