Heatherwood Holdings, LLC v. First Commercial Bank, Jonathan L. Kimerling, and Hgc, Inc.

Summary

The court held that Alabama law permits an implied restrictive covenant limiting golf-course property to that use when evidence supports the original grantor's common scheme of development. The recorded plat, restrictions in residential-lot deeds, continuous golf-course use, and promotional materials could support such a covenant, although factual issues remained regarding notice, duration, and changed circumstances. The court declined to answer the second and third certified questions because they were ambiguous and existing Alabama law could guide the bankruptcy court on the underlying notice and estoppel issues.