Forshee v. Neuschwander

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The short-term rentals of Defendants’ property did not constitute “commercial activity” under the restrictive covenant that encumbered its property. Defendants purchased property in a subdivision and began renting it to vacationers on both short-term and long-term bases. Several neighboring property owners brought suit, claiming that a restrictive covenant that encumbered all lots in the subdivision precluded short-term rentals of property. The circuit court ruled in favor of Plaintiffs and enjoined Defendants from further short-term rentals. The court of appeals reversed. The Supreme Court affirmed, holding (1) the term “commercial activity” in the restrictive covenant is ambiguous; and (2) as narrowly interpreted by the Court, the term “commercial activity” does not prelude either short-term or long-term rentals of Defendants’ property. View "Forshee v. Neuschwander" on Justia Law