Arbors at Sugar Creek Homeowners Ass’n v. Jefferson Bank & Trust Co., Inc.

Evolution Development LLC purchased land to create the Arbors at Sugar Creek through loans provided by Jefferson Bank & Trust Company. Evolution recorded an “Indenture” to run with the land. Evolution subsequently declared bankruptcy, and Jefferson Bank foreclosed. Jefferson Bank partnered with McKelvey Homes, LLC to finish building homes on the remaining lots. The existing homeowners deemed the building plans in violation of the Indenture, which led to the current dispute. The homeowners filed suit against McKelvey and Jefferson Bank seeking declaratory and injunctive relief and alleging claims of damages. Jefferson Bank filed a three-count counterclaim petition seeking declaratory relief and damages against the homeowners. The circuit court (1) granted summary judgment in favor of Plaintiffs on Counts II and III of Jefferson Bank’s counterclaim petition; (2) granted summary judgment in favor of Jefferson Bank and McKelvey on Counts II-V of Plaintiffs’ petition; (3) granted declaratory relief in favor of Jefferson Bank and McKelvey; and (4) sustained Jefferson Bank’s motion for reimbursement. The Supreme Court (1) reversed in part, holding that the circuit court erred in sustaining Jefferson Bank’s motion for reimbursement; and (2) affirmed in all other respects, holding that summary judgment was properly entered and that the circuit court did not err in granting declaratory relief. View "Arbors at Sugar Creek Homeowners Ass’n v. Jefferson Bank & Trust Co., Inc." on Justia Law