# Millstone Property Owners Association, Respondent/Cross-Appellant v. Nithyananda Dhyanapeetam of St. Louis, Appellant/Cross-Respondent, Fogarty Farms, Respondent/Cross-Appellant.

> Supreme Court of Missouri · December 10, 2024

URL: https://www.frixlaw.com/law-library/cases/11094105

## Case

- **Court:** Supreme Court of Missouri
- **Decided:** December 10, 2024
- **Precedential status:** Published
- **Opinion:** Opinion by Judge Robin Ransom
- **Judges:** All concur.
- **Cited by:** 0 later opinions in the Frix Law Library

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## Opinion text

SUPREME COURT OF MISSOURI
en banc
MILLSTONE PROPERTY OWNERS ) Opinion issued December 10, 2024
ASSOCIATION, )
)
Respondent/Cross-Appellant, )
)
v. )
)
NITHYANANDA DHYANAPEETAM ) No. SC100574
OF ST. LOUIS, )
)
Appellant/Cross-Respondent, )
)
FOGARTY FARMS, )
)
Respondent/Cross-Appellant. )

APPEAL FROM THE CIRCUIT COURT OF JEFFERSON COUNTY
The Honorable Victor J. Melenbrink, Judge

This appeal concerns a tract of land that was platted into a subdivision designed for

single-family residential use. The subdivision’s original owner recorded restrictions on the

land. A subsequent purchaser acquired the subdivision in its entirety and attempted to

develop the land in a manner at odds with the restrictions, including building a structure

not intended for residential use. When the subsequent purchaser’s plans proved

unsuccessful, a few lots, including the lot with the structure, were transferred to one

organization. The remaining subdivision lots were sold to another entity. This latter entity
also received an assignment of developer rights from the subsequent purchaser, despite no

express transfer of those rights from the subdivision’s original owner. This appeal focuses

on whether developer rights transferred from the subdivision’s original owner and whether

the subdivision’s restrictions were abandoned.

After a bench trial, the circuit court found the original owner transferred developer

rights and held the restrictions were not abandoned. With the restrictions in place, the

circuit court determined a property owners association created pursuant to the restrictions

was proper and the organization owning the few lots was required to act in accordance with

the restrictions. The circuit court further invalidated a challenged transfer of common

ground. Following a provision in the restrictions, the circuit court awarded reasonable

attorney fees to the property owners association. This Court affirms the circuit court’s

judgment in all respects.

Factual and Procedural Background

In May 2004, Essex Development Inc. executed and recorded restrictions for a tract

of land in Jefferson County known as Millstone Subdivision (“the subdivision”). The

stated purpose of the restrictions was to preserve the land “as a respectable and attractive

residential neighborhood.” In pursuit of that purpose, the restrictions established

governance for the subdivision, outlined a process for levying assessments, set forth a list

of restrictions applicable to lots, and provided for enforcement of the restrictions. The lots

in the subdivision were expressly “restricted to single family residence usage only.” As to

enforcement of the covenants, the restrictions stated “[f]ailure or forbearance to enforce

any covenant or restriction shall not be deemed a waiver of the right to do so thereafter.”

2
Another restriction discussing severability provided: “Nor shall the failure to enforce a

covenant or agreement herein act as a waiver or prohibit the enforcement of same in the

future.”

The restrictions discussed certain rights of Essex or the owner of the subdivision.

The restrictions declared:

Owner shall have the right to assign all or a portion of its powers and
responsibilities under these Restrictions to a subsequent purchaser or
developer of unsold lots of the subdivision as Owner sees fit. After said
assignment, the assignee purchaser or developer shall have all the powers
and responsibilities of Owner under these Restrictions subject to any
limitations set forth in said assignment by Owner.

Additionally, Essex or its “successors or assigns” had a broad power to amend the

restrictions while they retained ownership of any lot in the subdivision. Any such

amendments had to be recorded.

The subdivision’s first phase, as reflected on a recorded plat, consisted of 21

numbered lots. An unnumbered lot on the plat containing a lake was labeled as common

ground. 1 The plat noted “[t]he common ground area as shown hereon shall remain with

and be maintained by all present and future lot owners of [the subdivision] and all future

plats of [the subdivision].” Under the restrictions, delineated common areas were to be

used “for the benefit of the lot owners of the Subdivision” and common areas had to “be

transferred by deed of conveyance from Owner to the Millstone Property Owners

1
The circuit court’s judgment and testimony at trial referred to a total of 24 lots. The
discrepancy is irrelevant to this appeal.

3
Association to be created as set forth below at such time as Owner deems proper and in the

sole discretion of Owner.”

In October 2007, Essex transferred the entire subdivision to Ananda LLC by general

warranty deed. The general warranty deed contained a habendum clause 2 providing: “TO

HAVE AND TO HOLD the same, together with all rights and appurtenances to the same

belonging, unto [Ananda], and to the heirs and assigns of such party(ies) forever.” Essex

did not execute a separate assignment of its developer rights in the subdivision.

Contemporaneously with transferring of the subdivision to Ananda, Essex liquidated its

interest in surrounding real estate. Since transferring the subdivision, Essex has taken no

action whatsoever with respect to the property.

Ananda initiated a plan to transform the land within the subdivision into a mixed-

use development to be known as Ananda Temple. The proposed development was to

include a community center/temple, an educational center, and housing to consist of single-

family homes, condominiums, and townhouses. Ananda submitted plans to the Jefferson

County planning division in an attempt to rezone the property to allow the development to

move forward. The plans ultimately failed.

While Ananda was pursuing its plans for Ananda Temple, it constructed a utility

building to house carved stone deities on one of the subdivision’s lots. In December 2008,

2
A habendum clause is used to explain, qualify, or define the interest granted in a deed.
Tennison v. Walker, 190 S.W. 9, 13 (Mo. 1916); see also Habendum Clause, Black’s Law
Dictionary (12th ed. 2024) (defining “habendum clause” as “[t]he part of an instrument,
such as a deed or will, that defines the extent of the interest being granted and any
conditions affecting the grant” and explaining “[t]he introductory words to the clause are
ordinarily to have and to hold”).

4
Ananda transferred the lot containing the utility building and two adjacent lots to

Nithyananda Dhyanapeetam of St. Louis (“Nithyananda”) by quit claim deed.

Nithyananda members visited the carved stone deities daily until sometime in 2016 and

used the lake lot, which was adjacent to Nithyananda’s lots, for spiritual purposes.

In October 2015, Ananda transferred the remaining subdivision lots to Fogarty

Farms LLC by general warranty deed. At the same time, Ananda executed an “Assignment

of Developer Rights” to Fogarty Farms. Pursuant to the restrictions, Fogarty Farms then

incorporated the Millstone Property Owners Association (“the association”). The

association was tasked with maintaining the subdivision’s streets and common areas and

enforcing the restrictions. A board of directors managed the association and, among other

duties, possessed the power to levy assessments.

In June 2016, Fogarty Farms adopted a “First Amendment to Millstone Subdivision

Restrictions.” The amendment purported to remove the lake lot as common ground to

make it available for use as a saleable lot. The amendment also changed restrictions

applicable to lots. In May 2017, the association deeded the lake lot to Fogarty Farms.

In June 2017, the association sued Nithyananda. The association alleged breach of

the restrictions for failure to pay assessments and failure to maintain the three lots. The

association sought foreclosure of the related liens. Nithyananda filed a counterclaim for

declaratory relief, claiming Fogarty Farms had no valid assignment of developer rights

from Essex and, consequently, had no authority to establish a board of directors capable of

levying an assessment. Nithyananda also argued the circuit court should set aside the

5
transfer of the lake lot to Fogarty Farms and joined Fogarty Farms as a defendant to the

litigation.

Following a two-day bench trial in April 2021, the circuit court held, as relevant to

this appeal: (1) Fogarty Farms lawfully possessed the subdivision’s developer rights; (2)

the subdivision’s restrictions had not been abandoned; (3) Nithyananda had to comply with

the restrictions, including all assessments and lot maintenance requirements; 3 and (4) the

lake lot remained common ground. The circuit court ordered Nithyananda to pay the

association $50,000 in attorney fees and costs.

Nithyananda appeals, and the association and Fogarty Farms cross-appeal. 4

Standard of Review

“An appellate court must sustain the decree or judgment of the [circuit] court unless

there is no substantial evidence to support it, unless it is against the weight of the evidence,

unless it erroneously declares the law, or unless it erroneously applies the law.” Furlong

Cos., Inc. v. City of Kan. City, 189 S.W.3d 157, 168 (Mo. banc 2006) (citing Murphy v.

Carron, 536 S.W.2d 30, 32 (Mo. banc 1976)).

3
Before the circuit court, Nithyananda posited the first amendment protected its use of the
property for religious practices. The circuit court found the residential-use requirement
was not aimed at any specific faith. Nithyananda does not appeal this determination. To
the extent portions of Nithyananda’s argument attack the restrictions by claiming the
restrictions limit Nithyananda’s practice of religion, those arguments are not preserved.
Faatz v. Ashcroft, 685 S.W.3d 388, 401 (Mo. banc 2024) (noting arguments raised in
briefing that are omitted from the point relied on are not preserved for appellate review).
4
After an opinion by the court of appeals, this Court granted transfer. Mo. Const. art. V,
sec. 10.

6
Analysis

Nithyananda brings three points on appeal. First, Nithyananda argues the circuit

court erred in ruling Essex transferred developer rights to Ananda. Second, Nithyananda

claims the circuit court erred in finding the restrictions were not abandoned. Finally, if

successful under either previous point, Nithyananda maintains the circuit court erred in

awarding the association attorney fees and back-due assessments. 5 The association and

Fogarty Farms bring two points in their cross-appeal. First, they contend the circuit court

erred in determining the lake lot remained common ground. Second, the association argues

the circuit court erred in not awarding the full amount of requested attorney fees.

The circuit court did not err in determining Essex transferred developer rights

Nithyananda argues Ananda never received developer rights from Essex. While

there is no dispute documentation exists purporting to transfer developer rights from

Ananda to Fogarty Farms, Nithyananda focuses on the lack of an express transfer of

5
Each of Nithyananda’s three points relied on alleges error on the basis the circuit court’s
holding was (1) against the weight of the evidence and (2) misapplied the law. Asserting
these two Murphy grounds in a single point is not appropriate. Ivie v. Smith, 439 S.W.3d
189, 199 n.11 (Mo. banc 2014). Responding to the first two points, the association and
Fogarty Farms nominally address yet a different Murphy ground and posit there was
substantial and competent evidence to support the circuit court’s holding. Parsing the
argument of each of Nithyananda’s points, it appears Nithyananda actually makes against-
the-weight-of-the-evidence arguments. Its first point ultimately focuses on the facts of this
case and attacks the circuit court’s determination about what the totality of the
circumstances demonstrated. Its second point focuses on competing facts presented to the
circuit court concerning abandonment. The third point likewise turns on the factual
determinations of the first two points. The association and Fogarty Farms respond with
arguments about what the evidence adduced at trial indicated.

7
developer rights between Essex and Ananda. Nithyananda similarly argues the evidence

adduced at trial demonstrated Ananda did not have the intent to receive developer rights.

“In general, ‘developer rights’ are the rights of a subdivision developer to declare

covenants for a subdivision that regulate the relationship of the real estate developer to its

subdivision, as well as the purchasers of property.” State ex rel. AJKJ, Inc. v. Hellmann,

574 S.W.3d 239, 241 n.1 (Mo. banc 2019) (alteration omitted) (internal quotation omitted).

“[T]he developer’s rights of a platted subdivision are personal rights that do not run with

the land.” Scott v. Ranch Roy-L, Inc., 182 S.W.3d 627, 633 (Mo. App. 2005) (“Scott I”).

Developer rights may be assigned in combination with the transfer of real estate, but the

owner of the developer rights must manifest an intent to transfer the developer rights, not

merely the title to the real estate. Woodglen Estates Ass’n v. Dulaney, 359 S.W.3d 508,

513 (Mo. App. 2012).

To effectuate an assignment, “[t]he intent to assign an interest is key.” Scott I, 182

S.W.3d at 634. That intent to assign can be demonstrated when “circumstances show an

intent on one side to assign and on the other side to receive.” Id. Without a specific

assignment of developer rights in a warranty deed, a deed’s generic habendum clause is

insufficient to convey developer rights. Id. at 633. The habendum clause, however, can

serve as evidence of intent to convey developer rights. Scott v. Ranch Roy-L, Inc., 242

S.W.3d 401, 406 (Mo. App. 2007) (“Scott II”).

This Court agrees with the circuit court’s determination that the totality of the

circumstances demonstrated Essex intended to transfer developer rights to Ananda. The

language in the habendum clause, though not determinative alone, provided evidence of

8
Essex’s intent to transfer developer rights when considered in conjunction with other

circumstances showing intent of the parties to transfer those rights. See id. Essex deeded

all of its interest in the subdivision, including “all rights,” to Ananda, and Essex further

liquidated its entire property interest in the area at the same time. During the time Ananda

held title to the property, and while Ananda was publicly conceptualizing plans to turn the

property into Ananda Temple, neither Essex nor anyone acting on its behalf took any action

whatsoever with respect to the tract of land. The circumstances show Essex relinquished

its developer rights to the purchaser of the subdivision in its entirety.

Ananda demonstrated an intent to receive the assignment of developer rights. In its

planning for Ananda Temple, Ananda proposed a plan for the subdivision that would not

have been permissible had Essex retained developer rights. Had Ananda believed Essex

retained developer rights, it would not have been able to effectuate its plans in derogation

of the restrictions. Nithyananda also fails to address how Ananda’s subsequent execution

of its assignment of developer rights to Fogarty Farms does not serve as strong evidence

that Ananda believed Essex assigned it developer rights. Ananda’s conduct demonstrates

it intended to receive and did receive all rights to the subdivision from Essex. Evidence

supports the circuit court’s holding regarding the transfer of developer rights.

The circuit court did not err in determining the restrictions remain in force

Nithyananda argues Ananda and Fogarty Farms both took actions resulting in total

abandonment of the restrictions. Nithyananda references Ananda’s actions in attempting

to transform the subdivision into a religious and educational center, including the

acquisition of the stone deities and construction of the utility building to house them, which

9
were contrary to the restrictions. Nithyananda argues Fogarty Farms also abandoned the

restrictions by amending the restrictions, using the property for non-residential use, failing

to enforce the restrictions, and failing to expediently develop the property.

While free use of real property is favored, the courts will respect valid restrictions

imposed on real property. Dierberg v. Wills, 700 S.W.2d 461, 466 (Mo. App. 1985). “The

right to enforce a valid restrictive covenant may, however, be waived by conscious

acquiescence in persistent, obvious and widespread violations thereof.” Id. Determination

of waiver or abandonment is not subject to “hard and fast rules,” and a court must look to

the circumstances of each case to ascertain whether a covenant can no longer be enforced.

Id. at 465-66.

If restrictions apply to an entire area and redound to the benefit of all property
owners in the restricted area, then waiver or abandonment occurs only when
violations of the restrictions are so general as to indicate an intention or
purpose to abandon the plan or scheme intended to be maintained by the
restrictions.

Id. at 466.

Under the circumstances, this Court finds Ananda did not abandon the restrictions.

At best, Nithyananda has shown Ananda attempted to enact a different plan for the

subdivision. That plan proved unsuccessful, and Ananda then sold its interest prior to

enacting widespread changes. Notably, Ananda, in possession of the developer rights,

could have recorded an amendment to the restrictions to alter the scheme Essex put into

place. Ananda did not. While Ananda caused the utility building to be constructed on a

lot Nithyananda now owns, this singular deviation from the restrictions is far from being

“so general as to indicate an intention or purpose to abandon the plan or scheme intended

10
to be maintained by the restrictions.” See id. The overall scheme intended under the

restrictions—preservation of the land as a single-family residential neighborhood—

continued to exist despite the presence of the non-conforming use on one lot. Every other

lot in the subdivision ultimately remained unaffected by Ananda’s conceptual plans. No

wide-ranging violations of the restrictions, which would suggest abandonment of the

restrictions or waiver of the ability to enforce the restrictions, occurred.

The evidence likewise does not reveal Fogarty Farms abandoned the restrictions.

Nithyananda first points to an amendment Fogarty Farms made to the restrictions to remove

a prohibition on hunting. Under the amended provision, hunting on an owner’s lot is

permissible with the board of directors’ prior approval. Although Nithyananda argues this

amendment is incompatible with single-family residential usage, Nithyananda merely

speculates the size of the lots and control of the activity by the board of directors would

result in incompatibility with residential usage. Nithyananda’s theory as to why this single

amendment would result in abandonment of the restrictions in toto is unclear.

Nithyananda also claims the property was used for commercial activity to such an

extent as to show an intent to abandon the restrictions. In support, Nithyananda points to

occasions in which Bill Fogarty’s company 6 held events within the subdivision. Assuming

these events violated the restrictions’ residential usage requirement, the sporadic nature of

the events, again, does not show “persistent, obvious and widespread violations” of the

6
Bill Fogarty is a member of Fogarty Farms and president of the association’s board of
directors. Nithyananda alleged corporate events on behalf of Fogarty Services, another
company owned by Fogarty, were held on lots within the subdivision.

11
restrictions. See id. Nithyananda did not avail itself of the option to attempt to enforce the

restrictions to prevent activities it found to be out of compliance.

Nithyananda next complains Fogarty Farms has been dilatory in developing the

property. The restrictions, however, do not place a burden on the developer to develop the

lots within any definite timeframe. Moreover, testimony showed Fogarty Farms’ hesitancy

to market the lots given Nithyananda’s contention that developer rights were never

transferred. Fogarty Farms’ decision not to actively market lots for sale does not amount

to an act of abandonment. The lots remain in a state compatible with future single-family

residential usage.

Lastly, Nithyananda complains about the construction of a large entrance gate

bearing the name “Fogarty Farms.” According to Nithyananda, this stands as the strongest

evidence of Fogarty Farms’ intent to abandon the restrictions. This Court was not directed

to any provision in the restrictions, and it finds none, that would prohibit the board of

directors from branding the subdivision as it sees fit. Additionally, this single act, which

Nithyananda never challenged as violating the restrictions, does not impact the restrictions’

underlying purposes. The record supports the conclusion Fogarty Farms did not abandon

the restrictions.

This Court further finds the circuit court correctly recognized the restrictions

themselves established non-enforcement of any provision would not result in waiver. The

subdivision’s restrictions constitute “a private contractual obligation generally governed

by the same rules of construction applicable to any covenant or contract.” Trs. of Clayton

Terrace Subdivision v. 6 Clayton Terrace, LLC, 585 S.W.3d 269, 280 (Mo. banc 2019). In

12
the absence of ambiguity, intent is derived from the contract’s language alone, and courts

will give effect to that intent. Id. Here, the restrictions plainly provide “[f]ailure or

forbearance to enforce any covenant or restriction shall not be deemed a waiver of the right

to do so thereafter”, “[n]or shall the failure to enforce a covenant or agreement herein act

as a waiver or prohibit the enforcement of same in the future.”

Nithyananda argues Ananda’s and Fogarty Farms’ failures to follow or enforce the

restrictions resulted in the restrictions’ abandonment. But the plain language of the

restrictions prevents this. While Ananda may have gone to great lengths to allow the

construction of the utility building and permitted its use for non-residential purposes, the

restrictions expressly preserve the right to require compliance in the future. To the extent

the association Fogarty Farms established has failed to enforce any covenants, the

restrictions, again, preserve a right to enforcement regardless. Nithyananda took its lots

subject to the restrictions and, pursuant to those restrictions, subject to their enforcement

in the future, even when certain provisions may not have been strictly enforced in the past.

The circuit court did not err in finding the lake lot remains common ground

In their cross-appeal, the association and Fogarty Farms allege the circuit court erred

in voiding the transfer of the lake lot from the association to Fogarty Farms. The circuit

court found the transfer would be unjust given Nithyananda’s reliance on the representation

the lake lot existed as common ground. The association and Fogarty Farms point to the

language of the restrictions requiring a deed of conveyance of the common areas to the

association and also argue, if the lake lot was ever common ground, the amendment

provision permitted its removal from the subdivision’s common ground. Alternatively, the

13
association and Fogarty Farms posit the association had the authority to transfer the lake

lot due to necessary circumstances. These arguments are unpersuasive.

The association and Fogarty Farms essentially ask this Court to permit the removal

of space shown as common ground in a platted subdivision after lots adjacent to the

common ground are no longer in the developer’s possession. Estoppel is available as a

remedy to prevent a developer from altering the character of common ground within a

subdivision when lot owners have relied upon a subdivision plat showing areas to be

preserved as common ground. 7 Chesus v. Watts, 967 S.W.2d 97, 108-09 (Mo. App. 1998).

The following elements must be established to support a claim for promissory estoppel:

“(1) a promise; (2) promisee detrimentally relies on the promise; (3) promisor could

reasonably foresee the precise action the promisee took in reliance; and (4) injustice can

only be avoided by enforcement of the promise.” Id. at 107.

This Court affirms the circuit court’s holding that it would be unjust to remove the

lake lot from the subdivision’s common ground. When Ananda deeded the three lots

adjacent to the lake lot to Nithyananda in 2008, it is apparent both were contemplating a

temple complex in which a body of water was necessary. Ananda deeded the lots to

Nithyananda with reference to the subdivision’s plat, which proclaimed “[t]he common

7
Although the association and Fogarty Farms reference the deed from the association to
Fogarty Farms purporting to convey the lake lot, the record is not clear as to the
association’s interest in the lake lot at that time. While the association and Fogarty Farms
argue a deed of conveyance to the common areas is required to create the common areas,
there is no deed in the record indicating Fogarty Farms, as the developer, transferred the
lake lot to the association such that the association could transfer the lake lot back to
Fogarty Farms. Putting this uncertainty aside, the broader question addressed here is
whether the lake lot remains common ground.

14
ground area as shown hereon shall remain with and be maintained by all present and future

lot owners of [the subdivision] and all future plats of [the subdivision].” The associated

restrictions required delineated common areas to be used “for the benefit of the lot owners

of the Subdivision.” This constitutes a promise. Testimony at trial showed Nithyananda

relied upon access to the lake lot and the lake itself held religious significance to

Nithyananda’s members. Presumably, Nithyananda selected the lots due to the lake’s

proximity and the ability to use the area. Nithyananda demonstrated detrimental reliance

on the promise. The association and Fogarty Farms argue such reliance was unreasonable

given the restrictions required common areas to be transferred by a deed of conveyance

and the developer reserved amendment power. This Court disagrees: when lot owners were

“sold on the promise” of certain common ground based on a subdivision plat, it is contrary

to public policy to permit a developer to unilaterally alter the character of that common

ground, even if the developer retains such authority through covenants. Id. at 108-09. It

was foreseeable Ananda would expect Nithyananda to have access to the lake lot given the

parties’ intentions to turn the subdivision into a temple complex. At this point, after

continued access to the lake lot since 2008, it would be unjust to strip Nithyananda of

access to what was originally deemed common ground of the subdivision. Under the

applicable standard of review and the rather unique circumstances of this case, this Court

sees no reason to overturn the circuit court’s judgment.

The alternative argument that the association had the authority to transfer the lake

lot due to necessary circumstances also fails. According to the association and Fogarty

Farms, the lake and dam were in poor repair and the association lacked sufficient funds to

15
make necessary repairs or to insure the lake lot. Following this argument, transfer of the

lake lot was supposedly appropriate. This Court agrees with the circuit court’s assessment

that, assuming Nithyananda pays the back assessments owed on its lots, those

assessments—combined with the support of Fogarty Farms, as the subdivision’s

developer—will be sufficient to maintain the subdivision’s common areas during the

development and sales period for the subdivision lots. Current shortfalls in the

association’s funds are due, in part, to delays by Ananda and Fogarty Farms in developing

the subdivision. While Fogarty Farms, as an assign of Essex, is exempt from assessments

per the restrictions, the exemption logically exists in recognition of the reasonable

development and maintenance costs associated with being the developer. Under these

circumstances, Fogarty Farms is not entitled to remove the lake lot from the subdivision’s

common ground.

The circuit court did not err in its award of attorney fees

Nithyananda contends, because developer rights were not transferred or were

subsequently abandoned, the circuit court erred in awarding the association attorney fees

and back-due assessments. Because this Court has rejected Nithyananda’s contentions, an

award of attorney fees and back-due assessments is appropriate.

When contracts allow for attorney “fees and expenses incurred in the enforcement

of a contract provision, the trial court must comply with the terms of the contract and award

them to the prevailing party.” WingHaven Residential Owners Ass’n, Inc. v. Bridges, 457

S.W.3d 383, 385 (Mo. App. 2015). In enforcing assessments, the subdivision restrictions

state “costs incurred on account of such non-payment, including attorney[] fees … shall

16
constitute a lien upon said lot which shall remain in effect until said amount is fully paid.”

The plain terms of the restrictions also permit the party enforcing the restrictions “to

recover their expenses in doing so, including without limitation, reasonable attorney[] fees

and costs of litigation ….” Finally, the restrictions specify that, should an action a lot

owner brings against the association fail, the lot owner is liable for attorney fees. Pursuant

to these allowances, the association is entitled to reasonable attorney fees and the costs of

litigation. The association incurred attorney fees in pursuing assessments, enforcing the

restrictions as to the use of the utility building, and successfully defending the claim that

the association’s board of directors was illegally constituted because Fogarty Farms lacked

developer rights.

In its cross-appeal, the association argues the circuit court erred in not awarding it

the full amount of requested fees. The circuit court determined “the [a]ssociation is entitled

to recover a portion of its attorney[] fees and recoverable costs. The Court finds $50,000

to be a reasonable attorney[] fees award in light of the relevant competing factors.”

The circuit court is in the unique position of knowing not only “the character of the

services rendered in duration, zeal, and ability” but also “the value of [those services]

according to custom, place, and circumstance.” Nelson v. Hotchkiss, 601 S.W.2d 14, 21

(Mo. banc 1980). This Court reviews the award of attorney fees for an abuse of discretion.

Berry v. Volkswagen Group of Am., Inc., 397 S.W.3d 425, 430 (Mo. banc 2013). “To

demonstrate an abuse of discretion, the complaining party must show the trial court’s

decision was against the logic of the circumstances and so arbitrary and unreasonable as to

shock one’s sense of justice.” Id. at 431.

17
On the record presented, this Court perceives no abuse of discretion in the circuit

court’s award to meet that high standard. The circuit court appears to have sensibly

resolved a dispute between Nithyananda and the association as to (1) reasonable rates for

attorneys and support staff in the area and (2) the quantity of time reasonably necessary to

expend on the litigation in light of the complexities of the case. The circuit court made this

assessment in the face of arguments by each side claiming unnecessary paths in the

litigation. The association fails to demonstrate an abuse of discretion.

Conclusion

For the reasons set forth above, the circuit court’s judgment is affirmed.

___________________________________
Robin Ransom, Judge

All concur.

18

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/11094105. Public record. Not legal advice.
