This section contains the nature of the case and procedural background.

Darger (D) purchased a unit in a condominium complex. The signed agreement contained a clause that prohibited its assignment or sublet without the consent of the Laguna Royale Owners Association (P). After purchasing the unit, D attempted to transfer partial interest to three other couples. P refused permission, claiming that the transfer of interest would violate the private single-family residential character of the complex. D transferred the interest anyway. P brought suit to deny the transfer of interests to the three other couples. The court invalidated the assignments. D appealed.

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