WDIS, LLC v. Hi-Country Estates Homeowners Ass'n
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In this quiet title action, the Supreme Court affirmed the district court's denial of Plaintiffs' motion for summary judgment, holding that the Wrongful Lien Act, the statute of frauds, and caselaw have not declared that restrictive covenants recorded without the signature of the affected landowner are absolutely void.
In 1973, Charles Lewton signed and recorded documents purporting to create a homeowners association (HOA) covering 2,000 acres of land. Landowners purchased properties within the HOA's boundaries. In 2015, Landowners discovered that Lewton had owned just eight acres of the 2,000 acres purported to be included in the HOA, and no other landowners signed the recorded documents. Landowners subsequently brought this action to quiet title to their property, arguing that the HOA and its restrictive covenants were void ab initio based on public policy. The district court denied Landowners' motion for summary judgment, applying the two-factor test set forth in Ockey v. Lehmer, 189 P.3d 51 (Utah 2008). The Supreme Court affirmed, holding that restrictive covenants that are recorded without the signature of the affected landowner are voidable and therefore ratifiable.
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