Sister Bay Short-Term Rental Owners Score Landmark Victory in Court

Door County Judge Upholds Property Rights Against Village Ordinances

In a significant win for property owners navigating the complex landscape of short-term rental (STR) regulations, a Door County Circuit Court judge has ruled in favor of Adam and Brigid White, owners of the Captain’s Cottage in Sister Bay, Wisconsin. The decision, handed down on June 13, 2025, by Judge David Weber, found that the Village of Sister Bay could not deny the Whites a short-term rental license based on non-compliance with updated ordinances concerning their driveway and front landscaping. This ruling is poised to set a crucial precedent for STR owners throughout Door County and beyond.

The Genesis of the Legal Dispute

The legal battle began in June 2024 when the Whites, supported by attorneys from the Wisconsin Institute for Law and Liberty (WILL) and Bjorn Johnson, filed a lawsuit against the Village of Sister Bay. Their property, the Captain’s Cottage, had been operating as a short-term rental since at least 2018. The village’s denial of a license in the preceding year stemmed from the requirement that the Whites update their driveway and landscaping to meet current village ordinances. The Whites argued that their property, including its existing driveway, should be considered “grandfathered” and exempt from these newer regulations, citing existing village ordinances, state law, and the Wisconsin Constitution.. Find out more about Sister Bay short term rental lawsuit.

Judicial Intervention and the “Grandfather Clause”

Before the final judgment, the Whites’ legal team secured an injunction, providing vital temporary relief that allowed the Captain’s Cottage to continue operating as an STR while the lawsuit was pending. This interim measure was instrumental in preventing further financial hardship for the property owners. The core of Judge Weber’s decision centered on the determination that the Whites’ driveway and property “either meet or are grandfathered and exempt from village ordinances.” This effectively barred the village from denying the license on the grounds of the driveway’s non-conformity with the updated codes.

Broader Implications for STR Owners

The Captain’s Cottage ruling carries substantial weight for other STR owners in Sister Bay and potentially across Door County. It establishes that local governments may not arbitrarily deny licenses based on revised regulations that could be seen as unfairly applied to properties with established, non-conforming features. This case highlights the ongoing tension between local governments’ efforts to regulate STRs and the fundamental property rights of homeowners. The decision reinforces the principle that existing properties, especially those with long-standing features, should be protected from the retroactive application of newly enacted zoning codes.. Find out more about explore Door County judge ruling STR owners.

Sister Bay’s Evolving STR Regulations

The Village of Sister Bay has been actively updating its STR ordinances. In June 2023, the Village Board approved a zoning ordinance that included a limit of four rentable bedrooms without special permission and capped occupancy at twelve people. These changes followed earlier recommendations from the plan commission in May 2023, which proposed a seven-day minimum stay for new STRs and a limit of 180 rental days per year. Existing STR operators in good standing were generally permitted to continue operations under specific conditions.

The “Right to Rent” and Vested Rights. Find out more about discover Captain’s Cottage driveway ordinance dispute.

A related legal challenge brought by WILL contested Sister Bay’s four-bedroom limit, arguing it infringed upon Wisconsin’s “right to rent” law (Wisconsin Statute § 66.1014). This law asserts a homeowner’s fundamental right to rent their property on a short-term basis. The legal argument emphasized that property owners have a right to continue a non-conforming use after zoning law changes, preventing the retroactive application of new rules. The concept of “grandfathering,” which protects property owners operating legally under previous regulations, was central to the Whites’ defense, and the court’s decision affirmed the validity of these vested rights.

A Unique Position: Plaintiff and Trustee

Adding a unique dimension to this dispute, Brigid White, a co-owner of the Captain’s Cottage and a plaintiff in the lawsuit, also serves as a trustee on the Sister Bay Village Board. Elected in April 2025, her dual role places her in the distinctive position of being both a litigant against the village and a member of its governing body.

Procedural Hurdles and Community Impact. Find out more about understand Wisconsin right to rent law STR.

The legal proceedings also addressed procedural issues, including the village’s alleged failure to provide a required appeal form or inform the Whites of an appeal fee, despite ordinance stipulations. This led to the village’s rejection of their appeal for non-payment of a fee that was not properly communicated. The outcome of this case is expected to shape how other Door County municipalities approach STR regulations, emphasizing the need for clear, fair, and collaborative ordinance development. The ongoing discussions surrounding STRs in Door County reflect a broader national trend of communities balancing the economic benefits of the sharing economy with neighborhood impacts.

Protecting Property Rights in Door County

The court’s decision in the Captain’s Cottage case serves as a vital precedent for property owners in Door County, reinforcing that vested property rights are protected under state law and the constitution. It underscores the necessity for municipalities to consider existing property uses and established features when enacting new ordinances, ensuring that homeowners are not unfairly burdened by retroactive regulations. This ruling stands as a testament to the legal frameworks designed to safeguard homeowners against arbitrary governmental actions.