DuTrac Community Credit Union v. Radiology Group Real Estate, L.C.
Annotate this CaseDuTrac Community Credit Union owned a parcel of real estate in a commercial development. Kwik Trip, Inc. sought to purchase the property. During due diligence, Kwik Trip discovered that the property was subject to a restrictive covenant that required the approval by an architectural control committee before any building or other structure could be erected. DuTrac and Kwik Trip (Plaintiffs) sought a declaration that the restrictive covenant was unenforceable based on the doctrines of impossibility and supervening impracticability because one of the two members of the architectural control committee was deceased and the other member had either resigned or refused to act on the Committee’s behalf. The district court granted summary judgment for Plaintiffs. The Supreme Court affirmed, holding that the restrictive covenant could not be enforced as written, and the modification proposed by Defendants was not practical, nor would it be effective to carry out the original purpose of the covenant.
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