Restraints On Alienation Cases

Question 1

De operate a restaurant in Bethany Beach, which is a covenant prohibiting sale of alcohol and commercial construction. These covenants were circa 1900 to maintain a quiet family community. Many commercial licenses popped up in the restricted area and tourism expanded. When was granted liquor license Bethany Beach sued

Is restrictive covenant enforceable?

Answer 1

No. Fundamental change has occurred. The growth of non-residential uses appearing in restricted areas, brown bag continued unchallenged, and a liquor license that can better control the consumption of alcohol and premises support. There was a change circumstance to Bethany.

where a covenant no longer provides benefits to the dominant estate, it’s not enforceable

El Di, Inc. v. Town of Bethany Beach

Question 2

He is own two parcel separated by an alley and plan to build an apartment building on one parcel connected with a bridge over Ally to Hotel on the other. All parties were subject to the covenant to keep the alley open back when these were homes and not high-rises. He sought a declaratory judgment, saying the covenant was no longer enforceable.

Is it?

Answer 2

No longer enforceable. Change circumstances in public benefit call for this as the city is drastically grown and light air protections are no longer feasible, and it would benefit the vacant lot.

1. Bridge useful to hotel and maybe Boston
2. Damages?
   - remand to trial court
   - fair market value easy to figure out (want people to reach bargains before they go to court)
   - private property rights sacrificed for public good as long as fair

covenant still a benefit, but not enforced because public interest; damages awarded

Blakeley v. Gordon