Sandomire v. Brown, CAAP-17-0000199
| Decision Date | 29 March 2019 |
| Docket Number | No. CAAP-17-0000199,CAAP-17-0000199 |
| Citation | 439 P.3d 266 |
| Parties | Daniel M. SANDOMIRE; Katy Yen-Ju Chen; Trudi Melohn, individually and as Co-Trustee under the William Charles Melohn III Revocable Trust dated June 4, 2010 and Co-Trustee under the Trudi Melohn Revocable Trust dated June 4, 2010; and William Charles Melohn III, individually and as Co-Trustee under the William Charles Melohn III Revocable Trust dated June 4, 2010 and Co-Trustee under the Trudi Melohn Revocable Trust dated June 4, 2010, Plaintiffs-Appellees, v. David Edward BROWN and Lanhua Kao Brown, Defendants-Appellants |
| Court | Hawaii Court of Appeals |
On the briefs:
Bruce D. Voss, Christian D. Chambers, (Bays Lung Rose & Holma), Honolulu, for Defendants-Appellants.
Michael W. Gibson, Francis P. Hogan, (Ashford & Wriston), Honolulu, for Plaintiffs-Appellees.
This case arises out of a dispute between neighbors over whether a proposed home addition would violate certain restrictive covenants that are applicable to their neighborhood. As discussed herein, we hold that the trial court erred in failing to first make a legal determination whether the express language of the height restriction is ambiguous. If, as a matter of law, the express language of the restrictive covenant is unambiguous, then there is no basis for a factual inquiry into the "reasonableness" of the restriction, as the trial court did in this case. In addition, we hold that the trial court erred in adopting an interpretation of the height restriction that would effectively add a requirement not expressly stated in the restrictive covenants. However, we conclude that the trial court did not err in applying the lot coverage area restriction. Finally, we conclude that the trial court's permanent injunctions are flawed and the attorneys' fees awards must be vacated. The case is remanded.
Defendants-Appellants David Edward Brown and Lanhua Kao Brown (Browns or Defendants ) appeal from the February 21, 2017 Final Judgment in Favor of Plaintiffs (Judgment ), which was entered in favor of Plaintiffs-Appellees Daniel M. Sandomire, Katy Yen-Ju Chen, Trudi Melohn, and William Charles Melohn III (collectively, Plaintiffs ), by the Circuit Court of the First Circuit (Circuit Court ).1 The Browns also challenge the Circuit Court's: (1) December 20, 2016 Order Granting Plaintiffs' Attorneys' Fees and Costs Based on the Declaration of Michael W. Gibson Regarding Attorneys' Fees and Costs Incurred by Plaintiffs (Attorneys' Fees Order ); (2) May 25, 2016 Order Granting Plaintiffs' Motion for Preliminary Injunction (Order Granting Preliminary Injunction ); (3) August 12, 2016 Findings of Fact, Conclusions of Law, and Order Granting Relief on Counts II and III (Order on Counts II and III ); and (4) March 21, 2017 Order Granting in Part and Denying in Part Plaintiffs' Motion for Supplemental Attorneys' Fees and Costs (Supplemental Fees Order ).
On November 23, 2015, Plaintiffs, neighboring homeowners to the Browns, filed the Complaint in this action, alleging, inter alia , that the Browns own real property, specifically, Lot 71 (the Subject Lot ) on Alaweo Street, which is in the Waialae-Iki View Lots, Unit IV subdivision (Waialae-Iki View Lots ), in Honolulu. The Complaint further alleged that the Browns intended to construct an addition to their home, which included, inter alia , adding a second floor onto their existing structure that, if constructed, would violate the restrictive covenants running with the Browns' land.2 Plaintiffs alleged that the proposed addition would exceed the lot coverage maximum and violate the height restriction, which are set forth as follows in the Subdivision Documents:
Plaintiffs sought declaratory and injunctive relief to enjoin the Browns from proceeding with their proposed construction. Plaintiffs also requested attorneys' fees and costs.
On March 31, 2016, Plaintiffs filed a Motion for Preliminary Injunction, based on the allegations in the Complaint, but further arguing that the Browns' proposed construction would violate additional restrictive covenants.3 At the hearing on the motion, the Circuit Court stated that "with regard to the height restriction only, the Court's ruling is that the likelihood of success factor has been met" and granted Plaintiffs' motion.
At an evidentiary hearing on the merits of Counts II (Permanent Injunction) and III (Declaratory Relief), which was held on July 5, 7, 8, and 12, 2016, Plaintiffs presented testimony from Plaintiff Daniel Sandomire (Sandomire ), as well as architects James Reinhardt (Reinhardt ) and Fritz Johnson (Johnson ).
Sandomire testified that he purchased his home in the Waialae-Iki View Lots and has lived there with his family since 2013. He and his family decided to move there because of the "beautiful neighborhood" that is close to his children's schools and has a "very attractive ... varying architecture and landscape design."
Sandomire testified that in the summer of 2014, he learned that the Browns were exploring the possibility of constructing an addition on their home. Out of concern about the possible construction, Sandomire and the other surrounding neighbors drafted a letter to the Browns, introducing themselves, reminding the Browns of the applicable height restriction within the Subdivision Documents, and requesting to view the preliminary drawings of any proposed construction. Through an exchange of emails, Sandomire learned that the Browns intended to build the addition to their home, but that the Browns were interpreting the applicable height restriction to allow a much higher structure than Sandomire believed was permitted.
Sandomire testified that he was very concerned that the proposed construction would negatively impact himself and his immediate neighbors as well as the community, which was designed to allow for ocean and Diamond Head views, because the Browns' proposed plans would "destroy the views of the adjacent houses to him." Sandomire was also concerned that a violation of the Subdivision Documents would leave only the LUO to govern the Waialae-Iki View Lots, which would "impact[ ] the character of the neighborhood tremendously."
The Circuit Court allowed Sandomire to give expert testimony in the area of architecture and for the interpretation of covenants, conditions, and restrictions (CC&Rs ). First, Sandomire cited the lot coverage provision under the Subdivision Documents and opined that the Browns' proposed construction exceeds the maximum, because the proposed construction would cover thirty-nine percent of the lot. Sandomire testified that even if the Browns did not build a deck that was included in their original plans it would still exceed the maximum because the Browns' current home is already in excess of the thirty-three percent lot coverage allowance. During cross-examination, Sandomire acknowledged that his calculation incorrectly included a side lanai that is not included in the construction plans, but asserted that there is a portion of additional coverage that will still need to be included in the calculation. He also testified he was aware that some of the trellis work would be removed by the construction, but he did not have a calculation for how that would impact the lot coverage.
As to the height limitation, Sandomire testified that he interprets the applicable language in the Subdivision Documents to provide "two methods to determine the height" and that "it's optional which one you would use." Sandomire opined that under "Method 1 ... we go from a point 18 feet above the building and follow the grade," creating a limitation that "would descend according to the slope of the lot." Under "Method 2," for "houses with setbacks greater than required," the point would begin "18 feet above the highest building area at the property line, ... draw descending at an even grade towards the lowest point ... [by] one unit vertical over ten units." According to Sandomire, the Browns' proposed construction violated either method.4 During cross-examination , Sandomire acknowledged that the Subdivision Documents do not guarantee an "unobstructed view from [his] property" and that there is "no view channel easement on his lot" or the Brown lot. However, during redirect, Sandomire explained that the 5
Reinhardt testified for Plaintiffs as an expert in the area of architecture and the interpretation of CC&Rs. Reinhardt testified that he is generally familiar with the Subdivision Documents of Waialae-Iki View Lots, and that he had reviewed the Browns' proposed addition, which, in his opinion, fails to comply with the Subdivision Documents by exceeding the one-third lot coverage maximum and by exceeding the height limits.
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...construction of the terms of restrictive covenants, like the terms of a contract, are questions of law. See Sandomire v. Brown, 144 Hawai‘i 314, 324, 439 P.3d 266, 276 (App. 2019). In PBL1 I, Plaintiffs made the argument to the ICA that the Circuit Court adopted on remand. In PBL1 I, we con......