Town of West Lakeland v. Auleciems

Karl and Dianne Auleciems (defendants) owned a 14,000-square-foot, seven-bedroom, nine-bathroom home in the Town of West Lakeland, Minnesota (the township) (plaintiff). Beginning in 2017, the Auleciemses advertised the property for short-term rental on websites like VRBO and rented it out for large events, including weddings and family reunions. This rental activity prompted complaints from neighbors about traffic and noise. At the time, a township ordinance prohibited short-term rentals. The township sued the Auleciemses for violating the ordinance and obtained a preliminary injunction, followed by a permanent injunction in May 2019, barring them from renting the property. Nevertheless, the township continued receiving reports that the property was being rented. The district court ordered the Auleciemses to show cause. The township’s evidence showed that the home had been rented on multiple weekends after the May 2019 injunction. Karl testified that he had removed the online listings but admitted to “sharing” the house with guests in exchange for compensation while he or another resident remained on-site. In October 2019, the district court found the Auleciemses in civil contempt for violating its prior injunctions. The court imposed three sanctions: (1) an $81,870 fine; (2) payment of the township’s attorney fees and costs; and (3) a 180-day jail term, to be lifted only upon full payment of the fines, including a previously imposed fine for violating the preliminary injunction, and fees. The Auleciemses appealed.