Eith v. Ketelhut

Facts: A homeowner’s property is part of a common interest development (CID) subject to the covenants, conditions and restrictions (CC&Rs) enforced by a homeowners association (HOA). A restrictive CC&R prohibits business and commercial activity on the property. The homeowner cultivates a vineyard on their property and sends the grapes to be made into wine, bottled and sold offsite.

Claim: A neighbor seeks to stop the homeowner from cultivating a vineyard on their property, claiming the operation violates the HOA’s CC&Rs since it constitutes a prohibited business and commercial activity.

Counterclaim: The homeowner claims vineyard cultivation is not prohibited by the HOA’s prohibition on business and commercial activity since it does not change the residential character of the community.

Holding: A California court of appeals holds vineyard cultivation is not prohibited by the HOA’s prohibition on business and commercial activity and the homeowner may continue cultivating their vineyard since it does not affect the residential character of the community. [Eith v. Ketelhut (December 17, 2018) _CA6th_]

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