Schovee v. Mikolasko

Mikolasko (defendant) developed the Chapel Woods II subdivision, recording a plat for 25 lots and a Declaration of Covenants imposing restrictive covenants, including single residential-use limits, on Lots 1-5 and 8-25, while expressly excluding Lots 6 and 7 from those restrictions. Each restricted lot's sale contract referenced the declaration and included an integration clause. Mikolasko kept Lot 7 and later sought to further subdivide it; seven couples who had purchased restricted lots (plaintiffs) sued, claiming Mikolasko and the real estate broker had told them Lot 7 would be part of the community, and that the restrictions should apply to it too. The trial court agreed Lot 7 was meant to be part of the common development scheme and covered by the restrictions, and Mikolasko appealed.