John Chambers, et al.,
Respondents,
v.
Old Stone Hill Road Associates
et al.,
Appellants.
2004 NY Int. 22
Beginning in 1957, nearly 50 years ago, the owner of a
large tract of land in the Town of Pound Ridge, Westchester
County, began conveying parcels with restrictive covenants to
limit development on this land to single-family homes.
Plaintiffs and defendant Old Stone Hill Road Associates are the
current owners of several of these lots that are subject to
covenants in a deed within the chain of title, duly recorded,
prohibiting any building except detached residential dwelling
houses each for the occupancy and use of one family and any
In November 1998, Stone Hill leased about 2,000 square feet on one lot, with a right of access on an adjacent lot, to defendant New York SMSA Limited Partnership d/b/a Verizon Wireless. The purpose was for SMSA to construct a facility _- an antenna mounted on a 120-foot monopole with a two-story, 660- square-foot equipment storage shed disguised as a barn located at the base and parking space for maintenance vehicles _- to provide cellular telephone service in the Town and surrounding area. The lease to SMSA touched off a series of events leading to the present litigation, which essentially pits private contractual rights against what defendants claim is the public policy of the Telecommunications Act of 1996 (TCA) (47 USC § 151 et seq., as added by Pub L 104 110 US Stat 56) regarding wireless telecommunications facilities.
In April 2000, after considering 18 alternative sites
over a period of 15 months, the Town Board approved SMSA's
application for a special permit to construct the facility on
Stone Hill's property. Several of these sites had been evaluated
in combination with other locations so that they could be
compared with the proposed single site on Stone Hill's property.
Since the Stone Hill site was in an exclusively residential area,
the Town Board initially expressed a preference for the Town's
own Highway Garage/DPW site. In fact, the Stone Hill site was
Regardless, the Board ultimately rejected all of the alternatives, in part because adequate coverage could not be secured on a single site and might in the future require construction at an additional location. Plaintiffs initiated two lawsuits: the present action to enforce the restrictive covenants brought in March 2000, and an article 78 proceeding to challenge the Town's approval of the special permit brought in May 2000.
Thereafter, in June 2000, SMSA obtained a building
permit and immediately began construction, which was
substantially complete in September 2000. Plaintiffs meanwhile
moved for partial summary judgment on their claims for an
injunction based on the restrictive covenants. Supreme Court on
November 19, 2001, decided both cases. The court issued a
permanent injunction against violation of the restrictive
covenants, ordered removal of the facility and dismissed
defendants' counterclaim to extinguish the restrictive covenants
pursuant to RPAPL 1951 ( Chambers v Old Stone Hill Assoc., Sup Ct,
Westchester County, Nov. 19, 2001, Cowhey, J., Index No. 00-
04475). Separately, the court dismissed the article 78
proceeding, holding that the Town had acted properly; in the
court's words, upon a review of the record, it is plain that the
DPW site [the alternative site urged by plaintiffs] cannot
On defendants' appeal, the Appellate Division affirmed, concluding that the restrictive covenants evinced an intent to limit the area to residential use, and rejecting defendants' hardship claim because [w]here, as here, the servient property owner's hardships are largely self-created, they do not tip the balance of the equities in favor of extinguishing the restrictive covenants (303 2 536, 537 [2d Dept 2003]). The court also rejected defendants' public policy arguments, stating that the TCA does not expressly or impliedly preempt the power of private citizens to enforce restrictive covenants or otherwise limit the judicial enforcement of those private agreements ( id. at 538).
Defendants now place two arguments before us. First, they assert that enforcement of the restrictive covenants offends public policy, which should trump plaintiffs' contractual rights. Second, they claim that the hardships to defendants outweigh the benefits to plaintiffs, and that the restrictive covenants must therefore be extinguished under RPAPL 1951. We conclude that Supreme Court and the Appellate Division correctly rejected both arguments.
Restrictive covenants will be enforced when the
intention of the parties is clear and the limitation is
reasonable and not offensive to public policy ( see e.g. Reed,
Congress enacted the Telecommunications Act of 1996 to encourage development and reduce regulation of telecommunications technologies (47 USC § 151). Section 332 of the TCA furthers this purpose by making it unlawful to prohibit wireless services: The regulation of the placement, construction, and modification of personal wireless service facilities by any State or local government or instrumentality thereof * * * shall not prohibit or have the effect of prohibiting the provision of personal wireless services (47 USC § 332[c][7][B][i][II]). Asserting that the restrictive covenants offend the public policy embodied in the statute, defendants claim that enforcing the covenants will essentially prohibit personal wireless services in the Town of Pound Ridge. Additionally, defendants urge that, if the Appellate Division is affirmed and the tower removed, the Town's authority will be negated. Neither argument has merit.
Upholding plaintiffs' contractual rights in no way denies wireless telecommunications services in the Town of Pound Ridge. The Town Resolution stated that the Stone Hill site has the best chance of being the only site necessary to meet the needs and demands of wireless telecommunication service for the Town of Pound Ridge. But despite defendants' insistence, the Town's determination that the Stone Hill site might be the best single-site solution is not a determination that the Stone Hill site was the only site for the facility ( see e.g. Sitetech Group Ltd. v Bd. of Zoning Appeals of the Town of Brookhaven, 140 F Supp 2d 255, 264-265 [EDNY 2001] [upholding a zoning board's denial of a special permit on the ground that there were alternative sites even though the alternative sites would not have completely closed the gaps in service and would have required additional antennas]). The Town, as amicus, concedes the existence of another site or sites on which to locate the facility. Indeed, up to the very day the Town Board selected Stone Hill, alternative sites like the Highway Garage/DPW site were under active consideration. In short, these covenants do not prohibit or have the effect of prohibiting the provision of wireless telecommunications services in the Town of Pound Ridge.
Additionally, defendants assert that the Town's
authority to grant the special permit will be negated if the
restrictive covenants are enforced and the tower removed. The
Town's issuance of the special permit to construct the facility
The use that may be made of land under a zoning ordinance and the use of the same land under an easement or restrictive covenant are, as a general rule separate and distinct matters, the ordinance being a legislative enactment and the easement or covenant a matter of a private agreement.
The Court went on to make clear that a particular use of land may be enjoined as in violation of a restrictive covenant, although the use is permissible under the zoning ordinance and the issuance of a permit for a use allowed by a zoning ordinance may not be denied because the proposed use would be in violation of a restrictive covenant ( id. [citations omitted]; see also 2 Salkin, New York Zoning Law and Practice § 34.02 [4th ed] [enforcement (of a zoning ordinance) will be enjoined for a violation of a restrictive covenant]). In approving a special permit, a municipality determines only that the application complies with the municipality's standards and conditions contained in the zoning ordinance ( see Matter of North Shore Steak House v Bd. of Appeals of the Inc. Vil. of Thomaston, , 30 NY2d 238, 243-244 [1972]; Matter of Mobil Oil Corp. v Oaks, 55 AD2d 809, 809-810 [4th Dept 1976]; 2 Salkin, New York Zoning Law and Practice § 30.01 [4th ed]).
Thus, in separately dismissing the article 78 proceeding challenging the Town's permit and enforcing the restrictive covenants _- both on the same day _- Supreme Court correctly refused to allow the Town Board's decision that the Stone Hill lot was an appropriate site for the facility to override plaintiffs' right to enforce the restrictive covenants. Defendants and the Town cannot negate the restrictive covenants by ignoring them and proceeding with the permit process and construction.
Finally, in arguing that the restrictive covenants
offend public policy, defendants misread Crane Neck Assn. v New
York City/Long Is. County Servs. Group (61 2 154 [1984]). In
Crane Neck, the property in issue _- leased to the government for
use as a home for mentally disabled adults -- was subject to a
restrictive covenant that allowed only single-family dwellings.
There, however, Mental Hygiene Law § 41.34 (f) explicitly
preempted local laws and ordinances, defining a community
residence for this purpose as a family unit. This Court extended
the statute's explicit preemption to private covenants
restricting the use of property to single-family dwellings
because those agreements posed the same deterrent to effective
implementation of the State policy favoring residences for the
mentally disabled as the preempted local laws and ordinances. By
contrast, Congress expressly recognized the importance of local
land use authority in TCA section 332 (c) (7) (A), which makes
Similarly, we reject defendants' argument that the restrictive covenants should be extinguished under RPAPL 1951 (2), which provides:
When relief against such a restriction is sought in an action to quiet title or to obtain a declaration with respect to enforceability of the restriction * * * if the court shall find that the restriction is of no actual and substantial benefit to the persons seeking its enforcement or seeking a declaration or determination of its enforceability, either because the purpose of the restriction has already been accomplished or, by reason of changed conditions or other cause, its purpose is not capable of accomplishment, or for any other reason, it may adjudge that the restriction is not enforceable by injunction * * *.
As we underscored in Orange & Rockland Util. v Philwold Estates
(52 2 253, 266 [1981]), the issue is not whether [the party
seeking the enforcement of the restriction] obtains any benefit
from the existence of the restriction but whether in a balancing
of equities it can be said to be, in the wording of the statute,
'of no actual and substantial benefit' (emphasis in original).
Equally clear is that the party claiming that a restriction is
Here, Supreme Court found, and the Appellate Division agreed, that defendants have failed to meet their burden of proof and no credible evidence has been put forward by defendants that the landowners do not derive any actual and substantial benefit from restricting the land to solely residential use. To the contrary, plaintiffs have shown that the properties have benefitted from such restrictions. Given ample support in the record, this affirmed factual finding is beyond the scope of our review.
Nor do defendants' alleged hardships tip the balance of
equities in favor of extinguishing plaintiffs' rights. Here too,
Supreme Court and the Appellate Division properly balanced the
equities. In particular, the courts discounted SMSA's alleged
hardship because it proceeded with construction of the facility
with knowledge of the restrictive covenants and of plaintiffs'
intention to enforce them. Its difficulty was thus largely
self-created (303 2 at 537). As for defendant Stone Hill's
argument that it was unable to sell the property for residential
use, Supreme Court found that the [d]efendants have failed to
show that the restrictions' purpose in retaining the residential
nature of the area was not capable of being accomplished or that
there were any changed conditions that would warrant granting
defendants relief from the restrictive covenant. These affirmed
Addressing the dissent, for at least three reasons, the Second Circuit's decision in Sprint Spectrum v Willoth (179 F3d 630 [1999]) -- the nub of the dissent -- is inapposite. First, at issue here is the enforceability of the restrictive covenants, not the separate and distinct authority of the Town to grant the permit ( Matter of Friends of the Shawangunks v Knowlton, , 64 NY2d 387, 392 [1985]). Second, the TCA's ban applies to State or local government[s] or instrumentalit[ies], not individual citizens' efforts to enforce their rights.
Third, Sprint involved a conflict between the TCA's ban
on prohibiting service by state and local governments on the one
hand and a town's rejection of an application on the other.
Sprint did not implicate private contract rights. Indeed, the
Second Circuit made clear that it did not read the TCA to allow
the goals of increased competition and rapid deployment of new
technology to trump all other important considerations (179 F3d
at 639). That there are relatively large setbacks, few dwellings
and considerable topographic relief in the Stone Hill area
(dissent at 9) -- a consequence of the longstanding bargained-for
covenants -- is not a reason for now situating a 120-foot
Finally, we note that the Town urges that it would need time to relocate the antenna without interruption of service vital to public health and safety. Plaintiffs have consented to a reasonable time period for relocation.
Accordingly, the order of the Appellate Division should be affirmed, with costs.
The Town Board of the Town of Pound Ridge has
determined that siting a wireless telecommunications tower at the
Stone Hill Site provides the least intrusive means to close a
significant gap in personal wireless services in the Town. Under
I view this case from the essential standpoint of
section 332 of the TCA (42 U.S.C. § 332). The relevant language
of this provision makes it unlawful for State or local
authorities to regulate the placement, construction or
modification of personal wireless service facilities in such a
way as to "prohibit or have the effect of prohibiting the
provision of personal wireless services" (emphasis added) (47
U.S.C. § 332[c][7][B][i][II]). In considering whether to grant
New York SMSA Limited Partnership d/b/a Verizon Wireless (SMSA) a
special permit for the Stone Hill Site or for the Highway
Garage/DPW Site alone or in combination with another site, the
Town Board and the Town Planning Board were properly guided (in
fact, constrained) by the interpretation given to the TCA's anti-
prohibition ban by the United States Court of Appeals for the
Second Circuit in Sprint Spectrum, L.P. v Willoth, 176 F3d 630
[2d Cir. 1999]).[3]
In that case, Sprint filed three separate applications with the Planning Board for the Town of Ontario, New York, asking for site plan approval to construct three separate cell sites, each accommodating a 150-foot tall monopole tower. During a 17- month review period punctuated by public hearings and the submission and consideration of draft and final environmental impact statements, Sprint consistently resisted entertaining alternatives with respect to the number, height and placement of towers. Confronted with a choice between three towers or none, the Ontario Planning Board denied all three applications on environmental grounds. Sprint sued, asserting federal and state claims, lost in the District Court and appealed.
Sprint claimed a right by virtue of the anti-
prohibition clause to construct as many towers as were, in its
business judgment, necessary for its effective competition with
other telecommunications carriers, wireless or not. The Town
interpreted the clause as prohibiting only general bans, never
individual decisions on specific applications. In an opinion by
Circuit Judge (currently, Chief Judge) Walker, the Second Circuit
rejected both "extreme positions" ( Sprint, 176 F3d at 641) as
obviating the meaning of many of the TCA's other provisions and
as inconsistent with the statute's public policy goals: to
Commenting that "[i]t would be [a] gross understatement to say that the [TCA] is not a model of clarity" ( Sprint, 176 F3d at 641, quoting AT&T Corp. v Iowa Utils. Bd., 525 US 366 1999]), Judge Walker next engaged in a "detailed parsing of the statutory language, including layers of highly technical definitions" ( Sprint, 176 F3d at 641). At the end of this exegesis, he concluded that the anti-prohibition clause prevents localities from regulating personal wireless service facilities in such a way as to preclude users in a remote location from connecting to the national telephone network. "In other words, local governments must allow service providers to fill gaps in the ability of wireless telephones to have access to land-lines" ( id. at 643).
In view of the foregoing, the Second Circuit held in
Sprint that "the [TCA]'s ban on prohibiting personal wireless
services precludes denying an application for a facility that is
the least intrusive means for closing a significant gap in a
remote user's ability to reach a cell site that provides access
to land-lines" (emphasis added) ( id. at 643).[4]
Applying this
Under the Second Circuit's holding in Sprint, a provider must therefore make two showings in order to demonstrate that a permit denial prohibits or effectively prohibits service within the meaning of the TCA: that there is a significant gap in service coverage that the application seeks to fill, and that the application implements the least intrusive means necessary to fill the gap and provide the service. Put in another way, when a provider makes these showings, the TCA requires the locality to issue any necessary permits; a locality that nonetheless denies the necessary permits thereby effectively prohibits the provision of personal wireless services in violation of section 332 of the TCA.
In this case, it is undisputed that there was a significant gap in wireless coverage needing to be closed when SMSA filed its application. Further, the record fully supports the Town Board's conclusion that siting a tower at the Stone Hill Site represented the least intrusive means for closing this significant gap.
Specifically, in January 1999, SMSA applied for a
special permit under the Town's local law entitled "Wireless
Telecommunications Services Facilities," which amended the zoning
law to establish special standards and requirements for such
uses, subject to special permit approval. The Town Board
subsequently requested additional information, held a public
hearing and, in April 1999, forwarded SMSA's application to the
The Town Planning Board discussed the application at numerous meetings, solicited additional information from SMSA and engaged special counsel as well as technical consultants to assist in its review. As part of that review, the Planning Board studied alternative sites.
In November 1999, the Town Planning Board issued an "Advisory Review and Recommendation." At the outset, the Board noted that siting a wireless communications facility in Pound Ridge, while necessary, was made particularly difficult by certain "givens": "Pound Ridge is overwhelmingly residential and topographically varied and relatively rural in character"; and "[m]uch of the Town's minimal commercial area, normally more compatible for [a wireless telecommunications service facility] locations, is either low in elevation or within 2500 feet of an historic district, both of which make siting problematic."
In light of these factors, the Board made findings as follows:
"In its effort to identify the least intrusive means of
closing the existing gap in wireless service, the
[Planning] Board evaluated not only [the Stone Hill
Site] as proposed and as modified through the
proceedings, but also a number (18) of alternative
sites, eventually narrowed down to eight" (emphasis
added).
Further, while "[o]n balance, the [Stone Hill Site], having been
given more thorough consideration by [SMSA], seems to meet many
of the Town's criteria, except in one glaring area -- residential
Based on the Town Planning Board's findings and recommendations, the Town Board amended its site inventory list and received and reviewed an application from SMSA for a special permit for the DPW/Highway Garage Site. SMSA thus made two special permit applications -- one for the Stone Hill Site; one for the DPW/Highway Garage Site -- with the understanding that only one application would be approved and that the other would be withdrawn as a condition of this approval. The Board then undertook a detailed review of SMSA's application for the DPW/Highway Garage Site, just as it had already done for the Stone Hill Site. At the end of this review, the Board held a joint public hearing on the applications for both sites.
In April 2000, the Town Board adopted a resolution,
including a negative declaration under the State Environmental
Quality Review Act, with respect to the Stone Hill Site.[5]
The
In short, SMSA, unlike Sprint, did not resist alternative sites or mitigation measures put forward by the local authorities, and, in fact, went so far as to apply for a special permit for a suggested alternative site. The Stone Hill Site -- the best site technologically; the site with the fewest residential neighbors; the only site with the potential to function as a sole site -- represented the least intrusive means to close the acknowledged significant gap in the Town's personal wireless services. The Board's denial of the special permit, under these circumstances, would have effectively prohibited the provision of personal wireless services within the meaning of section 332 of the TCA, as interpreted by the Second Circuit in Sprint. A restrictive covenant -- a private contract -- can not thwart a land use that federal law carrying out national telecommunications policy requires local authorities to approve.
In Crane Neck Assn. v New York City/Long Is. County
Similarly, the proliferation of cell towers has
prompted resistance and legal challenges on the grounds of
unsightliness, perceived health risks and decreased property
values. Indeed, respondents in this case have, at one time or
another, opposed placement of the tower on the Stone Hill Site
for each of these reasons. As the Second Circuit recognized in
Sprint, while not allowing "the goals of increased competition
and rapid deployment of new technology to trump all other
important considerations, including the preservation of the
autonomy of states and municipalities" ( Sprint, 176 F3d at 639),
Of course, as I noted at the outset, the majority and I
disagree as to whether enforcement of the covenant would
effectively prohibit delivery of wireless services in the Town
within the meaning of section 332 of the TCA. The majority does
not consider the anti-prohibition ban implicated here because
Finally, unlike the majority, I find merit in SMSA's
related argument that enforcement of the covenant would
impermissibly nullify the Town's ability to regulate local land
use. The Town Board thoroughly examined and balanced the
interests and concerns of the affected property owners with those
of the entire Town before issuing the special permit to SMSA.
When respondent challenged the permit in an article 78
proceeding, Supreme Court held in the Town's favor. While as a
general rule restrictive covenants and zoning comfortably co-
exist and zoning does not destroy a preexisting private covenant
( see generally Friends of the Shawangunks, Inc. v Knowlton, , 64 NY2d 387 [1985]), this case is unusual. The covenant directly
conflicts with a special permit issued to provide a public
utility in a way that takes into account the best interests of
the community as a whole and furthers national telecommunications
policy. As a consequence of this covenant's enforcement,
multiple (and more intrusive) towers will now have to be sited in
Accordingly, I would reverse the order of the Appellate Division.
1 Supreme Court additionally rejected defendants' laches argument, finding no credible evidence that plaintiffs unreasonably delayed bringing their action. Neither that argument, nor mootness, was advanced in our Court.
2 See Restatement (Third) of Property (Servitudes) § 3.1, Comment i (The policies favoring freedom of contract, freedom to dispose of one's property, and protection of legitimate- expectation interests nearly always weigh in favor of the validity of voluntarily created servitudes.).
3 There is no question that the local authorities were aware of and conducted their review of SMSA's applications so as to conform with Sprint: when making its recommendations to the Town Board concerning SMSA's application for a special permit for the Stone Hill Site, the Planning Board cited Sprint and quoted its operative language when explaining the Town's obligations under the TCA.
4 Sprint is a leading case nationally, although its holding is not universally accepted. The Third Circuit shares the Second Circuit's interpretation of the anti-prohibition clause ( see APT Pittsburgh Ltd. P'ship v Penn Township, 196 F3d 469, 480 [3d Cir. 1999][The provider must show "that the manner in which it proposes to fill the significant gap in service is the least intrusive on the values that the denial sought to serve." In order to make this showing, the provider must demonstrate that "a good faith effort has been made to identify and evaluate less intrusive alternatives, e.g., that the provider has considered less sensitive sites, alternative system designs, alternative tower designs, placement of antennae on existing structures, etc."]). The Fourth Circuit has declined to adopt the Second and Third Circuits' interpretation, although it now seems to accept, at least in theory, that an individual zoning decision is capable of violating the anti-prohibition ban ( compare 360° Communications Co. of Charlottesville v Bd. of Supervisors of Albemarle County, 211 F3d 79, 86, 87 [4th Cir. 2000] [noting that "whether a single denial of a site permit could ever amount in effect to the prohibition of wireless services is a * * * difficult question" and expressing the view that "[a] community could rationally reject the least intrusive proposal in favor of a more intrusive proposal that provides better service or that better promotes commercial goals of the community"] with AT&T Wireless PCS, Inc. v City Council of Va. Beach, 155 F3d 423 [4th Cir. 1998][the anti-prohibition ban applies only to blanket prohibitions and general bans or policies, and not to individual zoning decisions]). The Seventh Circuit has declined to adopt the Second and Third Circuits' least-intrusive-means formulation ( see VoiceStream Minneapolis, Inc. v St. Croix County, 342 F3d 818, 834 [7th Cir. 2003]["(T)he provider must show that its 'existing application is the only feasible plan' and that 'there are no other potential solutions to the purported problem'" quoting Second Generation Props., L.P. v Town of Pelham, 313 F3d 620, 630, 635 (1st Cir. 2002)]). The Seventh Circuit agree[s] with the First Circuit's formulation of the statutory requirement and hold[s] that, so long as the service provider has not investigated thoroughly the possibility of other viable alternatives, the denial of an individual permit does not 'prohibit or have the effect of prohibiting the provision of personal wireless services'" ( VoiceStream, 342 F3d at 834-835, quoting 47 U.S.C. § 332[c][7][B][i][II]).
5 The majority stresses that the Stone Hill Site was, in fact, "taken off" the Town Board's "agenda" during the review process only to be "placed back on the agenda" shortly before the Board issued the special permit (Majority opn at 3). Plaintiffs did not mention the restrictive covenant until the very end of the Board's tandem review of SMSA's two applications. When plaintiffs sued, defendants accordingly asserted laches as a defense. To counter this defense, plaintiffs protested that they had "believed" that the Stone Hill Site "was no longer being considered" and "therefore * * * felt no need to take any action" any sooner than they did; and that the DPW/Highway Garage Site was "the only application outstanding" or "on the table" as late as February 2000. The record belies these "beliefs," insofar as they may be interpreted to suggest that the Board resurrected the Stone Hill Site at the eleventh hour after having previously abjured any continuing interest in it. The Stone Hill Site may have dropped off the Board's "agenda" between November 1999 and February 2000, but only in the sense that the Board was reviewing SMSA's application for the DPW/Highway Garage during this time period, having already reviewed SMSA's application for the Stone Hill Site.
6 The original Stone Hill Site is a 4.5-acre parcel. Access to the tower and equipment shed is over an adjacent five-acre parcel, owned by the same landowner. In approving the special permit, the Town Board directed SMSA and the landowner to record a restrictive covenant limiting the adjacent parcel's use to open space and passive recreation.