352 P.3d 492
Idaho2015Background
- 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)
