History
  • No items yet
midpage
352 P.3d 492
Idaho
2015
Read the full case

Background

  • Kimberley One’s original 1980 Declaration (CC&Rs) allowed lots for single-family residential use "on an ownership, rental or lease basis" and included a provision allowing amendment by a supermajority of owners; the amendment-vote threshold was later reduced to two-thirds.
  • Virgil Adams purchased a unit in 2003 subject to the CC&Rs and began short-term vacation rentals in 2012, which prompted neighbor complaints about noise, parking, and conduct.
  • The homeowners association proposed and the owners voted (≈89%) to adopt a 2013 Amendment restricting rentals: written leases approved by the board, board-approved advertising, no rentals under six months, no subleasing, contact info to board, and board discretion for exceptions and rules.
  • Adams continued short-term rentals, was fined under adopted house rules, and sued for declaratory relief seeking to invalidate the 2013 Amendment; the Association sought enforcement and fees.
  • The district court granted summary judgment for the Association, denied Adams’s cross-motion, and awarded attorney fees; the Idaho Supreme Court affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Validity of 2013 Amendment restricting short-term rentals Adams: amendment is an invalid restraint on free use of land because CC&Rs originally permitted rentals and the general "amend" clause shouldn’t authorize new burdens Association: amendment is within the plain language of the Declaration’s amendment power and may add or modify restrictions when adopted per procedure Court: Amendment valid — owners are bound by the Declaration including its amendment clause; adding a rental restriction was permissible and did not produce unconscionable harm
Entitlement to attorney fees Adams: this declaratory action is not an "enforcement" suit under CC&R fee provision, so fees are inappropriate Association: action sought to prevent enforcement and thus falls within the Declaration’s fee provision for suits to enforce CC&Rs Court: Fees properly awarded to Association at trial and on appeal under the CC&R contractual fee provision

Key Cases Cited

  • Jacklin Land Co. v. Blue Dog RV, Inc., 151 Idaho 242 (2011) (restrictive covenants are enforceable but restraints on use of land must be clearly expressed)
  • Sky Canyon Props. v. Golf Club at Black Rock, LLC, 155 Idaho 604 (2013) (apply contract principles to interpret covenants; ambiguities resolved in favor of free use of land)
  • Shawver v. Huckleberry Estates, 140 Idaho 354 (2004) (parties bound by CC&R amendment provisions in their agreement; equity will not rewrite such bargains absent unconscionable harm)
  • Best Hill Coal. v. Halko, LLC, 144 Idaho 813 (2007) (upholding an amendment that added a new restriction under a general amendment clause)
  • Nordstrom v. Guindon, 135 Idaho 343 (2000) (discussed in Best Hill regarding amendment provisions and owner voting)
Read the full case

Case Details

Case Name: Adams v. Kimberley One Townhouse Owner's Ass'n
Court Name: Idaho Supreme Court
Date Published: Jun 22, 2015
Citations: 352 P.3d 492; 2015 Ida. LEXIS 150; 158 Idaho 770; 42192
Docket Number: 42192
Court Abbreviation: Idaho
Log In