Real Property: Court resolves dispute over planned residential community

Although a community association possesses the right to enforce a declaration against the current owner of a planned residential community, because it failed to comply with the required procedures, it was not entitled to monetary sanctions.

Background

This case involves a planned residential community known as West Neck that was formed and developed by Baymark Construction Corporation. JBWK LLC now owns the property, while West Neck Community Association Inc. is responsible for enforcing the rules governing West Neck.

The parties disagree as to the permissible use(s) of the property as well as their rights and obligations related to the property. They have filed cross motions for summary judgment.

Declarant

The evidence supports JBWK’s position that its predecessor, WC Capital LLC, or WCC, intended to sell the property when the property was originally purchased and that intent survived the merger, with the operation of a tree farm business being solely a means to defray costs until the property could be sold. The Association has failed to produce sufficient evidence to allow a reasonable trier of fact to conclude that JBWK took title to the property without the purpose of development or sale. Accordingly, the court concludes that when JBWK took title of the property, it did so “for the purpose of development and/or sale.”

On Nov. 15, 2021, Baymark and JBWK recorded the original assignment. By transferring all of its rights associated with, arising under, or related in any way to the declaration to JBWK, Baymark designated JBWK to become the declarant under the declaration. The Association’s arguments do not change this conclusion. Accordingly the court will grant summary judgment to JBWK, adjudicating that JBWK is the declarant and holder of the declarant rights under the declaration and deny summary judgment to the Association on the same issue.

Amendment

After JBWK became the declarant in or before July 2022, the Association purported to amend the declaration. The court finds the Association’s attempt to amend the declaration invalid. JBWK was not informed of the amendments, nor did it consent to them. Accordingly, the court will grant summary judgment to JBWK, adjudicating that the 2022 amendments are invalid and unenforceable and deny summary judgment to the Association on the same issue.

Dispute

The Association seeks (1) an injunction ordering JBWK to maintain the property in compliance with the declaration and (2) the imposition of a $900 fine plus costs and attorney’s fees for past noncompliance with the declaration.

First, the Association possesses the right to enforce the declaration, which is substantively similar to the right to protest, challenge or otherwise object. For these reasons, the court will deny JBWK summary judgment that the declaration prohibits the Association from objecting to a change in use of the property.

But certain rules and procedures must be followed before the Association, through its Board, can enforce the declaration. Here, the record shows that the Association failed to comply with the required procedures, is therefore not entitled to monetary sanctions against JBWK and has waived the claims asserted in its complaint.

Consequently, the court will deny summary judgment to the Association on the allegations set forth in its complaint and will grant JBWK summary judgment that the Association failed to provide notice as required. For the same reasons, the court will deny the Association’s request for injunctive relief and monetary damages detailed in its complaint.

JBWK seeks (1) a determination that JBWK is the declarant and holder of declarant rights under the declaration; (2) a determination that JBWK is entitled to plant trees on the property and otherwise use the property as it sees fit (subject only to federal, state and local laws and ordinances) and (3) an injunction barring the association from entering the property or interfering with its rights under the declaration.

The court grants JBWK declaratory relief on the first and second issues but denies declaratory relief on the third. Concerning JBWK’s request for an injunction preventing the Association from entering the property or further interfering with its rights under the declaration, the court finds that JBWK has failed to show that it is entitled to such a drastic and extraordinary remedy.

Plaintiff’s motion for summary judgment granted in part, denied in part. Defendant’s motion for summary judgment granted in part, denied in part.

West Neck Community Association Inc. v. JBWK LLC, Case No. 2:22-cv-491, March 31, 2025. EDVA at Norfolk (Hanes). VLW 025-3-147. 35 pp.