Aquarian Foundation v. Sholom House case brief

Aquarian Foundation v. Sholom House, Court of Appeals of FL, 1984

1. P has provision where needed written consent of association to any sale or transfer. Albaras sold to D without written consent and P sued to set aside conveyance.
2. Issue – whether power invested in P to arbitrary, capriciously or unreasonable withheld its consent to transfer constitutes an unreasonable (disabling) restraint on alienation?
3. Holding – Yes, restraints are subject to a test reasonableness:
   1. Balancing test of right of P to maintain its homogeneity and the right of individual to alienate property
   2. Free alienability of property fosters economic growth and commercial development, property with restraints become unmarketable
   3. Court holds not reasonable
4. Rule – such restraints must be reasonable related to the purpose of the restraint (promotion of health, happiness and peace of mind of unit owners)