246 So. 3d 754
La. Ct. App.2018Background
- Landry Chalet Rentals, LLC bought Lot 10 in Timber Point Subdivision (a single-family lakefront house) in March 2015 and began short-term vacation rentals months later.
- Fourteen Timber Point property owners sued (Sept. 2016) seeking preliminary and permanent injunctions, alleging the rentals violated subdivision restrictive covenants prohibiting commercial uses.
- Parties submitted joint stipulations and documentary exhibits (deed, covenants, plat, online rental ad, commercial insurance declaration) in lieu of an evidentiary hearing.
- Stipulated facts: dozens of short-term renters (average ~4 nights), gross rental revenues of roughly $30,990 in 2015 and $22,666 in 2016, commercial insurance listing loss-of-rents and business liability, and neighbor complaints of trespass, litter, traffic, and nuisance.
- Trial court found Landry Rentals was operating a profit-making vacation rental business in violation of the covenant "No lot shall be used for any commercial purposes," and permanently enjoined operation of the business; Landry appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether using the dwelling as a short-term rental is a "commercial purpose" violating the Timber Point Covenants | Propert owners: short-term renting for profit is commercial and violates the covenant | Landry: rentals are residential use of the dwelling; covenant examples (bait stands, beverage sales) show "commercial" means selling goods, and allowance to advertise for rent implies renting is permitted | Court: Use as transient, profit-making vacation rental was commercial; injunction affirmed |
Key Cases Cited
- Chambless v. Parker, 867 So.2d 974 (La. App. 2 Cir. 2004) (enjoining for‑profit leasing as commercial use under a residential restriction)
- 4626 Corp. v. Merriam, 329 So.2d 885 (La. App. 1 Cir. 1976) (building restrictions upholdable to protect property value)
- Flippo v. Mann, 185 So.3d 856 (La. App. 2 Cir. 2016) (trial court factual finding that conduct violates covenants reviewed for manifest error)
- Jackson Square Towne House Home Ass'n, Inc. v. Hannigan, 867 So.2d 960 (La. App. 2 Cir. 2004) (enforcement of restrictive covenants via injunction)
- Wilkinson v. Chiwawa Communities Ass'n, 327 P.3d 614 (Wash. 2014) (vacation rentals not inherently commercial where long‑standing, uncontested local practice exists)