Chancery Denies Injunctive Relief on Real Estate Restrictive Covenant
Swann Keys Civic Association v. Shamp, 2008 Del. Ch. LEXIS 140 (Sept. 29, 2008), read opinion here. In this post-trial decision involving a restrictive covenant that purported to limit the height of homes in a waterfront community in Sussex County, Delaware, the Chancery Court denied a request for a preliminary injunction for the removal of homes that allegedly exceeded the height limit. An important determining factor in the reasoning of the Court was a prior Chancery Court final judgment that was part of the settlement of a class action that formed the basis of the authority of the Home Owners Association, and thus the outcome of this case was heavily dependant upon the interpretation by the Court those prior settlment terms.
