Waiver and laches failed against clear Montana covenants — and the enforcer got its fees
Waiver and laches failed against clear Montana covenants — and the enforcer got its fees
2026-09-15 · Montana · Courts
What happened. The two defences Montana owners most often raise against delayed or uneven covenant enforcement — waiver and laches — both failed, and the Supreme Court explained why in terms an association can use.
The decision
Sloway Cabin, LLC v. Extreme, 2025 MT 161, docket DA 24-0530, decided July 29, 2025. Justice Gustafson wrote for the Court. Published and citable. It affirmed the Fourth Judicial District Court, Mineral County (Hon. Jason Marks), which had enjoined the violations, ordered remediation, and awarded the plaintiff attorney fees.1
The covenants and the use
The Sloway Flats Minor Subdivision covenants, recorded February 1, 2006 “for the purpose of enhancing and protecting the value, desirability and attractiveness of the real property,” included:
No. 2: “No lot or tract or part thereof shall be used for any commercial business.”
No. 5: “No horses, cows or any other barnyard animals will be allowed on said properties. This includes any exotic type animals.”
No. 8: “No discharging of firearms shall be allowed.”
Plus bans on rubbish and storage, noxious or offensive activity, mobile and modular homes, and weed-board non-compliance. The defendants were operating a towing, diesel-repair and impound business.
Why the “illusory covenants” argument failed
The defendants built a theory on extrinsic evidence about how the covenants came to be recorded. The Court disposed of it on a threshold point: they never argued the covenants were ambiguous, “which makes sense, as the covenants themselves are clear and unambiguous.” Where language is clear and explicit, extrinsic evidence is not considered.
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