Wednesday, May 6, 2020

The Pros And Cons Of Business Law - 1197 Words

As we previously discussed on September 21, 2017, in Michigan Court of Appeals Rules in Favor of HOA on Short-Term Rental Ban, the Michigan Courts have held that short-term rentals, the Michigan courts have consistently held that that short-term rentals violates â€Å"residential use† and â€Å"non-commercial use† restrictions contained in covenants. On November 30, 2017, in Eager v Peasley, et. al., published opinion of the Court of Appeals, issued November 30, 2017 (Docket No. 336460), a majority opinion of the Michigan Court of Appeals once again affirmed this principle. While the dissenting opinion disagreed, as it did not believe that short-term rentals constituted commercial activity, the matter majority opinion will serve as binding†¦show more content†¦. . the premises shall be used for private occupancy only; . . .that no commodity shall be sold or offered for the sale upon the premises and no commercial use made thereof, . . .† In pertinent par t, the restrictive covenant provided: [T]hat the premises shall be used for private occupancy only; that no building to be erected on said lands shall be used for purposes otherwise than as a private dwelling and such buildings as garage, ice-house, or other structures usually appurtenant to summer resort dwellings are to be at the rear of said dwellings; that such dwellings shall face the lake unless otherwise specified; that no commodity shall be sold or offered for sale upon said premises and no commercial use made thereof . . . . After reviewing the stipulated facts, the trial court denied Plaintiff’s request for an injunction without an explanation and the Plaintiff appealed. The Majority Opinion The majority opinion relied on several Michigan Supreme Court cases to conclude that that transient use of the property as a short term rental did not constitute â€Å"private occupancy† under the restrictive covenant. Additionally, the court relied on OConnor v Resort Custom Builders, Inc, 459 Mich 335, 336; 591 NW2d 216 (1999), which held that interval ownership did not constitute a â€Å"residential purpose† under another similar restrictive covenant. The majority opinion held that defendant’s transient short-termShow MoreRelatedThe Pros And Cons Of Business Law1479 Words   |  6 Pageswho had planned to attend law school - decided instead that she wished to become a barista at the local coffee shop and work on a novel she had always wanted to write. Upon hearing this news, Benjamin became very upset. 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