Nature of the Case
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Facts
McKinnon (P), loaned $5,000 to Benedict (D) to buy an 80-acre parcel of land from the prior tenants under the condition that the land remain a resort. P’s land completely surrounded D’s land, and P used his land as a summer retreat. P promised to help D attract business to the resort. D used the money as part of a down payment on a land purchase contract and promised P that they would cut no trees between the camp and his property, and to make no improvements closer to P's property than the present buildings. The terms of this restriction were for 25 years. D repaid the loan in full in seven months. When D purchased the land for $60,000, the business on it consisted of 14 cottages with only five of them being used for resort purposes. Between 1961 and 1964, Ds spent $20,000 to make all the cottages habitable but the income from the American Plan Resorts substantially decreased making it difficult to make the land contract payments. One of the term conditions of the loan letter between P and D was that P would attempt to reach a satisfactory solution concerning the lease held by Mrs. Vair because she had a 50-year lease on one of the cabins at $5 per year. P made only one attempt, and that was unsuccessful. There is no evidence that P ever assisted D in getting business for the camp, as was part of the deal. The camp did not prosper, and D decided to add a trailer park and tent camp and invested $9,000 in bulldozing and installing utilities. These improvements violated the original restrictions in the agreement. The next year, P came to spend the summer on his property and sued D. The trial court enjoined D and D appealed.
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