Western Land Co. v. Truskolaski

Western Land (defendant) had subdivided a tract for residential use in 1941 under covenants limiting lots to single-family homes; over decades the surrounding area developed heavily with commercial businesses and major traffic thoroughfares, though inside the subdivision traffic remained light and homes stayed well maintained. When Western sought to build a supermarket on a subdivision parcel, homeowners (plaintiffs) sued to enjoin it under the covenant; the trial court granted the injunction, and Western appealed, arguing changed area-wide circumstances defeated the covenant.

Whether a restrictive covenant limiting a subdivision to residential use will be terminated because of substantial commercial development in the area surrounding, but not within, the subdivision.