Neponsit Property Owners’ Association, Inc. v. Emigrant Industrial Savings Bank

Facts

In January of 1911, Neponsit Realty, as owner of a tract of land, filed in the office of the clerk of the county a map of the land. The tract was developed for a strictly residential community, and Neponsit Realty conveyed lots in the tract to purchasers. In 1917, Neponsit Realty conveyed the land now owned by the defendant to a man and his wife subject to a covenant. The covenant required payment, by the owner of the lot, and his successors, heirs, and assigns, to Neponsit Realty, including its successors, heirs, and assigns, of money to be used to maintain the roads, paths, parks, beach, sewers, and other public purposes as shall from time to time be determined by Neponsit Realty or its successors, assigns, and heirs. The covenant further indicated that the charge should be paid on the first day of May in each and every year, and that the charge shall become a lien on the land continuing until paid. The covenant also expressly grants Neponsit Realty and its heirs, successors, and assigns the right to bring any/all actions against the owner of the premises for collection of the charge and to enforce the lien. It provided the covenant should be a real covenant running with the land until January 31, 1940. Neponsit Realty created the plaintiff, Neponsit, a home owners’ association to collect these fees and handle maintenance. The defendant, Emigrant, acquired the property at issue at a judicial sale. Neponsit sued to foreclose liens on the land resulting from non-payment of the dues required by the aforementioned covenant.