Reserves Management Corp. v. R.T. Properties, LLC

Summary

The Delaware Supreme Court reviewed summary judgments concerning property assessments imposed under restrictive covenants and an alleged agreement to defer payment. The court reversed the judgment on the forbearance issue because material facts were disputed, affirmed summary judgment against the sewer assessment claim, and remanded for further proceedings.

Holdings

1. Summary judgment for R.T. Properties on the forbearance agreement defense was improper because the record contained evidence of an oral agreement to defer assessments and that evidence, together with the contractual provisions, created triable issues of material fact.
2. Reserves was not entitled to summary judgment because the evidence could support a separate oral forbearance agreement even though Reserves and the affiliated lot owners were not parties to the written Sale Agreement.
3. The alleged forbearance agreement was not shown to be subject to Delaware's recording statute because it neither conveyed an interest in property nor formed part of a deed concerning lands or tenements.
4. The rule against perpetuities did not invalidate the alleged forbearance agreement because restrictive covenants are servitudes and the rule against perpetuities does not apply to servitudes.
5. The sewer connection assessment amendment was invalid and unenforceable against R.T. Properties, and summary judgment for R.T. Properties on that claim was proper.
6. A prior Superior Court ruling requiring R.T. Properties to pay sewer connection fees to Reserves Development LLC did not require judgment for Reserves in this case.

Questions Presented

1. Whether summary judgment for R.T. Properties was proper on the alleged oral forbearance agreement concerning payment of assessments.
2. Whether the evidence created genuine issues of material fact regarding the existence, parties, terms, duration, and enforceability of an alleged forbearance agreement.
3. Whether the alleged forbearance agreement was subject to Delaware's recording statute.
4. Whether the alleged indefinite deferral of assessments violated the rule against perpetuities.
5. Whether the later amendment adding a sewer connection assessment was valid and enforceable against R.T. Properties under the original Declaration of Restrictions.
6. Whether a prior Superior Court ruling concerning sewer fees owed to an affiliated entity required judgment for Reserves in this action.

Disposition

reversed_and_remanded