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Property Keyed to Sprankling
Deep Water Brewing, LLC v. Fairway Resources Limited
Facts
The Kenagys purchased a restaurant from Cindy Smith and Robert Ahlquist. Subsequently, Kenagys leased the restaurant to their company, Deep Water Brewing, LLC. Jack Johnson, the president of Key Development Corporation, and David Milne, the president of Fairway Resources, Limited sought to improve the land into single-family homes. Before the restaurant was transferred to the Kenagys, Ahlquist implemented an easement and right-of-way contract that permitted Johnson and Milne to access the area across the restaurant to initiate the development and created a restrictive covenant, which prohibited constructed houses to hinder the view of the lake surround the property from the restaurant’s lounge on the first floor. Also, the contract required the establishment of a Homeowners Association (HOA) to preserve the rights of Ahlquist. Johnson titled himself as President of the HOA, but failed to disclose the contents of the contract to the succeedinghomebuilders. Additionally, Johnson allowed “maximum height levels” of homes to be constructed, tohinder the view of the lake from the first-floor lounge. Thereafter, Kenagys initiated suit against HOA, Milne, and Johnson for a declaratory judgment and injunctive relief to enforce the provisions of the easement and the contract, which protected their view of the lake. Later, Kenagys also included Michael and Patricia Taylor as defendants to the action because they began to construction of a two-story home. Both Johnson and the HOA approved the construction. Further, the two-story home substantiallyhindered the view of the lake from the restaurant. The trial court ruled that HOA, Johnson, and Milne breached the initial contract with Ahlquist and HOA and Johnson had tortiously interfered with the contact, imposing damages of $245,000 in favor of the Kenagys. Additionally, the trial court ruled that the Taylors were bona fide purchasers, having no notice, and, therefore, they were not liable to the Kenagys. HOA, Johnson, and Milne (collectively known as “Appellants”) appeal the trial court’s ruling.
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