| Court: | NM Court of Appeals |
| Facts: | The Browns own a lot subject to a restrictive covenant that says what kind of pre-fabricated home you can put there. The brand specified ("Preferred") can't deliver in a timely manner, so they bring in a very similar house, which is compliant with all relevant codes. The landowners file for injunctive relief. |
| Posture: | Trial court finds the terms of the covenant unreasonable and denies relief. Appeal. |
| Issue: | Are restrictive covenants required to be reasonable? |
| Holding: | No. Reversed. |
| Rule: | It's inappropriate for a court to conduct its own inquiry into reasonableness when deciding whether to enforce a covenant. |
| Reasoning: | Covenants are valuable property rights. We can't allow people to violate conditions they've freely entered into. |
| Dicta: | Dissent: there have got to be some rational limits on what we'll enforce (e.g., arbitrary and capricious). R3P. |