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McMillan v. Iserman

Law Dictionary
CASE BRIEFS

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Property Law Keyed to Cribbet

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Bloomberg Law

Citation. 22 Ill.120 Mich. App. 785, 327 N.W.2d 559 (Ct. App. 1982)

Brief Fact Summary. A neighborhood was under a restrictive covenant, which could be amended by three-fourths of the property owners in the subdivision at any time. The Defendant contracted with and proposed to build an assisted living center for the mentally impaired on one of the lots. The Plaintiffs amended the restrictive covenant to prohibit the use of the lots in the neighborhood from being used for a state-licensed group residential facility.

Synopsis of Rule of Law. An amended deed restriction does not apply to a lot owner who has, prior to the amendment, committed himself to a certain land use which the amendment seeks to prohibit, providing that: 1) there was justified reliance by the lot owner on the existing restriction (had no prior notice of a change); and 2) the lot owner will be prejudiced if the amendment applies.


Facts. A neighborhood was under a restrictive covenant, which could be amended by three-fourths of the property owners in the subdivision at any time. The Defendant contracted with and proposed to build an assisted living center for the mentally retarded on one of the lots. The Plaintiffs amended the restrictive covenant to prohibit the use of the lots in the neighborhood from being used for a state-licensed group residential facility. The trial court granted Defendant’s motion for summary judgment on the basis that the amendment to the restrictive covenant discriminates against mentally impaired persons and was a violation of the Fourteenth Amendment to the United States Constitution. The Plaintiffs appealed.

Issue. Does the amended deed restriction prohibiting the use of subdivision property for a state-licensed group residential facility apply to Defendant?
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