Slaby v. Mountain River Estates Residential Ass'n

100 So. 3d 569, 2012 WL 1071634, 2012 Ala. Civ. App. LEXIS 79
CourtCourt of Civil Appeals of Alabama
DecidedMarch 30, 2012
Docket2100498
StatusPublished
Cited by32 cases

This text of 100 So. 3d 569 (Slaby v. Mountain River Estates Residential Ass'n) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slaby v. Mountain River Estates Residential Ass'n, 100 So. 3d 569, 2012 WL 1071634, 2012 Ala. Civ. App. LEXIS 79 (Ala. Ct. App. 2012).

Opinions

On Application for Rehearing

MOORE, Judge.

This court’s opinion of October 7, 2011, is withdrawn, and the following is substituted therefor.

Mark Slaby and his wife, Maria Slaby, appeal from a judgment of the DeKalb Circuit Court (“the trial court”) enjoining the Slabys from the short-term rental of their property, a lot on which a cabin is situated, based on its determination that short-term rentals are prohibited by a restrictive covenant burdening their property. We reverse.

Procedural History

On June 19, 2009, Mountain River Estates Residential Association, Inc. (“the Association”), filed a complaint against the Slabys in the trial court. The Association asserted that the Slabys had violated a restrictive covenant burdening the lots in the Mountain River Estates subdivision in DeKalb County, which states:

“The subject property is restricted to single family residential purposes only. No commercial, agricultural or industrial use shall be permitted.”

Specifically, the Association asserted that the Slabys had been renting their property in the Mountain River Estates subdivision to various persons who are not related family members of the Slabys and, thus, that they had been using their property for commercial purposes in violation of the restrictive covenant. The Association requested a permanent injunction enjoining the Slabys from using their property for purposes other than as a single-family residence and from using their property for commercial purposes.

The Slabys filed an answer to the Association’s complaint on August 11, 2009. A trial was held on April 12, 2010, and both the Association and the Slabys filed briefs in the trial court upon the completion of the trial.

On January 18, 2011, the trial court entered a judgment, which states, in pertinent part:

“Single-family Residential Purposes Only
“The covenant restricts the use of the subject property to single-family residential purposes only. A single-family residence has been appropriately defined as a house occupied by one family. See Hooker v. Alexander, 129 Conn. 438, 29 A.2d 308 (1942). It follows that the term single-family residential purpose manifests an intent that a residence not be used for residential purposes by mul-ti-family or non-family groups.
“Construing the term residential purposes employing the common and ordinary meaning of the words used, it denotes the occupying of a premises for the purpose of making it one’s usual place of abode. It does not mean occupying a premises for vacation or transient purposes.
“The Texas Court of Appeals has held that a deed restriction providing that no lot in a subdivision could be used except [572]*572for ‘single-family residence purposes’ prohibited the homeowners from renting their property on a weekly and/or weekend basis, though the restriction did not prohibit all rental of property. Benard v. Humble, 990 S.W.2d 929 (Texas Ct.App.1999).
“The court finds that the use of the Slabys’ property by multi-family and non-family groups on an ongoing basis for vacation and transient purposes clearly violates the intent of the restriction that limits its use to single-family residential purposes.
“Commercial Use
“The covenant also prohibits commercial use of the subject property.
“The word commercial is commonly used to describe a wide array of business and trade enterprises that involve the exchange of goods or services for money. Here, the [Slabys] are providing persons the use of their house in exchange for money. They provide short-term lodging to transitory occupants, much like the lodging provided by a motel or a bed and breakfast. Like a motel or a bed and breakfast, they also collect and pay lodging taxes to the State. The [Slabys] advertise extensively and promote the rental of their house in a manner that is consistent with that of a commercial or business endeavor.
“The District Court of Florida has held that a covenant that permitted rental of residential property but that prohibited its use for business or commercial purposes precluded the use of the property as a bed and breakfast. The Court opined that the rental of a residence in the context of such deed restriction permitted the rental only as a residence and not as a facility serving temporary or transient guests from the general public. Robins v. Walter, 670 So.2d 971 (Fla.Dist.App.1995).
“The Court of Appeals of Michigan recently held that a prohibition against commercial use prevented property owners from using their property for vacation rentals for a week or less to transient guests. Enchanted Forest Property Owners Association v. Schilling, [ (No. 287614) ] (Mich. [Ct.] App., March 11, 2010) [ (not reported in N.W.2d) ].
“The court finds that the covenant restriction against commercial use of the property clearly and unambiguously precludes the rental use that [the Sla-bys] are making of their property.
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“ADJUDICATION
“For the reasons set forth, the court finds that the use being made by the [Slabys] of the subject property, i.e., short-term rentals to transitory guests including multi-family groups, is a violation of the applicable restrictive covenant. Accordingly, it is adjudged that the [Slabys] are permanently enjoined from engaging in a commercial use of the property by renting it on a short-term basis of one week or less and from renting it to multi-family and non-family groups.”

The Slabys filed a motion to stay the execution of the trial court’s judgment pending appeal on February 23, 2011; that motion was granted, and the trial court set a supersedeas bond in the amount of $7,500. The Slabys appealed to the Alabama Supreme Court on February 28, 2011; that court transferred the appeal to this court, pursuant to § 12-2-7(6), Ala. Code 1975.

Facts

Mark Slaby testified that, before purchasing the property, the Slabys had read, and they completely understood, the re[573]*573strictive covenants and bylaws of the Association. One of those bylaws provided:

“All parcels shall be held, transferred, sold conveyed, used, leased, occupied, mortgaged and otherwise encumbered subject to all the terms and provisions of the Declaration [of Restrictive Covenants], the Articles of Incorporation, and these By-laws, including, but not limited to, the continuing lien herein described.”

(Emphasis added.) Mark testified that the above language indicated to him that leasing of the property would be permitted.

On February 15, 2006, he and his wife purchased two lots in the Mountain River Estates subdivision in Mentone on which they planned to construct a vacation home. At the time they purchased the property, the Slabys became members of the Association. Mark testified that he and his family began construction of a five-bedroom log cabin around December 2006.

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Cite This Page — Counsel Stack

Bluebook (online)
100 So. 3d 569, 2012 WL 1071634, 2012 Ala. Civ. App. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slaby-v-mountain-river-estates-residential-assn-alacivapp-2012.