Gary Dye and Linda Dye v. Diamante, a Private…

Summary

The Supreme Court of Arkansas affirmed the judgment enforcing Diamante's covenants and denying disgorgement. It held that the transfer-fee covenant was not invalidated by the statute governing covenants recorded after July 27, 2011; the dues and transfer-fee provisions were not unlawful restraints on alienation; the recorded declarations incorporated the club's bylaws and rules; and the remaining challenges were either time-barred, authorized by the declarations, or unsupported by a material breach. Justice Hart, joined by Justice Baker, dissented, contending that the majority improperly permitted unrecorded and nonexistent documents to affect real-property interests and failed to apply the reasonableness and recording requirements governing restrictive covenants.