First Service Bank v. Marsha and Gerald Snowden

── First Service Bank v. Marsha and Gerald Snowden ── Court: Court of Appeals of Arkansas Date: April 01, 2026 Category: General Cite as 2026 Ark. App. 213 ARKANSAS COURT OF APPEALS DIVISION III No. CV-24-699 Opinion Delivered April 1, 2026 FIRST SERVICE BANK APPELLANT APPEAL FROM THE FAULKNER COUNTY CIRCUIT COURT V. [NO. 23CV-23-687] MARSHA AND GERALD SNOWDEN HONORABLE CHARLES E. APPELLEES CLAWSON III, JUDGE AFFIRMED MIKE MURPHY, Judge Appellant First Service Bank (First Service) appeals the final order of the Faulkner County Circuit Court permanently enjoining it from using certain land it owns in a manner inconsistent with a subdivision’s bills of assurance. We affirm. In 1969, a plat was recorded in the Faulkner County land records creating the Goodhaven Subdivision. The subdivision planned for twenty-five lots, twelve of which front Highway 65 in Greenbrier, Arkansas. The original developers of the subdivision recorded a bill of assurance for the subdivision that provided, among other things, that none of the lots may be used for purposes other than residential, none of the lots may be subdivided, the bills of assurance may be amended with approval of at least 75 percent of the subdivision landowners, and any property owner may initiate a cause of action to enforce or prevent violation of any of the restrictions.  Over the years, eight lots were released from the bills of assurance by approval of over 75 percent of the subdivision landowners. One of those lots is Lot 12, which is owned by appellant First Service Bank. First Service has operated a bank on Lot 12 for over twenty-five years. Over time, seven more lots were rezoned by the city for commercial use and, despite not being formally released from the bills of assurance, are being used for commercial purposes. First Service also owns Lot 23, a long rectangular lot immediately adjacent to Lot 12. Lot 23 runs behind Lots 9, 10, 11, and 12, which all front Highway 65. At First Service’s request, in May 2023, the Greenbrier City Council rezoned Lot 23 from residential to quiet office or commercial. Then, on May 10, 2023, appellees Marsha and Gerald Snowden (owners of Lot 18) and the Barbara Johnson Revocable Trust (owner of Lots 24 and 25), along with other plaintiffs now dismissed, filed a complaint against First Service alleging that its proposed use of Lot 23 would violate the bills of assurance. The appellees sought an injunction to limit the bank’s use of Lot 23 to a manner consistent with the bills of assurance. Before trial, First Service moved for summary judgment, arguing that the bills of assurance were no longer enforceable because the common plan of development of Goodhaven Subdivision had been destroyed. The bank further argued that even if it had not been destroyed, the other property owners had waived their right to challenge the bank’s proposed commercial use when seven other lots were being used for commercial use without contest, and the complainants’ own properties were likewise in violation of certain provisions of the bills of assurance. As exhibits, the bank included stipulated photos of homes in the 2 subdivision that were not brick or not all brick. The bank argued, alternatively, that even if the restrictive covenants are enforceable, it should still be allowed to use Lot 23 as a driveway to serve as a back entrance to Lot 12. That motion was denied. At trial, Gerald Snowden testified that he was concerned about how commercial property would bring bright lights, additional traffic, and safety concerns to his residential neighborhood. He had attended t