Westwood Montserrat v. AGK Sierra de Montserrat CA3

FACTS AND HISTORY OF THE PROCEEDINGS

1. Facts

Westwood was organized in 2005 to develop a common interest planned residential development in Loomis known as Sierra de Montserrat. The real property was subdivided into 62 lots, all of which were originally held in Westwood’s name. Westwood obtained a loan from Comerica Bank to finance the development. The promissory note was secured by a deed of trust. Westwood recorded a Declaration of Covenants, Conditions, Restrictions and Easements (CC&Rs) for the development on December 8, 2006. At the time Westwood recorded the CC&Rs, Comerica agreed to subordinate its deed of trust to the CC&Rs. Among other things, the CC&Rs established a homeowners association. The homeowners association was responsible for enforcing the CC&Rs. All lot owners in the project were members of the homeowners association. If the association chose not to bring a legal action to enforce the CC&Rs, any lot owner could do so. The CC&Rs established a design review committee (DRC). Designs for all project improvements were required to comply with design guidelines and be approved by the DRC. The CC&Rs also authorized the DRC to inspect any improvement and enforce…