Estates at Desert Ridge Trails Homeowners' Ass'n v. Vazquez

2013 NMCA 51, 2013 NMCA 051, 3 N.M. 766
CourtNew Mexico Court of Appeals
DecidedFebruary 8, 2013
DocketDocket 30,944 and 31,590
StatusPublished
Cited by6 cases

This text of 2013 NMCA 51 (Estates at Desert Ridge Trails Homeowners' Ass'n v. Vazquez) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estates at Desert Ridge Trails Homeowners' Ass'n v. Vazquez, 2013 NMCA 51, 2013 NMCA 051, 3 N.M. 766 (N.M. Ct. App. 2013).

Opinion

OPINION

FRY, Judge.

{1} In this opinion we consider two lawsuits filed by the Estates at Desert Ridge Trails Homeowners’ Association (HOA) seeking to enjoin David Vasquez, Defendant, from renting his home on a short-term basis. The district court denied the HOA’s request for injunctive relief in both cases, and the HOA now appeals those orders. In its first appeal, the HOA primarily argues that the short-term rentals violate the limiting language in the restrictive covenants that lots be used for “single-family residential purposes” and the HOA’s rules and regulations barring certain business activities within the subdivision and rentals for less than thirty days. Between the first lawsuit and the second lawsuit, the HOA amended the restrictive covenants. In its second appeal, the HOA primarily argues that the short-term rentals violate the amended restrictive covenants barring rentals for less than ninety days. For efficiency, we address both appeals in this opinion and affirm the district court.

BACKGROUND

{2} Defendant purchased a lot in the Estates at Desert Ridge Trails subdivision (Subdivision) in 2006 and constructed ahorne on the lot. All lots purchased in the gated Subdivision were subject to the Declaration of Covenants, Conditions, and Restrictions recorded in 2004 (CCRs). In addition to the CCRs, rules and regulations were promulgated in 2007 supplementing the initial rules and regulations recorded with the CCRs. The Subdivision’s HOA was subsequently formed and charged with enforcing the CCRs and the Subdivision’s rules and regulations.

The HOA’s First Lawsuit

{3} In June 2010, Defendant began renting his home on a short-term basis. Defendant’s internet advertisement of the home listed a minimum rental term of three nights and did not provide for individual room rentals. Defendant testified at the hearing that he rented the home to families and that he had never rented to more than eight people. Defendant also testified that he charged renters a lodger’s tax but did not carry a separate business license for his rental activities related to the home.

{4} In September 2010, the HOA’s counsel sent Defendant a letter notifying him that the short-term rentals of his home violated the CCRs and the Subdivision’s rules and regulations. The letter requested that Defendant cease and desist from any further short-term rental activity. When Defendant did not stop renting the home, the HOA sought and was granted an ex parte temporary restraining order and filed a verified complaint for permanent injunctive relief barring Defendant’s short-term rentals. Following two hearings and supplemental briefing by the parties, the district court concluded that the CCRs did not prohibit D efendant from renting his home on a short-term basis and that the HOA rules and regulations constituted an unreasonable interference with Defendant’s use and enjoyment of his property and were therefore unenforceable. The district court issued an order dissolving the temporary restraining order and denying the HOA’s request for injunctive relief. The HOA appealed the district court’s order.

The HOA’s Second Lawsuit

{5} On November 11, 2010, the HOA board of directors resolved to amend the CCRs to prohibit rentals for less than ninety days. Notice was sent to the members of the HOA that a vote was to be held on the proposed amendments to -the CCRs at the' annual meeting talcing place on December 6, 2010. At the December meeting, fourteen votes were cast in person and thirty-two by proxy in favor of amending the CCRs. Realizing that it did not have what it believed to be the two-thirds vote needed to amend the CCRs, the HOA called a special meeting for January 11,2011, to again vote on the proposed amendments. Forty-nine votes were cast in favor of the proposed amendments at the January meeting. The thirty-two affirmative proxy votes and the fourteen votes cast in person from the December meeting were also included in the final vote tally, bringing the vote total to ninety-five in favor and four against. The HOA considered this vote sufficient to amend and record the Supplemental CCRs.

{6} The Supplemental CCRs were recorded on January 25, 2011. On March 3, 2011, the HOA filed suit against Defendant for a second time. The HOA’s complaint sought to enjoin Defendant from engaging in short-term rental activity pursuant to the Supplemental CCRs and alleged various other violations stemming from separate provisions of the Supplemental CCRs and HOA rules and regulations. The district court concluded, however, that a valid amendment to the CCRs required unanimous agreement of the lot owners, which the HOA did not have. Therefore, the district court denied the HOA’s claims, finding that all of the alleged violations fell under the Supplemental CCRs, which it concluded were void. The HOA appealed, again.

DISCUSSION

I. The First Lawsuit

A. The District Court Did Not Abuse Its Discretion in Declining to Consider Violations of CCR Provisions Not Pleaded in the Complaint

{7} We begin by addressing the issues raised by the HOA on appeal regarding alleged violations of CCRs and zoning code provisions that were notpleaded in the HOA’s complaint or the motion for a temporary restraining order (TRO) in the first lawsuit. The HOA’s complaint and motion for a TRO specifically alleged violations of Article VI, Section 21 of the CCRs and Rules 2.1 and 2.2 of the HOA rules and regulations (Rules 2.1 and 2.2). Neither the complaint nor the motion for a TRO specifically alleged violations of Article VI, Sections 29 (nuisances), 45 (temporary uses), or 49 (zoning; development). In addition, Defendant testified that the HOA notified him that it believed he had violated only Article VI,Section21 of the CCRs and Rules 2.1 and 2.2 of the rules and regulations. Immediately prior to the hearing, the HOA apparently alerted Defendant that it intended to argue that Defendant violated additional CCR sections. Defendant argued prior to the hearing and during his closing argument that evidence and arguments on alleged violations of extraneous provisions of the CCRs were beyond the pleadings and should not be considered. The district court agreed and it specifically limited its ruling to the violations of Section 21 of the CCRs and Rules 2.1 and 2.2 of the HOA rules and regulations alleged in the complaint.

{8} On appeal, the HOA argues that the district court’s refusal to rule on these issues was an abuse of discretion because the district court’s order was inconsistent with the record. The HOA claims that its general allegation in the complaint that “Defendant has violated the covenants contained in the D eclaration and the Rule[s] and Regulations of the Subdivision” put Defendant on notice that his conduct not only violated the provisions explicitly alleged in the complaint, but also any other provision the HOA conceivably considered violated by Defendant’s conduct by the time of the hearing. In other words, the HOA contends that violations of Sections 29,45, and 49 were alleged in the complaint under its general allegation regarding Defendant’s violation of the CCRs and that the court abused its discretion in not considering the testimony and briefing on these alleged violations.

{9} We are not persuaded.

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Bluebook (online)
2013 NMCA 51, 2013 NMCA 051, 3 N.M. 766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estates-at-desert-ridge-trails-homeowners-assn-v-vazquez-nmctapp-2013.