Case Summary
| Case ID | 19F-H1919059-REL-RHG |
|---|---|
| Agency | ADRE |
| Tribunal | OAH |
| Decision Date | 2020-01-30 |
| Administrative Law Judge | Thomas Shedden |
| Outcome | loss |
| Filing Fees Refunded | $500.00 |
| Civil Penalties | $0.00 |
Parties & Counsel
| Petitioner | Mary J Bartle | Counsel | — |
|---|---|---|---|
| Respondent | Saguaro West Owner's Association | Counsel | Nicole Payne, Esq. |
Alleged Violations
Bylaws Article VIII, section 8(d)
Outcome Summary
The Administrative Law Judge dismissed Petitioner Mary J. Bartle’s petition, concluding that she failed to meet the burden of proof to demonstrate that the Saguaro West Owner's Association violated Bylaws Article VIII, section 8(d).
Why this result: Petitioner failed to meet the burden of proof by a preponderance of the evidence to show that the $49,000.50 transaction violated the specific duties of the treasurer set forth in Bylaws Article VIII, section 8(d).
Key Issues & Findings
Alleged violation of Treasurer duties regarding fund transactions
The petitioner alleged the Association violated Bylaws Article VIII, section 8(d) by withdrawing and redepositing $49,000.50 from the operating account without adequate notification or justification, but failed to prove a violation of the specific duties listed in that section by a preponderance of the evidence.
Orders: Petition dismissed and Respondent deemed the prevailing party.
Filing fee: $500.00, Fee refunded: No
Disposition: petitioner_loss
- ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
- ARIZ. ADMIN. CODE § R2-19-119
- McNally v. Sun Lakes Homeowners Ass’n #1, Inc., 241 Ariz. 1, 382 P.3d 1216 (2016 App.)
- BLACK’S LAW DICTIONARY 1373 (10th ed. 2014)
- ARIZ. REV. STAT. section 32-2199.02(B)
- ARIZ. REV. STAT. section and title 12, chapter 7, article 6
- ARIZ. REV. STAT. section 12-904(A)
Analytics Highlights
- ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
- ARIZ. ADMIN. CODE § R2-19-119
- McNally v. Sun Lakes Homeowners Ass’n #1, Inc., 241 Ariz. 1, 382 P.3d 1216 (2016 App.)
- BLACK’S LAW DICTIONARY 1373 (10th ed. 2014)
- ARIZ. REV. STAT. section 32-2199.02(B)
- ARIZ. REV. STAT. section and title 12, chapter 7, article 6
- ARIZ. REV. STAT. section 12-904(A)
Video Overview
Audio Overview
Decision Documents
19F-H1919059-REL-RHG Decision – 767041.pdf
Briefing Document: Bartle vs. Saguaro West Owner’s Association (Case No. 19F-H1919059-REL-RHG)
Executive Summary
This briefing document analyzes the Administrative Law Judge Decision in the matter of Mary J. Bartle vs. Saguaro West Owner’s Association. The final order, issued on January 30, 2020, dismissed the petition brought by Ms. Bartle. The core of the case revolved around a financial transaction where $49,000.50 was withdrawn from the Association’s operating account on October 22, 2018, and redeposited on November 30, 2018.
The petitioner, Ms. Bartle, alleged this transaction violated a specific provision of the Association’s bylaws—Article VIII, section 8(d)—which outlines the duties of the Treasurer. Despite two hearings, the Administrative Law Judge consistently concluded that Ms. Bartle failed to meet her burden of proof. The central finding was that while evidence suggested the transaction “may have been in violation of the law or otherwise improper,” the petitioner did not demonstrate, by a preponderance of the evidence, how this transaction specifically violated any of the enumerated duties of the Treasurer as set forth in the cited bylaw. The decision underscores a critical legal distinction between a potentially improper act and a proven violation of the specific bylaw under which the complaint was filed.
Case Overview
Case Name
Mary J. Bartle, Petitioner, vs. Saguaro West Owner’s Association, Respondent
Case Number
19F-H1919059-REL-RHG
Jurisdiction
Arizona Department of Real Estate, Office of Administrative Hearings (OAH)
Presiding Judge
Administrative Law Judge Thomas Shedden
Petitioner
Mary J. Bartle (representing herself)
Respondent
Saguaro West Owner’s Association (represented by Nicole Payne, Esq.)
Rehearing Date
January 14, 2020
Final Decision Date
January 30, 2020
Procedural History and Core Allegation
The case proceeded through an initial hearing and a subsequent rehearing, following a specific timeline of events:
• April 22, 2019: Ms. Bartle filed the initial petition with the Arizona Department of Real Estate.
• August 29, 2019: The first hearing was held. At the outset, a discussion was held to narrow the scope of the hearing. Ms. Bartle agreed to limit her petition to a single issue.
• The Single Issue: Whether the Association violated Bylaws Article VIII, section 8(d) through a withdrawal of $49,000.50 on October 22, 2018, and a redeposit of the same amount on November 30, 2018.
• September 18, 2019: The initial Administrative Law Judge Decision was issued, dismissing Ms. Bartle’s petition.
• October 23, 2019: Ms. Bartle filed a request for a rehearing, asserting an error in the admission of evidence.
• November 18, 2019: The Department of Real Estate granted the request for a rehearing.
• January 14, 2020: The rehearing was convened. Ms. Bartle testified, while the Respondent presented no witnesses.
• January 30, 2020: The final Administrative Law Judge Decision was issued, reaffirming the dismissal of the petition.
At the rehearing, Ms. Bartle testified “to the effect that laws must have been violated by the withdrawal and redepositing of the $49,000.50 without the Association’s members being provided any notice of these transactions.”
Analysis of Bylaw and Judicial Findings
Bylaw Article VIII, Section 8(d): The Treasurer’s Duties
The entirety of the petitioner’s case rested on proving a violation of the specific duties outlined for the Treasurer in the Association’s bylaws. The text of the bylaw is as follows:
The Treasurer shall receive and deposit in the Association’s bank accounts all monies received by the Association and shall disburse such funds as directed by resolution [of] the Board of Directors; shall properly prepare and sign all checks before presenting them to be co-signed; keep proper books of account; cause an annual audit of the Association’s books to be made by a public accountant at the completion of each fiscal year; and shall prepare an annual budget to be presented to the membership at the annual meeting; to cause all Federal and State reports to be prepared; and shall prepare all monthly statements of finance for the Board of Directors.
Key Judicial Findings and Conclusions
The Administrative Law Judge’s decision hinged on the petitioner’s failure to connect the disputed financial transaction to a specific violation of the duties listed above. The judge made a clear distinction between the potential impropriety of the transaction and the narrow scope of the legal claim.
• Initial Hearing Conclusion: The decision from the first hearing, which the judge took notice of in the rehearing, established the core finding:
• Rehearing Conclusion: The final decision after the rehearing reinforced this exact point, stating:
Ultimately, the case was dismissed because Ms. Bartle did not meet the legal standard required to prove her specific claim.
Legal Framework and Final Order
Applicable Legal Standards
The decision was grounded in several key legal principles cited by the Administrative Law Judge:
• Jurisdiction: The Arizona Department of Real Estate possesses authority over the matter pursuant to ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11.
• Burden of Proof: Ms. Bartle, as the petitioner, bore the burden of proof on all issues.
• Standard of Proof: The standard was a “preponderance of the evidence,” defined as “The greater weight of the evidence… sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”
• Contractual Nature of Bylaws: Citing McNally v. Sun Lakes Homeowners Ass’n #1, Inc., the decision notes that “The Bylaws are a contract between the parties and the parties are required to comply with its terms.”
Final Order and Implications
Based on the failure to meet the burden of proof, the Administrative Law Judge issued a binding order with the following key points:
1. Dismissal: Petitioner Mary J. Bartle’s petition is dismissed.
2. Prevailing Party: The Respondent, Saguaro West Owner’s Association, is deemed the prevailing party.
3. Appeal Rights: A party wishing to appeal the order must seek judicial review with the superior court within thirty-five days from the date the order was served, as prescribed by ARIZ. REV. STAT. sections 12-904(A) and Title 12, Chapter 7, Article 6.
Study Guide: Bartle v. Saguaro West Owner’s Association
This guide provides a detailed review of the Administrative Law Judge Decision in case number 19F-H1919059-REL-RHG. It includes a short-answer quiz, an answer key, suggested essay questions, and a glossary of key terms to facilitate a comprehensive understanding of the legal matter.
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Quiz: Short-Answer Questions
Instructions: Answer the following questions in two to three complete sentences, drawing all information directly from the case document.
1. Who were the primary parties in this legal matter, and what were their respective roles?
2. What specific financial transaction was the central subject of the petitioner’s complaint?
3. Which specific article and section of the Association’s Bylaws did the petitioner claim was violated?
4. What was the legal standard of proof that the petitioner was required to meet, and who had the burden of proof?
5. On what grounds did Ms. Bartle file her request for a rehearing after the initial decision?
6. According to the judge’s decision, what was the key failure in the petitioner’s argument regarding the financial transaction?
7. What was the final order issued by the Administrative Law Judge on January 30, 2020?
8. Although the judge dismissed the petition, what did the decision state about the nature of the financial transactions?
9. Which government department granted the request for a rehearing and has authority over this type of matter?
10. What options does a party have if they wish to appeal the final administrative law judge order?
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Answer Key
1. The primary parties were the Petitioner, Mary J. Bartle, and the Respondent, Saguaro West Owner’s Association. Ms. Bartle brought the petition against the Association, alleging a violation of its bylaws.
2. The central subject was the withdrawal of $49,000.50 from the Association’s operating account on October 22, 2018. The same amount was subsequently redeposited into the account on November 30, 2018.
3. The petitioner claimed the Association violated Bylaws Article VIII, section 8(d). This section outlines the specific duties and responsibilities of the Association’s Treasurer.
4. The standard of proof was a “preponderance of the evidence.” The burden of proof was on the petitioner, Ms. Bartle, to demonstrate that the Association had violated the bylaw.
5. Ms. Bartle filed her Rehearing Request on the grounds that there was an error in the admission of evidence. She specifically referenced documents dated July 5, August 6, and September 13, 2019, in her request.
6. The key failure was that Ms. Bartle did not show by a preponderance of the evidence that the withdrawal and redeposit specifically violated any of the treasurer’s duties as explicitly listed in Bylaws Article VIII, section 8(d). Her claim was too narrow for the evidence she presented.
7. The final order was that Petitioner Mary J. Bartle’s petition be dismissed. The Respondent, Saguaro West Owner’s Association, was deemed to be the prevailing party in the matter.
8. The decision stated that there was evidence to suggest that the withdrawal and redeposit of the $49,000.50 “may have been in violation of the law or otherwise improper.” However, this was not sufficient to prove a violation of the specific bylaw in question.
9. The Arizona Department of Real Estate granted the rehearing on November 18, 2019. This department has authority over the matter as established by ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11.
10. A party wishing to appeal the order must seek judicial review as prescribed by Arizona Revised Statutes. The appeal must be filed with the superior court within thirty-five days from the date the order was served upon the parties.
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Essay Questions
Instructions: Consider the following questions for a deeper analysis of the case. Formulate a comprehensive response based solely on the information provided in the source document.
1. Analyze the concept of “preponderance of the evidence” as defined in the decision. Explain why Mary J. Bartle failed to meet this standard, despite the judge’s acknowledgment that the transaction may have been “improper” or in “violation of the law.”
2. Discuss the procedural significance of limiting the hearing to the single issue of Bylaws Article VIII, section 8(d). How might the case’s outcome have differed if the scope of the hearing had been broader?
3. Trace the complete timeline of the case from the initial petition filing in April 2019 to the final order in January 2020. What do the key events and dates reveal about the process of administrative hearings and rehearings?
4. Based on the full text of Bylaws Article VIII, section 8(d), what specific types of evidence would the petitioner have needed to present to successfully prove that the treasurer’s duties were violated by the $49,000.50 transaction?
5. Evaluate the distinction made by the Administrative Law Judge between a transaction that is potentially illegal or improper and a transaction that specifically violates the duties enumerated in Bylaws Article VIII, section 8(d). Why is this distinction critical to the final order of dismissal?
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Glossary of Key Terms
Definition
Administrative Law Judge (ALJ)
An official who presides over administrative hearings, weighs evidence, and issues decisions on matters under the jurisdiction of a government agency. In this case, the ALJ was Thomas Shedden.
ARIZ. ADMIN. CODE
The Arizona Administrative Code, a compilation of rules and regulations of Arizona’s state agencies. Section R2-19-119 is cited as establishing the standard of proof.
ARIZ. REV. STAT.
The Arizona Revised Statutes, which are the codified laws of the state of Arizona. Various sections are cited to establish jurisdiction and the appeals process.
Bylaws
A set of rules established by an organization, such as a homeowners’ association, to regulate itself. In this case, the bylaws are treated as a binding contract between the parties.
Conclusion of Law
The section of a legal decision where the judge applies legal principles and statutes to the established facts of the case.
Finding of Fact
The section of a legal decision that lists the factual determinations made by the judge based on the evidence presented during the hearing.
Judicial Review
The process by which a court of law reviews the decision of a lower court or an administrative agency to determine if the decision was legally sound.
Office of Administrative Hearings (OAH)
A state agency that provides a neutral forum for conducting administrative hearings for other state agencies. The hearings in this matter were held at the OAH.
Petitioner
The party who initiates a lawsuit or files a petition seeking a legal remedy. In this case, the petitioner was Mary J. Bartle.
Preponderance of the Evidence
The standard of proof in most civil cases. It is met when the evidence presented has the most convincing force and is sufficient to incline a fair and impartial mind to one side of an issue over the other.
Prevailing Party
The party in a legal dispute who is successful and in whose favor the judgment is rendered. In this case, the Respondent was deemed the prevailing party.
Rehearing
A second hearing of a case to consider new evidence or to argue against the original decision on the basis of an error. Ms. Bartle’s request for a rehearing was granted.
Respondent
The party against whom a petition is filed. In this case, the respondent was the Saguaro West Owner’s Association.
A Homeowner Found a Mysterious $49,000 Transaction in Her HOA’s Books. The Reason She Lost in Court Is a Lesson for Everyone.
Introduction: The David-vs-Goliath Fight That Didn’t Go as Planned
For many homeowners, dealing with a Homeowners’ Association (HOA) can feel like a constant battle for transparency and fairness. It’s a common story: a resident raises concerns about financial decisions made behind closed doors, only to be met with resistance or silence. But what happens when a homeowner pushes back and takes that fight to an administrative hearing?
After an initial hearing and a persistent request for a rehearing, the final decision in Mary J. Bartle’s case against the Saguaro West Owner’s Association seemed, on the surface, like a clear-cut quest for accountability. The dispute centered on a single, alarming event: the withdrawal and subsequent redeposit of $49,000.50 from the association’s operating account without any notice to the members. It appeared to be a straightforward case of a concerned resident demanding answers.
However, the ruling from the administrative hearing offers a surprising and crucial lesson in how the legal system operates. The outcome reveals that suspicion, no matter how justified, is not enough to win. This article breaks down the top counter-intuitive takeaways from the judge’s decision and what they mean for any homeowner considering a legal challenge against their HOA.
Takeaway 1: A “Suspicious” Act Isn’t a Guaranteed Win
Feeling Something Is Wrong Isn’t the Same as Proving It.
The core facts of the case were not in dispute. On October 22, 2018, $49,000.50 was withdrawn from the Saguaro West Owner’s Association’s operating account. On November 30, 2018, the exact same amount was redeposited. Members were not notified of these transactions. To any reasonable observer, this activity raises immediate questions.
Even the Administrative Law Judge presiding over the case acknowledged the questionable nature of the transaction. In his final decision, he validated Ms. Bartle’s initial concerns with a striking statement:
The evidence shows that $49,000.50 was withdrawn from the Association’s account in October 2018 and the same amount was deposited in November 2018, and there is evidence to suggest that the transactions may have been in violation of the law.
This is the most stunning part of the case: the judge agreed that the transaction looked suspicious and might have broken the law, yet Ms. Bartle still lost. This reveals a critical distinction in legal proceedings. A judge is not an arbiter of general fairness but an interpreter of specific laws and rules. The judge’s comment shows he understood the spirit of Ms. Bartle’s complaint, but his hands were tied by the letter of her petition. The legal system requires more than a gut feeling; it demands specific proof that a specific rule was violated, which leads directly to the next critical lesson.
Takeaway 2: You Must Prove theExactRule Was Broken
Specificity Is Your Only Weapon.
Ms. Bartle’s case was ultimately narrowed to a single, highly specific issue: whether the $49,000.50 transaction violated Article VIII, section 8(d) of the association’s bylaws. This is a crucial detail because courts and administrative bodies require this rigid specificity to ensure fairness, prevent “moving goalposts,” and keep proceedings focused on the actual claims filed, not a general feeling of grievance.
Her entire case hinged on proving a violation of that specific section and no other. The rule in question outlines the treasurer’s duties, which include the power to: “receive and deposit…all monies,” “disburse such funds as directed,” “sign all checks,” and “keep proper books of account.”
The judge’s conclusion was brutally precise. He found that Ms. Bartle had “not shown by a preponderance of the evidence” that the transaction violated any of those specific, listed duties. She couldn’t prove the treasurer failed to deposit money or keep proper books; she could only prove a strange transaction occurred that wasn’t explicitly forbidden by the rule she cited. This is a critical lesson: it doesn’t matter if an HOA’s action feels wrong; what matters is whether you can prove it violated the precise rule you cited in your petition.
Takeaway 3: The Burden of Proof Rests Entirely on the Accuser
It’s Your Job to Build the Case, Not Theirs to Disprove It.
In a civil administrative hearing like this, the petitioner—Ms. Bartle—carries the “burden of proof.” The standard she had to meet was the “preponderance of the evidence.” The legal definition for this is:
“superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”
In simple terms, she had to present enough convincing evidence to make the judge believe that her version of events was more likely true than not. The judge’s decision explicitly states that Ms. Bartle bore this burden and ultimately failed to meet it.
One of the most powerful details from the case file illustrates this point perfectly: the Saguaro West Owner’s Association, though represented by legal counsel, “presented no witnesses.” They didn’t have to. They didn’t need to explain the transaction or justify their actions because Ms. Bartle failed to build a strong enough case to prove her specific claim. The onus was completely on her to prove her argument, and when it fell short, the case was dismissed.
Conclusion: A Sobering Reminder for Homeowners
The case of Mary Bartle is a sobering reminder that winning a legal fight against a well-resourced entity like an HOA is less about moral rightness and more about meticulous legal strategy and precision.
While the judge acknowledged that Ms. Bartle’s concerns about the $49,000.50 transaction were potentially valid, her petition was dismissed not on a simple technicality, but because of a core principle of law: the failure to prove that the specific rule cited had actually been broken. Her case highlights the immense challenge for individual homeowners seeking transparency. It leaves us asking, if the legal bar is this specific, what practical recourse do residents have when they feel something is fundamentally wrong?
Case Participants
Petitioner Side
- Mary J Bartle (petitioner)
Appeared on her own behalf and testified
Respondent Side
- Nicole Payne (attorney)
Carpenter, Hazlewood, Delgado & Bolen, PLC
Counsel for Saguaro West Owner's Association - Edith Rudder (attorney)
Carpenter, Hazlewood, Delgado & Bolen, PLC
Counsel for Saguaro West Owner's Association
Neutral Parties
- Thomas Shedden (ALJ)
- Judy Lowe (Commissioner)
Arizona Department of Real Estate
