The Court of Appeals by Opinion issued March 24, 2017, held that the Garrard Circuit Court erred in holding that deed restrictions prohibited short-term rentals of residences. The circuit court’s had held that inhabitants of short-term rentals of residential property were not “residents” and therefore the use of the property was not for “residential” purposes and was therefore the operation of a business in contravention of the deed’s language. Arguments presented by the parties presented 3 unpublished Kentucky Court of Appeals cases which the circuit court relied upon in its ruling. The Court of Appeals address each of the three unpublished cases but determined that upon review of published caselaw on the interpretation of deed restrictions, and in light of there being no prohibition in the restrictions for renting or leasing the property (for any period of time) and in fact the restrictions allow “for advertising the sale or rental thereof,” and because any ambiguity is construed against the drafter and in favor of free use of the property, “the language of the deed does not prevent Gadd from renting his property on a short-term basis which is any amount of time. On April 7, 2017, the Court of Appeals order the opinion to be published. Read the Order. Read the Opinion. In late April, Hensley filed seeking discretionary review with The Kentucky Supreme Court granted discretionary review on August __, 2017, and Gadd thereafter filed a cross motion for discretionary review.
