Fee Clause Interpretation: Narrow Deed Restriction Language Did Not Extend To Non-Signatories

 

“Parties” Language Narrowed the Controversy Greatly.

     NMS Properties v. Jones, Case No. B246167 (2d Dist., Div. 3 Nov. 4, 2014) (unpublished) was a Santa Monica affordable housing case involving a fee recovery to a third-party beneficiary under a deed restriction applying only to “parties.” On appeal, the fee recovery was overturned because the deed restriction wording did not extend to non-signatories such as the claimed “third-party beneficiary”—hardly a “party.”

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