Rental business wins restraining order against association

Friday, Sept. 7, 2001 | 11:27 a.m.

A local entrepreneur won a temporary restraining order against a country club homeowners association that he said has tried to shut down his vacation rental business.

The order issued by District Judge Michael Cherry on behalf of Las Vegas businessman Kyle Waugh temporarily prohibits the Las Vegas International Country Club Estates Homeowners Association from enforcing certain new regulations that Waugh complained were selectively enforced.

Waugh and the country club directly east of the Las Vegas Hilton have been embroiled in protracted litigation over the businessman's use of an estimated 25 country club residences as short-term rentals for traveling businessmen and tourists. Clark County also has sued Waugh and his companies, Oracle Real Estate Group and Vacation Homes of Las Vegas, with a non-jury trial scheduled for March.

Waugh initiated the latest round of litigation after the homeowners association adopted new regulations, such as a rule that prohibits property owners from access to common areas in the country club if their homes have been rented to others. Waugh argued in an affidavit that that restriction placed a hardship on him.

"This subsequently prevents me from marketing my property or having any interaction with a tenant," Waugh stated.

Both Waugh and homeowners association attorney Michelle Allison declined comment Thursday on the temporary restraining order. But the association argued in court documents that the new regulations apply to all property owners, not just Waugh.

"These particular amendments to the rules and regulations only peripherally touch the property itself," the association argued. "As such, the nature of the property is not affected and does not demonstrate a threat of irreparable harm.

"These amendments actually act to protect the rights of the tenants to control access to their own leased property."

Waugh also complained about a requirement that he file his short-term leases with the association office at the country club rather than keep the paperwork at his Paradise Road office. The association office is closed on weekends and then takes a business day to approve new leases, he argued.

"As a result of not having that move in on a weekend possible, it is my opinion that I would lose a great number of tenants," Waugh stated.

The association countered that because Waugh insists on keeping lease paperwork at his office "the master association must devote extra time and attention to securing information about plaintiffs' tenants."

Both Waugh and the association have won legal points since their wrangling began in 1998. The county joined the battle in March when it sued Waugh for alleged non-compliance with a county ordinance that prohibits vacation rentals of less than 30 days in residential neighborhoods. That is the case that is scheduled to go to trial next year.