Vanderwood v. Woodward

Decision Date22 August 2019
Docket NumberNo. 20180503-CA,20180503-CA
Citation449 P.3d 983
Parties Robert Vanderwood and Lorraine VANDERWOOD, Appellees, v. Kenneth D. WOODWARD, Appellant.
CourtUtah Court of Appeals

Brad C. Smith, Ogden, Attorney for Appellant

Jason M. Yancey, Layton, Richard W. Jones, Ogden, and Taylor R. Jones, Attorneys for Appellees

Judge Ryan M. Harris authored this Opinion, in which Judges David N. Mortensen and Diana Hagen concurred.

Opinion

HARRIS, Judge:

¶1 Kenneth D. Woodward built a large detached garage (Garage) behind his house. This infuriated his next-door neighbors, Robert and Lorraine Vanderwood (the Vanderwoods), who consider the structure an eyesore and not in keeping with the subdivision's restrictive covenants, known as the Declaration of Building and Use Restrictions (Restrictions). The Vanderwoods sued Woodward, seeking (among other things) a judicial order commanding Woodward to tear down the Garage. After entertaining cross-motions for summary judgment, the district court declared the Garage out of compliance with the Restrictions, and ordered Woodward to tear it down. Woodward now appeals, and we reverse.

BACKGROUND1

¶2 The parties own adjacent homes in the Country Haven Subdivision No. 3 (Subdivision) in Weber County, Utah, with the Vanderwoods living immediately to the north of Woodward. Each lot in the Subdivision is subject to the Restrictions, which the Subdivision's original developer duly recorded in May 2003, before any of the parties purchased property within the Subdivision. Among other things, the Restrictions contain a number of covenants that control not only the type of structures that can be built within the Subdivision, but also control, to some extent, the type of material that can be used to build them and where they may be built. The Restrictions also require that all construction plans be approved by an "Architectural Control Committee" (ACC), which was to be established and operated pursuant to the Restrictions.

¶3 The original developer named members of the original ACC, but these individuals did not actually function as an ACC, and never provided any approvals or disapprovals of designs or plans for any structures within the Subdivision. The developer transferred all of the lots to new owners by 2003 or 2004, and since then the Subdivision's homeowners have had the right to reform the ACC and make it functional, but they never have. There are twenty-three lots in the Subdivision, all of which are built out, and no proposed building or structure has ever been reviewed, let alone approved or disapproved, by an ACC. Indeed, prior to the instant suit, not only had both Woodward and the Vanderwoods built houses on their respective properties without seeking the approval of any ACC, but both had also constructed some type of outbuilding (Woodward had built a shed; the Vanderwoods a detached garage) on their properties without bothering to obtain ACC approval. The other residents of the Subdivision acted similarly; all have built something on their property without obtaining approval from anyone, and the record does not contain evidence of any objection—prior to the events giving rise to this lawsuit—by any homeowner to any other homeowner's proposed construction, whether on the basis of lack of ACC approval or for any other reason.

¶4 In May 2016, Woodward hired a local construction company (Builder) to construct a "pole garage" on his lot that he could use as a workshop to restore automobiles and build hot-rods. A few weeks later, Woodward applied for a building permit from West Haven City for the project. As part of the permitting process, a city building inspector (Inspector) visited Woodward's lot and reviewed the plans and the proposed placement. Inspector and Woodward also discussed the Restrictions, and Inspector explained that, because "there had never been an [ACC] functioning in [the Subdivision]," it was "not only impossible, but unnecessary for [Woodward] to receive approval" from the ACC. After meeting with Woodward and reviewing the plans, Inspector issued Woodward a building permit for the Garage, and construction commenced.

¶5 In August 2016, while the Garage was still under construction, the Vanderwoods approached Woodward and provided him a letter objecting to the construction of the Garage, and stating their belief that the building materials being used—metal siding for the exterior walls and a metal roof—were in violation of the Restrictions. Specifically, they asserted that both houses and outbuildings must "match in materials," and that "[b]rick, stone or stucco" must be used for the exterior walls of the structure, and "[c]edar [s]hake, [t]ile, or [a]rchitectural shingles" must be used for the roof. The letter voiced no objection to the Garage's location or placement. In response, Woodward invited the Vanderwoods to meet with Builder "to address any aesthetic concerns," but the parties were unable to come up with a mutually satisfactory solution. Thereafter, and with only the Garage's roof left to be installed, the Vanderwoods filed this lawsuit.

¶6 In their complaint, the Vanderwoods made several specific claims that Woodward's Garage was in violation of the Restrictions. First, they alleged that the Garage was out of compliance because Woodward had not first obtained ACC approval for the construction. Second, they complained that the Garage was "not in harmony" with other buildings in the Subdivision. Third, they asserted that the Garage was constructed with materials not allowed by the Restrictions. And finally, they claimed that the Garage was located in a position that violated the Restrictions' setback requirements.

¶7 Following discovery, the Vanderwoods filed a motion for partial summary judgment with regard to liability, seeking an order declaring that the Restrictions constitute a valid and enforceable contract and that, by building the Garage, Woodward had violated the terms of that contract. Woodward responded by filing a summary judgment motion of his own, asking the court to declare that the Subdivision homeowners had abandoned the Restrictions and that he had therefore not violated them. Both sides also sought attorney fees.

¶8 Both sides filed sworn declarations in support of their motions for partial summary judgment. Attached to the Vanderwoods' first declaration are a number of photographs depicting outbuildings in the Subdivision that appear to be in violation of the side and rear yard setback requirements. Woodward noted this in his responsive declaration, stating that the "side and rear setback requirements have been routinely disregarded in [the S]ubdivision," and specifically noting seven homeowners who he thought had done so. In a rebuttal declaration, the Vanderwoods acknowledged that "there are a handful of" homeowners in the Subdivision who "have violated the side yard setback requirements."

¶9 After briefing and oral argument, the district court granted the Vanderwoods' motion and denied Woodward's. In so ruling, the court concluded, among other things, that (1) "the requirement that all buildings get ACC approval has been abandoned," but that the remainder of the Restrictions had not been abandoned and were enforceable; (2) the Garage's metal roof and metal exterior violates the Restrictions; and (3) the Garage's location violates "the side-yard setback provision" of the Restrictions.

¶10 Soon thereafter, the Vanderwoods filed a second motion for summary judgment, this time asking the district court to impose a remedy. Specifically, they asked the court to enforce the Restrictions by ordering that the Garage "be immediately disassembled and moved to comply with the setback requirements" and, if rebuilt, to comply with the Restrictions' roofing and exterior material requirements. Woodward opposed the motion, arguing that injunctive relief was improper. The court again granted the Vanderwoods' motion, and issued the requested injunction.2 Pursuant to the terms of the Restrictions, the court also ordered Woodward to pay the Vanderwoods their attorney fees they had accrued in bringing the lawsuit.

ISSUES AND STANDARDS OF REVIEW

¶11 Woodward now appeals, and asks us to consider five issues. The first three issues consist of challenges to the district court's first grant of summary judgment. First, Woodward contends that the Restrictions have been abandoned in their entirety and are therefore unenforceable. Second, Woodward contends that the provisions in the Restrictions regulating building materials apply only to dwellings, and that therefore the Restrictions do not forbid the construction of a metal outbuilding. Third, Woodward contends that the Vanderwoods have failed to adequately establish that the Garage is in violation of the setback Restrictions. Summary judgment is proper when "the moving party shows that there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law." Utah R. Civ. P. 56(a). "When reviewing a district court's denial of summary judgment, we grant no deference to the district court's legal conclusions and review them for correctness." Anderson Dev. Co. v. Tobias , 2005 UT 36, ¶ 19, 116 P.3d 323 (quotation simplified).

¶12 Fourth, Woodward contends that the district court's grant of injunctive relief in favor of the Vanderwoods was improper. "On appellate review, a grant of injunction is overturned only upon showing that the district court abused its discretion or that the decision is clearly against the weight of evidence." Carrier v. Lindquist , 2001 UT 105, ¶ 26, 37 P.3d 1112.

¶13 Fifth, Woodward challenges the district court's award of attorney fees to the Vanderwoods as the prevailing party. "Whether a party is the prevailing party in an action is a decision left to the sound discretion of the trial court and reviewed for an abuse of discretion." Larry J. Coet Chevrolet v. Labrum , 2008 UT App 69, ¶ 16, 180 P.3d 765 (quotation simplified).

ANALYSIS
I. The Restrictions

¶14 Woodward first...

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