Butte Health Home (Butte) (defendant), owned a single-family home in Shirley Park, a subdivision subject to various restrictive covenants recorded in 1960. The covenants permitted only single-family private residences in the subdivision, explicitly prohibiting multi-family homes, boarding houses, and rest homes, as well as commercial or manufacturing functions. After Butte began operating a residential care facility for the elderly disabled in 1995, Hall (plaintiff) brought suit for injunctive relief and to enforce the covenants restricting such use. The court found in Hall’s favor, enjoining the Butte from operating the facility. Although the court acknowledged recent amendments to California law prohibiting enforcement of restrictive covenants that bar facilities for the disabled, the court determined that the amendments did not apply retroactively to invalidate the 1960 Shirley Park covenants. Butte appealed.