FOR PUBLICATION
ATTORNEYS FOR APPELLANT: ATTORNEY FOR APPELLEES:
MICHAEL H. MICHMERHUIZEN DAVID VAN GILDER
PATRICK G. MURPHY Van Gilder & Trzynka, PC
Barrett & McNagny LLP Fort Wayne, Indiana
Fort Wayne, Indiana
IN THE
COURT OF APPEALS OF INDIANA
WEDGEWOOD COMMUNITY )
ASSOCIATION, INC., )
)
Appellant-Plaintiff, )
)
vs. ) No. 02A03-0204-CV-112
)
ROBERT O. NASH and BARBARA NASH, )
)
Appellee-Defendants. )
APPEAL FROM THE ALLEN SUPERIOR COURT, CIVIL DIVISION
The Honorable Nancy Eshcoff Boyer, Judge
Cause No. 02D01-0003-CP-470
May 21, 2003
OPINION ON REHEARING - FOR PUBLICATION
MATHIAS, Judge
Appellee, Robert O. Nash (Nash), has petitioned for rehearing in Wedgewood Cmty. Assn
v. Nash, 781 N.E.2d 1172 (Ind. Ct. App. 2003), which we grant for
the limited purpose of clarifying our original opinion. Nash contends that this
court erred by announcing a new and previously unknown standard that allows the
directors of homeowners associationsso long as the association itself does not own neighborhood
propertyto freely violate their homeowners associations covenants while simultaneously enforcing substantially similar violations
against their neighbors. Petition for Rehearing at 1, 6-7.
Nash misconstrues the holding of this court. In our previous opinion in
this case, we held that Wedgewood Community Association (Wedgewood Association) could not possibly
be violating the same restrictive covenant as Nash because the association itself is
not a resident of the neighborhood.
See footnote
Wedgewood, 781 N.E.2d at 1179.
Because Wedgewood Association is not a resident of the neighborhood, Nash could not
assert the doctrine of unclean hands against it. However, despite the unavailability
of the doctrine of unclean hands under these facts and circumstances, the doctrines
of estoppel and acquiescence clearly remain available. Nashs failure to challenge the
trial courts finding that he did not meet his burden of proving estoppel
or acquiescencerather than a new and previously unknown standard announced by this courtpreclude
the assertion of estoppel and acquiescence in this case.
Nash further notes the holding in Schwartz v. Holy Cross, 83 Ind. App.
658, 665, 149 N.E.2d 699, 701 (1925):
Where the owner of a tract of land sells the same off in
lots, with restrictions upon the use of the lots sold, he will lose
his right in equity to enforce the restrictions against one grantee, if he
knowingly has permitted other grantees to violate the same restrictions, the effect of
which violation is to abrogate the purpose of the restrictions and alter the
general scheme intended to be conserved by it. This rule is applicable
whether the suit is brought by the original grantor or by one of
the several grantees of land sold in accordance with the general scheme of
the original grantor.
Petition for Rehearing at 7. Schwartz is distinguishable from the case at
bar because Nashs dispute is not with the developer, but rather with the
subsequent homeowners association. Under our facts and circumstances, Schwartz is akin to
the doctrine of acquiescence, which was rejected by the trial court and not
raised on appeal by Nash.
Nash also claims that Wedgewood Association directors alleged unclean hands should be imputed
to Wedgewood Association on the basis of Shriner v. Sheehan, 773 N.E.2d 833
(Ind. Ct. App. 2002). In Shriner, the Court of Appeals held that
an individual minority shareholders unclean hands barred his action against the majority shareholder
of a corporation. Id. at 848. Nash argues that if an
individual can be barred from bringing an equitable suit against a corporation on
the basis of unclean hands, then the reverse should be true and a
corporations directors unclean hands should bar the assertion of equitable relief against an
individual. Petition for Rehearing at 8-9. Nashs assertion misses the point.
In Wedgewood, we held that Wedgewood Association could not have unclean hands
because Wedgewood itself was not allegedly violating the restrictive covenants; rather, Nash was
asserting that individual resident Wedgewood Association directors were violating the restrictive covenants.
Wedgewood, 781 N.E.2d at 1179. In Shriner, the individual minority shareholder, as
the entity praying for equitable relief, was found to have unclean hands.
Shriner, 773 N.E.2d at 848. As discussed above, adequate remedies are available
to Nash and to others similarly situated. To extend Shriner as urged
by Nash would truly be a new and previously unknown standard, the making
of which is the province of our supreme court.
Subject to this clarification, our earlier opinion is hereby affirmed.
BAILEY, J., and SULLIVAN, J., concur.