Ambiguities in Deed Restrictions Must Be Resolved by the Trier of Fact

In A2C2 Partnership LLC v Loch Alpine Improvement Association, an unpublished Michigan Court of Appeals opinion, the subdivision included lots that were used to develop and operate a golf course.  When the golf course was foreclosed, the purchaser sought to use the lots comprising the golf course to build residential homes.  The homeowner association opposed.  After competing lawsuits were filed, and on competing motions for summary disposition, the trial court granted judgment in favor of the purchaser.

On appeal, the Michigan Court of Appeals reversed and remanded to the circuit court for trial.  The court held that the restrictions against the property were ambiguous, providing at one point that use of the lots as a golf course was “alternative” to residential use of the lots and at another point that no use of the golf lots shall be other than operation of a golf course.  The court held that this ambiguity in the documents could be resolved either by witness testimony or other extrinsic evidence, but could not be decided on summary disposition because there was a disputed issue of fact.

© Steve Sowell 2022