Cash v. Granite Springs Retreat Ass'n, Inc.

Summary

The Supreme Court of Wyoming affirmed summary judgment holding that subdivision covenants recorded before the developer acquired legal title were enforceable as equitable servitudes. The court concluded that the developer had an equitable interest through a partially performed oral agreement, intended the covenants to bind subsequent purchasers, and that the plaintiffs had notice of the restrictions.

Holdings

1. A developer who holds an equitable interest in property may impose restrictive covenants that are enforceable as equitable servitudes against subsequent purchasers who take with notice, even though the developer could not create covenants running with the land.
2. The protective covenants applied to the Second Filing because the recorded declaration and surrounding development documents established Miller's intent to burden the entire Granite Springs Retreat subdivision.
3. The plaintiffs purchased their properties with actual or inquiry notice of the covenants and therefore were bound by them as equitable servitudes.

Questions Presented

1. Whether a developer who lacked legal title but held an equitable interest based on a partially performed oral land-sale agreement could impose restrictions enforceable as equitable servitudes.
2. Whether the Declaration of Protective Covenants applied to the unplatted and untitled Second Filing property when it was recorded.
3. Whether the plaintiffs had actual or inquiry notice of the covenants when they purchased their properties.
4. Whether the plaintiffs were barred by laches from challenging the covenants.

Disposition

affirmed