Schroth v. Kirk: a design committee’s approval does not amend the covenants
Schroth v. Kirk: a design committee’s approval does not amend the covenants
2026-09-19 · Wyoming · Courts
What happened. The Wyoming Supreme Court affirmed a permanent injunction against a winery operating in a Teton County subdivision restricted to single-family residential use, and said plainly that neither the association’s design committee nor the county had power to override the covenants.
The case
Schroth v. Kirk, 2025 WY 24, 564 P.3d 570, docket S-24-0158, was decided February 28, 2025. Justice Fenn wrote for a unanimous Court on appeal from the District Court of Teton County, Judge Peter H. Froelicher. Affirmed in full (¶ 56).1
The Dairy Subdivision covenants allow only single-family residential use (Section 7(b)) and bar “commercial, industrial or other non-single family residential use whatsoever” (Section 7(c)), with a home-occupation carve-out for up to 25% of floor area “not requiring access to the premises by the general public nor requiring the employment of labor other than the owner,” plus an agriculture exception.
In December 2010 the Design Committee approved winemaking in the owners’ barn on stated conditions: no outside employees, and no business conducted on the lot. By 2022 the operation had grown from roughly $100,000 in revenue in 2012 to over $2 million, shipped interstate, hosted public tastings of 30 to 50 people with outside caterers, sold wine and merchandise on the lot, and advertised a tasting room. Teton County had amended its land development regulations to permit home-business wineries and issued a conditional use permit in 2016. The association declined to enforce; two neighbours sued in 2022.
Why the county permit did not help
“[¶ 31] … Although Teton County may have authorized some of these activities, that approval does not override or excuse a violation of the Covenants.”
That is settled Wyoming law — the Court cited Brazinski v. Board of County Commissioners of Teton County, 2024 WY 40, ¶ 26, 546 P.3d 545, and Wimer v. Cook, 2016 WY 29, ¶ 26, 369 P.3d 210 — and it is the reason a use permit and a covenant are answered separately.
The holding on committee authority
The more consequential paragraph is about the association’s own bodies:
“[¶ 33] Even assuming such permission had been granted, the HOA board, president, and Design Committee did not have the authority to override or amend the Covenants. … Neither the Covenants nor the bylaws give the HOA board, president, or Design Committee the ability to amend the Covenants or approve non-conforming uses. The power to amend the Covenants is reserved to the membership of the HOA. Pursuant to Section 13, the Covenants can only be amended, modified, or altered by the written consent of the owners of 70% or more of the lots in the subdivision.”
A design or architectural committee decides applications under the covenants. It does not have the amendment power, and an approval it grants cannot bless a use the covenants prohibit. Where the declaration sets an amendment threshold — here 70% of lots in writing — that threshold is the only route.
A conditional approval does not travel
The 2010 approval was not unconditional. It was permission to make wine in a barn with no outside employees and no business conducted on the lot. By 2022 the activity had passed each of those conditions. The Court’s analysis of why the use was commercial is quotable:
“[¶ 29] … The Winery’s activities on Lot 3B unquestionably involve ‘conducting or allowing the exchange of goods or services involving transportation from place to place.’ The Winery currently ships wine to locations throughout Wyoming and numerous other states, holds wine tastings where members of the public can purchase wine and other merchandise that are not agricultural products, and generates revenue of over $2 million.”
The definition of “commercial” comes from Winney v. Hoback Ranches Property Owners Improvement & Service District, 2021 WY 128, 499 P.3d 254. Separately, the Court noted that W.S. § 12-1-101(xx) describes a winery as a commercial enterprise.
Any lot owner could enforce, and did
The association did not bring this case. Section 9 of the Dairy Subdivision covenants permits enforcement by the board, the Design Committee, or any lot owner, and the neighbours used it. That structure is common in Wyoming declarations and it means a board’s decision not to act does not end the matter.
The covenants also contained an express consent-to-injunction clause. The Court still weighed the equities (¶ 49), applying the framework from Winney v. Hoback Ranches, 2023 WY 113, 539 P.3d 74 — gravity and wilfulness of the violation, delay, and the balance of cost and benefit. On wilfulness it treated the violating owner’s status as a licensed attorney as relevant (¶ 50).
Laches did not save the use
The delay argument failed. The neighbours learned the full extent of the operation in 2020 and sued in 2022. The Court applied Moncrief v. Sohio Petroleum Co., 775 P.2d 1021 (Wyo. 1989). Growth of a non-conforming use over a decade did not convert it into a right, and the clock ran from knowledge of the scale of the activity rather than from its beginning.
The contrast with Rafter J
Three months earlier the Court had decided Rafter J Ranch Homeowner’s Ass’n v. Stage Stop, Inc., 2024 WY 114, 558 P.3d 562, where an association sued its own lot owner over workforce-housing apartments and lost, because the covenant for that lot said it “may be used for any commercial purpose.” The two cases run on the same rule — the words of the declaration govern — and reach opposite results because the declarations say opposite things. Wyoming has no comprehensive HOA statute to supply a default either way.
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