Short-Term Rental Noise Case: Injunction Upheld, $150,000 Fee Award Reversed

This case arose in a small four-unit condominium complex in a beach community. The owners of a downstairs unit sued the owners of the upstairs unit after the upstairs owners began operating their condo as a short-term rental through Airbnb and VRBO. According to the downstairs owners, the rental activity created frequent pounding, thuds, stairwell noise, slamming doors, and disturbances from guests moving in and out with luggage and other gear. They claimed the noise was constant and interfered with their sleep, work, and enjoyment of their property.

The downstairs owners sued for private nuisance, nuisance per se, and breach of the HOA’s CC&Rs. Their claims were based on two main theories. First, they argued the short-term rental use itself violated zoning-related provisions in the governing documents. Second, they argued the upstairs owners and their guests were violating the CC&Rs’ nuisance and unreasonable noise provisions.

Before trial, the court ruled against the downstairs owners on their zoning-based theory and dismissed the nuisance per se claim. That meant the case that went to the jury was narrower than what the plaintiffs originally wanted. The jury was asked to decide whether the upstairs owners were liable for private nuisance and for violating the non-zoning nuisance provisions in the CC&Rs. On those claims, the downstairs owners won but the jury awarded only $533.30 for loss of use, $1,186.85 for out-of-pocket expenses, and $500.00 for mental distress, for a total of $2,220.15 in damages.

After the jury’s verdict, the trial court considered the issue of the injunctive relief requested by the downstairs owners. Pursuant to request of the downstairs owners, the trial judge appointed a special master to recommend and approve proposals by sound and acoustical engineers, consultants and/or contractors to determine appropriate and sufficient sound attenuation measures and improvements to minimize the disruption to the downstairs owners caused by the short-term rentals. Based on the special master’s report, the trial court issue an injunction that required the upstairs owners to: