Mitchell Musgrove and Julian Ard v. Westridge Street Partners I, LLC ( 2009 )


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  •                          COURT OF APPEALS
    SECOND DISTRICT OF TEXAS
    FORT WORTH
    NO. 2-07-281-CV
    MITCHELL MUSGROVE                                                  APPELLANTS
    AND JULIAN ARD
    V.
    WESTRIDGE STREET                                                       APPELLEE
    PARTNERS I, LLC
    ------------
    FROM THE 352ND DISTRICT COURT OF TARRANT COUNTY
    ------------
    MEMORANDUM OPINION 1
    ------------
    This is an appeal from a judgment denying appellants Mitchell Musgrove
    and Julian Ard injunctive relief to enforce restrictive covenants against proposed
    development by appellee Westridge Street Partners I, LLC (Westridge). In seven
    issues, appellants contend that the developer failed to establish the affirmative
    1
    … See Tex. R. App. P. 47.4.
    defenses of estoppel, abandonment, and changed conditions and that the
    nonwaiver clause in the covenants precludes application of these defenses. We
    affirm.
    I. Background
    In 1946, the A.C. Luther Company platted Block 52 of the Ridglea
    Addition to the City of Fort Worth. Block 52 runs north and south for about
    seven-tenths of a mile and sits between Westridge Avenue and Ridglea Country
    Club in West Fort Worth, off Camp Bowie Boulevard to the south. Each party
    to this appeal owns property situated within Block 52.
    The original plat for Block 52 contained eight single-family lots.       In
    connection with the filing of the plat, A.C. Luther also filed an instrument
    entitled “Dedication,” which contains restrictions for future construction within
    Block 52. The restrictions at issue in this appeal pertain to frontage, set-back,
    and the amount of free space between side property lines:
    Frontage—Homes are to be built facing Westridge Avenue and have
    a presentable front to the golf course running behind . . . .
    Set-back—No building can be built closer to the adjoining street or
    streets than the building line shown on the original plat . . . .
    Free Space/Side Yard—No part of any residence can be erected
    nearer than twenty feet from the side property line . . . .
    2
    In 1960, an apartment complex was built within three of the original lots.
    Instead of single one-family residential structures only, this development caused
    two original lots and part of a third to have an apartment complex with twenty-
    eight individual units. A surveyor testified that all of these units violated the
    side yard and frontage restrictions and that some violated the set-back
    restrictions. Clay Brants, the real estate agent who formed Westridge, testified
    that this development violated all three restrictions at issue. Almost twenty
    years later, the apartments were converted to condominiums and remain there
    today.
    In 1979, following a signed waiver of the restrictions by A.C. Luther, the
    then-owners of two other lots in Block 52 constructed a garden home
    development, with fourteen garden homes on the two lots. This development
    resulted in conversion of two original lots to lots with fourteen homes within
    eight separate structures and seventeen separate garage outbuildings. Brants
    testified that the homes were built in violation of all three restrictions. The
    surveyor also testified that the garden home construction generally violated the
    frontage restriction, that four of the eight structures violated the set-back
    restrictions, and that the construction, based on aerial photographs, appeared
    to violate the side yard restrictions. The garden homes remain there today.
    3
    In 1980, the City of Fort Worth, through the City Plan Commission (the
    Commission), approved a plat adding seven lots to the north end of Block 52.
    Condominiums and townhouses were constructed on these lots (and still exist
    today). If the restrictions applied to these additional lots, this development was
    in violation of the restrictions. 2
    In 1985, two of the replatted lots were again replatted into seven smaller
    lots, on which more garden homes were built. The surveyor testified that some
    of this construction violated some of the restrictions.
    By 2004, only four detached single-family residences remained on Block
    52. The owners of these lots were Ard, Musgrove, Larry Heppe, and Nick
    Acuff.    Ard’s home and outbuildings violate the side yard restrictions.
    Musgrove’s home violates the side yard and set-back restrictions.
    In late 2004, Ard approached Brants about an idea that Ard had
    discussed with Heppe several times prior—to either sell his property or develop
    another garden home project on his lot and Heppe’s. Brants and some business
    partners met with Heppe and Acuff regarding the development idea. Brants
    then formed Westridge to accomplish this development. Heppe and Acuff sold
    2
    … Appellants urge that any development outside the original eight lots
    is immaterial to the issues in this case. Without deciding whether this is
    correct, we have limited our review of the trial court’s judgment and findings
    of fact and conclusions of law to evidence regarding the original eight lots.
    4
    their lots to Westridge, but Ard refused to do so.         W estridge modified its
    development plans accordingly, tore down the houses on the lots previously
    owned by Heppe and Acuff, and proceeded to seek approval from the
    Commission for the garden home development project.               The Commission
    eventually approved Westridge’s proposed replatting, and Westridge promptly
    filed the replat.
    In late 2005, Westridge met with Musgrove about the project. Musgrove
    voiced no objection to the proposed development and asked if Westridge was
    interested in buying his property for $1 million. Westridge did not purchase
    Musgrove’s lot but proceeded to market lots in the proposed development on
    the lots previously owned by Heppe and Acuff.
    In January 2006, appellants filed this action against Westridge seeking
    an injunction to prevent the planned development. After a bench trial, the trial
    court signed an order denying injunctive relief. The trial court later filed findings
    of fact and conclusions of law, and this appeal ensued.
    II. Standard of Review
    We review an order granting or denying injunctive relief for an abuse of
    discretion.3 A trial court abuses its discretion when it acts without reference
    3
    … See Operation Rescue-Nat’l v. Planned Parenthood of Houston & Se.
    Tex., Inc., 
    975 S.W.2d 546
    , 560 (Tex. 1998).
    5
    to any guiding rules or principles or misapplies the law to established facts. 4
    Although we do not review an order granting or denying injunctive relief for
    legal and factual sufficiency of the evidence, sufficiency of the evidence is a
    significant factor in determining whether the trial court abused its discretion.5
    If some evidence supports the trial court’s order, the trial court does not abuse
    its discretion to the extent it is called upon to resolve fact questions in deciding
    whether to grant or deny injunctive relief.6
    A trial court’s construction of a restrictive covenant is reviewed de novo.7
    Covenants restricting the free use of land are not favored by the courts, but
    when they are confined to a lawful purpose and are clearly worded, they will
    be enforced.8 All doubts must be resolved in favor of the free and unrestricted
    4
    … See Downer v. Aquamarine Operators, Inc., 
    701 S.W.2d 238
    , 241–42
    (Tex. 1985).
    5
    … See Crouch v. Tenneco, Inc., 
    853 S.W.2d 643
    , 646 (Tex.
    App.—Waco 1993, writ denied).
    6
    … See Davis v. Huey, 
    571 S.W.2d 859
    , 862 (Tex. 1978).
    7
    … See Pilarcik v. Emmons, 
    966 S.W.2d 474
    , 478 (Tex. 1998).
    8
    … See Wilmoth v. Wilcox, 
    734 S.W.2d 656
    , 657 (Tex. 1987); Davis v.
    Huey, 
    620 S.W.2d 561
    , 565 (Tex. 1981).
    6
    use of the premises, and the restrictive clause must be construed strictly
    against the party seeking to enforce it.9
    III. Analysis
    The parties do not contest that Westridge’s proposed development would
    violate the restrictive covenants. They join issue only as to whether Westridge
    established its affirmative defenses against enforcement of the covenants. If
    Westridge established any one of its three affirmative defenses—abandonment,
    change of conditions, and estoppel—then the trial court properly denied
    injunctive relief for appellants. 10
    A.    Abandonment and Waiver of Restrictive Covenants—Applicable Law
    The Supreme Court of Texas declared over fifty years ago in Cowling v.
    Colligan that a court may refuse to enforce a restrictive covenant “because of
    the acquiescence of the lot owners in such substantial violations within the
    restricted area as to amount to an abandonment of the covenant or a waiver of
    the right to enforce it.” 11 Cases subsequent to Cowling illustrate that, in the
    9
    … See 
    Wilmoth, 734 S.W.2d at 657
    ; Settegast v. Foley Bros. Dry Goods
    Co., 
    114 Tex. 452
    , 455, 
    270 S.W. 1014
    , 1016 (1925).
    10
    … Cf. Tony Gullo Motors I, L.P. v. Chapa, 
    212 S.W.3d 299
    , 314 (Tex.
    2006) (noting that “to prevail on a . . . claim[,] a party must overcome any and
    all affirmative defenses”).
    11
    … Cowling v. Colligan, 
    158 Tex. 458
    , 461–62, 
    312 S.W.2d 943
    , 945
    (1958).
    7
    context of restrictive covenants, the concepts of abandonment and waiver go
    hand in hand—a finding that a restriction has been abandoned is essentially the
    same, and must have the same evidentiary support, as a finding that the right
    to enforce the covenant has been waived.12
    To establish the affirmative defense of abandonment or waiver, the
    defendant “must prove that the violations are so great as to lead the mind of
    the average man to reasonably conclude that the restriction in question has
    been abandoned.” 13 In determining whether a restrictive covenant has been
    abandoned or waived, the factors a court should consider include “the number,
    nature, and severity of the then[-]existing violation[s], any prior acts of
    enforcement of the restriction, and whether it is still possible to realize to a
    12
    … See, e.g., Jim Rutherford Invs., Inc. v. Terramar Beach Cmty. Ass’n,
    
    25 S.W.3d 845
    , 852 (Tex. App.—Houston [14th Dist.] 2000, pet. denied)
    (“[T]o establish . . . waiver in a deed restriction case, the non-conforming user
    must prove that the violations then existing are so great as to lead the average
    man to [reasonably] conclude [that] the restriction in question [has] been
    abandoned and its enforcement waived.”); Pebble Beach Prop. Owners’ Ass’n
    v. Sherer, 
    2 S.W.3d 283
    , 289–90 (Tex. App.—San Antonio 1999, pet. denied)
    (“To satisfy [the] burden [for proving waiver], Sherer must prove the violations
    then existing were so extensive and material as to reasonably lead to the
    conclusion that the restrictions had been abandoned.”); Traeger v. Lorenz, 
    749 S.W.2d 249
    , 250–51 (Tex. App.—San Antonio 1988, no writ) (holding that
    party was entitled to single jury question on abandonment and waiver).
    13
    … Tanglewood Homes Ass’n, Inc. v. Henke, 
    728 S.W.2d 39
    , 43 (Tex.
    App.—Houston [1st Dist.] 1987, writ ref’d n.r.e.) (abandonment); see also
    Hicks v. Loveless, 
    714 S.W.2d 30
    , 35 (Tex. App.—Dallas 1986, writ ref’d
    n.r.e.) (stating identical test for establishing waiver).
    8
    substantial degree the benefits intended through the covenant.” 14 The failure
    of property owners to object to trivial violations does not preclude enforcement
    of the covenant.15    On the other hand, an abandonment or waiver finding
    should be sustained where the party resisting enforcement of the covenant
    presents proof that the violations then existing were so extensive and material
    as to reasonably lead to the conclusion that the restrictions had been
    abandoned or waived.16
    In analyzing whether there has been an abandonment or waiver of a
    restrictive covenant, courts do not limit their focus to the actions, inactions, or
    subjective intent of any one party affected by the restrictions. Rather, they
    should consider the equities of the entire situation,17 including but not limited
    14
    … 
    Tanglewood, 728 S.W.2d at 43
    –44 (abandonment) (internal
    quotation omitted); see also Pebble 
    Beach, 2 S.W.3d at 289
    –90 (waiver and
    abandonment); 
    Hicks, 714 S.W.2d at 35
    (waiver).
    15
    … See Sharpstown Civic Ass’n, Inc. v. Pickett, 
    679 S.W.2d 956
    , 958
    (Tex. 1984); Pebble 
    Beach, 2 S.W.3d at 290
    ; 
    Hicks, 714 S.W.2d at 34
    –36.
    16
    … See Pebble 
    Beach, 2 S.W.3d at 290
    ; Dempsey v. Apache Shores
    Prop. Owners Ass’n, 
    737 S.W.2d 589
    , 594 (Tex. App.—Austin 1987, no writ);
    
    Tanglewood, 728 S.W.2d at 43
    –44; 
    Hicks, 714 S.W.2d at 35
    .
    17
    … See 
    Cowling, 158 Tex. at 462
    –63, 312 S.W.2d at 946 (stating that
    in deciding restrictive covenant case, court’s “judgment must arise out of a
    balancing of equities or of relative hardships”); Gigowski v. Russell, 
    718 S.W.2d 16
    , 22 (Tex. App.—Tyler 1986, writ ref’d n.r.e.) (“In determining
    whether it would be inequitable to enforce a restrictive covenant against a
    particular lot owner, we must weigh the equities of the owner in violation of the
    9
    to the nature and severity of past violations relative to the restriction sought to
    be enforced,18 the extent to which the person attempting to enforce the
    restriction relied on the restriction in purchasing the property,19 and the number
    of properties subject to the restriction relative to the number of violations. 20
    covenant against the equities favoring other lot owners who acquired their
    property on the strength of the restriction.”).
    18
    … See Sharpstown Civic 
    Ass’n, 679 S.W.2d at 958
    (enforcing
    residential-only restriction when prior violation—small office building—was
    insignificant compared to proposed use—commercial car wash); 
    Cowling, 158 Tex. at 462
    –63, 312 S.W.2d at 946–47 (enforcing residential-only restriction
    when only past violation was “advent of churches into the subdivision”); 
    Hicks, 714 S.W.2d at 34
    –36 (holding that past violations of residential-only restriction
    were minor when compared to use of property for machine shop).
    19
    … See, e.g., Ski Masters of Tex., LLC v. Heinemeyer, 
    269 S.W.3d 662
    ,
    672–73 (Tex. App.—San Antonio 2008, no pet.) (enforcing restrictive covenant
    in part because of evidence that parties seeking to enforce residential-only
    restriction presented evidence of reliance on restriction when purchasing
    property); Simms v. Lakewood Vill. Prop. Owners Ass’n, 
    895 S.W.2d 779
    ,
    786–87 (Tex. App.—Corpus Christi 1995, no writ) (enforcing restrictive
    covenants where parties seeking to enforce relied on restrictions in purchasing
    property).
    20
    … See 
    Tanglewood, 728 S.W.2d at 44
    (holding that (1) evidence of
    fifteen violations of set-back restriction for garages and carports out of fifty-six
    total properties subject to set-back restriction is sufficient to support jury
    finding of abandonment of that restriction, but (2) five minor violations of set-
    back restriction for main residence will not support waiver finding); see also Jim
    Rutherford 
    Invs., 25 S.W.3d at 852
    (holding that evidence of only one violation
    of set-back restriction will not support abandonment finding); Pebble 
    Beach, 2 S.W.3d at 290
    –91 (holding that evidence of fourteen violations of covenant
    prohibiting trailers and mobile homes out of approximately 800 lots will not
    support abandonment finding).
    10
    B.    Effect of Nonwaiver Provision on Abandonment and Waiver Defense
    The restrictive covenants contain the following nonwaiver clause:
    [F]ailure of [A.C. Luther] or the owner or owners of any other lot or
    lots [in Block 52] to enforce any of the restrictions or covenants
    herein set forth at the time of its violation shall in no event be
    deemed to be a waiver of the right to do so at any time thereafter.
    Appellants argue in their second issue that this nonwaiver provision precludes
    Westridge’s abandonment/waiver defense as a matter of law.            Westridge
    responds that nonwaiver provisions are irrelevant to the issue of whether a
    restriction has been abandoned and that in any event appellants waived the
    nonwaiver provision.
    1.      Enforceability of Nonwaiver Provision
    Nonwaiver clauses or provisions are generally enforceable in Texas.21
    Moreover, Texas courts have treated nonwaiver provisions in restrictive
    covenants as enforceable.
    In TX Far West, Ltd. v. Texas Investments Management, Inc., the Austin
    Court of Appeals considered a restrictive covenant requiring, among other
    things, payment of annual maintenance fees.22 Citing a nonwaiver provision,
    21
    … See, e.g., A.G.E., Inc. v. Buford, 
    105 S.W.3d 667
    , 676 (Tex.
    App.—Austin 2003, pet. denied); Straus v. Kirby Court Corp., 
    909 S.W.2d 105
    , 108 (Tex. App.—Houston [14th Dist.] 1995, writ denied).
    22
    … 
    127 S.W.3d 295
    , 298–99 (Tex. App.—Austin 2004, no pet.).
    11
    the Austin court reversed a summary judgment that the covenant had been
    waived and remanded for further proceedings, holding that the prior owners’
    acquiescence in alleged violations of the covenant did not establish waiver as
    a matter of law.23
    Similarly, in Simms v. Lakewood Village Property Owners Ass’n, a party
    resisted payment of maintenance fees required by a restrictive covenant on the
    ground that the restrictions had been abandoned.24 The Corpus Christi Court
    of Appeals held that some evidence supported the trial court’s conclusion that
    the general scheme and plan for the subdivision had been followed and that,
    therefore, the restrictions had not been waived or abandoned. 25 The Simms
    court cited a nonwaiver provision in the restrictive covenant, stating that the
    provision “was included in the covenant to protect [against] any claims that the
    covenant had been waived or abandoned because of a failure to prosecute prior
    violations.” 26
    23
    … 
    Id. at 306.
          24
    
    895 S.W.2d at 786
    –87.
    25
    … See 
    id. 26 …
    Id. at 787.
    
    12
    2.      Waiver of Nonwaiver Provision
    The fact that nonwaiver provisions may be enforceable in Texas,
    however, does not resolve the issue here, which is whether the nonwaiver
    provision at issue was itself waived.      Like other contractual provisions,
    nonwaiver provisions can be waived.27 And neither TX Far West nor Simms
    holds, as appellants ask this court to hold, that the existence of a nonwaiver
    provision precludes a finding of abandonment and waiver as a matter of law.
    Far from declaring that a nonwaiver provision conclusively resolved the issue,
    the TX Far West court held that the existence of the nonwaiver provision raised
    a fact issue on waiver.28 And Simms suggests that restrictive covenants can
    be waived, despite the existence of a nonwaiver provision, when there is
    evidence that violations of the covenants subvert the general scheme or plan.29
    Neither party cites, and our research has not uncovered, any Texas case
    that specifically addresses the issue of whether a nonwaiver provision in a
    27
    … See 
    A.G.E., 105 S.W.3d at 676
    ; 
    Straus, 909 S.W.2d at 108
    ;
    Winslow v. Dillard Dep’t Stores, Inc., 
    849 S.W.2d 862
    , 863–64 (Tex.
    App.—Texarkana 1993, writ denied).
    28
    
    127 S.W.3d at 306
    .
    29
    
    895 S.W.2d at 786
    –87. Equally important in Simms was the fact
    that many lot owners had purchased in reliance on the restrictions. See 
    id. (“To hold
    [that the restrictions were waived] would be an injustice to the many
    lot owners who purchased their property in reliance upon the protection
    afforded by the covenants and are still relying upon that protection.”).
    13
    restrictive covenant is waived when the restrictions have been abandoned. We
    agree, however, with the holding of the Arizona court of appeals in Burke v.
    Voicestream Wireless Corp. II30 that a “non-waiver provision would be
    ineffective if a complete abandonment of the entire set of [r]estrictions has
    occurred.” 31 Such an abandonment has occurred, according to the Arizona
    court, when the violations are so pervasive that they have “destroyed the
    fundamental character of the neighborhood.” 32 To determine whether the trial
    court erred by holding that the nonwaiver provision has been waived, then, we
    must examine the record to see if there is evidence of abandonment, that is, of
    violations so pervasive that the trial court could reasonably have determined
    that the fundamental character of the neighborhood had been destroyed.
    3.       Evidence Supporting Trial Court’s Abandonment Conclusion
    We review the trial court’s abandonment conclusion based on three
    factors: the number, nature, and severity of the then-existing violations; any
    30
    … 
    87 P.3d 81
    (Ariz. Ct. App. 2004).
    31
    … 
    Id. at 87.
          32
    … Id.; see also Venture Out at Mesa, Inc. v. Osburn, 
    2008 WL 4182858
    , at *7 (Ariz. Ct. App. 2008) (holding that tenant did not establish
    waiver of nonwaiver provision when homeowners’ association sought to
    enforce age restriction and there was no evidence that restrictions generally had
    been abandoned such that fundamental character of development had
    changed).
    14
    prior acts of enforcement of the restriction; and whether it is still possible to
    realize to a substantial degree the benefits intended through the covenant.33
    Applying these factors, first, there is evidence of a significant number of
    substantial violations of the restrictions. 34   Four of the original eight lots
    contained apartment buildings and garden homes instead of one single-family
    residence as was contemplated in the original plat in 1946.35          Westridge
    presented evidence that most of the structures built on these four lots violated
    one or more of the restrictions. Specifically, there was evidence that (1) all of
    the construction on three of the original lots—the apartment buildings—violated
    the side yard and frontage restrictions and that some of this construction
    violated the set-back restrictions; (2) construction on two of the original
    lots—the garden homes—generally violated the frontage restriction, appeared
    to violate the side yard restriction, and half violated the set-back restrictions;
    33
    … See Pebble 
    Beach, 2 S.W.3d at 290
    –91; 
    Tanglewood, 728 S.W.2d at 43
    –44.
    34
    … See 
    Cowling, 158 Tex. at 462
    –63, 312 S.W.2d at 945–46;
    
    Tanglewood, 728 S.W.2d at 43
    –44.
    35
    … See 
    Tanglewood, 728 S.W.2d at 44
    (holding that evidence of
    violations of set-back restrictions on fifteen out of fifty-six properties will
    support abandonment finding).
    15
    and (3) the homes of both appellants violated the side yard restrictions, and the
    home of one of the appellants also violated the set-back restrictions. 36
    Moreover, this evidence supports a finding that the fundamental character
    of the neighborhood has been abandoned.37 The restrictions at issue are part
    of a cluster of covenants that include the declaration that “[n]o . . . apartment
    house . . . and no building of any kind whatsoever shall be erected or
    maintained thereon except private dwelling houses . . . [denoted] and designed
    for occupancy by a single family only.” The trial court could reasonably have
    inferred from the evidence, including this covenant, that the restrictions on set-
    backs, frontages, and side property lines were part of an overall intent to
    preserve Block 52 as eight lots each with only a single one-family residence.
    But by 1985, Block 52 had primarily become condominiums, townhouses, and
    garden homes, undercutting the essential purpose underlying the restrictions
    and destroying the fundamental character of Block 52 as contemplated by the
    restrictive covenants generally.   This factor weighs heavily in favor of the
    abandonment conclusion.
    36
    … See Pebble 
    Beach, 2 S.W.3d at 290
    –91; 
    Tanglewood, 728 S.W.2d at 43
    –44.
    37
    … See 
    Burke, 87 P.3d at 87
    ; cf. 
    Simms, 895 S.W.2d at 786
    –87
    (affirming holding of no abandonment or waiver where there was “evidence that
    the general scheme and plan of the subdivision has been followed”).
    16
    Second, appellants presented no evidence of any prior attempts to
    enforce the restrictions. 38 There was evidence that A.C. Luther waived the
    restrictions with regard to the 1979 garden home development on two of the
    original lots, but there is no evidence that any other property owner within the
    restricted area, including appellants, objected to this waiver or otherwise ever
    attempted to enforce the restrictions.       This factor weighs in favor of the
    abandonment conclusion.
    Third, the trial court found that Westridge’s proposed development would
    have a substantially different effect on appellants than previous violations of the
    restrictions and that appellants would realize substantial benefits from
    enforcement of the restrictions. Westridge does not contest these findings.
    This factor weighs against the abandonment conclusion.
    Finally, we note that appellants presented no evidence that they
    purchased their properties in reliance on the restrictions.      To the contrary,
    appellants did not know the restrictions existed until they began to pursue
    litigation to prevent Westridge’s proposed development. Bearing in mind that
    courts must balance the equities favoring the lot owner in violation of restrictive
    covenants against lot owners who acquire their property on the strength of the
    38
    … See 
    Cowling, 158 Tex. at 462
    –63, 312 S.W.2d at 945–46;
    
    Tanglewood, 728 S.W.2d at 43
    –44.
    17
    restrictions, 39 we conclude that the trial court did not err by holding that the
    restrictions were abandoned.
    Appellants emphasize the trial court’s finding that neither of them
    intentionally waived their right to enforce the restrictions. Appellants’ individual
    intent, however, is relevant to the abandonment analysis only to the extent that
    they purchased in reliance on the restrictions (which they did not) and that they
    attempted to previously enforce the restrictions (which they did not). Because
    we reject appellants’ argument that a nonwaiver provision defeats an
    abandonment defense as a matter of law, and because evidence of substantial
    violations so pervasive that the fundamental nature and character of the
    neighborhood has been abandoned is also evidence that a nonwaiver provision
    has been abandoned, we cannot say that the trial court erred in holding that
    appellants waived the nonwaiver provision. We overrule appellants’ second
    issue.
    C.       Effect of Findings of “Substantial Benefit” and “Substantially Different
    Effect”
    In their third and fourth issues, appellants argue that the trial court’s
    findings—that Westridge’s proposed development will have a “substantially
    different effect” on appellants’ properties than prior violations of the restrictions
    39
    … See supra n.17.
    18
    and will materially affect appellants’ enjoyment of their properties—preclude the
    trial court’s abandonment conclusion as a matter of law. But these factors are
    not, standing alone, dispositive of the issue as a matter of law. The trial court
    must weigh all the factors and balance all the equities in determining whether
    there has been an abandonment of the restrictions. 40
    Appellants rely on the Supreme Court of Texas’s decision in Sharpstown
    in asserting that an abandonment or waiver finding is erroneous as a matter of
    law when the proposed use is substantially different in its effect than prior
    violations.    In Sharpstown, however, the supreme court held only that a
    comparatively minor violation of a residential-only restriction—use of a single
    property as an office building—would not support a holding that the residential-
    only restriction is abandoned for any proposed future use, including a
    commercial car wash.41 The supreme court reasoned that to so hold would
    mean that use of a residential property to give piano lessons would mean any
    property owner could subsequently convert his property into a service station,
    a result the court deemed unreasonable. 42 Importantly, however, the court held
    that the party seeking to enforce the residential-only restriction did waive that
    40
    … See supra nn.12–19.
    41
    
    679 S.W.2d at 958
    .
    42
    … See 
    id. 19 restriction
    “as to the use of [the property] for the purposes for which it was
    used [i.e., as an office building] from 1970 until purchased by [the party
    seeking to avoid the restriction] in November of 1979.” 43 In other words, a
    restriction can be waived to the extent it is violated, even if a more expansive
    “waiver” would not be supported by the evidence.
    Here, the record discloses evidence not merely of a single violation of the
    restrictions, like in Sharpstown, but of ongoing material violations of the
    restrictions that fundamentally changed the character of the planned
    development. Under these circumstances, the trial court could reasonably have
    concluded that (1) the proposed development immediately adjacent to
    appellants’ properties would have a substantially different effect than earlier
    violations farther from appellants’ properties and enforcing the restrictions
    would substantially benefit appellants, but (2) nevertheless the restrictions have
    been abandoned based on the totality of the circumstances and the balancing
    of equities. We overrule appellants’ third and fourth issues.
    43
    … 
    Id. 20 IV.
    Conclusion
    For the foregoing reasons, we affirm the trial court’s judgment.44
    PER CURIAM
    PANEL: CAYCE, C.J.; DAUPHINOT and MCCOY, JJ.
    DELIVERED: April 9, 2009
    44
    … Because of our disposition of the abandonment and waiver issues, we
    need not reach appellants’ other issues regarding changed conditions and
    estoppel. See Tex. R. App. P. 47.1.
    21