Covenant Violations and Statute of Limitations

On October 9, the Oklahoma Court of Civil Appeals (Division IV) decided the case of Vrasenevich v. Pearl Craft.  The decision creates an apparent split of authority in Oklahoma on the issue of whether the statute of Limitations can be used as a defense in an action for covenant violations.

Vranesevich involved a dispute between neighbors, involving the placement of a manufactured home on the property in violation of the covenants.  Pearl Craft alleged that the structure was placed on the property more than 5 years prior to the filing of the lawsuit.  Restrictive covenants are “in the nature of contract”, and the statute of limitations for breach of a written contract is “5 years from the date of the breach”.  The defendant relied on a case decided in 1998 by Division III of the Court of Civil Appeals. (Russell v. Williams).  The Russell Court involved actions for covenant violations and encroachment.  Division III held that the 5 year statute of limitations prevented Plaintiff from seeking relief for the covenant violation.

Division IV analyzed the case differently.  The Court of appeals held that actions for damages resulting from a covenant violation are limited by the 5 year statute, but the action to remove or cure the violation “run with the land” and can be brought at any time.  A Defendant can allege the equitable defense of “laches” (unreasonable and prejudicial delay in bringing the lawsuit).  It has remanded the case back to the District Court of Wagoner County for further proceedings.  Once the District Court concludes the proceedings on remand, it can be appealed again.

UPDATE:  Upon checking the District Court Docket, I find that a week after the Appeals Court decided Vranesevich, the Plaintiff dismissed the action.  It is unlikely there will be any further litigation in this particular matter.

 

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