Willowmet Homeowners Association, Inc. v. City of Brentwood, Tennessee

The homeowners’ association of a residential subdivision in Brentwood,Tennessee seeks just compensation from the City of Brentwood for loss of property rights in a portion of the subdivision’s open space. The City acquired the property by purchasing it from the developers of the subdivision without the Association’s knowledge. The Declaration of Protection Covenants, Conditions, and Restrictions of the subdivision, which the developers drafted and of which the City was on notice, states that the developers “will deed the completed Open Space on the subject Properties to the Association free and clear of any encumbrances before the first Lot is conveyed to a Lot Owner.” Although they sold the first individual lot in 2001, the developers did not convey any of the open space to the homeowners’ association until after the sale to the City. This action by the homeowners’ association ensued. The trial court summarily dismissed the action on the City’s motion, finding the homeowners’ association did not own a compensable property right in the Open Space when it was sold to the City. We have determined the homeowner’s association had an equitable interest in the Open Space pursuant to the Declaration of Protective Covenants, Conditions, and Restrictions when it was sold to the City; therefore, we reverse and remand for further proceedings.