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A Hamilton County judge has ordered a $2.2 million Geist-area duplex to be demolished after finding it was constructed in violation of the Watersedge subdivision’s setback requirements, the subject of a yearslong dispute between the developer and the homeowners’ association.
Hamilton Superior Judge David Najjar ruled that MHM Investment Group LLC must remove the entire two-residence waterfront structure on Lot 11 of the Watersedge community—including the foundation—and return the property to its original condition.
The order follows earlier summary-judgment findings that MHM built the house without required architectural approval and in violation of the subdivision’s 2021 covenants.
“The Watersedge Owners Association is very pleased with the Order of November 24, 2025. The Association believes that the order is correct both on the facts and law and looks forward to putting this long standing dispute behind it,” attorney Peter Kovacs wrote in an emailed statement to The Indiana Lawyer.
Kovacs represented the association, along with David Strite and Merit Harris of O’Bryan, Brown, & Toner PLLC.
Tarek Mercho, one of the attorneys representing MHM, said his client believes there were better ways to remedy the situation other than demolition and will appeal if other options can’t be agreed upon by the two parties.
“While we greatly respect Judge Najjar and his decision, we believe critical arguments regarding the ambiguity in the (homeowner association’s covenants, conditions and restrictions) and the prior course of dealing between the parties were not considered,” Mercho said in a written statement. “In addition, there are more than sufficient remedies available than simply tearing down the entire structure which is over the setback by only a few feet.”
Mercho added that the “destruction of this building does not serve the public interest especially those that currently reside in the homes.”
The court found that the home encroaches on required side-yard setbacks by about 600 square feet. When the litigation began, only the footers were in place; the home is now fully built and occupied. The judge noted that MHM continued construction after being warned in 2024 that doing so risked “very costly remediation” if it ultimately lost the case.
Watersedge sought a mandatory injunction requiring removal of the home. MHM argued that demolition would be excessively burdensome and that the HOA suffered no actual damages. But the court determined that monetary damages were either inadequate or too speculative, citing the ongoing violation, limits on the HOA’s ability to enforce uniform standards, and risks to property values within the subdivision.
Although Najjar acknowledged that two families now reside in the home and will be affected, he concluded that enforcing the restrictive covenants outweighed the harm to MHM, which he described as “almost entirely self-inflicted.”
The judge’s ruling said evidence showed the home was sold on contract to two tenants for about $2.2 million.
The court said it would hold a hearing to determine next steps if the parties can’t reach agreement on the process for demolition.
The demolition of the building can begin 90 days from the date of the Nov. 24 court order. Judge Najjar also ordered that the residents of the homes be notified of the order by Dec. 4.
In his order, Judge Najjar said the parties could choose to find a solution that appeases them both and does not include demolition.
Mercho told The Lawyer that if the parties can’t reach an alternative solution, MHM will appeal the order, “not just to save the building, but to solidify a legal principle that should protect every property owner in Indiana: that your land rights should be defined by public law and recorded plats, not just the shifting opinions of a private committee and an overzealous board president,” he said.
The court also awarded Watersedge its attorney’s fees and all costs of the case, which amount to just over $70,000. MHM has been ordered to pay those fees within 30 days of the judge’s ruling.
The case is MHM Investment Group LLC v. Watersedge Owners’ Association, Inc., Harold Warden, 29D05-2404-PL-003686.
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