Evergreen Highlands Assoc. v. West

Evergreen Highlands Association (defendant) is a homeowners' association overseeing a subdivision park with trails, a barn, a fishing pond, and tennis courts; the covenants governing the park originally required no membership or dues. A modification clause allowed the covenant to be waived, changed, or modified by 75% of lot owners. In 1995, owners properly voted to amend the covenant to require all lot owners to join the association and pay $50 in annual dues, secured by a lien for nonpayment. West (plaintiff), who bought his lot before the amendment, refused to pay and sued when Evergreen threatened to place a lien on his property. The district court upheld the amendment, but the court of appeals reversed, reasoning that 'change or modify' could only alter existing obligations, not add an entirely new one, and that any ambiguity should favor free use of property. Evergreen appealed.