Heatherwood Holdings, LLC v. HGC, Inc.

Heatherwood and FCB appealed the district court's affirmance of a final amended judgment entered by the bankruptcy court. The bankruptcy court determined that there was an implied restrictive covenant limiting the use of real property at issue to a golf course. As a preliminary matter, the court concluded that, because FCB satisfied the person-aggrieved doctrine, FCB also met Article III standing requirements. On the merits, the court concluded that the bankruptcy court did not err when it held that FCB and Heatherwood had actual, constructive and inquiry notice of the implied restrictive covenant; the bankruptcy court did not err in finding that most, if not all, of the homeowners within the Heatherwood subdivision bought their home with the expectation that the golf course property would remain a golf course; the bankruptcy court did not err in holding that the doctrine of estoppel by deed precluded the enforcement of the covenant; with respect to FCB and Heatherwood's argument that the doctrine of integration in the Agreement between HGC and Heatherwood served to destroy an implied covenant, the bankruptcy court did not err in finding integration did not apply under the facts of the case; in considering the doctrine of changed circumstances, the bankruptcy court relied on various factual findings in determining that the homeowners' benefit from the continued existence of the covenant outweighed the detriment borne by FCB and Heatherwood; and the court rejected FCB and Heatherwood's argument that HGC had no standing to enforce the implied restrictive covenant because HGC owned no property. Accordingly, the court affirmed the judgment of the district court. View "Heatherwood Holdings, LLC v. HGC, Inc." on Justia Law