Mark Slaby and Maria Slaby v. Mountain River Estates Residential Association, Inc.

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REL: 03/30/2012 Notice: T h i s o p i n i o n i s s u b j e c t t o formal r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , Alabama A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ((334) 2 2 9 - 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . ALABAMA COURT OF CIVIL APPEALS OCTOBER TERM, 2011-2012 2100498 Mark Slaby and Maria Slaby v. Mountain R i v e r E s t a t e s R e s i d e n t i a l A s s o c i a t i o n , Inc. Appeal from DeKalb C i r c u i t (CV-09-171) Court On A p p l i c a t i o n f o r R e h e a r i n g MOORE, J u d g e . This and court's opinion o f October 7, 2 0 1 1 , i s w i t h d r a w n , the following i s s u b s t i t u t e d therefor. 2100498 Mark judgment Slaby of and the DeKalb enjoining the property, a l o t on Slabys determination restrictive his wife, Maria Circuit from the Court short-term from trial court") rental of a their i s s i t u a t e d , b a s e d on i t s r e n t a l s are covenant burdening appeal ("the short-term which a cabin that Slaby, p r o h i b i t e d by their property. We a reverse. Procedural History On June 19, Association, against 2009, Mountain Inc. Slabys the ("the in burdening in Estates Residential Association"), filed the a s s e r t e d t h a t the Slabys River trial court. a The complaint Association had v i o l a t e d a r e s t r i c t i v e covenant the l o t s i n the Mountain R i v e r E s t a t e s s u b d i v i s i o n DeKalb County, which s t a t e s : "The s u b j e c t p r o p e r t y i s r e s t r i c t e d t o s i n g l e f a m i l y residential purposes only. No commercial, a g r i c u l t u r a l o r i n d u s t r i a l use s h a l l be p e r m i t t e d . " Specifically, been the renting their Association asserted property subdivision to various members o f the Slabys their property restrictive in persons and, the Mountain who are thus, that f o r commercial purposes covenant. The that not they the had River Estates related family had been in violation A s s o c i a t i o n requested 2 Slabys using of the a permanent 2100498 injunction enjoining t h e S l a b y s from u s i n g purposes as a s i n g l e - f a m i l y using other than their property f o r residence and from t h e i r p r o p e r t y f o r commercial purposes. The S l a b y s f i l e d an answer t o t h e A s s o c i a t i o n ' s on A u g u s t 1 1 , 2009. A trial both the A s s o c i a t i o n and t h e S l a b y s f i l e d b r i e f s i n t h e t r i a l court was h e l d on A p r i l complaint 12, 2 0 1 0 , a n d upon t h e c o m p l e t i o n o f t h e t r i a l . On J a n u a r y 18, 2 0 1 1 , t h e t r i a l which s t a t e s , i n pertinent "Single-family court e n t e r e d a judgment, part: R e s i d e n t i a l Purposes Only "The c o v e n a n t r e s t r i c t s t h e u s e o f t h e s u b j e c t property t o s i n g l e - f a m i l y r e s i d e n t i a l purposes only. A s i n g l e - f a m i l y r e s i d e n c e has been appropriately d e f i n e d as a h o u s e o c c u p i e d b y one f a m i l y . See H o o k e r v . A l e x a n d e r , 129 Conn. 433, 29 A . 2 d 308 (1942). I t f o l l o w s t h a t t h e term s i n g l e - f a m i l y r e s i d e n t i a l p u r p o s e m a n i f e s t s an i n t e n t t h a t a r e s i d e n c e n o t be u s e d f o r r e s i d e n t i a l p u r p o s e s b y m u l t i - f a m i l y or non-family groups. f o l l o w s "Construing t h e term residential purposes e m p l o y i n g t h e common a n d o r d i n a r y m e a n i n g o f t h e words u s e d , i t d e n o t e s t h e o c c u p y i n g o f a p r e m i s e s f o r t h e purpose o f making i t one's u s u a l p l a c e o f abode. I t does n o t mean o c c u p y i n g a p r e m i s e s f o r vacation or t r a n s i e n t purposes. "The T e x a s C o u r t o f A p p e a l s h a s h e l d t h a t a d e e d r e s t r i c t i o n p r o v i d i n g t h a t no l o t i n a s u b d i v i s i o n c o u l d be u s e d e x c e p t f o r ' s i n g l e - f a m i l y r e s i d e n c e p u r p o s e s ' p r o h i b i t e d t h e homeowners f r o m r e n t i n g t h e i r p r o p e r t y on a w e e k l y a n d / o r weekend b a s i s , 3 2100498 though the r e s t r i c t i o n d i d not p r o h i b i t a l l r e n t a l o f p r o p e r t y . B e n a r d v. Humble, 990 S.W.2d 929 (Texas C t . App. 1 9 9 9 ) . "The c o u r t f i n d s t h a t t h e use o f t h e Slabys' p r o p e r t y by m u l t i - f a m i l y and n o n - f a m i l y g r o u p s on an o n g o i n g b a s i s f o r v a c a t i o n and t r a n s i e n t p u r p o s e s c l e a r l y v i o l a t e s the i n t e n t of the r e s t r i c t i o n t h a t limits its use to single-family residential purposes. "Commercial the Use "The c o v e n a n t a l s o p r o h i b i t s c o m m e r c i a l use subject property. of "The word commercial i s commonly u s e d to describe a wide array of business and trade e n t e r p r i s e s t h a t i n v o l v e t h e e x c h a n g e o f goods o r services f o r money. Here, the [Slabys] are p r o v i d i n g p e r s o n s t h e use o f t h e i r h o u s e i n e x c h a n g e f o r money. They p r o v i d e short-term lodging to t r a n s i t o r y o c c u p a n t s , much l i k e t h e l o d g i n g p r o v i d e d by a m o t e l o r a b e d and b r e a k f a s t . L i k e a motel or a b e d and b r e a k f a s t , t h e y a l s o c o l l e c t and pay l o d g i n g taxes to the S t a t e . The [ S l a b y s ] a d v e r t i s e e x t e n s i v e l y and p r o m o t e t h e r e n t a l o f t h e i r h o u s e i n a manner that i s consistent with that of a commercial or business endeavor. "The D i s t r i c t C o u r t o f F l o r i d a has h e l d t h a t a covenant that permitted r e n t a l of residential p r o p e r t y b u t t h a t p r o h i b i t e d i t s use f o r b u s i n e s s o r commercial purposes precluded the use of the p r o p e r t y as a b e d and b r e a k f a s t . The C o u r t o p i n e d t h a t the r e n t a l of a r e s i d e n c e i n the c o n t e x t of s u c h d e e d r e s t r i c t i o n p e r m i t t e d t h e r e n t a l o n l y as a r e s i d e n c e and n o t as a f a c i l i t y s e r v i n g t e m p o r a r y or t r a n s i e n t guests from the g e n e r a l p u b l i c . Robins v. W a l t e r , 670 So. 2d 971 ( F l a . D i s t . App. 1 9 9 5 ) . 4 2100498 "The C o u r t o f A p p e a l s o f M i c h i g a n r e c e n t l y h e l d t h a t a p r o h i b i t i o n a g a i n s t commercial use p r e v e n t e d property owners from u s i n g their property f o r v a c a t i o n r e n t a l s f o r a week o r l e s s t o t r a n s i e n t g u e s t s . E n c h a n t e d F o r e s t P r o p e r t y Owners A s s o c i a t i o n v. S c h i l l i n g , [(No. 287614)] (Mich. [ C t . ] App., M a r c h 11, 2010) [ ( n o t r e p o r t e d i n N.W.2d)]. "The c o u r t f i n d s t h a t t h e c o v e n a n t r e s t r i c t i o n a g a i n s t commercial use o f t h e p r o p e r t y c l e a r l y and unambiguously p r e c l u d e s t h e r e n t a l use t h a t [the Slabys] a r e making o f t h e i r p r o p e r t y . "ADJUDICATION "For t h e reasons s e t f o r t h , t h e c o u r t f i n d s t h a t t h e u s e b e i n g made b y t h e [ S l a b y s ] o f t h e s u b j e c t property, i . e . ,short-term rentals to t r a n s i t o r y guests i n c l u d i n g m u l t i - f a m i l y groups, i s a v i o l a t i o n of the applicable restrictive covenant. A c c o r d i n g l y , i t i s adjudged t h a t the [Slabys] are permanently e n j o i n e d from engaging i n a commercial use o f t h e p r o p e r t y b y r e n t i n g i t on a s h o r t - t e r m b a s i s o f one week o r l e s s a n d f r o m r e n t i n g i t t o m u l t i - f a m i l y and n o n - f a m i l y groups." The S l a b y s trial court's filed a motion t o stay the execution judgment p e n d i n g a p p e a l on F e b r u a r y of the 23, 2011; t h a t m o t i o n was g r a n t e d , a n d t h e t r i a l c o u r t s e t a s u p e r s e d e a s bond i n t h e amount o f $7, 500. Alabama Supreme Court on The S l a b y s February 28, 2011; t r a n s f e r r e d the appeal t o t h i s court, pursuant Ala. Code 1975. 5 appealed to § that to the court 12-2-7(6), 2100498 Facts Mark property, Slaby testified that, before purchasing t h e S l a b y s h a d r e a d , and t h e y c o m p l e t e l y the r e s t r i c t i v e the understood, c o v e n a n t s and b y l a w s o f t h e A s s o c i a t i o n . of those bylaws One provided: "All parcels shall be h e l d , transferred, sold conveyed, used, l e a s e d , occupied, m o r t g a g e d and o t h e r w i s e e n c u m b e r e d s u b j e c t t o a l l t h e t e r m s and provisions of the D e c l a r a t i o n [of R e s t r i c t i v e C o v e n a n t s ] , t h e A r t i c l e s o f I n c o r p o r a t i o n , and t h e s e By-laws, including, but not limited t o , the continuing l i e n herein described." (Emphasis added.) indicated to him Mark that testified leasing that of the t h e above property language would be permitted. On F e b r u a r y 15, 2006, he and h i s w i f e p u r c h a s e d two i n the Mountain R i v e r Estates they planned t o construct purchased the property, Association. Mark s u b d i v i s i o n i n Mentone on w h i c h a v a c a t i o n home. the testified lots Slabys that became he At the time members and h i s f a m i l y they of the began c o n s t r u c t i o n o f a f i v e - b e d r o o m l o g c a b i n a r o u n d December 2006. According for t o Mark, he h a d b u i l t t h e c a b i n as a v a c a t i o n home h i s f a m i l y , b u t , as t h e economy decided, around grew w o r s e , June o r J u l y 2007, t o i m p r o v e 6 the Slabys the cabin so 2100498 t h a t i t c o u l d be u s e d f o r r e n t a l s . gain permission property; from however, the Association Maria testified f r o m comments made a t an A p r i l and of a conversation their rented homes. before that renting their she h a d u n d e r s t o o d 2007 p r o p e r t y owners' m e e t i n g s h e h a d h a d w i t h Ann R o g e r s , t h e d i r e c t o r Phase One o f t h e A s s o c i a t i o n , rent The S l a b y s d i d n o t s e e k o r Mark 1 the property that property testified that owners the Slabys i n O c t o b e r 2007, j u s t a f t e r could first construction o f t h e c a b i n was c o m p l e t e d . Mark testified that Mountain R i v e r Estates He testified that t h e name of their cabin i n the s u b d i v i s i o n i s " L i t t l e R i v e r Harmony." he h a d b r o c h u r e s Slabys dispensed those brochures drawn up a n d t h a t t h e f o r one y e a r a t t h e D e K a l b C o u n t y T o u r i s t B u r e a u ; t h o s e b r o c h u r e s i n f o r m e d p e o p l e how t o contact cabin. He t e s t i f i e d t h a t t h e y have one Web s i t e t h a t t h e y m a i n t a i n and that the Slabys that Web site, i f they wanted t o rent i n turn, links their t o a n o t h e r Web site for The m i n u t e s f r o m t h a t m e e t i n g do n o t r e f l e c t any discussion regarding rental of property within the s u b d i v i s i o n , a n d s e v e r a l w i t n e s s e s t e s t i f i e d t h a t t h e y were p r e s e n t a t t h e m e e t i n g and d i d n o t hear any d i s c u s s i o n r e g a r d i n g r e n t i n g . Rogers t e s t i f i e d t h a t she d i d n o t g i v e t h e Slabys permission t o rent the cabin. 1 7 2100498 w h i c h t h e y pay an a n n u a l amount t o have t h e i r c a b i n l i s t e d f o r rental. He testified that persons who want to make a r e s e r v a t i o n to r e n t the cabin c o n t a c t e d Maria Slaby v i a e-mail or telephone. Association subject An e-mail indicates that to a "vacation use o f t h e p r o p e r t y . l i s t t h e c a b i n w i t h any He further stated o f f i c e , a business evidence of the cabin the by are agreement," which governs According handles a l l the into a l l rentals rental t h e y were a d v e r t i s i n g t h e that Maria placed t o Mark, a t t h e t i m e o f c a b i n on t h e i r Web a d v e r t i s i n g and site; he t h a t they the trial, stated do not r e n t a l company o r management company. that they do not maintain a real-estate o f f i c e , o r a r e n t a l o f f i c e on t h e premises. He s t a t e d t h a t a l l r e n t a l money i s e x c h a n g e d o f f - s i t e , v i a t h e Internet. He testified c a b i n ; "D.C. and s l e e p s up t o 14, o f one The and two a n o t h e r w i t h no level level there are 2 different levels a l F i n e , " w h i c h i s t h e t o p f l o o r , has a r e a , s l e e p s 6. one that to the " P i z z i c a t o , " which i s the l e v e l s are designed interior other. or the bottom l e v e l access t o be testified that can be or the 8 the 4 bedrooms downstairs independent a v a i l a b l e t o go He rented in e i t h e r the entire from top cabin 2100498 can be rented. t o 25 He p e o p l e had t e s t i f i e d that Maria stayed there had a t once. S l a b y s r e n t e d t h e c a b i n t o two s e p a r a t e t o l d him At no groups that t i m e have up the simultaneously, however. The Association placed i n t o evidence a copy of the Web page a d v e r t i s i n g t h e c a b i n , w h i c h i n d i c a t e s t h a t t h e c a b i n i s available for submitted a rental chart "year made round." by Mark, The Association which showed Slabys' that, from r e n t e d the O c t o b e r 2007 t o November 2009, t h e S l a b y s had a t o t a l o f 380 also cabin d a y s , o r an a v e r a g e o f 14 d a y s p e r month. records a l s o showed t h a t a p p r o x i m a t e l y The 120 d i f f e r e n t p e r s o n s o r g r o u p s had r e n t e d t h e c a b i n d u r i n g t h a t p e r i o d , they kept dates of d e t a i l e d accounts their tenants as t r a n s a c t i o n s i n v o l v e d i n the Mark p r e s e n t e d rental revenue of the well check-in as and check-out all of r e n t a l of the financial cabin. a c h a r t r e v e a l i n g t h a t the average monthly from the cabin i s $2, 773 and r e v e n u e f r o m O c t o b e r 2007 t o November 2009 had that the t h e l o t s and t o b u i l d t h e was He $500,000. r e n t a l amount does n o t testified total b e e n $74,858. He s t a t e d t h a t t h e c o s t t o buy approximately and that the cabin average cover a l l the debt a s s o c i a t e d w i t h 9 the 2100498 property and t h a t t h e y h a d n o t made any p r o f i t the c a b i n . of t r y i n g According to offset cabin. I f they extent, Mark maintain renting t o Mark, t h e y r e n t t h e c a b i n as a means some o f t h e d e b t t h a t t h e y i n c u r on t h e are not able stated, the cabin. i t would to offset jeopardize that debt their t o some ability to He t e s t i f i e d t h a t t h e y h a d h i r e d someone to clean the property testified from and t h a t M a r i a p a y s t h a t p e r s o n . t h a t she c o l l e c t s l o d g i n g t a x and r e m i t s Maria i t to the S t a t e o f A l a b a m a and t o t h e c o u n t y . With regard to the p o l i c i e s i n e f f e c t at the cabin, Mark t e s t i f i e d t h a t he d i d n o t t h i n k t h e r e was a r e s t r i c t i o n on who could rent the cabin. He t e s t i f i e d t h a t t h e y have r e n t e d t o f a m i l i e s , t o c h u r c h g r o u p s , t o y o u t h g r o u p s , and t o women and mothers family seeking reunions property. a weekend vacation; are popular not He s t a t e d t h a t t h e t y p i c a l provide transportation, services food, or testified because of the l o c a t i o n r e n t s t h e c a b i n i s 10 t o 15 p e o p l e . do he a l s o for renters beverages of the s i z e o f the group Mark t e s t i f i e d to f o r the that that purchase renters. that they or He t e s t i f i e d t h a t t h e r e i s no r e s t a u r a n t on t h e p r e m i s e s and t h a t r e n t e r s must p r e p a r e t h e i r own m e a l s , change t h e i r own 10 linens, 2100498 take out the garbage, house during their cabin t o "eat, do t h e i r stay. Mark own stated people are screened economically that the Slabys and t h a t Mark complaints use t h e because the r e n t a l fees a r e that neighbors conduct or a c t i v i t i e s i s their breakers." t a l k s to or e-mails p o t e n t i a l they had never had c o l l e g e testified from screen t h e i r renters, that do n o t e n c o u r a g e " s p r i n g He t e s t i f i e d f u r t h e r t h a t M a r i a group. people make i t c l e a r t h a t t h e c a b i n home, a n d t h a t t h e S l a b y s renters that and c l e a n t h e s l e e p , a n d hang o u t . " Mark t e s t i f i e d t h a t t h e S l a b y s high, laundry, they kids had never or A s s o c i a t i o n o f any o f t h e i r stay received members a b o u t t h e to the chairperson of t h e R e s t r i c t i o n s Committee f o r t h e M o u n t a i n R i v e r proposing covenants. In the any renters. I n F e b r u a r y 2009, Mark s e n t an e - m a i l subdivision, as a an amendment e-mail, Mark to the proposed Estates restrictive that certain r e g u l a t i o n s be added t o g o v e r n t h e r e n t a l o f homes w i t h i n t h e s u b d i v i s i o n i n order "to provide i n Mountain R i v e r Estates a way f o r owners o f p r o p e r t y ... t o r e n t / l e a s e t h e i r p r o p e r t y i n a way t h a t i s h a r m o n i o u s t o t h e o t h e r p r o p e r t y subdivision. At the annual property 11 owners" i n t h e owners' m e e t i n g i n A p r i l 2100498 2009, the Restrictions Committee submitted for a p r o p o s e d amendment t o t h e r e s t r i c t i v e c o v e n a n t s t o allow" for short-term r e n t a l s to the t h a n a two-week p e r i o d , by Mark. A majority f a v o r of the subject of the amendment, and property f o r no regulations i t was not vote court t e s t i f i e d at t r i a l r u l e to p r o h i b i t the and requested Slabys' in adopted. A number o f p r o p e r t y owners i n t h e M o u n t a i n R i v e r subdivision more suggested owners d i d n o t therefore a "expressly same t e n a n t to the vote that Estates the r e n t a l of t h e i r trial property. Discussion The contend Slabys that restrictive r a i s e two the trial covenant as a r g u m e n t s on court erred precluding m u l t i f a m i l y g r o u p s and n o n f a m i l i e s . not prevail trial court on the should first appeal. issue, in First, they construing the short-term rentals to Second, assuming t h e y the Slabys argue that have b a l a n c e d t h e e q u i t i e s i n t h e i r do the favor and d e t e r m i n e d t h a t e n f o r c i n g t h e r e s t r i c t i v e c o v e n a n t a g a i n s t them would result S c o f i e l d , 567 resolution appeal, of so we So. in an 2d 1299, the do n o t first undue 1302 issue address the 12 hardship. ( A l a . 1990) . to be See We Lange consider d i s p o s i t i v e of second i s s u e . v. the this 2100498 I. The M e a n i n g o f " S i n g l e F a m i l y A. The f i r s t restricts S t r u c t u r e V e r s u s Use sentence of the r e s t r i c t i v e the property residential R e s i d e n t i a l Purposes" owned b y t h e S l a b y s purposes only." That p h r a s e , covenant a t i s s u e "to single family and o t h e r p h r a s e s , h a s e n g e n d e r e d many c o n f l i c t i n g o p i n i o n s country as t o w h e t h e r the language restricts similar across the the types and number o f s t r u c t u r e s t h a t may be e r e c t e d on t h e p r o p e r t y , t h e use t o w h i c h t h o s e s t r u c t u r e s may be p u t , o r b o t h . M. D o u g h e r t y , A n n o t a t i o n , Use See F r a n c i s R e s t r i c t i v e Covenant L i m i t i n g Land t o " P r i v a t e Residence" or " P r i v a t e R e s i d e n t i a l Purposes": I n t e r p r e t a t i o n and A p p l i c a t i o n , 43 A.L.R. 4 t h 71 ( 1 9 8 6 ) . particular opinions phrase has often appeared in That appellate-court f r o m t h i s s t a t e , s e e , e.g., C i t y o f M o u n t a i n B r o o k v . Green V a l l e y Partners T u r n e r v. C l u t t s , I , 690 So. 2d 359, 360 565 So. 2d 92 292 A l a . 227, 292 So. 2d 103 723 So. 2d 694, 695 has o n l y been c o n s t r u e d ( A l a . 1997); ( A l a . 1990); Laney v. E a r l y , (1974); and R o e g n e r v. Vinson, ( A l a . C i v . App. 1 9 9 8 ) , b u t , t o d a t e , i t i n controversies regarding the nature and number o f s t r u c t u r e s t h a t may be c o n s t r u c t e d on a b u r d e n e d parcel of property. As a p p l i e d i n t h a t 13 context, the phrase 2100498 "single family erection of a s i n g l e facilities, Orange residential purposes structure containing (concluding erected precludes segmented s u c h as an a p a r t m e n t o r c o n d o m i n i u m B e a c h M a r i n a , I n c . v. Warner, 1986) only" that multifamily on p r o p e r t y private dwelling separate l i v i n g restricted complex, see 500 So. 2d 1068 ( A l a . condominiums n o t be t o use f o r a " ' s i n g l e family or maintenance of m u l t i p l e located on t h e same p r o p e r t y , H i n e s v. H e i s l e r , 439 So. 2d 4 ( A l a . 1983) ( p r o p e r t y be u s e d t o e r e c t when subject residential (Ala. multifamily to could not shared driveway requiring private 505 So. 2d 325, 328 l o t f o r u s e as of residence," a purposes only'" p r o h i b i t e d several temporary r e s i d e n c e s ) , nature covenant see 1987) ( r e s t r i c t i v e c o v e n a n t l i m i t i n g u s e o f s u b d i v i s i o n l o t from p l a c i n g single with u s e ) ; a n d W a l d r o p v. W e l c h , l o t s to "'private residence of townhouse restrictive living could or residence'"), facilities the "single camper-type camping travel recreational owners trailers on facilities or because such s t r u c t u r e s are not i n the family residence" or a i . e . , "a p l a c e o f abode f o r one f a m i l y . " 505 So. 2d a t 328. 14 "private" Waldrop, 2100498 In t h i s question and whether the built, argument argued cabin owned by litigate the Slabys, on i t s application for that, under Hines, the covenant because, rehearing, as Slabys' the cabin i t s a i d , the designed At trial i t s j u d g m e n t on c o u r t and that t h a t the ground. is in a f f i r m a j u d g m e n t on any v a l i d g r o u n d , e v e n one by the t r i a l v. State, 16 c o u r t , t h a t g r o u n d must be So. 3d Liberty Nat'l Life Servs. Found., P.C., 792, Ins. 881 797 Co. So. the family. court d i d this court not ( A l a . C i v . App. not can considered a l e g a l one. Atkins 2009) (citing v. U n i v e r s i t y of Alabama 2d 1013, 1020 the not r a i s e d t h a t trial Although oral violates o f a d u p l e x , b u i l t t o accommodate more t h a n one argument i n t h e the Association cabin However, t h e A s s o c i a t i o n c o n c e d e d t h a t i t had rest at t r i a l constitutes a "single family residence." restrictive nature case, the p a r t i e s d i d not Health (Ala. 2003)). In t h i s c a s e , w h e t h e r t h e c a b i n can be c h a r a c t e r i z e d as a d u p l e x or would as a question "single family residence" of f a c t not a q u e s t i o n issue was not r a i s e d or court cannot a f f i r m the c o n s t i t u t e s a d u p l e x and of law. resolved j u d g m e n t on not involve a disputed Because t h a t f a c t u a l i n the trial court, the b a s i s t h a t the a s i n g l e - f a m i l y residence. 15 this cabin 2100498 At t r i a l , way the p a r t i e s d i d c o n t e s t the i s s u e whether i n w h i c h t h e S l a b y s use t h e c a b i n v i o l a t e s t h e requiring their property to r e s i d e n t i a l purposes only." controversy on the be The used trial ground t h a t the cabin to non-family for the restriction "single family court adjudicated Slabys, by renting the their members on a s h o r t - t e r m b a s i s , were u s i n g t h e i r p r o p e r t y i n a manner i n c o n s i s t e n t w i t h t h e t e r m s o f r e s t r i c t i v e covenant. This appeal t h e r e f o r e squarely an i s s u e o f f i r s t i m p r e s s i o n state as to residential premises. the of the phrase t h e use "single this family o f a s t r u c t u r e on Hence, p r i o r c a s e l a w i n f o r m s , b u t does n o t B. presents f o r the a p p e l l a t e c o u r t s of p u r p o s e s o n l y " on our d e t e r m i n a t i o n In effect the the control, of t h a t i s s u e . E f f e c t on I d e n t i t y of Occupants i t s judgment, the t r i a l court found: "A s i n g l e - f a m i l y r e s i d e n c e has b e e n a p p r o p r i a t e l y d e f i n e d as a h o u s e o c c u p i e d by one f a m i l y . See H o o k e r v. A l e x a n d e r , 129 Conn. 433, 29 A.2d 308 (1942). I t f o l l o w s t h a t the term s i n g l e - f a m i l y r e s i d e n t i a l purpose manifests an intent that a r e s i d e n c e n o t be u s e d f o r r e s i d e n t i a l p u r p o s e s by m u l t i - f a m i l y or non-family groups." To the extent traditional that nuclear the trial f a m i l y may 16 court reside meant in a that "single only a family 2100498 residence" related and t h a t occupancy or unrelated c o v e n a n t , we by o t h e r , persons more t a n g e n t i a l l y breaches the restrictive disagree. N e i t h e r o u r supreme c o u r t , n o r t h i s c o u r t , h a s e v e r ruled t h a t a s t r u c t u r e t h a t q u a l i f i e s as a " s i n g l e f a m i l y r e s i d e n c e " must be occupied by o n l y one b i o l o g i c a l family or that a s t r u c t u r e i s not used f o r " s i n g l e f a m i l y r e s i d e n t i a l purposes" because u n r e l a t e d persons r e s i d e t h e r e i n . R e s t r i c t i n g t h e use of traditional the cabin to occupation nuclear f a m i l y would prevent by only a single t h e Slabys from u s i n g t h e i r cabin t o h o u s e t h e i r own e x t e n d e d f a m i l y o r f r o m h a v i n g o v e r n i g h t o r weekend v i s i t s are not with only their f r i e n d s and a s s o c i a t e s , uses consistent with single-family that residential purposes, but are expected. The restrictive term " f a m i l y . " understanding Courts covenant at issue does not define the are g e n e r a l l y i n c l i n e d toward a broad o f the term " f a m i l y " when that term i s left undefined i n r e s t r i c t i v e c o v e n a n t s and z o n i n g o r d i n a n c e s . James Rigelhaupt, L. "Family" Within J r . ,Annotation, What Meaning o f Zoning R e g u l a t i o n C o v e n a n t , 71 A.L.R.3d 693 (1976). 17 See Constitutes a or R e s t r i c t i v e 2100498 "Now t h i s w o r d ' f a m i l y , ' c o n t a i n e d i n t h e s t a t u t e , i t i s an e x p r e s s i o n o f g r e a t f l e x i b i l i t y . I t i s a p p l i e d i n many ways. I t may mean t h e h u s b a n d a n d w i f e , h a v i n g no c h i l d r e n a n d l i v i n g a l o n e t o g e t h e r , o r i t may mean c h i l d r e n , o r w i f e a n d c h i l d r e n , o r blood relatives, o r any g r o u p constituting a d i s t i n c t d o m e s t i c o r s o c i a l body. I t i s o f t e n u s e d t o d e n o t e a s m a l l s e l e c t c o r p s a t t a c h e d t o an army c h i e f , a n d h a s e v e n b e e n e x t e n d e d t o w h o l e s e c t s , as i n t h e case o f the Shakers." Carmichael 496, v. N o r t h w e s t e r n 16 N.W. given 8 7 1 , 872 Mut. B e n e f i t A s s ' n , 51 M i c h . 494, (1883). an e v e n more e l a s t i c decided. See B l a c k ' s Law The w o r d definition " f a m i l y " has been since Carmichael Dictionary 679 was ( 9 t h e d . 2009) ( d e f i n i n g " f a m i l y " p r i m a r i l y a s : "A g r o u p o f p e r s o n s c o n n e c t e d by blood, by a f f i n i t y , o r b y l a w , e s p . w i t h i n two o r t h r e e generations."). M o r e o v e r , t h e r e s t r i c t i v e c o v e n a n t does n o t p r o v i d e that t h e b u r d e n e d p r o p e r t y s h a l l be o c c u p i e d b y " n o t more t h a n one single family unit." Preston, 85 M i c h . (construing dwelling Slabys See J a y n o H e i g h t s App. 443, 447, 271 N.W.2d 268, 270 s u c h w o r d i n g as p r e v e n t i n g f o r operation also point L a n d o w n e r s A s s ' n v. (1978) use of s i n g l e - f a m i l y o f g r o u p home f o r e l d e r l y ) . out, the r e s t r i c t i v e covenant As t h e does n o t r e q u i r e t h a t t h e c a b i n be e x c l u s i v e l y " o w n e r - o c c u p i e d " o r t h e like, so t h e y "are not constrained i n the character of t h e i r 18 2100498 residential use of t h e p r o p e r t y S i l s b y v. B e l c h , v. Bernstein, ("courts by t h e deed 952 A . 2 d 218, 222 (Me. 2 0 0 8 ) . 251 A l a . should covenants." See a l s o B e a r 230, 232, 36 So. 2d 483, 484 not extend, by c o n s t r u c t i o n , (1948) the r e s t r a i n t b e y o n d i t s p r o p e r s c o p e b y w r i t i n g i n t o i t what i s n o t c l e a r l y inhibited"). "[W]hen t h e t e r m ' s i n g l e - f a m i l y d w e l l i n g ' i s c o u p l e d with the phrase 'residential purposes only,' n o n r e s i d e n t i a l u s e s may n o t be made o f t h e b u i l d i n g . However, i n t h i s l a t t e r s i t u a t i o n , c o u r t s have a l s o h e l d t h a t t h e r e i s no r e q u i r e m e n t t h a t t h e d w e l l i n g be i n h a b i t e d b y a ' s i n g l e ' f a m i l y , as l o n g as t h e b u i l d i n g i s used f o r r e s i d e n t i a l purposes." 43 Am. J u r . P r o o f o f F a c t s ed. 1997) (emphasis added) Homeowners A s s ' n v . B a c a , (use of house as requiring (citing home adults § 8 (3d Greenbrier-Cloverdale 763 P.2d 1 ( C o l o . group developmentally disabled covenant 473 ( R e s i d e n t i a l P r o p e r t y ) for C t . App. 1988) eight unrelated, d i d not v i o l a t e restrictive "'single-family dwelling'"); and Vienna Bend S u b d i v i s i o n Homeowners A s s ' n v. M a n n i n g , 459 So. 2d 1345 (La. C t . App. 1984) ( a c c o r d ) ) . See a l s o Bellarmine Hills A s s ' n v. R e s i d e n t i a l S y s . Co., 84 M i c h . App. 554, 269 N.W.2d 673 word (1978) (discussing at length "family" i n the context 19 the problem of d e f i n i n g the of a restrictive covenant 2100498 r e q u i r i n g t h a t p r o p e r t y be u s e d f o r s i n g l e - f a m i l y r e s i d e n c e s ) ; and C o s t l e y v. C a r o m i n House, I n c . , 313 N.W.2d 21 (Minn. 1981) (group home f o r s i x mentally challenged adults a n d two r e s i d e n t h o u s e p a r e n t s was a s i n g l e - f a m i l y u n i t w i t h i n m e a n i n g of c i t y zoning ordinance). 2 " R e s t r i c t i v e c o v e n a n t s w i l l be r e c o g n i z e d a n d e n f o r c e d when e s t a b l i s h e d b y c o n t r a c t , b u t t h e y a r e not favored and w i l l be strictly construed. C a r p e n t e r v. D a v i s , 688 So. 2d 256, 258 ( A l a . 1997) . Our Supreme C o u r t h a s h e l d t h a t " ' i n c o n s t r u i n g r e s t r i c t i v e covenants, a l l doubts must be resolved against the restriction and i n f a v o r o f f r e e and u n r e s t r i c t e d use o f p r o p e r t y . However, In C i v i t a n s Care, I n c . v. Board o f Adjustment o f H u n t s v i l l e , 437 So. 2d 540 ( A l a . C i v . App. 1 9 8 3 ) , t h i s c o u r t a f f i r m e d a judgment d e n y i n g a f a v o r a b l e i n t e r p r e t a t i o n o f a zoning ordinance t o a n o n p r o f i t o r g a n i z a t i o n desirous of o p e r a t i n g a g r o u p home f o r m e n t a l l y c h a l l e n g e d a d u l t s i n an a r e a z o n e d f o r o c c u p a n c y b y one o r two f a m i l i e s . The t r i a l c o u r t i n t h a t case r e c o g n i z e d t h a t t h e group c o n s t i t u t e d a "family" within the d e f i n i t i o n contained i n the zoning o r d i n a n c e , n a m e l y : "'Any number o f i n d i v i d u a l s l i v i n g t o g e t h e r as a s i n g l e h o u s e k e e p i n g u n i t a n d d o i n g t h e i r own c o o k i n g on the premises.'" 437 So. 2d a t 542. However, t h e t r i a l c o u r t found, and t h i s c o u r t agreed, t h a t t h e n o n p r o f i t o r g a n i z a t i o n p l a n n e d t o o p e r a t e t h e g r o u p home a s a " b o a r d i n g h o u s e " o r a "rooming house" i n v i o l a t i o n o f o t h e r s e c t i o n s o f t h e zoning ordinance. 437 So. 2d a t 542-43 ( c i t i n g C i t y o f G u n t e r s v i l l e v. S h u l l , 355 So. 2d 361 ( A l a . 1 9 7 8 ) ) . We f i n d C i v i t a n s C a r e t o be d i s t i n g u i s h a b l e f r o m t h e p r e s e n t c a s e a n d n o t i n c o n f l i c t w i t h our h o l d i n g today t h a t the undefined term "family" should be c o n s t r u e d broadly in a restrictive covenant. 2 20 2100498 e f f e c t w i l l be g i v e n t o t h e m a n i f e s t i n t e n t o f t h e p a r t i e s when t h a t i n t e n t i s c l e a r .... F u r t h e r m o r e , r e s t r i c t i v e c o v e n a n t s a r e t o be c o n s t r u e d a c c o r d i n g t o t h e i n t e n t o f the p a r t i e s i n the l i g h t of the terms of t h e r e s t r i c t i o n and c i r c u m s t a n c e s known t o the p a r t i e s . ' " H i n e s v. H e i s l e r , 439 Hipsh v. So. 2d 4, Graham C r e e k E s t a t e s 5-6 ( A l a . 1983)." Owners A s s ' n , 927 So. 2d 846, 848-49 ( A l a . C i v . App. 2005). See a l s o G r o v e H i l l Homeowners' A s s ' n v. R i c e , 3d 614 The cabin to 43 So. evidence only reflects one persons w i t h i n the t o one and another, other p e r s o n s who those 609, group that of ( A l a . C i v . App. the persons Slabys at a each other are using residential and commercial lodgings, but are r e n t t h e c a b i n as a c o o r d i n a t e d w h o l e . r e l a t i o n s , but, biologically does n o t the that unrelated for other C. than R e s i d e n t i a l Uses 21 motels, affiliated Sometimes The mere f a c t t h a t to purposes." the as shown, t h a t i s the mean t h a t , when r e n t i n g t h e premises the strangers as one w o u l d e x p e c t t o f i n d a t h o t e l s , similar are rented i n d i v i d u a l g r o u p s have n o t b e e n groups are not b l o o d renters have time not the o n l y c h a r a c t e r i s t i c of a " f a m i l y . " the 2010). Slabys or cabin, "single to they family 2100498 A t l e a s t two o t h e r j u r i s d i c t i o n s have d e t e r m i n e d t h a t t h e short-term rental restrictions purposes" 58, of a vacation requiring property or s i m i l a r wording. home does not v i o l a t e t o be u s e d f o r " r e s i d e n t i a l I n Lowden v . B o s l e y , 395 Md. 909 A . 2 d 261 ( 2 0 0 6 ) , c i t e d b y t h e S l a b y s , the Maryland C o u r t o f A p p e a l s d e t e r m i n e d t h a t t h e owners o f a v a c a t i o n home had n o t v i o l a t e d a r e s t r i c t i v e covenant r e q u i r i n g t h a t l o t s i n the subdivision purposes only'" be used f o r "'single family residential b y r e n t i n g t h e i r home t o o t h e r f a m i l i e s on a short-term basis. S p e c i f i c a l l y , the court concluded that the c o v e n a n t "on i t s f a c e [did] not p r o h i b i t the short-term r e n t a l o f a d e f e n d a n t ' s home t o a s i n g l e f a m i l y w h i c h r e s i d e s home." 395 Md. a t 67, 909 A . 2 d a t 266. The c o u r t i n the reasoned t h a t " ' [ r ] e s i d e n t i a l u s e , ' w i t h o u t more, h a s been c o n s i s t e n t l y interpreted as m e a n i n g that t h e use of t h e p r o p e r t y l i v i n g purposes, or a d w e l l i n g , or a place "[t]he t r a n s i t o r y or temporary defeat the r e s i d e n t i a l status." is for o f abode," a n d t h a t n a t u r e o f s u c h u s e does n o t 395 Md. a t 68, 909 A . 2 d a t 267. Similarly, i n M u l l i n v . S i l v e r c r e e k Condominium, Owner's A s s ' n , 195 S.W.3d 484 (Mo. C t . App. 2 0 0 6 ) , t h e M i s s o u r i 22 Court 2100498 of Appeals affirmed condominiums requiring that each exclusively a judgment were unit to subject to be The court to a "'used, residential S.W.3d a t 488. a l l o w i n g n i g h t l y r e n t a l s of use by restrictive improved, a covenant and devoted single family.'" 195 stated: "The p l a i n and o r d i n a r y m e a n i n g o f 'residential p u r p o s e s ' i s 'one i n w h i c h p e o p l e r e s i d e o r d w e l l , o r w h i c h t h e y make t h e i r homes, as d i s t i n g u i s h e d f r o m one w h i c h i s u s e d f o r c o m m e r c i a l o r b u s i n e s s p u r p o s e s . ' S t a t e d a n o t h e r way, t h e u n i t o w n e r s ' use o f t h e i r u n i t s and r e s t r i c t e d common e l e m e n t s must be f o r t h e p u r p o s e o f r e s i d i n g o r d w e l l i n g t h e r e , o r in a manner making the realty a home, as d i s t i n g u i s h e d from u s i n g the r e a l t y f o r commercial or b u s i n e s s purposes." 195 S.W.3d a t 490 the restriction single family" restriction agree "residential the should continue to construed court found units be together owner c o u l d be those purposes" living condominium be the The used with allowed that "by a another to rent the i s used for Id. with ordinary incidental that so t h a t unit to others. We (citations omitted). courts when purposes. relax, eat, activities, that property those occupying Thus, so sleep, bathe, long and i t do as the engage so for renters in other as t h e u n d i s p u t e d e v i d e n c e i n d i c a t e s 23 2100498 renters did residential in this case, they purposes. 24 are using the cabin for 2100498 D. E f f e c t on D u r a t i o n In i t s judgment, t h e t r i a l of Rental c o u r t , i n s t e a d o f f o c u s i n g on how t h e r e n t e r s u s e d t h e c a b i n , c o n c e n t r a t e d on t h e s h o r t - t e r m nature of that use. The t r i a l court stated: "Construing the term residential purposes e m p l o y i n g t h e common a n d o r d i n a r y m e a n i n g o f t h e words u s e d , i t d e n o t e s t h e o c c u p y i n g o f a p r e m i s e s f o r t h e p u r p o s e o f m a k i n g i t one's u s u a l p l a c e o f abode. I t does n o t mean o c c u p y i n g a p r e m i s e s f o r vacation or t r a n s i e n t purposes." (Second emphasis added.) that like the Slabys, subdivision, there only court's The e v i d e n c e many o f t h e o t h e r use t h e i r property intermittently reasoning, clearly establishes landowners i n the as a v a c a t i o n home, s t a y i n g or seasonally. and the reasoning Under the t r i a l e m p l o y e d b y t h e Texas C o u r t o f A p p e a l s i n B e n a r d v . Humble, 990 S.W.2d 929 (Tex. C t . App. their 1 9 9 9 ) , upon w h i c h t h e t r i a l c o u r t r e l i e d , u n l e s s t h e y u s e property as their primary residences, the other l a n d o w n e r s i n t h e s u b d i v i s i o n a l s o w o u l d be i n v i o l a t i o n o f the r e s t r i c t i v e covenant. On de novo Owners A s s ' n , review, see Hipsh 927 So. 2d a t 848 v. Graham (treating de novo), we hold 25 that the Estates construction of unambiguous r e s t r i c t i v e c o v e n a n t as a q u e s t i o n reviewed Creek term o f l a w t o be "residential 2100498 p u r p o s e s " does n o t mean o n l y " o c c u p y i n g of a premises f o r the p u r p o s e o f m a k i n g i t one's u s u a l p l a c e o f abode." court did not hold in Waldrop, supra, Our that supreme the term " r e s i d e n c e " means u s u a l p l a c e o f abode; r a t h e r , i t s t a t e d o n l y that the abode." term 505 is satisfied So. when a b u i l d i n g 2d a t 328. So d e f i n e d , the i s "a place of cabin would be u s e d f o r " r e s i d e n t i a l p u r p o s e s " a n y t i m e i t i s u s e d as a p l a c e o f abode, e v e n i f t h e p e r s o n s o c c u p y i n g there temporarily during a vacation. a t 68, 909 A.2d s u c h use The lease a t 267 ("The does n o t d e f e a t See a l s o Lowden, 395 the r e s i d e n t i a l and residing t r a n s i t o r y or temporary nature A s s o c i a t i o n ' s bylaws their property, the cabin are recognize Md. of status."). the Slabys can judgment i m p l i e d l y the that allows the S l a b y s t o l e a s e t h e i r p r o p e r t y f o r p e r i o d s l o n g e r t h a n a week. The judgment o n l y p r o h i b i t s "short-term" rentals. "[T]here i s u t t e r l y n o t h i n g i n the language of the D e c l a r a t i o n w h i c h p r o v i d e s any b a s i s f o r d r a w i n g a d i s t i n c t i o n b e t w e e n l o n g - t e r m r e n t a l s and s h o r t - t e r m r e n t a l s . M o r e o v e r , a t what p o i n t does t h e r e n t a l o f a home move f r o m s h o r t - t e r m t o l o n g - t e r m : a week? a month? a s e a s o n ? t h r e e months? s i x months? one y e a r ? or s e v e r a l y e a r s ? " Lowden, 395 the Md. restrictive a t 70, 909 covenants, A.2d as 26 a t 268. We written, read nothing addressing in the 2100498 acceptable length of a r e n t a l or lease of the property. As n o t e d , a m a j o r i t y o f t h e members o f t h e A s s o c i a t i o n r e j e c t e d attempts t o provide leasing rights. the Slabys cabin further d e f i n i t i o n of the property I n t h e a b s e n c e o f some s p e c i f i c presumably can a u t h o r i z e their restriction, r e n t e r s t o use the i n t h e same manner, a n d f o r t h e same p e r i o d , Slabys themselves Corp. , 283 A l a . 5 5 1 , 219 purported to lease prohibited void). use i t . by We So. 2d 379 (1969) f o r commercial zoning therefore ordinance, decline to E. context, purposes does that only," not require lessor contract the meaning was was of court. Summary summary, we c o n c l u d e residential (when lease adopt Trucking use, which " r e s i d e n t i a l purpose" employed by t h e t r i a l In that the C f . W a l k e r v. S o u t h e r n property local owners' when the phrase applied permanent "single i n the occupancy family present by o n l y one t r a d i t i o n a l nuclear family. T h a t p h r a s e does n o t p r o h i b i t t h e Slabys cabin from renting their on a short-term basis to i n d i v i d u a l s o r groups o f a s s o c i a t e d p e r s o n s u n r e l a t e d by b l o o d to the Slabys o r t o one a n o t h e r . 27 2100498 II. The M e a n i n g o f t h e " C o m m e r c i a l U s e " P r o h i b i t i o n In i t s judgment, t h e t r i a l rental of the cabin court violates the " c o m m e r c i a l u s e . " When t h e S l a b y s d o u b t r e a l i z e some p e c u n i a r y benefit nor remittance the of the from r e s i d e n t i a l financial property the nature or the of t h e use t o c o m m e r c i a l as t h e t r i a l concluded. 279 A l a . 453, 186 So. 2d 915 supreme c o u r t h e l d t h a t a r e s t r i c t i v e that against c a b i n , t h e y no gain, but neither that advertisement I n R e e t z v. E l l i s , our prohibition rent t h e i r of a lodging t a x transforms of t h e p r o p e r t y court found t h a t the Slabys' the burdened p r o p e r t y dwelling purposes be u s e d impliedly covenant r e q u i r i n g solely prohibited (1966), f o r farming commercial and uses. N o t i n g t h a t t h e p r o p e r t y owners p l a n n e d on u s i n g t h e p r o p e r t y to manage a 30- t o 40-mobile-home t r a i l e r p a r k , c o m p l e t e w i t h a rental office, a laundry area, a swimming pool, and a r e c r e a t i o n room, t h e c o u r t h e l d t h a t " t h e p r o p o s e d u s e i s f o r a commercial purpose and n o t f o r d w e l l i n g p u r p o s e s . " a t 458, 186 So. 2d a t 918. Association maintains 279 A l a . On a p p l i c a t i o n f o r r e h e a r i n g , t h e t h a t Reetz compels t h e c o n c l u s i o n 28 that 2100498 the Slabys' short-term rental p r o h i b i t e d c o m m e r c i a l use of their of t h e i r cabin the mobile-home mercantile actual or similar r e n t i n g of associated park on activity the cabin, therewith, occurs site, occurs and a property. U n l i k e i n Reetz, i n which the p r o p e r t y manage constitutes any owners p l a n n e d t o in at this the cabin. financial off-site. The case no The transactions Slabys do not s o l i c i t r e n t e r s o n - s i t e , b u t do so t h r o u g h t h e I n t e r n e t , where p o t e n t i a l tenants there. can v i e w t h e p r e m i s e s w i t h o u t While occupying the cabin, the tenants actually going must c o o k and c l e a n f o r t h e m s e l v e s and t h e y do n o t r e c e i v e any s e r v i c e s f r o m the Slabys. A l t h o u g h the Slabys p a y a b l e by persons furnishing any transients in [County]," § "engaging room o r any ... 40-26-1, remit a lodging tax, which i s i n the business rooms, l o d g i n g , tourist Ala. Code or renting or accommodations to cabin ... 1975, that of in ... fact DeKalb does d e t r a c t f r o m t h e c o n c l u s i o n t h a t no c o m m e r c i a l a c t i v i t y place on t h e not takes premises. M o s t i m p o r t a n t l y , u n l i k e i n R e e t z , t h e income t h e Slabys d e r i v e from the r e n t a l of the p r o p e r t y d e r i v e s s o l e l y from the use of the p r o p e r t y i n t h e same manner as t h e o t h e r 29 landowners 2100498 in t h e s u b d i v i s i o n use t h e i r properties. The f a c t that the S l a b y s r e c e i v e r e n t a l income does n o t t r a n s f o r m t h e c h a r a c t e r of the surrounding subdivision like mobile-home p a r k o r a h o t e l would. the maintenance of a As t h e M a r y l a n d C o u r t o f A p p e a l s e x p l a i n e d i n Lowden: "The o w n e r s ' r e c e i p t o f r e n t a l income i n no way detracts from t h e use o f t h e p r o p e r t i e s as residences by the tenants. There are many r e s i d e n t i a l uses of p r o p e r t y which a l s o p r o v i d e a commercial b e n e f i t t o c e r t a i n persons. Both i n M a r y l a n d and i n a g r e a t m a j o r i t y o f o t h e r s t a t e s , o v e r 30 p e r c e n t o f homes a r e r e n t e d r a t h e r t h a n owned b y t h e f a m i l i e s residing therein, thus providing much r e n t a l income t o l a n d l o r d s . I n addition to conventional rentals, a commercial b e n e f i t may be r e a l i z e d f r o m r e s i d e n t i a l p r o p e r t y b y persons o r e n t i t i e s h o l d i n g ground r e n t s , mortgages, o r deeds o f t r u s t . When p r o p e r t y i s u s e d f o r a r e s i d e n c e , t h e r e s i m p l y i s no t e n s i o n b e t w e e n s u c h use a n d a c o m m e r c i a l b e n e f i t a c c r u i n g t o someone else." 395 Md. a t 69, 909 A . 2 d a t 267-68 ( f o o t n o t e o m i t t e d ) ; s e e a l s o P i n e h a v e n P l a n n i n g Bd. v. B r o o k s , P.3d 664, 667-68 (2003) 138 I d a h o 826, 829-30, 70 (holding that r e s t r i c t i v e covenants d i s a l l o w i n g "'commercial or i n d u s t r i a l ventures or business of any t y p e ' " f r o m b e i n g m a i n t a i n e d were not meaning, whether ambiguous clearly and that, on any l o t i n t h e s u b d i v i s i o n "according allow the r e n t a l short-term or long-term, 30 to their of r e s i d e n t i a l because plain property," t h e u s e "does n o t 2100498 v i o l a t e t h e p r o h i b i t i o n on c o m m e r c i a l and b u s i n e s s a c t i v i t y such terms are The commonly as understood"). S l a b y s c i t e a number o f o t h e r c a s e s t h a t a l s o support t h e i r argument t h a t t h e s h o r t - t e r m r e n t a l o f t h e i r p r o p e r t y i s n o t p r o h i b i t e d by a c o m m e r c i a l - u s e r e s t r i c t i o n . v. C o l u c c i , 908 (although the N.E.2d rental 1214, of 1219-21 property c o v e n a n t s r e q u i r i n g p a r c e l s t o be (Ind. subject See Applegate Ct. App. to restrictive "'used o n l y f o r r e s i d e n t i a l purposes,'" p r o h i b i t i n g commercial b u s i n e s s from b e i n g on, and prevent stating that 2009) "'[n]othing herein carried contained shall the l e a s i n g or r e n t i n g of p r o p e r t y or s t r u c t u r e s f o r r e s i d e n t i a l use '" was not p r o h i b i t e d , the maintenance of a r e n t a l o f f i c e on t h e p r o p e r t y c r e a t e d a q u e s t i o n o f f a c t as t o w h e t h e r c o v e n a n t s were v i o l a t e d ) ; S c o t t v. W a l k e r , 274 Va. 209, not 218, 645 S.E.2d 278, 283 (2007) ( r e n t a l of p r o p e r t y p r o h i b i t e d by r e s t r i c t i v e c o v e n a n t s r e q u i r i n g l o t s t o be f o r r e s i d e n t i a l p u r p o s e s b e c a u s e c o v e n a n t s were s i l e n t leases or rental agreements purposes" was ambiguous); Basinger, 115 Ohio (1996) (short-term App. 3d rental and Catawba 402, of 31 the term Orchard 409, 685 property used as to "residential Beach Ass'n v. N.E.2d 584, 589 did not violate 2100498 restrictive covenant when no business was conducted on p r o p e r t y a n d p r o p e r t y was u s e d as s i n g l e - f a m i l y r e s i d e n c e s f o r one f a m i l y e a c h ) ; 751, 754 zoning S i w i n s k i v. Town o f Ogden Dunes, 922 N.E.2d ( I n d . C t . App. 2010) ordinance the p r o p e r t y ("'single-family dwelling'" i n refers to physical a c t i v i t y r a t h e r than c o n d u c t e d upon the p r o f i t - m a k i n g i n t e n t i o n s of the homeowners); a n d Mason F a m i l y T r u s t v. DeVaney, 146 N.M. 202, 207 P.3d 1176, 1179 reasonably construed, a (N.M. C t . App. 2009) restriction stating 199, (strictly that and property s h a l l be u s e d f o r d w e l l i n g p u r p o s e s o n l y a n d n o t f o r b u s i n e s s or c o m m e r c i a l p u r p o s e s does n o t f o r b i d s h o r t - t e r m dwelling The rental for purposes). Association relies Owners A s s ' n v. S c h i l l i n g , on Enchanted Forest Property (No. 287614, M a r c h 11, 2010) (Mich. C t . App. 2010) ( n o t r e p o r t e d i n N.W.2d), w h i c h was a l s o relied on b y t h e t r i a l Appeals court. interpreted a In S c h i l l i n g , restriction the Michigan stating Court that of "'[a]ny s t r u c t u r e e r e c t e d s h a l l be a p r i v a t e r e s i d e n c e f o r u s e by t h e owner o r o c c u p a n t for commercial concluded No p a r t o f s a i d p r e m i s e s s h a l l be u s e d or manufacturing that the r e s t r i c t i o n 32 purposes.'" "expresses a clear The court intent to 2100498 p e r m i t use o f t h e p r o p e r t y o n l y f o r p r i v a t e r e s i d e n t i a l use" and t h a t " [ u ] s e o f t h e p r o p e r t y t o p r o v i d e t e m p o r a r y h o u s i n g to t r a n s i e n t g u e s t s i s a c o m m e r c i a l p u r p o s e , as t h a t t e r m i s commonly understood." We find i t noteworthy that the r e s t r i c t i o n i n S c h i l l i n g i n c l u d e s language r e s t r i c t i n g t h e use t o t h e "'owner o r o c c u p a n t , ' " t h u s m a k i n g t h e c o v e n a n t i n t h a t c a s e more r e s t r i c t i v e cases c i t e d t h a n t h e c o v e n a n t s i n a number o f o t h e r by t h e S l a b y s t h a t do n o t c o n t a i n s u c h l i k e the covenant i n the p r e s e n t case. that S c h i l l i n g The t r i a l 2d 971 District i s distinguishable language, T h e r e f o r e , we c o n c l u d e from the p r e s e n t case. c o u r t a l s o r e l i e d on R o b i n s v. W a l t e r , 670 So. (Fla.Dist. Court C t . App. of Appeals 1995) . of Florida In Robins, the determined First that the o p e r a t i o n o f a b e d a n d b r e a k f a s t was p r o h i b i t e d by r e s t r i c t i v e c o v e n a n t s l i m i t i n g t h e e r e c t i o n o f s t r u c t u r e s on t h e p r o p e r t y to "'one d e t a c h e d s i n g l e f a m i l y d w e l l i n g u n i t ' " a n d r e q u i r i n g t h a t no s t r u c t u r e be u s e d f o r b u s i n e s s o r c o m m e r c i a l p u r p o s e s . 670 So. 2d a t 973. "'the The c o v e n a n t s i n R o b i n s f u r t h e r n o t e d t h a t r e n t i n g o f t h e p r e m i s e s i n w h o l e o r i n p a r t s h a l l n o t be c o n s t r u e d t o be a b u s i n e s s o r c o m m e r c i a l o p e r a t i o n . ' " note first that the covenants 33 i n the present case, Id. We unlike 2100498 t h o s e a t i s s u e i n R o b i n s , a r e s i l e n t as t o t h e of p r o p e r t y rental. M o r e o v e r , b a s e d on determination t h a t the o p e r a t i o n p r o h i b i t e d by the that that breakfast court o f t h e bed covenants at issue distinguished the the permissibility Florida court's and b r e a k f a s t i n Robins, operation was i t i s clear of a f r o m " r e n t i n g o f t h e p r e m i s e s , " w h i c h was bed and expressly p e r m i t t e d by t h e r e s t r i c t i v e c o v e n a n t s i n t h a t c a s e ; i t s t a t e d that " [ t ] h e r e n t a l of a residence restrictions in the i n the context case and instant u n d e r s t a n d i n g i n v o l v e s the of the under r e n t a l as a r e s i d e n c e deed common rather than j u s t a f a c i l i t y s e r v i n g temporary or t r a n s i e n t g u e s t s from the general public." which the provide Id. at 975. Slabys rent t h e i r cabin Thus, the present as a r e s i d e n c e , any s e r v i c e s t o t h e i r t e n a n t s , case, but in do not i s d i s t i n g u i s h a b l e from Robins. We conclude t h a t the r e s t r i c t i o n i n the covenant at p r o h i b i t i n g "commercial use" of the p r o p e r t y the Slabys from r e n t i n g t h e i r p r o p e r t y We agree w i t h Brooks, have supra, addressed property the and the reasoning the majority issue, i s used i n t h i s that of the other Planning basis. Board jurisdictions purposes c a s e , s u c h as 34 does n o t p r o h i b i t on a s h o r t - t e r m i n Pinehaven issue for for eating, which v. that the sleeping, 2100498 and o t h e r r e s i d e n t i a l p u r p o s e s , does n o t amount t o c o m m e r c i a l use. Conclusion B a s e d on t h e f o r e g o i n g , we c o n c l u d e t h a t t h e S l a b y s a r e not using their cabin i n a manner inconsistent with the r e s t r i c t i v e c o v e n a n t a t i s s u e b y r e n t i n g t h e c a b i n on a s h o r t term b a s i s to various limit this d e c i s i o n t o the circumstances case, noting presented affect a n y number of purposes. presented factors, We i n this such as those i n c a s e s c i t e d above f r o m o t h e r j u r i s d i c t i o n s , c o u l d the application short-term reverse that groups f o r r e s i d e n t i a l rental the t r i a l of restrictive of property court's covenants to the s u b j e c t t o such covenants. judgment p r o h i b i t i n g We the Slabys' r e n t a l o f t h e i r p r o p e r t y , a n d we remand t h e c a s e f o r t h e e n t r y of a judgment c o n s i s t e n t w i t h t h i s reversing the interpretation Slabys' trial court's of the covenant, remaining APPLICATION opinion. judgment we decline B e c a u s e we a r e based on our t o address the argument on a p p e a l . GRANTED; OPINION OF OCTOBER 7, 2011, WITHDRAWN; OPINION SUBSTITUTED; REVERSED AND REMANDED. B r y a n a n d Thomas, J J . , c o n c u r . Pittman, J . ,concurs specially. Thompson, P . J . , c o n c u r s i n t h e r e s u l t , w i t h o u t 35 writing. 2100498 PITTMAN, J u d g e , c o n c u r r i n g I concurred specially. i n t h e m a i n o p i n i o n on o r i g i n a l deliverance, and I l i k e w i s e c o n c u r i n t h e o p i n i o n on r e h e a r i n g . so, however, proposition between should that the not be interpreted as decision in this case d e l i v e r a n c e and t h e d e c i s i o n i n R e e t z v. E l l i s , 186 So. 2d 915 Ala. App. 33, (1966). 36, 261 (declining to consider rehearing); (Ala. accord doing supporting t h e A s s o c i a t i o n t i m e l y r a i s e d any court's My on the conflict original 279 A l a . 453, See Putnam v. C i t y o f H u n t s v i l l e , 48 So. new Ex p a r t e 2d 754, supporting Lovejoy, 2000). 36 756-57 ( C i v . App. 1972) arguments p r e s e n t e d 790 So. 2d 933, on 938-39

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