West Alameda Heights Homeowners Association v. Board of County Commissioners

A restrictive covenant limited the West Alameda Heights subdivision to residential use, and most of the subdivision had in fact developed residentially; when the Newtons (defendants) sought to build two shopping centers on undeveloped subdivision lots, the homeowners association (plaintiff) sued to enforce the covenant, presenting evidence the shopping centers would increase traffic and depress property values. The trial court voided the covenant, reasoning the surrounding neighborhood outside the subdivision had become commercial and the specific lots were no longer suited to residential use, and denied an injunction; the homeowners appealed.

Whether a restrictive covenant may be terminated because the purpose for which it was imposed has ended and the intended beneficiaries would suffer no damage from its removal.