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ShaneJ2 (Utah)
Posts: 3
Posted:
Developer is one of several builders in his subdivision and has consistently violated the following CC&Rs:
1) Any natural vegetation removed from lots must be replaced with building or native vegetation within one year.
Problem: Developer has grubbed and graded several lots and left them in an unfinished state for more than two years now.

2) All construction commenced must be completed within one year.
Problem: Developer has yet to finish one of his homes within one year, and on average takes two years or more to complete a home.

There are several other examples of the Developer trying to enforce unwritten rules on other builders while not adhering to these same "UNWRITTEN" rules himself. It's do as I say, not as I do. This discrimination has resulted in specific damages to another builder.

What claims for damages might this other builder cite in his complaint (all internal attempts at resolution have failed): Discrimination, breach of contract, tortious interference (i.e., preventing builder from establishing successful business relationships)?
TimB4 (Tennessee)
Posts: 21,059
Posted:
That would depend on the contract the builders had with each other. Since builders typically have legal firms available to them, I would suggest that they take a copy of the contract and a copy of the deed restrictions to them and seek advice.

ShaneJ2 (Utah)
Posts: 3
Posted:
Thanks for the reply. There is no contract between the Developer and other builders other than the CC&Rs, which the Developer, and not the other builder, has violated as cited. And then there are the unwritten rules that are applied in a "Do as I say, not as I do" manner resulting in economic damages to the other builder.
TimB4 (Tennessee)
Posts: 21,059
Posted:
One would of course have to prove that those damages occurred because the one builder failed to comply with the Deed Restrictions and not for any other reasons or that those damages were at least partially caused by failing to comply with deed restrictions.

I'm not an attorney and I don't work within the legal profession. I can certainly see how failing to complete a house within a year could be frustrating but I don't see how it could affect the sales of the other builders. A potential buyer would just be seeing construction happening. If you say the home can be built within 1 year and deliver on that promise, I'm not sure how that would keep the buyer from buying - thereby causing you any damages.

However, like I said, I don't work within the legal profession and I don't have access to any of your documents. Therefore, my opinion could certainly be considered as not being based on any specific facts of your issue.

I wish you luck in resolving your issue.
ShaneJ2 (Utah)
Posts: 3
Posted:
Thank you for the reply. The CC&R violations are more a pattern of disregard on the part of the Developer. The actual damages have arisen from the Developer forcing the other builder to comply with unwritten rules (by holding his plans hostage) that dramatically increase his costs.

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