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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 enjoining property, Slaby of the the and his wife, Circuit the Maria Court Slaby, ("the appeal trial of from a

DeKalb

court") their

Slabys

from

short-term

rental

a l o t on that

which a cabin short-term

i s s i t u a t e d , b a s e d on i t s p r o h i b i t e d by We reverse. a

determination restrictive

r e n t a l s are

covenant burdening

their property.

Procedural History On June 19, Inc. Slabys 2009, ("the in Mountain River Estates Residential a complaint

Association, against the

Association"), filed the trial court. The

Association covenant

a s s e r t e d t h a t the Slabys burdening in

had v i o l a t e d a r e s t r i c t i v e

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

Association asserted property in the who

that

the

Slabys

had

renting their to the

Mountain are not they

River related had

Estates family using of the

subdivision members o f their

various Slabys

persons and,

thus,

that

been

property

f o r commercial purposes The

in violation

restrictive

covenant.

A s s o c i a t i o n requested

a permanent

2

2100498 injunction enjoining purposes using other than t h e S l a b y s from u s i n g as a s i n g l e - f a m i l y 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 A trial was h e l d on A p r i l complaint

on A u g u s t 1 1 , 2009. both the A s s o c i a t i o n court

12, 2 0 1 0 , a n d

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

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 court e n t e r e d a judgment,

which s t a t e s ,

i n pertinent

part:

"Single-family

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 of

"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.

"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 on F e b r u a r y of the

judgment p e n d i n g a p p e a l

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. Supreme Court on The S l a b y s 28, appealed that to the court

Alabama

February

2011; to

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