Oakley v. Lang ( 1999 )


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  •              IN THE COURT OF APPEALS OF TENNESSEE
    AT NASHVILLE
    FILED
    TIM OAKLEY and wife,                        )                July 27, 1999
    MONICA OAKLEY, HELEN THOMAS,                )
    FRANK GRUBBS and wife, BRENDA               )             Cecil Crowson, Jr.
    GRUBBS, DANIEL THOMAS and wife,             )            Appellate Court Clerk
    SHERRY THOMAS, and JAN FOX,                 )
    )
    Plaintiffs/Appellants,               )
    )
    VS.                                         )   Appeal No.
    )   01-A-01-9809-CH-00496
    L. SCOTT LANG,                              )
    )   Sumner Chancery
    Defendant/Appellee,                  )   No. 96C-237
    Third Party Plaintiff,               )
    )
    VS.                                         )
    )
    LAWYERS TITLE INSURANCE                     )
    CORPORATION, FREELANCE                      )
    SEARCHES, INC., and                         )
    SEAN MAHONEY,                               )
    )
    Third Party Defendants.              )
    APPEALED FROM THE CHANCERY COURT OF SUMNER COUNTY
    AT GALLATIN, TENNESSEE
    THE HONORABLE TOM E. GRAY, CHANCELLOR
    PHILIP C. KELLY
    125 Public Square
    Gallatin, Tennessee 37066
    Attorney for Plaintiffs/Appellants
    ARTHUR E. McCLELLAN
    116 Public Square
    Gallatin, Tennessee 37066
    Attorney for Defendant/Appellee
    AFFIRMED AND REMANDED
    BEN H. CANTRELL,
    PRESIDING JUDGE, M.S.
    CONCUR:
    CAIN, J.
    COTTRELL, J.
    OPINION
    The question we must decide is whether the defendant’s home violated
    a subdivision restriction against modular homes. The Chancery Court of Sumner
    County held that the plaintiffs had failed to prove their case. We affirm.
    I.
    In February of 1996, Scott Lang purchased lot number three in the
    Snaffles Subdivision in Sumner County. His deed referred to “restrictions and
    easements of record.” Although the record is not entirely clear on what restrictions
    were actually in Mr. Lang’s chain of title, a set of restrictions appear in the record
    containing the following provision:
    on Tracts 1-10 there shall be no temporary buildings,
    shacks or partially completed buildings used for human
    occupancy, no mobile home shall be placed upon this
    property, nor modular homes.
    Mr. Lang built a foundation on his lot and purchased a partially pre-
    fabricated house. The house arrived by truck in two sections. By the end of the day
    the two halves of the house had been put together on the foundation. The house then
    contained the majority of the electrical wiring but not the plumbing, the heat and air
    system, nor the trim. When the two halves were delivered, a portion of the roof was
    attached to each side and could be completed by raising the two sides and joining
    them together at the peak. Once the house was assembled on the foundation, the
    outward appearance could not be distinguished from a house that had been built at
    the site.
    When the house was delivered in two halves, the neighbors immediately
    protested. Then they filed this action for a mandatory injunction to have the house
    removed. The chancellor strictly construed the restriction in favor of the free use of
    the property, and held that without a clear definition of what constitutes a modular
    home the case should be dismissed.
    -2-
    II.
    Our cases have uniformly held to the proposition that restrictive
    covenants are to be strictly construed against the party seeking to enforce them,
    because they interfere with the right of unrestricted use of property. Turnley v.
    Garfinkle, 
    362 S.W.2d 921
     (Tenn. 1962); Beacon Hills Homeowner’s Assoc. v. Palmer
    Properties, Inc., 
    911 S.W.2d 736
     (Tenn. App. 1995); Jones v. Englund, 
    870 S.W.2d 525
     (Tenn. App. 1993); Essary v. Cox, 844 S.W .2d 169 (Tenn. App. 1992). It follows
    then, as some of the cases have held, that such covenants will not be extended by
    implication to anything not clearly and expressly prohibited by their plain terms. See
    Turnley v. Garfinkle, 
    362 S.W.2d at 923
    .
    Although it may seem that we have been more hospitable to certain
    covenants than a strict construction rule contemplates, see Judge Crawford’s dissent
    in Albert v. Orwige, 
    731 S.W.2d 63
     (Tenn. App. 1987), in this case the plaintiffs have
    not furnished us with any definition of the term “modular homes” in the context of
    restrictive covenants. There is nothing in this record to show the intent of the owners
    who adopted the restrictive covenant in 1987.
    One source of reference might have been the “Modular Building Act”
    enacted in 1985 to require inspection at the place of manufacture of pre-constructed
    buildings that arrive at the construction site with some or all of the electrical,
    mechanical, plumbing and other systems already built into the unit. See 
    Tenn. Code Ann. § 68-126-302
    . The Act defined a “Modular Building Unit” as:
    (6) “Modular building unit” means a structural unit,
    or preassembled component unit including the necessary
    electrical, plumbing, heating, ventilating and other service
    systems, manufactured off-site and transported to the
    point of use for installation or erection, with or without
    other specified components, as a finished building and
    not designed for ready removal to another site. “Modular
    building unit” does not apply to temporary structures used
    exclusively for construction purposes or nonresidential
    farm buildings.
    
    Tenn. Code Ann. § 68-126-303
    (6).
    -3-
    Later, another definition turned up in an opinion of this court in 1990.
    The court looked at the legislative history of a 1980 act that prohibited local zoning
    ordinances from excluding certain types of manufactured houses from residential
    districts. Although the proposed act did not refer to modular homes, the house
    members frequently used that term in the debate, because the members were
    seeking to protect what they referred to as modular homes as distinguished from
    mobile homes. This court concluded that “the legislators’ references to ‘modular’
    housing were references to structures that were manufactured and transported in at
    least two sections and then joined at the site into a single structure.” Tennessee
    Manufactured Housing Association v. The Metropolitan Government of Nashville, 
    798 S.W.2d 254
     at 259 (Tenn. App. 1990).
    Either of these definitions might be what the developers of this
    subdivision had in mind. But we note that they are not the same. Under the Modular
    Building Act the definition applies to single, complete units as well as units that may
    be components of a larger structure. Under the court’s definition in Manufactured
    Housing, a single structure constructed off-site would not be a modular home.
    The plaintiffs acknowledge that they did not object when one property
    owner moved a complete house into the subdivision and set it on a foundation
    constructed for it. If we adopted the statutory definition, that house violated the
    covenant. Under the other definition, had Mr. Lang’s house been joined together
    when it arrived, there would have been no objection. Or if it had been assembled in
    another subdivision and subsequently moved to its present location in one piece it
    would not have been a modular home. We conclude that the subdivision developers
    must have had something more substantive in mind when they adopted the restrictive
    covenant in question.
    -4-
    Therefore, we conclude that the chancellor was correct when he found
    that the plaintiffs had not carried their burden of proving that Mr. Lang’s house was a
    modular home within the restrictions adopted for the Snaffles Subdivision.
    The judgment of the court below is affirmed and the cause is remanded
    to the Chancery Court of Sumner County for any further proceedings necessary. Tax
    the costs on appeal to the appellants.
    _________________________________
    BEN H. CANTRELL,
    PRESIDING JUDGE, M.S.
    CONCUR:
    _____________________________
    WILLIAM B. CAIN, JUDGE
    _____________________________
    PATRICIA J. COTTRELL, JUDGE
    -5-
    IN THE COURT OF APPEALS OF TENNESSEE
    AT NASHVILLE
    TIM OAKLEY and wife,                       )
    MONICA OAKLEY, HELEN THOMAS,               )
    FRANK GRUBBS and wife, BRENDA              )
    GRUBBS, DANIEL THOMAS and wife,            )
    SHERRY THOMAS, and JAN FOX,                )
    )
    Plaintiffs/Appellants,              )
    )
    VS.                                        )      Appeal No.
    )      01-A-01-9809-CH-00496
    L. SCOTT LANG,                             )
    )      Sumner Chancery
    Defendant/Appellee,                 )      No. 96C-237
    Third Party Plaintiff,              )
    )
    VS.                                        )
    )
    LAWYERS TITLE INSURANCE                    )      Affirmed
    CORPORATION, FREELANCE                     )      and
    SEARCHES, INC., and                        )      Remanded
    SEAN MAHONEY,                              )
    )
    Third Party Defendants.             )
    JUDGMENT
    This cause came on to be heard upon the record on appeal from the
    Chancery Court of Sumner County, briefs and argument of counsel; upon
    consideration whereof, this Court is of the opinion that in the decree of the Chancellor
    there is no reversible error.
    In accordance with the opinion of the Court filed herein, it is, therefore,
    ordered and decreed by this Court that the decree is affirmed.           The cause is
    remanded to the Chancery Court of Sumner County for the enforcement of the decree
    and for the collection of the costs accrued below.
    Costs of this appeal are taxed against Tim Oakley, et al., Principals, and
    Kelly & Smith Law Office, Surety, for which execution may issue if necessary.
    _____________________________________
    BEN H. CANTRELL, PRESIDING JUDGE, M.S.
    _____________________________________
    WILLIAM B. CAIN, JUDGE
    _____________________________________
    PATRICIA J. COTTRELL, JUDGE