Nahrstedt v. Lakeside Village Condominium Ass'n, Inc., 8 Cal. 4th 361, 33 Cal. Rptr. 2d 63, 878 P.2d 1275 (Cal. 1994)
Nahrstedt v. Lakeside Village Condominium is a cornerstone property law decision defining the enforceability of recorded covenants, conditions, and restrictions (CC&Rs) in common interest developments.
Are recorded CC&R use restrictions—specifically a condominium no-pets covenant—enforceable against an owner absent proof that the restriction is unreasonable as applied to that particular owner, or are such restrictions presumptively valid unless shown to be unreasonable in the context of the development as a whole?
Under California's Davis–Stirling Common Interest Development Act (then Civil Code § 1354), recorded CC&R use restrictions are enforceable as equitable servitudes unless they are unreasonable. A restriction is unreasonable only if it is arbitrary, violates a fundamental public policy, or imposes burdens on the use of affected properties that substantially outweigh the restriction's benefits to the development. The touchstone of reasonableness is assessed from the perspective of the common interest development as a whole, not based on individualized, owner-specific circumstances.
Yes, the CC&R no-pets restriction is enforceable. Recorded CC&R restrictions are presumptively reasonable and will be enforced unless shown to be unreasonable in the community-wide sense; an owner cannot defeat enforcement by showing the restriction is unreasonable only as applied to that owner's particular situation. The California Supreme Court reversed the Court of Appeal and reinstated summary judgment for the HOA.
Nahrstedt is a leading authority on the enforceability of CC&Rs in common interest developments. It establishes the presumption that recorded use restrictions are valid and sets a demanding standard for challenges: an owner must demonstrate unreasonableness measured against community-wide effects. The decision clarifies the doctrinal status of CC&Rs as equitable servitudes and draws an important line between recorded covenants and later-adopted HOA rules. For exam purposes, Nahrstedt is essential in property and land use units addressing servitudes, HOA governance, and the tension between private ordering and individual property rights.