La Esperanza Townhome Association, Inc. v. Title Security Agency of Arizona: HOA Court Case Guide

CC&R Amendment | Riley v. Boyle | 2 CA-CIV 5001

Division Two holds that an amendment to a subdivision’s restrictive covenants must apply uniformly to all lots, and that a unilateral plat revision without the required 90% owner approval is void.

Last updated July 1, 2026. Case: La Esperanza Townhome Association, Inc. v. Title Security Agency of Arizona; 142 Ariz. 235, 689 P.2d 178 (App. 1984).

Scope note: This educational case page summarizes a court ruling for Arizona HOA homeowners, boards, and counsel. It is not legal advice.

The rule in one sentence

An amendment to a subdivision’s restrictive covenants must apply uniformly to all lots; an amendment that releases or alters the CC&Rs as to only part of the lots is null and void. Because the recorded plat was incorporated into the Declaration, a unilateral plat revision without the Declaration’s required 90 percent owner approval was likewise an invalid attempt to amend the CC&Rs.

Case Participants

Neutral Parties

  • La Esperanza Townhome Association, Inc. (Appellant)
    Arizona non-profit corporation and plaintiff; the townhome owners’ association that sued to void the 1975 amendment and the 1980 plat revision. Prevailed on appeal.
  • Title Security Agency of Arizona (Appellee)
    Defendant sued in its capacity as trustee under Trust T-285; owned 50 percent of the lots and recorded the 1980 revised plat.
  • Lyman E. Ostlund (Appellee)
    Defendant who acquired 15 lots, three garages, and the common area and sought to develop the south 223 feet commercially before conveying to Title Security as trustee.
  • Steven Weatherspoon (Counsel)
    Chandler, Tullar, Udall & Redhair
    Tucson counsel for plaintiff/appellant La Esperanza Townhome Association, Inc.
  • Tom Slutes (Counsel)
    Slutes, Sakrison, Grant & Pelander, P.C.
    Tucson counsel for defendants/appellees Title Security Agency of Arizona and Lyman E. Ostlund.
  • Howard (Judge)
    Judge of the Arizona Court of Appeals, Division Two; authored the opinion.
  • Birdsall (Judge)
    Chief Judge of the Arizona Court of Appeals, Division Two; concurred.
  • Hathaway (Judge)
    Judge of the Arizona Court of Appeals, Division Two; concurred.

What happened and why it matters

La Esperanza Townhome Association, Inc. v. Title Security Agency of Arizona is a 1984 published decision of the Arizona Court of Appeals, Division Two, addressing how a recorded subdivision Declaration of Covenants, Conditions and Restrictions (CC&Rs) may be amended. The La Esperanza townhome subdivision in Tucson was created in 1973, when the developers subdivided the land, recorded a Declaration covering lots 1 through 35, and recorded a subdivision plat. The Declaration allowed amendment only by an instrument signed by at least 90 percent of the lot owners during its first 25 years. In 1975, the developers directed the title trustee to record an amendment excluding the southerly 223 feet of the subdivision, the portion fronting East Broadway, so it could be developed for multiple-unit and commercial use. In 1980, a successor trustee, Title Security, then holding 50 percent of the lots, unilaterally recorded a revised plat that resubdivided that area. The association sued to have both the amendment and the plat revision declared void; the trial court instead ruled for the defendants and upheld them. The Court of Appeals reversed, holding that an amendment to restrictive covenants must apply uniformly to all lots in the subdivision, and that both the non-uniform 1975 amendment and the unilateral 1980 plat revision, which lacked the required 90 percent owner approval, were null and void.

The court reviewed the trial court’s judgment upholding the 1975 amendment and the 1980 plat revision and reversed. On the amendment, the court noted there was a question below about whether it had been signed by the required number of landowners, but held that the case turned on a more fundamental point: the amendment purported to affect only part of the lots in the subdivision. Relying on Riley v. Boyle, 6 Ariz. App. 523, 434 P.2d 525 (1967), the court reaffirmed that any amendment to a set of restrictive covenants must have uniform application to all lots, and that an amendment purporting to modify the restrictions as to one lot or some lots, but not all, is null and void. The court quoted Riley’s reasoning that the power to amend extends only to restrictions for all lots, and that a contrary reading could produce a “patchwork quilt” of different restrictions that would upset the orderly plan of the subdivision.

The court reinforced this conclusion with out-of-state authority reaching the same result, including Montoya v. Barreras (N.M. 1970), Lakeshore Estates Recreational Area, Inc. v. Turner (Mo. App. 1972), Ridge Park Home-Owners v. Pena (N.M. 1975), and Cowherd Development Co. v. Littick (Mo. 1951), each holding that a subset of owners cannot release or alter restrictions on selected lots absent a clear provision allowing it. The court acknowledged that if all landowners join in an amendment it need not have uniform effect (Steve Vogli Co. v. Lane), but found that the La Esperanza Declaration permitted only uniform changes. It rejected the defendants’ argument that releasing the south 223 feet from all covenants (rather than just one) was a meaningful distinction, calling it “a distinction without a difference.”

The court also rejected the defendants’ reliance and estoppel defenses. Because the 1975 amendment was null and void, it never became effective; purchasers who bought after 1975 took subject to a void document, and their purchase did not validate it. The court found Ostlund could not claim detrimental reliance because the amendment, changing restrictions on only part of the subdivision, raised a “red flag” that reasonable investigation would have shown to be invalid. Finally, because the original plat (Book 25, page 1) had been incorporated into the Declaration, Ostlund’s recording of a new plat was itself an attempt to amend the Declaration; without an instrument signed by 90 percent of the lot owners, the new plat was invalid, and the estoppel claim failed because the association learned of the plan only after the revised plat was filed and most funds were spent.

This decision is a foundational Arizona statement of the uniformity principle in restrictive-covenant and CC&R law: a subset of owners generally cannot amend a subdivision’s covenants to relieve only some lots from restrictions while leaving the rest bound. The rule protects the mutual, reciprocal expectations that owners acquire when they buy into a common plan, and it prevents a controlling owner or developer from carving out favored parcels for uses (here, multi-unit and commercial development) that the recorded scheme did not allow. Even where the governing document sets a supermajority threshold, an amendment that is non-uniform in application can fail regardless of how many owners sign it.

The case also illustrates two practical points that continue to matter for community associations, developers, and buyers. First, a recorded subdivision plat that is incorporated into a declaration cannot be revised unilaterally; changing it requires the same owner approval the declaration demands for any amendment. Second, an instrument that appears in the public record is not necessarily valid: a void amendment never takes effect, later purchasers take subject to its invalidity rather than curing it, and an irregularity that changes restrictions on only part of a subdivision should put a prospective developer on notice to investigate before spending money in reliance on it.

Step-by-step litigation record

Step 1973 Tom Kennedy and his wife purchased Tucson land fronting East Broadway from Ted Bloodworth, subdivided it into townhouse lots, and recorded the La Esperanza Declaration of CC&Rs (lots 1 through 35, plat Book 25, page 1) with Stewart Title and Trust as trustee.
Step 1975 Facing financial difficulty, the Kennedys directed Stewart Title to record an amendment excluding the southerly 223 feet from the Declaration; at that time Stewart Title owned 22 of 30 lots, the Kennedys 4, and third parties 4. Lot 6 was conveyed to the Bakers; the Bakers and the lot 17 owners later signed affidavits ratifying the amendment.
Step 1980-02 After the property passed from Bloodworth to Beck and Marshall and then to Ostlund (15 lots, 3 garages, and the common area), Ostlund conveyed those interests to Title Security Agency of Arizona, as trustee under Trust T-285.
Step 1980-05 Title Security, then owning 50 percent of the lots, unilaterally recorded a revised plat resubdividing the property, eliminating the seven townhome lots in the south 223 feet (converting the area to Block 1) and replacing eight eastern lots with nine.
The La Esperanza Townhome Association sued to void the amendment and plat revision; the defendants counterclaimed for validity. The trial court, sitting without a jury, dismissed the complaint and ruled for the defendants.
Step 1984-05-24 The Arizona Court of Appeals, Division Two, reversed, holding the 1975 amendment and the 1980 plat revision null and void and directing entry of judgment for the association.
Step 1984-10-10 The Arizona Supreme Court denied review.

FAQ

What was La Esperanza Townhome Association v. Title Security about?

It concerned a Tucson townhome subdivision, La Esperanza, and whether two changes to its recorded governing documents were valid: a 1975 amendment that excluded the southerly 223 feet of the subdivision from the Declaration of CC&Rs so that area could be developed for multiple-unit and commercial use, and a 1980 plat revision recorded by a successor trustee that resubdivided the same area. The townhome association sued to have both declared null and void.

What did the Arizona Court of Appeals decide?

The court reversed the trial court and held that both the 1975 amendment and the 1980 plat revision were null and void. The key reason was that an amendment to a subdivision’s restrictive covenants must apply uniformly to all lots; an amendment that releases or changes restrictions on only part of the lots is invalid. The court directed the trial court to enter judgment for the association.

Why can’t a subdivision’s covenants be amended for only some lots?

Following Riley v. Boyle, the court explained that restrictions apply to all lots in a subdivision, so the power to amend them extends only to changes affecting all lots. Allowing a group of owners to exempt selected lots would create, in the court’s words, a “patchwork quilt” of different restrictions and upset the subdivision’s orderly plan. The court noted an exception: if every landowner joins in an amendment, it need not have a uniform effect.

Why was the 1980 revised plat also invalid?

The original subdivision plat had been incorporated into the Declaration of CC&Rs. Because the plat was part of the Declaration, recording a new plat was effectively an attempt to amend the Declaration. That required an instrument signed by at least 90 percent of the lot owners. Since Title Security owned only 50 percent of the lots and acted unilaterally, the revised plat was an invalid amendment.

Did it matter that the buyers purchased after the 1975 amendment was recorded?

No. The court held that a void amendment never becomes effective, so owners who bought after 1975 took their lots subject to the void amendment, and their purchase did not validate it. The court also rejected a detrimental-reliance argument, reasoning that an amendment changing restrictions on only part of a subdivision raised a “red flag” that reasonable investigation would have shown to be invalid.

Why does this 1984 decision still matter for HOAs and homeowners?

It is a foundational Arizona statement that a subset of owners generally cannot amend covenants to relieve only some lots from restrictions, protecting the mutual expectations owners acquire under a common plan. It also confirms that a recorded plat incorporated into a declaration cannot be changed unilaterally, and that an instrument appearing in the public record is not necessarily valid, points that remain relevant to associations, developers, and buyers reviewing title.

Case Dossier

This generated dossier mirrors the structured data surfaced on the OAH/ADRE case pages. It is added from the curated court-case record and the custom page source package, while the hand-authored analysis below remains intact.

Case Summary

Case ID / citation142 Ariz. 235, 689 P.2d 178 (App. 1984)
Court / tribunalCourt of Appeals
Decision / key dateMay 24, 1984
Judge / panelHoward (Judge, author), Birdsall (Chief Judge), Hathaway (Judge)
PartiesLa Esperanza Townhome Association, Inc. (Plaintiff/Appellant) v. Title Security Agency of Arizona, as Trustee under Trust T-285, and Lyman E. Ostlund (Defendants/Appellees)
Topics
cc-and-rscovenants
Outcome / holding

An amendment to a subdivision’s restrictive covenants must apply uniformly to all lots; an amendment that releases or alters the CC&Rs as to only part of the lots is null and void. Because the recorded plat was incorporated into the Declaration, a unilateral plat revision without the Declaration’s required 90 percent owner approval was likewise an invalid attempt to amend the CC&Rs.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Uploaded source packageNo raw source-folder files found for this slug
Step-by-step docket roadmap7 roadmap entries
Video overviewNo video embed currently configured
Study / briefing material1 section
FAQ / homeowner questions6 questions
Curated download aliases0 download links

Key Issues & Findings

Case Summary

La Esperanza Townhome Association, Inc. v. Title Security Agency of Arizona is a 1984 published decision of the Arizona Court of Appeals, Division Two, addressing how a recorded subdivision Declaration of Covenants, Conditions and Restrictions (CC&Rs) may be amended. The La Esperanza townhome subdivision in Tucson was created in 1973, when the developers subdivided the land, recorded a Declaration covering lots 1 through 35, and recorded a subdivision plat. The Declaration allowed amendment only by an instrument signed by at least 90 percent of the lot owners during its first 25 years. In 1975, the developers directed the title trustee to record an amendment excluding the southerly 223 feet of the subdivision, the portion fronting East Broadway, so it could be developed for multiple-unit and commercial use. In 1980, a successor trustee, Title Security, then holding 50 percent of the lots, unilaterally recorded a revised plat that resubdivided that area. The association sued to have both the amendment and the plat revision declared void; the trial court instead ruled for the defendants and upheld them. The Court of Appeals reversed, holding that an amendment to restrictive covenants must apply uniformly to all lots in the subdivision, and that both the non-uniform 1975 amendment and the unilateral 1980 plat revision, which lacked the required 90 percent owner approval, were null and void.

Key Issues & Findings

The court reviewed the trial court’s judgment upholding the 1975 amendment and the 1980 plat revision and reversed. On the amendment, the court noted there was a question below about whether it had been signed by the required number of landowners, but held that the case turned on a more fundamental point: the amendment purported to affect only part of the lots in the subdivision. Relying on Riley v. Boyle, 6 Ariz. App. 523, 434 P.2d 525 (1967), the court reaffirmed that any amendment to a set of restrictive covenants must have uniform application to all lots, and that an amendment purporting to modify the restrictions as to one lot or some lots, but not all, is null and void. The court quoted Riley’s reasoning that the power to amend extends only to restrictions for all lots, and that a contrary reading could produce a “patchwork quilt” of different restrictions that would upset the orderly plan of the subdivision.

The court reinforced this conclusion with out-of-state authority reaching the same result, including Montoya v. Barreras (N.M. 1970), Lakeshore Estates Recreational Area, Inc. v. Turner (Mo. App. 1972), Ridge Park Home-Owners v. Pena (N.M. 1975), and Cowherd Development Co. v. Littick (Mo. 1951), each holding that a subset of owners cannot release or alter restrictions on selected lots absent a clear provision allowing it. The court acknowledged that if all landowners join in an amendment it need not have uniform effect (Steve Vogli Co. v. Lane), but found that the La Esperanza Declaration permitted only uniform changes. It rejected the defendants’ argument that releasing the south 223 feet from all covenants (rather than just one) was a meaningful distinction, calling it “a distinction without a difference.”

The court also rejected the defendants’ reliance and estoppel defenses. Because the 1975 amendment was null and void, it never became effective; purchasers who bought after 1975 took subject to a void document, and their purchase did not validate it. The court found Ostlund could not claim detrimental reliance because the amendment, changing restrictions on only part of the subdivision, raised a “red flag” that reasonable investigation would have shown to be invalid. Finally, because the original plat (Book 25, page 1) had been incorporated into the Declaration, Ostlund’s recording of a new plat was itself an attempt to amend the Declaration; without an instrument signed by 90 percent of the lot owners, the new plat was invalid, and the estoppel claim failed because the association learned of the plan only after the revised plat was filed and most funds were spent.

Why It Matters

This decision is a foundational Arizona statement of the uniformity principle in restrictive-covenant and CC&R law: a subset of owners generally cannot amend a subdivision’s covenants to relieve only some lots from restrictions while leaving the rest bound. The rule protects the mutual, reciprocal expectations that owners acquire when they buy into a common plan, and it prevents a controlling owner or developer from carving out favored parcels for uses (here, multi-unit and commercial development) that the recorded scheme did not allow. Even where the governing document sets a supermajority threshold, an amendment that is non-uniform in application can fail regardless of how many owners sign it.

The case also illustrates two practical points that continue to matter for community associations, developers, and buyers. First, a recorded subdivision plat that is incorporated into a declaration cannot be revised unilaterally; changing it requires the same owner approval the declaration demands for any amendment. Second, an instrument that appears in the public record is not necessarily valid: a void amendment never takes effect, later purchasers take subject to its invalidity rather than curing it, and an irregularity that changes restrictions on only part of a subdivision should put a prospective developer on notice to investigate before spending money in reliance on it.

← Back to Court of Appeals cases

Facebook Comments Box