A subdivision's covenants restricted the use of subdivision lots to residential purposes. Resort Custom Builders, Inc. (company) (defendant) owned one such lot and built a house for which it could not find a purchaser. The company decided to sell interval-ownership timeshares in the property to multiple purchasers, giving each purchaser the exclusive right to use the house for one or two weeks each year, and a corresponding undivided interest in the property. O'Connor and other lot owners (owners) (plaintiffs) sued the company, contending that the company's plan would violate the subdivision's residential-use covenant. The trial court agreed, but an appellate court reversed the trial court's judgment. The owners appealed to the Michigan Supreme Court.