DLG Prevails in Jury Trial in Challenge to Short-Term Rental Ban

Dessaules Law Group attorneys recently prevailed in a jury trial in a lawsuit brought against an HOA challenging the validity of a short-term rental ban. The HOA's Board of Directors obtained the approval of more than 75% of the owners to adopt the ban on rentals of less than six (6) months and recorded the proposed amendment. Five property owners voted against the ban.

The original CC&Rs did not contain any rental restrictions and allowed for an amendment if 75% of the owners voted in support of its amendment. DLG argued that, notwithstanding the 75% amendment provision, the unanimous consent of all owners (that is, 100%) was necessary because the rental ban was a new and material restriction that was substantial and unforeseeable in the original CC&Rs. The case went to the jury to decide whether rental restrictions prohibiting rentals of less than six (6) months was a substantial and foreseeable change.

The jury, after deliberating just over one hour following a two-day trial, returned a verdict finding that the proposed amendment was invalid because it was a new prohibition that was not contemplated in the original CC&Rs.

We believe this was the first case of this nature to be tried to a jury in Arizona.

Related Articles:
Are Short-Term Rental Restrictions Valid?, New Short-Term Rental Law to Take Effect in August

To see the team behind this victory, you can check out our attorneys page and find out more about their background and other achievements.