Broadmoor San Clemente Homeowners Assn. v. Nelson

In 1974, the developer of the Broadmoor homes recorded a declaration of covenants, conditions and restrictions (CC&Rs) which provided “no business or commercial activity shall be maintained or conducted upon any of the [Broadmoor homes].’’ In 1990, appellants Robert N. Nelson, individually and as trustee of the Robert N. Nelson and Elsie M. Nelson Revocable Living Trust, Alexis Edwards, and Rosehaven, a corporation (the Nelsons), purchased a home subject to the CC&Rs. Subsequently the Nelsons remodeled the home to make it suitable for use as a licensed “residential care facility for six or fewer non-ambulatory elderly adults which they called ‘Rosehaven.’ ” This type of facility is subject to the California Residential Care Facilities for the Elderly Act. (Health & Saf. Code, § 1569 et seq.) The Nelsons commenced marketing the services of the home under the name “Rosehaven” and contemplated charging fees for services to be rendered to the residents.

Respondent Broadmoor San Clemente Homeowners Association commenced this action seeking an injunction contending the operation of such a residential care facility violated the CC&Rs. After a court trial on stipulated facts,…