Warren v. Detlefsen

Rule of Law:

A general building plan or scheme of development that restricts land to a particular use can be established and enforced through a combination of express covenants in deeds and parol evidence of a developer's oral representations upon which purchasers relied.

Facts:

• The Warrens, through their company, developed three adjoining residential subdivisions, known as Units One, Two, and Three.
• The Warrens marketed the three units as a single, unified neighborhood, showing prospective buyers an unrecorded master plat of the entire development, which had no visible boundaries between the units.
• Many, but not all, of the deeds for lots sold by the Warrens contained covenants restricting use to "residential purposes only" and referring to "the residence dwelling" or a singular "carport."
• During sales negotiations, the Warrens orally assured prospective buyers, including Mike Detlefsen, that only single-family homes would be constructed throughout the entire three-unit development.
• Relying on these oral assurances and the written covenants, numerous buyers purchased lots and homes, resulting in a development composed exclusively of single-family dwellings.
• Subsequently, the Warrens planned to construct two duplexes on lots they still owned in Unit Three, citing changes in the economy as the reason for altering their original plan.

Procedural Posture:

• Mike Detlefsen and other homeowners filed a lawsuit against the Warrens in an Arkansas chancery court, which is a trial court of first instance for equity claims.
• The plaintiffs sought an injunction to prohibit the Warrens from constructing two duplexes in Warren Subdivision 3.
• The chancellor (trial judge) found in favor of the plaintiffs, ruling that an enforceable restrictive covenant for single-family use existed and enjoined the construction of the duplexes.
• The Warrens, as appellants, appealed the chancellor's decision to the Arkansas Supreme Court.