Fairfield Place Homeowners Association, Inc. v. Billy E. Pipkin and Sandra T. Pipkin

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REL: 07/19/2013 Notice: T h i s o p i n i o n i s s u b j e c t t o formal r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , Alabama A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ((334) 2 2 9 - 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . ALABAMA COURT OF CIVIL APPEALS SPECIAL TERM, 2013 2120267 F a i r f i e l d Place Homeowners A s s o c i a t i o n , Inc. v. B i l l y E. P i p k i n and Sandra T. P i p k i n Appeal from Baldwin C i r c u i t Court (CV-11-901334) PITTMAN, This Judge. appeal responsibilities community involves of property following consideration owners the voluntary in a of continued common-interest termination of certain r e s t r i c t i v e b u i l d i n g and use covenants p r e v i o u s l y i n f o r c e i n t h e community. 2120267 I n 2 0 0 0 , B i l l y E. P i p k i n and from T i l l m a n B u i l d e r s , Inc., a u n i t of the F a i r f i e l d Place S a n d r a T. P i p k i n purchased a p a r c e l of p r o p e r t y located in subdivision i n Baldwin County; t h e p a r c e l i s i d e n t i f i e d i n t h e d e e d o f c o n v e y a n c e as " L o t Fairfield recites Place that Subdivision, the conveyance hereinafter contained" property, i n the s t a t e s t h a t the "SUBJECT TO, Unit 1." The i s "subject d e e d and, to Pipkins' the 2, deed provisions after describing the conveyance i s HOWEVER: II "Restrictive covenants as recorded in Miscellaneous Book 92, page 812, and Miscellaneous Book 93, page 365, and M i s c e l l a n e o u s Book 100, page 1974, B a l d w i n County, Alabama P r o b a t e Records. "Terms, conditions, obligations and requirements set f o r t h i n the A r t i c l e s of Incorporation of Fairfield Place Homeowner's A s s o c i a t i o n , I n c . , r e c o r d e d i n M i s c e l l a n e o u s Book 93, page 1112, and r u l e s and r e g u l a t i o n s w h i c h may be p r o m u l g a t e d f r o m t i m e t o t i m e by s a i d A s s o c i a t i o n , B a l d w i n County, Alabama P r o b a t e R e c o r d s . " In late 2010 recorded with Pipkins, the along and early Baldwin with a 2011, various instruments were Probate Court i n d i c a t i n g that sufficient majority of the the owners of p r o p e r t i e s i n U n i t 1 of F a i r f i e l d Place, pursuant to paragraph 26 of the "Declaration of Restrictive 2 Covenants" ("the 2120267 declaration") 365, recorded and M i s c e l l a n e o u s " t h e s e c o v e n a n t s may p a r t " by at be I n c . ("the the Book 93, Fairfield that or changed i n whole or e l e c t e d to terminate the page which s t a t e s l e s s than s i x t y percent (60%) Thereafter, of page 1974, terminated owners o f t h e l o t s , " had assessments Miscellaneous Book 100, a "vote of not covenants. both Pipkins Place the the restrictive declined Homeowners of in to pay Association, HOA"), t a k i n g t h e p o s i t i o n t h a t t h e t e r m i n a t i o n of t h e e f f e c t i v e n e s s o f t h e r e s t r i c t i v e c o v e n a n t s as t o U n i t 1 o f the to s u b d i v i s i o n a b r o g a t e d any remit moneys Baldwin Probate existence the to the Court r e s p o n s i b i l i t y t h e y m i g h t have HOA. a The verified of a l i e n a g a i n s t then statement filed with the indicating the the P i p k i n s ' p r o p e r t y i n favor of HOA. I n A u g u s t 2011, the Pipkins the B a l d w i n C i r c u i t C o u r t ("the other things, a declaration t h e i r property existing f i l e d an initiated trial that a u t h o r i t y t o i m p o s e dues o r f i l e the HOA the a civil action in court") seeking, HOA l i e n s as does n o t to the among have the Pipkins and i n t h e s u b d i v i s i o n , as w e l l as c a n c e l l a t i o n o f lien the HOA s o u g h t a d e c l a r a t i o n t h a t t h e P i p k i n s r e m a i n e d members o f the responsible a counterclaim The HOA and asserted P i p k i n s ' property. i n which the HOA a n s w e r and against f o r a s s e s s m e n t s made by 3 the HOA, as well 2120267 as a money judgment assessments. i t s favor parties The in filed motions, a f t e r which the by t h e HOA trial with respect opposing to summary-judgment c o u r t d e n i e d the motion filed and g r a n t e d t h e m o t i o n f i l e d by t h e P i p k i n s w i t h o u t s p e c i f y i n g t h e r e l i e f t o w h i c h t h e P i p k i n s , as t h e were e n t i t l e d . a p p e a l had The HOA § 1 2 - 2 - 7 ( 6 ) , and c o u r t to s p e c i f y the r e l i e f trial court that the HOA file liens subdivision an does not as and to the this court pursuant Ala. g r a n t e d to the P i p k i n s , amended j u d g m e n t e x p l i c i t l y have t h e Pipkins canceling to t h e c a u s e had b e e n remanded t o trial entered plaintiffs, appealed from t h a t judgment; a f t e r the been t r a n s f e r r e d t o Code 1975, Pipkins' unpaid the authority and their existing to lien in against property. " A p p e l l a t e r e v i e w o f a summary j u d g m e n t i s de novo. A m o t i o n f o r a summary j u d g m e n t i s t o be g r a n t e d when no g e n u i n e i s s u e o f m a t e r i a l fact exists and the moving p a r t y is entitled to a j u d g m e n t as a m a t t e r o f l a w . A p a r t y moving f o r a summary j u d g m e n t must make a p r i m a f a c i e s h o w i n g ' t h a t t h e r e i s no g e n u i n e i s s u e as t o any m a t e r i a l f a c t and t h a t [ i t ] i s e n t i t l e d t o a j u d g m e n t as a matter of law.' I f t h e movant meets t h i s b u r d e n , ' t h e b u r d e n t h e n s h i f t s t o t h e nonmovant t o r e b u t t h e movant's p r i m a f a c i e s h o w i n g by " s u b s t a n t i a l e v i d e n c e . " ' ' [ S ] u b s t a n t i a l evidence i s evidence of s u c h w e i g h t and q u a l i t y t h a t f a i r - m i n d e d p e r s o n s i n t h e e x e r c i s e o f i m p a r t i a l j u d g m e n t can r e a s o n a b l y infer the existence of the f a c t sought to be proved.'" 4 the declaring impose dues property the or the the 2120267 Kohler 2005) Co. v . M i l l e r , 921 So. 2 d 436, 444 ( A l a . C i v . ( c i t a t i o n s omitted) . giving rise Because to [the parties'] u n d i s p u t e d , we r e v i e w t h e t r i a l "the pertinent claims i n this App. facts case a r e court's a p p l i c a t i o n of law t o those f a c t s t o determine whether t h e [ P i p k i n s ] were entitled t o a judgment as a m a t t e r o f l a w . " Smith v. E u f a u l a P l a n n i n g Comm'n, 765 So. 2d 670, 671 ( A l a . C i v . App. 2 0 0 0 ) . The HOA contends that the efforts by the including the Pipkins, t o terminate the r e s t r i c t i v e owners, covenants a p p l i c a b l e t o Unit 1 of the s u b d i v i s i o n d i d not abrogate duties set forth i n the declaration t o p a y t h e HOA f o r m a i n t a i n i n g t h e common a r e a s o f t h e d e v e l o p m e n t . relied upon b y t h e HOA i n i t s portion of paragraph their argument 26 o f t h e d e c l a r a t i o n The l a n g u a g e appears i n another than t h a t relied upon b y t h e owners s e e k i n g t o t e r m i n a t e t h e c o v e n a n t s : "Notwithstanding anything to the contrary herein c o n t a i n e d , i t s h a l l be t h e r e s p o n s i b i l i t y o f t h e [HOA] t o m a i n t a i n a n d r e p a i r t h e Common A r e a s , a n d no amendment o f t h i s D e c l a r a t i o n s h a l l remove t h e r e s p o n s i b i l i t y o f t h e [HOA] a n d / o r Members t h e r e o f t o m a i n t a i n a n d r e p a i r t h e Common A r e a s (as h e r e i n defined) i n accordance w i t h the requirements of t h i s D e c l a r a t i o n and, a l s o , t h e r e q u i r e m e n t s o f any government a u t h o r i t y h a v i n g j u r i s d i c t i o n over t h e Property. Any s u c h a t t e m p t e d amendment s h a l l be v o i d a n d t o no e f f e c t . " Had t h e owners s o u g h t might be i n c l i n e d a mere amendment o f t h e c o v e n a n t s , we t o agree with 5 t h e HOA t h a t the foregoing 2120267 language would p r e v e n t the r e s p o n s i b i l i t y o f members o f t h e HOA f r o m b e i n g a b r i d g e d b y c o n t r a r y l a n g u a g e . However, as t h e P i p k i n s c o r r e c t l y n o t e i n t h e i r b r i e f , p a r a g r a p h 26 c o n f e r r e d upon t h e owners, thereof, speaking through a sufficient n o t o n l y t h e power t o make changes c o v e n a n t documents that i s , majority to the recorded t h e power o f amendment but a l s o t h e power t o t e r m i n a t e t h e c o v e n a n t s s e t f o r t h i n t h o s e documents, and t h e p l a i n language o f p a r a g r a p h 26 indicates t h a t we c a n n o t p r o p e r l y i m p u t e an i n t e n t t o t h e d r a f t e r o f t h e c o v e n a n t documents t o e q u a t e t h e t e r m "change" w i t h t h e t e r m "terminate." Res., See F e d e r a l L a n d Bank o f New O r l e a n s v. T e r r a I n c . , 373 instruments So. 2d 314, 320 ( A l a . 1979) s h o u l d be c o n s t r u e d t o g i v e e f f e c t used t h e r e i n ) . (written t o a l l terms Thus, t o t h e e x t e n t t h a t t h e HOA s e e k s t o r e l y upon t h e l a n g u a g e s u b j e c t i n g t h e c o n v e y a n c e t o t h e P i p k i n s t o the terms of the recorded instruments setting forth r e s t r i c t i v e c o v e n a n t s a p p l i c a b l e t o t h e s u b d i v i s i o n , we a g r e e with the Pipkins that that r e l i a n c e i s misplaced. The f i r m g r o u n d upon w h i c h t h e P i p k i n s h o w e v e r , when a t t e n t i o n turns rest falls t o the second i s s u e away, r a i s e d by t h e HOA: w h e t h e r t h e P i p k i n s r e m a i n s u b j e c t t o t h e a r t i c l e s o f i n c o r p o r a t i o n a n d b y l a w s o f t h e HOA b y v i r t u e o f t h e l a n g u a g e in their deed expressly making 6 t h e conveyance "subject t o " 2120267 those instruments. Pipkins' Although argument t h a t , documents and membership, the there may be articles the provisions of i n the between as t o a n y c o n f l i c t merit covenant incorporation o f t h e covenant regarding documents will c o n t r o l , s e e H i g h l a n d Oaks E s t a t e s Homeowners A s s ' n v. E s t a p a , No. 2010 CA 0146 ( L a . C t . App. 2010) ( n o t p u b l i s h e d i n So. 3 d ) , we n o t e t h a t t h e P i p k i n s t h e m s e l v e s h a v e , v i a collective action with other terminated the o f t h e covenant effect similarly s i t u a t e d landowners, documents. However, neither H i g h l a n d Oaks n o r any o t h e r c a s e l a w o f w h i c h we have b e e n made aware s p e a k s t o t h e s i t u a t i o n title set i n which a landowner has taken v i a a deed t o h i s o r h e r p a r c e l " s u b j e c t of covenant documents, but also to" not only a the articles of incorporation a n d b y l a w s o f an a s s o c i a t i o n s u c h as t h e HOA i n this Just case. as we gave c o v e n a n t documents i n d e c i d i n g effect t o a l l terms t h e HOA's f i r s t of the i s s u e , we must g i v e e f f e c t t o a l l terms o f t h e P i p k i n s ' deed inasmuch as t h e y are s u s c e p t i b l e , under Alabama law, With Aventure, respect to that L.L.C. v . C r a i g matter, to being enforced. the Pipkins Dyas L.L.C., 2008), as a u t h o r i t y f o r t h e p r o p o s i t i o n cite 3 So. 3d 859 that Bon (Ala. a deed making a c o n v e y a n c e " s u b j e c t t o " a n o t h e r r e c o r d e d document i s ambiguous as a m a t t e r o f l a w . I n Bon A v e n t u r e , a l a n d o w n e r t o o k 7 title 2120267 t o i t s p a r c e l i n a p a r t i c u l a r u n i t of a s u b d i v i s i o n v i a a deed stating that the restrictive conveyance covenants however, the located. contained 3 So. 3d at had covenant document, ambiguity of contained i n a document that court was "subject a recorded stated 861. that In subjecting a parcel that 3d a t 865. instrument; the covenants reversing a court noted in a unit excluded to patent restrictions the the Pipkins their regard to whether the d r a f t e r ' s use terms [were] n o t restrictive applicable c o n v e y e d t o Bon A v e n t u r e , were t o become a new the p r o p e r t y operation to We by of the deed." 3 So. of the i n a s u b d i v i s i o n seeking grantee's receipt of that i n c o r p o r a t e a document by r e f e r e n c e , 8 deed [was] covenants, the property encumbrance 3d a t to place property the "simply q u e s t i o n w h e t h e r Bon A v e n t u r e t r u l y r e q u i r e s a of r e a l p r o p e r t y to to argue, t o " i n the deed, p o s i t i n g t h a t because the clear with the its applicability However, as a l s o appeared to a s s a i l the s t a t e d " o n l y t h a t the a c t of c o n v e y i n g the p r o p e r t y w h i c h by upon parcel judgment ' s u b j e c t t o ' t h e r e s t r i c t i v e c o v e n a n t s , " t h e d e e d was not to" sought to a v o i d the e f f e c t of supreme term " s u b j e c t had in our 3 So. parcel p o r t i o n " of the u n i t i n which the a g a i n s t t h e g r a n t e e , who that unit. the instrument expressly d i d n o t a p p l y t o "any was of on 864. grantor conditions expressly e s p e c i a l l y given that Bon 2120267 Aventure Clutts, held d i d not overrule, criticize, the constructive recordation of a document knowledge o f a r e s t r i c t i o n identified subdivision lots d w e l l i n g s " bound subsequent g r a n t e e s ' t h e deeds i n a g r a n t e e ' s so as limiting v. court to give the use o f "for single family u s e t h e r e o f , e v e n when chain of t i t l e d i d not "state[] that t h e l o t s were c o n v e y e d s u b j e c t t o t h e r e c o r d e d 565 Turner 565 So. 2d 92 ( A l a . 1 9 9 0 ) , i n w h i c h o u r supreme that certain o r even So. 2d a t 93 a n d n.1. Although there restrictions." m i g h t be room t o debate t h e c l a r i t y and e n f o r c e a b i l i t y o f a p r o v i s i o n i n a deed making a conveyance terms, should "subject not apply t o " a document to the property conclude t h a t t h e P i p k i n s ' deed conveying that, c o n v e y e d , we their by i t s cannot property i s ambiguous i n s t a t i n g t h a t i t was " s u b j e c t t o " t h e a r t i c l e s o f i n c o r p o r a t i o n a n d b y l a w s o f t h e HOA f o r t h e s u b d i v i s i o n as a whole. 1 We a r e n o t l o n g d e t a i n e d b y t h e P i p k i n s ' c o n t e n t i o n t h a t the articles of incorporation do not reflect their a p p l i c a b i l i t y t o t h e P i p k i n s ' l o t i n U n i t 1. The a r t i c l e s s t a t e t h a t t h e p u r p o s e o f t h e HOA i s " [ t ] o e x e r c i s e i t s p o w e r s and f u n c t i o n s on t h a t c e r t a i n r e a l p r o p e r t y ... p a r t i c u l a r l y d e s c r i b e d as ... F A I R F I E L D PLACE, UNIT I I ... a n d s u c h o t h e r p r o p e r t y as may a p p r o p r i a t e l y be p l a c e d u n d e r t h e j u r i s d i c t i o n o f [ t h e HOA]; s u c h as b u t n o t l i m i t e d t o , U n i t I . " I n o t h e r w o r d s , t h e a r t i c l e s s p e c i f i c a l l y i d e n t i f y U n i t I as b e i n g w i t h i n t h e s c o p e o f p r o p e r t y upon w h i c h t h e HOA w i l l o p e r a t e . 1 9 2120267 The articles which the that of incorporation Pipkins' t i t l e membership recordation in in i s , by the of deed, HOA "shall Baldwin the the County, HOA, the "subject be terms to," Lot within moreover, the the Property," articles a p p u r t e n a n t t o and may Member s h a l l and for the that Lot Court title Pipkins' "Membership to parcel; shall be s e p a r a t e d from ownership of any t h a t membership t e r m i n a t e s Further, each as the which i s subject to these A r t i c l e s c e a s e t o be the P r o p e r t y . " Member state n o t be Lot w i t h i n the P r o p e r t y Incorporation" such by Probate Records of a deed of conveyance t r a n s f e r r i n g r e c o r d a provide established Alabama, of the only Owner o f r e c o r d the a r t i c l e s owned w i t h i n the "when of a Lot also provide Property of any within that shall "each pay a p o r t i o n o f t h e t o t a l amount n e c e s s a r y f o r " t h e p u r p o s e s o f the HOA ... at and the period t h a t t h a t amount " s h a l l be beginning of each i s d e t e r m i n e d by failure to constitute against make a a Articles, authority and as such HOA; the establish assessment payment will within make t h e Property articles t h e p u r p o s e s and to period required default Finally, [HOA] Board of D i r e c t o r s " of the the each Lot w i t h i n the member." the annual a s s e s s e d by 30 days assessment owned by expressly the state will "a lien defaulting that "the p o w e r s o f t h e A s s o c i a t i o n and liens 10 against the property the herein 2120267 described" w i l l " c o n s t i t u t e covenants intended title to the h e r e i n binding upon the We cannot susceptible to hereto successors and and and the upon assigns the same s h a l l their holding respective title to any conclude any that reading the language other foregoing is than were i n t e n d e d that the articles Unit intended might 1 to landowners run benefit with to a such the lesser from membership payable the HOA concluding that considered should does the deed not the land. landowners to as in not Pipkins The degree the 2 fact than HOA constitute and apply covenant to of t o amount t o a s e p a r a t e d i s t i n c t s e t o f c o v e n a n t p r o v i s i o n s t h a t were i n t e n d e d bind be Property." i n c o r p o r a t i o n o f t h e HOA and Property parties h e i r s , grantees, p o r t i o n of the described t o run w i t h them. and that that the to were Pipkins other subdivision from assessments or a valid basis provisions The trial we for have court, We n o t e t h a t t h e HOA's p r e s i d e n t t e s t i f i e d v i a a f f i d a v i t t h a t a l a k e j u s t w e s t o f U n i t 1 a c t s as "a r e t e n t i o n p o n d f o r t h e s u b d i v i s i o n and c a p t u r e s s t o r m w a t e r r u n o f f f r o m and f o r t h e b e n e f i t o f t h e s u b d i v i s i o n , i n c l u d i n g l o t s f r o m U n i t 1"; t h a t " [ a ] s i g n i f i c a n t p o r t i o n o f t h e dues c o l l e c t e d f r o m ... members [ o f t h e HOA] a r e u s e d t o keep up and m a i n t a i n the l a k e " f o r p u r p o s e s s u c h as f i s h i n g ; t h a t t h e HOA m a i n t a i n s two v a c a n t l o t s i n the s u b d i v i s i o n f o r a l l s u b d i v i s i o n r e s i d e n t s as a p a r k and p l a y g r o u n d ; t h a t t h e HOA m a i n t a i n s insurance c o v e r a g e as t o t h o s e two l o t s ; and t h a t t h e HOA maintains three "entrance statements" in the subdivision that p u r p o r t e d l y b e n e f i t the value of a l l l o t s i n the s u b d i v i s i o n . 2 11 2120267 therefore, erred i n concluding to a judgment termination specified of as a m a t t e r recorded i n their Based upon t h a t t h e P i p k i n s were e n t i t l e d of law s o l e l y restrictive because covenants of the otherwise deed. the foregoing facts and authorities, we c o n c l u d e t h a t t h e summary j u d g m e n t i n f a v o r o f t h e P i p k i n s i s due t o be r e v e r s e d . to enter The c a u s e i s remanded f o r t h e t r i a l court a j u d g m e n t i n f a v o r o f t h e HOA. REVERSED AND REMANDED WITH INSTRUCTIONS. Thompson, P . J . , a n d Moore a n d D o n a l d s o n , J J . , c o n c u r . Thomas, J . , c o n c u r s i n t h e r e s u l t , w i t h o u t 12 writing.

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