Supreme Court of Arkansas , 1984.
281 Ark. 196, 663 S.W.2d 710.
Johnson, pp. 688-691
Facts: Warren Construction developed three subdivisions. They had built a number of single-family homes and were now starting to build two duplexes. The residents sued to enjoin them to build the duplexes, claiming that they were promised that all the lots in the development would be built up with single family homes. The trial court found that a restrictive covenant existed that restricted the use of the subdivisions for single family homes only. Warren appealed.
Issue: Did the trial court rule correctly that a restrictive covenant was created such that Warren may not build duplexes?
Rule:
Analysis: Basically, the court finds two grounds for a negative covenant: the actual language of the deed, and the statements of the Warrens plus the reliance upon those statements by the residents.
Conclusion: The trial court’s judgment is affirmed.