On Monday, April 21, 2025, Summit Daily News reported that a Summit County judge stepped back from a lawsuit concerning the county’s short-term rental regulations, citing a potential conflict of interest due to his marriage to Breckenridge Mayor Kelly Owens. Judge Reed Owens made the decision after a motion was filed by the plaintiffs, Summit Resort Homeowners Inc., seeking his disqualification from the case.
In his order to recuse himself, Judge Owens noted that Mayor Owens has a significant history of involvement in short-term rental regulations beyond Breckenridge, which may lead an objective observer to question the impartiality of the judicial proceedings. This concern arises from Mayor Owens’ active role in decisions impacting short-term rentals in the area, including her participation in a 2023 lawsuit regarding similar issues.
The lawsuit, filed by Summit Resort Homeowners Inc., represents a group of approximately 100 homeowners challenging the Summit Board of County Commissioners in state court. The plaintiffs argue that the county’s regulations, which impose limits on the number of properties eligible for short-term rental licenses, are unconstitutional. These restrictions vary between 5% and 18% depending on the area, with no limits imposed in designated resort overlay zones like Copper Mountain. Additionally, the regulations restrict the number of annual bookings to 35 per property and establish occupancy limits based on the number of bedrooms.
In November, Judge Owens had previously communicated to the involved parties that his marriage to Mayor Owens could create a conflict of interest due to her influential role in the town’s regulatory framework. The attorney representing Summit Resort Homeowners argued that Mayor Owens has a vested interest in enforcing the rental regulations, which could be affected by the lawsuit’s outcome. Notably, neither Mayor Owens nor the Town of Breckenridge is named as a party in the lawsuit.
The plaintiffs contend that the county’s regulations infringe upon rights granted by the Colorado Constitution. They assert that individuals possess inalienable rights, including the right to enjoy and protect property. Furthermore, they argue that Colorado law supports the right to unrestricted use of property, and that short-term rentals should be classified as a legal nonconforming use, which local governments cannot terminate if the use was lawful at its inception.
The complaint highlights the financial impact these regulations could have on homeowners, many of whom rely on income from short-term rentals to cover mortgage payments and other essential expenses. The plaintiffs claim that the enforcement of these regulations could lead to significant financial losses, potentially preventing them from meeting their financial obligations.
Following a previous dismissal of a similar case in federal court, the current lawsuit was initiated in state court. The federal judge ruled that the plaintiffs had not demonstrated that the right to rent property constitutes a fundamental right under the U.S. Constitution.
As of now, a replacement judge for the case has not yet been appointed following Judge Owens’ recusal. Todd Ruelle, director of Summit Resort Homeowners, expressed appreciation for Judge Owens’ decision, calling it a commendable and thoughtful approach.
Source: Summit Daily News
