JASON T. KEPHART AND ANNA KEPHART, APPELLANTS
NORTHBAY PROPERTY OWNERS ASSOCIATION, APPELLEE
COURT FROM WHICH APPEALED: MADISON COUNTY CHANCERY COURT. DATE OF JUDGMENT: 10/05/2012. TRIAL JUDGE: HON. CYNTHIA L. BREWER. TRIAL COURT RESOLUTION FOUND TO BE VALID; APPELLANTS ORDERED TO END LEASE.
DISPOSITION: REVERSED AND RENDERED.
FOR APPELLANTS: BRADLEY MICHAEL GLAZE.
FOR APPELLEE: MICHAEL STEPHEN MACINNIS, JON JERDONE MIMS.
BEFORE LEE, C.J., ROBERTS AND MAXWELL, JJ. IRVING AND GRIFFIS, P.JJ., BARNES, ISHEE, ROBERTS, MAXWELL, FAIR AND JAMES, JJ., CONCUR. CARLTON, J., NOT PARTICIPATING.
NATURE OF THE CASE: CIVIL - REAL PROPERTY
FACTS AND PROCEDURAL HISTORY
¶1. Jason and Anna Kephart own a leasehold interest in the Madison County,
Mississippi subdivision of Northbay. The Northbay Property Owners Association (NPOA) is the homeowners' association for the subdivision. Northbay is subject to a " Declaration of Covenant, Conditions[,] and Restriction" (the Declaration), as well as the Bylaws of NPOA (the Bylaws).
¶2. Article XIII, Section 13.02 of the Declaration allows homeowners to lease their properties for residential purposes when four conditions are met:
(i) the entire [d]welling and all the improvements on the [l]ot are leased, (ii) the term of the lease is at least six months, (iii) the lease otherwise complies with the rules and regulations adopted and promulgated from time to time by the Board of Directors, and (iv) the lease is subordinate and subject to [the] Declaration and is in writing.
¶3. Years prior to the Kepharts purchasing their leasehold, the Board of Directors of Northbay (the Board) adopted a resolution (the Resolution) that prohibited homeowners from renting or leasing their properties. Under Section 4.02 of the Declaration, the Board has the power " to do all acts and actions, except acts and actions which bye law, this Declaration, the Charter, or the [Bylaws] may be exercised only by or are reserved only to the Members." Additionally, this section granted the Board power " to create, ...