Richard Busack v. The Cliffs Condominium Association

Case Summary

Case ID 23F-H010-REL
Agency ADRE
Tribunal OAH
Decision Date 2022-12-16
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Richard Busack Counsel
Respondent The Cliffs Condominium Association Counsel Melissa Doolan

Alleged Violations

Article III, Section 3.07 of the Declaration of Establishment of Condominium and of Declaration of Covenants, Conditions, and Restrictions for The Cliffs Condominium

Outcome Summary

The Administrative Law Judge denied the petition, concluding that the responsibility for maintaining the leaking pipe and the resulting damage fell under the owner of the unit served by the pipe (Unit 263) as defined by Article III, Section 3.07 of the CC&Rs, not the HOA.

Why this result: The ALJ’s interpretation of Article III, Section 3.07 found that the owner of Unit 263 was responsible for the maintenance and repair of the specific section of pipe that leaked, and therefore, the HOA was not liable for the resulting damage or requested reimbursement.

Key Issues & Findings

HOA responsibility for reimbursement for kitchen cabinet and countertop replacement and mold remediation/restoration after a leaking pipe.

Petitioner sought reimbursement of $8541.00 from the HOA for damages caused by Cat 3 water coming from a leaking toilet pipe located between the ceiling of unit 163 and the subfloor of unit 263. Petitioner alleged the pipe was the HOA's responsibility as it was in the inner walls and not 'open and unobstructed' as defined by Petitioner. The ALJ determined the pipe maintenance was the responsibility of the owner of Unit 263, not the HOA, based on the plain reading of Article III, Section 3.07.

Orders: Petitioner’s petition is denied.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • Article III, Section 3.07 (CC&Rs)

Analytics Highlights

Topics: HOA Responsibility, CC&Rs Interpretation, Pipe Maintenance, Water Damage Reimbursement, Owner Responsibility
Additional Citations:

  • A.R.S. § 32-2199 et seq.
  • Article III, Section 3.07 (CC&Rs)

Video Overview

Audio Overview

https://open.spotify.com/episode/514IpgEIrpWFy43p7nXfCV

Decision Documents

23F-H010-REL Decision – 1020439.pdf

Uploaded 2026-01-23T17:51:22 (91.6 KB)

Questions

Question

Is the HOA automatically responsible for a pipe leak just because the pipe is located inside the walls between units?

Short Answer

No. Governing documents may assign responsibility to the specific unit owner served by that pipe, even if the pipe runs outside the unit's boundaries.

Detailed Answer

Even if a pipe is physically located outside a specific unit (e.g., between the unit and the main line), the CC&Rs may dictate that the owner is responsible for the utility lines serving their unit up to the point where they join the common utility lines. Location inside a wall does not automatically make it an HOA common element.

Alj Quote

Rather, unit owners are responsible for the maintenance of all sewer and drainage pipes 'between the points at which the [pipes] enter [the unit] and the points where the [pipe] joins the utility lines serving other Condominium Units.'

Legal Basis

CC&Rs Interpretation

Topic Tags

  • maintenance responsibility
  • plumbing
  • common elements

Question

What does 'open and unobstructed condition' mean regarding pipe maintenance in CC&Rs?

Short Answer

It generally means the pipe must be kept free of clogs, not that the pipe must be physically visible or outside of a wall.

Detailed Answer

Homeowners often misinterpret this phrase to mean that if a pipe is enclosed in a wall, it is not 'open' and therefore not their responsibility. However, the ALJ ruled that this language refers to the flow within the pipe—specifically, that the owner must ensure the pipe does not remain clogged.

Alj Quote

Rather than referencing that access to the pipe had to be open and unobstructed, i.e., not inside a wall, a plain reading of 'open and unobstructed condition' means that the pipe itself must not be allowed to remain clogged.

Legal Basis

Contract Interpretation

Topic Tags

  • definitions
  • maintenance responsibility

Question

If the HOA repairs the drywall after a leak, does that mean they admit responsibility for the plumbing repair and other damages?

Short Answer

No. The HOA may repair structural elements they are responsible for (like bearing walls) without accepting liability for the leak source or personal property damage.

Detailed Answer

The HOA can perform repairs on components defined as Common Elements (such as bearing walls) without conceding that they are liable for the pipe that caused the damage or for other resulting damages like cabinetry or mold.

Alj Quote

Respondent’s counsel indicated that the HOA repaired the drywall because Article III, Section 3.05 defines bearing walls as Common Elements.

Legal Basis

CC&Rs / Negligence

Topic Tags

  • repairs
  • liability
  • common elements

Question

Who has the burden of proof in a hearing against an HOA?

Short Answer

The homeowner (Petitioner) has the burden to prove the HOA violated the governing documents.

Detailed Answer

The homeowner must provide evidence that outweighs the evidence offered by the HOA. Simply alleging a violation is not enough; the petitioner must prove it by a 'preponderance of the evidence.'

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated the CC&Rs. A.A.C. R2-19-119.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • procedural requirements
  • burden of proof

Question

What evidence is required to win a dispute regarding water damage repairs?

Short Answer

The homeowner must prove the HOA violated a specific provision of the CC&Rs or acted negligently.

Detailed Answer

Even if a homeowner suffers significant damage, they cannot recover costs from the HOA unless they can establish that the HOA had a legal duty to prevent or repair the specific cause of the damage under the CC&Rs.

Alj Quote

Petitioner failed to establish that Respondent violated Article III, Section 3.07 of the CC&Rs. … IT IS ORDERED that Petitioner’s petition is denied.

Legal Basis

CC&Rs Violation

Topic Tags

  • evidence
  • damages

Question

Can I hold the HOA responsible for a leak originating from a neighbor's unit?

Short Answer

Generally, no, unless the HOA is responsible for that specific pipe section under the CC&Rs.

Detailed Answer

If the leak comes from a pipe serving a specific unit (even if located outside that unit), maintenance responsibility often falls on that unit owner, not the HOA. The ALJ found that maintenance of such a pipe was the responsibility of the unit owner it served.

Alj Quote

Therefore, maintenance of the leaking pipe… was the responsibility of the owner of Unit 263.

Legal Basis

CC&Rs / Liability

Topic Tags

  • neighbor disputes
  • liability
  • plumbing

Case

Docket No
23F-H010-REL
Case Title
Richard Busack v. The Cliffs Condominium Association
Decision Date
2022-12-16
Alj Name
Tammy L. Eigenheer
Tribunal
OAH
Agency
ADRE

Questions

Question

Is the HOA automatically responsible for a pipe leak just because the pipe is located inside the walls between units?

Short Answer

No. Governing documents may assign responsibility to the specific unit owner served by that pipe, even if the pipe runs outside the unit's boundaries.

Detailed Answer

Even if a pipe is physically located outside a specific unit (e.g., between the unit and the main line), the CC&Rs may dictate that the owner is responsible for the utility lines serving their unit up to the point where they join the common utility lines. Location inside a wall does not automatically make it an HOA common element.

Alj Quote

Rather, unit owners are responsible for the maintenance of all sewer and drainage pipes 'between the points at which the [pipes] enter [the unit] and the points where the [pipe] joins the utility lines serving other Condominium Units.'

Legal Basis

CC&Rs Interpretation

Topic Tags

  • maintenance responsibility
  • plumbing
  • common elements

Question

What does 'open and unobstructed condition' mean regarding pipe maintenance in CC&Rs?

Short Answer

It generally means the pipe must be kept free of clogs, not that the pipe must be physically visible or outside of a wall.

Detailed Answer

Homeowners often misinterpret this phrase to mean that if a pipe is enclosed in a wall, it is not 'open' and therefore not their responsibility. However, the ALJ ruled that this language refers to the flow within the pipe—specifically, that the owner must ensure the pipe does not remain clogged.

Alj Quote

Rather than referencing that access to the pipe had to be open and unobstructed, i.e., not inside a wall, a plain reading of 'open and unobstructed condition' means that the pipe itself must not be allowed to remain clogged.

Legal Basis

Contract Interpretation

Topic Tags

  • definitions
  • maintenance responsibility

Question

If the HOA repairs the drywall after a leak, does that mean they admit responsibility for the plumbing repair and other damages?

Short Answer

No. The HOA may repair structural elements they are responsible for (like bearing walls) without accepting liability for the leak source or personal property damage.

Detailed Answer

The HOA can perform repairs on components defined as Common Elements (such as bearing walls) without conceding that they are liable for the pipe that caused the damage or for other resulting damages like cabinetry or mold.

Alj Quote

Respondent’s counsel indicated that the HOA repaired the drywall because Article III, Section 3.05 defines bearing walls as Common Elements.

Legal Basis

CC&Rs / Negligence

Topic Tags

  • repairs
  • liability
  • common elements

Question

Who has the burden of proof in a hearing against an HOA?

Short Answer

The homeowner (Petitioner) has the burden to prove the HOA violated the governing documents.

Detailed Answer

The homeowner must provide evidence that outweighs the evidence offered by the HOA. Simply alleging a violation is not enough; the petitioner must prove it by a 'preponderance of the evidence.'

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated the CC&Rs. A.A.C. R2-19-119.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • procedural requirements
  • burden of proof

Question

What evidence is required to win a dispute regarding water damage repairs?

Short Answer

The homeowner must prove the HOA violated a specific provision of the CC&Rs or acted negligently.

Detailed Answer

Even if a homeowner suffers significant damage, they cannot recover costs from the HOA unless they can establish that the HOA had a legal duty to prevent or repair the specific cause of the damage under the CC&Rs.

Alj Quote

Petitioner failed to establish that Respondent violated Article III, Section 3.07 of the CC&Rs. … IT IS ORDERED that Petitioner’s petition is denied.

Legal Basis

CC&Rs Violation

Topic Tags

  • evidence
  • damages

Question

Can I hold the HOA responsible for a leak originating from a neighbor's unit?

Short Answer

Generally, no, unless the HOA is responsible for that specific pipe section under the CC&Rs.

Detailed Answer

If the leak comes from a pipe serving a specific unit (even if located outside that unit), maintenance responsibility often falls on that unit owner, not the HOA. The ALJ found that maintenance of such a pipe was the responsibility of the unit owner it served.

Alj Quote

Therefore, maintenance of the leaking pipe… was the responsibility of the owner of Unit 263.

Legal Basis

CC&Rs / Liability

Topic Tags

  • neighbor disputes
  • liability
  • plumbing

Case

Docket No
23F-H010-REL
Case Title
Richard Busack v. The Cliffs Condominium Association
Decision Date
2022-12-16
Alj Name
Tammy L. Eigenheer
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Richard Busack (petitioner)
  • Theresa Jensen (witness)
    Witness for Petitioner

Respondent Side

  • Melissa Doolan (respondent attorney)
    The Travis Law Firm, PLC
    Appeared for Respondent The Cliffs Condominium Association
  • Mr. Petri (HOA/management representative)
    Mentioned by Petitioner regarding dispute over damage repair
  • Mr. Honen (HOA/management representative)
    Involved in cabinet repair communication and cancellation (also referred to as Mr. Horn)
  • Miss Cohen (HOA/management representative)
    Handled initial communications and forwarded information to the Board (also referred to as Miss Cohan)

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    OAH
    Also referred to as Tammy Igner
  • Louis Dettorre (ADRE Commissioner)
    Arizona Department of Real Estate
  • Miranda Alvarez (legal secretary)
    Transmitted decision
  • A. Hansen (ADRE staff)
    Arizona Department of Real Estate
  • V. Nunez (ADRE staff)
    Arizona Department of Real Estate
  • D. Jones (ADRE staff)
    Arizona Department of Real Estate
  • L. Abril (ADRE staff)
    Arizona Department of Real Estate

Other Participants

  • Jill Bird (observer)
  • John (observer)
  • Michael (observer)
  • Anthony Zeller (contractor associate)
    Overseeing the repair plumber
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