Hensley v. Gadd

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The Supreme Court held that the circuit court did not err in enforcing Deed of Restrictions for Woodlawn Estates Subdivision Section II by granting judgment in favor of Don Hensley against Keith Gadd and JHT Properties, LLC (collectively, Gadd) on the basis that Gadd was renting private residences in the Subdivision as short-term vacation rentals in contravention of restrictions on commercial use of the property at issue. Hensley filed a complaint against Gadd alleging violations of the restrictions. Gadd filed a counterclaim for harassment. The trial court concluded that Gadd’s short-term rentals constituted a business in violation of the restrictions and dismissed Gadd’s harassment counterclaim. The court of appeals reversed, concluding that the restrictions were ambiguous in that they permitted rentals and should be construed in favor of the free use of property. The court, however, affirmed dismissal of Gadd’s counterclaim. The Supreme Court reversed and vacated so much of the court of appeals’ opinion as reversed the trial court’s judgment and otherwise affirmed, holding (1) the restriction limited commercial uses and required the lots to be used for single-family residential purposes, and (2) Gadd’s use of the property violated the Deed of Restrictions. View "Hensley v. Gadd" on Justia Law