Appeals court upholds injunction against petroleum company
The Oklahoma Court of Civil Appeals has upheld a lower court ruling that ordered a petroleum company to remove a 500-gallon propane tank installed at a condominium complex without required approval from the property owners’ association.
The appellate court affirmed a decision by Delaware County District Judge Jennifer McAffrey, who ruled in favor of the Newport Village Homeowners’ Association and against Lu-Ray Petroleum, L.L.C., an Oklahoma City-based company.
The dispute centered on the placement of a propane tank in the front yard of a condominium unit, an action the homeowners’ association said violated its governing documents and approval requirements.
Tank installed after HOA denied permission
Court records show the homeowners’ association denied permission for the propane tank to be installed in the front yard of the unit. Despite the denial, Lu-Ray Petroleum proceeded with the installation without securing approval from 100% of the unit owners, a requirement under the association’s rules.
The association sought an injunction, arguing the installation caused harm to the community and violated the condominium’s covenants.
Judge McAffrey agreed and ordered the company to dig up and remove the tank, rejecting arguments that the economic cost to the petroleum company should outweigh the association’s concerns.
Court weighs irreparable harm
In its written opinion, the Court of Civil Appeals addressed Lu-Ray Petroleum’s claim that the trial court failed to consider the company’s financial harm when granting the injunction.
“The record demonstrates that the trial judge considered the parties’ evidence of irreparable harm and concluded Association’s harm would be more severe than the economic impact to Appellant,” the appeals court stated.
“This Court therefore rejects Appellant’s claim that the trial court failed to consider the harm to Appellant when granting the injunction.”
The ruling confirms that courts may prioritize property rights and covenant enforcement over financial losses when a party acts without required authorization.
Attorney fees and costs upheld
In addition to ordering removal of the propane tank, the lower court denied Lu-Ray Petroleum’s request for a new trial and awarded $146,749.28 in attorney fees and court costs to the homeowners’ association.
The appellate court left that judgment intact.
Implications for energy providers and HOAs
The ruling underscores the importance for energy companies and fuel suppliers to comply with local covenants, zoning rules, and association approvals, particularly when installing infrastructure on shared or restricted property.
The decision also reinforces the authority of homeowners’ associations to enforce their governing documents, even when disputes involve energy-related equipment such as propane tanks.
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