Also known as:changes in the character of a neighborhood · changed character of the neighborhood · changed conditions · change in circumstances
Written by attorneys — see sources below.
A basis for judicial modification or termination of restrictive covenants or servitudes. Substantial physical or functional alterations in the surrounding area render the original restrictions no longer beneficial to the dominant estate or capable of accomplishing their intended purpose.
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How its tested
Common Examples
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Support Waiver After Neighborhood Shift
Carmen Choi signed a premarital agreement waiving spousal support if she could earn minimal income. Years later the once-residential neighborhood around her home became a commercial zone filled with warehouses and traffic. The resulting noise and loss of local jobs left her unable to work and facing poverty if the waiver were enforced.
Facade Covenant After Skyline Change
Corinne Cho owned a lot subject to a servitude requiring Maple Events to control exterior lighting for film backdrops. New high-rises and digital production methods transformed the area into a dense urban core. The original sightlines no longer existed and the covenant no longer served any filming purpose.
Nahrstedt v. Lakeside Village Condominium Association, Inc.878 P.2d 1275, 1287 (Cal. 1994)
Lakeside Village is a 530-unit condominium development in Culver City consisting of 12 separate three-story buildings whose residents share common lobbies, hallways, laundry, and trash facilities. In April 1978 the developer recorded a declaration of covenants, conditions, and restrictions that included the provision that no animals, defined to mean dogs and cats, livestock, reptiles, or poultry, shall be kept in any unit. Plaintiff Natore Nahrstedt purchased a unit in January 1988 and moved in with her three cats, which she kept entirely inside the unit.
When the Lakeside Village Condominium Association learned of the cats it demanded their removal and levied successive monthly fines against Nahrstedt. Nahrstedt then filed suit against the Association, its officers, and two employees seeking declaratory relief that the pet restriction was unreasonable as applied to her indoor cats, invalidation of the assessments, damages for invasion of privacy and emotional distress, and injunctive relief. The complaint alleged that the cats were noiseless, created no nuisance, and had not damaged any portion of her unit or the common areas, and it incorporated by reference the grant deed, the declaration, and the condominium plan.
The Association demurred to the complaint on the ground that the restriction was reasonable as a matter of law. The trial court sustained the demurrer as to every cause of action and dismissed the complaint. A divided Court of Appeal reversed the judgment of dismissal, concluding that Nahrstedt had stated a claim for declaratory relief because the reasonableness of enforcing the restriction against her particular cats presented a factual question. The dissenting justice in the Court of Appeal maintained that the recorded restriction should be treated as presumptively valid under the law of equitable servitudes. On the Association's petition the Supreme Court granted review.
Carlos Castillo held surface rights subject to a covenant barring subsurface mining. The surrounding farmland converted into heavy industry and rail yards. Continued enforcement of the restriction would prevent any economic use of the land while providing no benefit to neighboring parcels.
Pennsylvania Coal Co. v. Mahon260 U.S. 393 (1922)
In 1878 the Pennsylvania Coal Company executed a deed that conveyed the surface of property but reserved in express terms the right to remove all the coal under the same. The grantee took the premises with the risk and waived all claim for damages that might arise from mining out the coal. The plaintiffs claim under this deed.
On May 27, 1921, the Pennsylvania legislature approved the Kohler Act. The statute forbids the mining of anthracite coal in such way as to cause the subsidence of any structure used as a human habitation. The statute provides exceptions for land where the surface is owned by the owner of the underlying coal and is distant more than one hundred and fifty feet from any improved property belonging to any other person.
The plaintiffs brought a bill in equity to prevent the Pennsylvania Coal Company from mining under their property in such way as to remove the supports and cause a subsidence of the surface and of their house. The Court of Common Pleas found that if not restrained the defendant would cause the damage to prevent which the bill was brought. It denied an injunction, holding that the statute if applied to this case would be unconstitutional.
On appeal the Supreme Court of the State agreed that the defendant had contract and property rights protected by the Constitution of the United States. It held that the statute was a legitimate exercise of the police power and directed a decree for the plaintiffs. A writ of error was granted bringing the case to this Court.
As applied to this case the statute is admitted to destroy previously existing rights of property and contract. The case involves a single private house. The statute ordinarily does not apply to land when the surface is owned by the owner of the coal. The Attorney General of the State, the City of Scranton, and the representatives of other extensive interests were allowed to take part in the argument below and have submitted their contentions here.
The statute purports to abolish what is recognized in Pennsylvania as an estate in land. The question presented concerns mining of coal under streets or cities in places where the right to mine such coal has been reserved.
Mortgage Moratorium After Commercial Redevelopment
Caitlin Crowley obtained a mortgage on a home in a quiet residential block. The city later rezoned the area for mixed-use towers and retail plazas. The drastic change eliminated any realistic prospect that the original residential value could be restored even after the moratorium period.
Home Building & Loan Association v. Blaisdell290 U.S. 398, 54 S.Ct. 231, 78 L.Ed. 413 (1934)
The Blaisdells executed a mortgage on their property in Minneapolis to the Home Building & Loan Association on August 1, 1928. The mortgage contained a valid power of sale by advertisement. After default, the mortgage was foreclosed and the property sold to the Association on May 2, 1932, for $3700.98. The period of redemption under the law then in effect was set to expire on May 2, 1933.
On April 18, 1933, Minnesota enacted Chapter 339 of the Laws of 1933, known as the Mortgage Moratorium Law. The statute authorized district courts to extend the period of redemption from foreclosure sales for such additional time as the court deemed just and equitable, not beyond May 1, 1935, upon condition that the mortgagor pay a reasonable part of the income or rental value toward taxes, insurance, interest, and principal. The Blaisdells applied to the District Court of Hennepin County for an extension of the redemption period.
The district court found that the reasonable rental value of the property was $40 per month and the present market value was $6000. It extended the redemption period to May 1, 1935, requiring the Blaisdells to pay $40 per month to the Association. The Supreme Court of Minnesota affirmed the order.
The Home Building & Loan Association appealed to the United States Supreme Court, which reviewed the judgment sustaining the statute as applied to the preexisting mortgage.
Craig Caldwell agreed in a marital settlement to pay support tied to the couple's former suburban neighborhood. The area became dominated by short-term rentals and commercial offices. The resulting loss of stable employment opportunities created substantial hardship that the original support formula never contemplated.
Richardson v. Richardson218 S.W.3d 426 (Mo. 2007)
Joseph A. Richardson and Ida Richardson divorced in December 1997. They executed a separation agreement providing that Joseph would pay Ida maintenance of $2,425.00 per month, terminating upon Ida’s remarriage or the death of either party. The agreement stated that its terms would not be subject to modification or change, regardless of the relative circumstances of the parties. The trial court incorporated the agreement into the Judgment and Decree of Dissolution and stated that maintenance was non-modifiable.
In 2004 Joseph filed a motion to modify the judgment. In Count II he alleged that Ida sought out persons to burglarize his home, sought out persons to murder him, and attempted to hire a person to murder him. He further alleged that these acts breached the separation agreement, violated public policy, committed criminal acts, and waived any claim to maintenance.
The trial court dismissed Count II with prejudice for failure to state a claim upon which relief can be granted. The dismissal order was certified as a final judgment and order under Rule 74.01(b). Joseph appealed the dismissal. The Eastern District Court of Appeals transferred the matter to the Supreme Court of Missouri.
Claire Campbell sought modification of a custody order after the child's neighborhood shifted from family homes to transient student housing and bars. The change eliminated safe play areas and reliable schools that had supported the prior visitation schedule.
Palmore v. Sidoti466 U.S. 429, 432 (1984)
When petitioner Linda Sidoti Palmore and respondent Anthony J. Sidoti, both Caucasians, were divorced in May 1980 in Florida, the mother was awarded custody of their 3-year-old daughter. In September 1981 the father sought custody of the child by filing a petition to modify the prior judgment because of changed conditions. The change was that the child’s mother was then cohabiting with a Negro, Clarence Palmore, Jr., whom she married two months later. Additionally, the father made several allegations of instances in which the mother had not properly cared for the child.
After hearing testimony from both parties and considering a court counselor’s investigative report, the court noted that the father had made allegations about the child’s care, but the court made no findings with respect to these allegations. On the contrary, the court made a finding that there is no issue as to either party’s devotion to the child, adequacy of housing facilities, or respectability of the new spouse of either parent. The court then addressed the recommendations of the court counselor, who had made an earlier report in another case coming out of this circuit also involving the social consequences of an interracial marriage.
From this vague reference to that earlier case, the court turned to the present case and noted the counselor’s recommendation for a change in custody because the wife has chosen for herself and for her child, a life-style unacceptable to the father and to society, and the child is or at school age will be subject to environmental pressures not of choice. The court then concluded that the best interests of the child would be served by awarding custody to the father. The court’s rationale focused on the mother bringing a man into her home and carrying on a sexual relationship without marriage, placing gratification of her own desires ahead of concern for the child’s future welfare, and the inevitable social stigmatization the child would suffer at school age due to the racially mixed household.
The Second District Court of Appeal affirmed without opinion, thus denying the Florida Supreme Court jurisdiction to review the case. The United States Supreme Court granted certiorari to review the judgment of the state court.
When does a change in neighborhood character justify refusing to enforce a restrictive covenant?
A court may modify or terminate the covenant when the change is so radical that the restriction no longer provides substantial benefit to the dominant estate or can no longer accomplish its original purpose. The inquiry focuses on whether perpetuation of the restriction would be pointless given current conditions.
Does every neighborhood change automatically invalidate a servitude?
No. The change must be complete or radical enough to defeat the restriction's purpose. Minor or gradual shifts that leave some continuing benefit will not support termination.
260 U.S. 393 (1922)
…to use his land is not absolute. He may not so use it as to create a public nuisance; and uses, once harmless, may, owing to changed conditions, seriously threaten the public welfare. Whenever they do, the legislature has power to prohibit such uses without paying compensation; and the power to prohibit extends alike to the manner,…