After protracted trial, attorneys Barry Reagan and Michael Lebow, obtained a judgment in favor of their clients, the homeowners association and its board members. The plaintiffs appealed.
In a published decision, Eith v. Ketelhut, the Court of Appeal affirmed the judgment of the Ventura Superior Court that the Ketelhuts operat=ion of a vineyard on their property did not violate the CCR&Rs. The CCR&Rs prohibited all business and commercial use of the property. The Ketelhuts had planted the backyard of their residedence with grapes which were used to make wine and sell wine offsite. The Court of Appeal found that the vineyard did not constitute commercial or business use of the property as a matter of law as the winemaking and selling of the bottled wine did not occur on the property and the planting of the property with grapes did not disturb the residential character of the community. The board of homeowners association acted within ist discretion in allowing the continued operation of the vineyard and its decision is entitled to judicial deference.