Council of Association of Unit Owners of Pelican Cove Condominium v. Dale E. Yeilding, C.A. 12793-VCG

Pelican Cove Condominium Association (the Council) sued Dale and Sandra Yeilding (the Yeildings), owners of Unit 7, seeking a permanent mandatory injunction enforcing a 6-person per-unit occupancy limit in the Declaration.
Pelican Cove is a converted motel with close/shared common areas; Unit 7 has been advertised and leased with a 10-person occupancy limit since the Yeildings bought it in 2015.
In Pelican Cove I (Del. Ch. June 3, 2019) the court found the Yeildings breached the Declaration and had at least constructive notice of the occupancy restriction, but denied summary judgment on injunctive relief because the Council had not briefed irreparable harm and the balance of equities.
The Council filed a renewed summary-judgment motion addressing irreparable harm and the equities; the record includes complaints of disruptive conduct by large rentals.
The court held that breach of the restrictive covenant in this shared building causes irreparable harm (diminished quiet enjoyment, crowding, increased risk of disruptive rentals) and that the balance of equities favors enforcement, and therefore granted a permanent injunction limiting occupancy to six persons.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Entitlement to permanent injunction to enforce 6-person occupancy restriction	Yeilding breach of Declaration; success on merits in Pelican Cove I warrants injunction	Injunction unnecessary or futile; damages or other measures suffice	Court granted permanent injunction; merits established and injunction appropriate
Whether breach constitutes irreparable harm	Ongoing breach of covenant in shared condominium infringes other owners' quiet enjoyment and cannot be fully remedied by money	Harm is speculative; injunction may be futile and not eliminate disruptive renters	Court found irreparable harm: breach in this context is more than aesthetic and likely to diminish enjoyment; injunction not futile
Balance of equities	Enforcing Declaration honors unit owners’ reasonable expectations and protects the social contract	Economic harm to Yeildings from rental limits; enforcement may be unfair	Equities favor Council; Yeildings had constructive notice and their economic loss is not entitled to weight that rewards breach

Riggs v. Cove on Herring Creek Homeowners' Ass'n, Inc., 832 A.2d 1252 (Del. 2003) (affirming availability of injunction to enforce restrictive covenants in residential communities)
Draper Communications, Inc. v. Delaware Valley Broadcasters Ltd. P'ship, 505 A.2d 1283 (Del. Ch. 1985) (explaining permanent-injunction framework and factors)
North River Ins. Co. v. Mine Safety Appliances Co., 105 A.3d 369 (Del. 2014) (stating elements required for permanent injunction: success on the merits, irreparable harm, and favorable balance of equities)