Jennifer Munnik, Joseph Bonelli, Schweibl Holdings, LLC, Palatine Resort Properties, LLC, Neil Bialk, Sue Bialk, Thomas Atkins, and Joyce Atkins v. Blue Harbor Resort Condominium Association, Inc., Sheboygan Resort Operator LLC, and Sheboygan Acquisitions LLC

Munnik v. Blue Harbor Resort Condominium Association, Inc. · Wisconsin Court of Appeals, District II · June 3, 2026 · No. 2024AP1901

Summary

The Wisconsin Court of Appeals, District II, affirmed a Sheboygan County circuit court order declaring valid and enforceable the 29-day occupancy restrictions in the Blue Harbor Resort Condominium Association's condominium declaration and amended restrictive covenant. The court held that the restrictions were clear and unambiguous, permitted under Wisconsin condominium law, and enforceable notwithstanding their connection to the City's R-1 transient-residential building-code classification. The court rejected the unit owners' arguments that the restrictions violated condominium law or were prohibited by the Building Code.

Holdings

  1. The occupancy restrictions are clear, unambiguous, and expressed in peremptory terms; they limit continuous occupancy of a condominium unit to no more than 29 days.
  2. The 29-day occupancy restrictions are reasonable and enforceable; because the restrictions are unambiguous, they need not independently pass a reasonableness test to be enforceable, and they would be reasonable in any event.
  3. The Building Code does not invalidate or eliminate the 29-day occupancy restriction. Blue Harbor was approved as R-1 Transient Residential, and the possibility of a future R-2 designation does not alter the designation or contractual documents applicable when the units were built and sold.
  4. The Redevelopment Authority's vote did not waive, remove, or amend the occupancy restrictions.

Questions Presented

  1. Whether the 29-day occupancy restrictions in the Declaration and Amended Restrictive Covenant are ambiguous and therefore unenforceable.
  2. Whether the 29-day occupancy restrictions are unreasonable under Wisconsin law.
  3. Whether the City of Sheboygan Building Code, including the property's R-1 Transient Residential classification, invalidates or eliminates the restrictions.
  4. Whether the Sheboygan Redevelopment Authority's 2021 vote legally waived, removed, or amended the occupancy restrictions.

Disposition

affirmed

Cases Cited (29)

  • Apple Valley Gardens Ass'n, Inc. v. MacHutta, 2007 WI App 270, ¶¶12, 21, 306 Wis. 2d 780, 743 N.W.2d 486(followed)
  • Apple Valley Gardens Ass'n, Inc. v. MacHutta, 2009 WI 28, ¶12, 316 Wis. 2d 85, 763 N.W.2d 126(followed)
  • Ash Park, LLC v. Alexander & Bishop, Ltd., 2015 WI 65, ¶38, 363 Wis. 2d 699, 866 N.W.2d 679(followed)
  • Brenner v. Amerisure Mutual Insurance Co., 2017 WI 38, ¶¶28, 30, 374 Wis. 2d 578, 893 N.W.2d 193(followed)
  • Carlin Lake Ass'n, Inc. v. Carlin Club Properties, LLC, 2019 WI App 24, ¶19, 387 Wis. 2d 640, 929 N.W.2d 228(followed)
  • Central Auto Co. v. Reichert, 87 Wis. 2d 9, 19, 273 N.W.2d 360 (Ct. App. 1978)(followed)
  • Dalka v. American Family Mutual Insurance Co., 2011 WI App 90, ¶5, 334 Wis. 2d 686, 799 N.W.2d 923(distinguished)
  • Deminsky v. Arlington Plastics Machinery, 2003 WI 15, ¶30, 259 Wis. 2d 587, 657 N.W.2d 411(followed)
  • Forshee v. Neuschwander, 2018 WI 62, ¶¶16-17, 381 Wis. 2d 757, 914 N.W.2d 643(followed)
  • Huebner v. State, 2000 WI 59, ¶10, 235 Wis. 2d 486, 611 N.W.2d 727(followed)

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