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

Summary

The court affirmed the judgment declaring Diamante's tie-in covenants enforceable and denying disgorgement. It held that the pre-2011 transfer-fee covenant was not invalidated by the transfer-fee statute, the dues and transfer requirements were not unlawful restraints on alienation, and the recorded declarations sufficiently incorporated later bylaws and rules. The court also held that challenges based on deferred dues and public memberships were time-barred or failed on the merits, and that the alleged maintenance deficiencies did not constitute a material breach. Justice Hart, joined by Justice Baker, dissented, principally contesting the treatment of unrecorded bylaws and rules, the restraint-on-alienation analysis, and the interpretation of the dues provisions.