Cao v. PFP Dorsey Investments: Arizona Supreme Court Limits on Condominium Termination Forced Sales

cc-and-rs | A.R.S. § 33-1228 | 257 Ariz. 82 (2024)

This Arizona Supreme Court decision sets the constitutional and statutory ground rules for forcing the buyout of minority condominium owners after a supermajority votes to terminate. It upholds the termination statute against a takings challenge but requires that the entire condominium — not individual holdout units — be sold.

Last updated June 30, 2026. Case: Cao, Arizona Supreme Court No. CV-22-0228-PR, 257 Ariz. 82 (2024); Court of Appeals decision vacated, superior court affirmed in part and remanded. A later order (No. CV-25-0071-PR, Aug. 20, 2025) sent the unit’s valuation to binding arbitration.

Current-status note: This page is published as a litigation record based on the source files available through 2025-08-20. Later filings, appeals, mandates, settlements, or dismissal orders may change the posture; the linked court records control.

Scope note: This page covers the Arizona Supreme Court’s resolution of a condominium-termination forced sale — the March 22, 2024 opinion (257 Ariz. 82), which vacated the Court of Appeals decision, and the follow-on August 20, 2025 per curiam order (No. CV-25-0071-PR) sending the unit’s valuation to binding arbitration. The Court of Appeals’ 2022 opinion has been vacated and is no longer controlling. This page is educational and is not legal advice.

The takeaway

The Arizona Supreme Court held that a forced sale following a supermajority condominium termination under A.R.S. § 33-1228 does not violate the eminent-domain (private-takings) provision of the Arizona Constitution as applied to owners who agreed to a recorded declaration incorporating the Condominium Act. However, the Court also held that, under these circumstances, § 33-1228 required the sale of the entire condominium upon termination, not the sale of only the minority owners’ individual unit. It vacated the Court of Appeals’ decision, affirmed the superior court except as to that issue, and remanded.

Case Participants

Petitioner Side

  • Jie Cao (Plaintiff)
    Minority condominium unit owner of Unit 106 at Dorsey Place Condominiums who challenged the condominium termination and forced sale.
  • Haining "Frazer" Xia (Plaintiff)
    Minority condominium unit owner of Unit 106, husband of Jie Cao, who challenged the termination and forced sale.
  • Stone Xia (Plaintiff)
    Son of Jie Cao and Haining Xia, residing in Fountain Hills, Arizona, named as a plaintiff in the complaints.
  • Dennis I. Wilenchik (Counsel)
    Wilenchik & Bartness, P.C.
    Trial counsel representing Plaintiffs Jie Cao, Haining Xia, and Stone Xia in Maricopa County Superior Court.
  • John "Jack" D. Wilenchik (Counsel)
    Wilenchik & Bartness, P.C.
    Trial counsel representing Plaintiffs Jie Cao, Haining Xia, and Stone Xia in Maricopa County Superior Court.
  • Ross P. Meyer (Counsel)
    Wilenchik & Bartness, P.C.
    Trial and appellate counsel representing Plaintiffs in both Superior Court and Court of Appeals proceedings.
  • Eric M. Fraser (Counsel)
    Osborn Maledon, P.A.
    Appellate counsel representing Plaintiffs/Appellants Jie Cao and Haining Xia before the Court of Appeals and Supreme Court.
  • John S. Bullock (Counsel)
    Osborn Maledon, P.A.
    Appellate counsel representing Plaintiffs/Appellants Jie Cao and Haining Xia before the Court of Appeals and Supreme Court.
  • Thomas L. Hudson (Counsel)
    Osborn Maledon, P.A.
    Appellate attorney with Osborn Maledon, P.A. who assisted on the appellate briefing and oral argument preparation.
  • James M. Manley (Counsel)
    Pacific Legal Foundation
    Amicus curiae counsel representing the Pacific Legal Foundation in support of Plaintiffs/Appellants.

Respondent Side

  • PFP Dorsey Investments, LLC (Defendant)
    Majority investor entity that acquired 90 of the 96 units at Dorsey Place Condominiums and voted to terminate the condominium.
  • Dorsey Place Condominium Association (Defendant)
    The homeowners association for the condominium complex that executed and recorded the termination agreement and warranty deed.
  • Lorne Polger (Board Member)
    Pathfinder Partners / Dorsey Place Condominium Association
    Principal of Pathfinder Partners and self-appointed Secretary of the Dorsey Place HOA; initially named as an individual defendant.
  • Matt Quinn (Association President)
    Pathfinder Partners / Dorsey Place Condominium Association
    Vice President of Pathfinder Partners and self-appointed President of the Dorsey Place HOA; initially named as an individual defendant.
  • Michael A. Schern (Counsel)
    Schern Richardson Finter, PLC
    Trial attorney who represented PFP Dorsey and the individual defendants; initially named as an individual defendant before being dismissed.
  • Shawna M. Woner (Counsel)
    Woner Hoffmaster Peshek & Gintert, PC
    Counsel representing Defendant/Appellee PFP Dorsey Investments, LLC.
  • Stephanie K. Gintert (Counsel)
    Woner Hoffmaster Peshek & Gintert, PC
    Counsel representing Defendant/Appellee PFP Dorsey Investments, LLC.
  • Edith I. Rudder (Counsel)
    Carpenter, Hazlewood, Delgado & Bolen, LLP
    Counsel representing Defendant/Appellee Dorsey Place Condominium Association.
  • Nicholas C.S. Nogami (Counsel)
    Carpenter, Hazlewood, Delgado & Bolen, LLP
    Counsel representing Defendant/Appellee Dorsey Place Condominium Association.
  • Aaron M. Finter (Counsel)
    Schern Richardson Finter, PLC
    Co-counsel representing defendants Lorne Polger, Matt Quinn, and Michael A. Schern in Superior Court.
  • Aaron R. Clouse (Counsel)
    Schern Richardson Finter, PLC
    Co-counsel representing defendants Lorne Polger, Matt Quinn, and Michael A. Schern in Superior Court.
  • Jennifer Barry (Board Member)
    Pathfinder Partners
    General Counsel for Pathfinder Partners who coordinated defense strategy, mediation, and client representation.

Neutral Parties

  • Hon. Theodore Campagnolo (Judge)
    Maricopa County Superior Court
    Trial court judge originally assigned to the civil action in Maricopa County Superior Court.
  • Hon. Gary L. Popham Jr. (Judge)
    Maricopa County Superior Court
    Trial commissioner/judge who heard and ruled on early default and consolidation motions.
  • Hon. Daniel G. Martin (Judge)
    Maricopa County Superior Court
    Commercial Court judge who dismissed the second amended complaint with prejudice and awarded taxable costs.
  • Hon. Paul J. McMurdie (Judge)
    Arizona Court of Appeals Division One
    Presiding Appellate Judge who delivered the court's published opinion reversing and remanding the case.
  • Hon. Kent E. Cattani (Judge)
    Arizona Court of Appeals Division One
    Chief Appellate Judge who sat on the Division One panel and joined the opinion.
  • Hon. David B. Gass (Judge)
    Arizona Court of Appeals Division One
    Appellate Judge who sat on the Division One panel and joined the opinion.
  • Justice Clint Bolick (Judge)
    Arizona Supreme Court
    Arizona Supreme Court Justice who authored the unanimous March 22, 2024 opinion (257 Ariz. 82).
  • Amy M. Wood (Other)
    Arizona Court of Appeals Division One
    Clerk of the Court of Appeals Division One who issued appellate clerk notices, record transmittals, and schedules.
  • Jeff Fine (Other)
    Maricopa County Superior Court
    Clerk of the Maricopa County Superior Court who certified and transmitted the electronic record on appeal.
  • Chief Justice Robert M. Brutinel (Judge)
    Arizona Supreme Court
    Joined the unanimous 2024 opinion.
  • Vice Chief Justice Ann A. Scott Timmer (Judge)
    Arizona Supreme Court
    Joined the 2024 opinion; as Chief Justice, signed the August 20, 2025 per curiam Decision Order.
  • Justice John R. Lopez IV (Judge)
    Arizona Supreme Court
    Joined the unanimous 2024 opinion.
  • Justice James P. Beene (Judge)
    Arizona Supreme Court
    Joined the unanimous 2024 opinion.
  • Justice William G. Montgomery (Judge)
    Arizona Supreme Court
    Joined the unanimous 2024 opinion.
  • Justice Kathryn H. King (Judge)
    Arizona Supreme Court
    Joined the unanimous 2024 opinion.

What happened

In January 2018, Jie Cao and Haining Xia purchased Unit 106 of the Dorsey Place Condominiums in Tempe, Arizona, subject to the recorded Condominium Declaration. In November 2018, PFP Dorsey Investments, LLC acquired 90 of the 96 units in the complex, gaining approximately 94% of the voting power.

In March 2019, the Association notified members of a meeting to terminate the condominium, proposing to sell the entire complex to PFP Dorsey. At the April 4, 2019 meeting, the Association presented a modified termination agreement to sell only the minority-owned units to PFP Dorsey. Utilizing its 94% vote, PFP Dorsey ratified the agreement, and the Association recorded a deed transferring the Xias’ unit to PFP Dorsey.

The Xias sued PFP Dorsey and the Association, claiming the forced sale was an unconstitutional private taking and a breach of fiduciary duty. The Maricopa County Superior Court dismissed the complaint with prejudice, and the Court of Appeals reversed on the theory that an older version of the termination statute governed. The Arizona Supreme Court granted review.

On March 22, 2024, the Supreme Court vacated the Court of Appeals’ decision. It rejected the owners’ constitutional argument but held that A.R.S. § 33-1228 required selling the entire condominium, not just the Xias’ unit, and remanded. After the parties disputed the meaning of the mandate on remand, the Court issued a per curiam order on August 20, 2025 (No. CV-25-0071-PR) affirming the superior court, limiting the remaining issue to the unit’s fair market value as the owners’ total compensation, and sending that valuation to final and binding arbitration under § 33-1228.

Video overview of the case record

An AI-generated video overview of Cao v. PFP Dorsey Investments (257 Ariz. 82, 545 P.3d 459 (2024)). Condo termination statute allowed forced sale procedures, subject to constitutional compensation limits. This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the case record

An AI-generated audio deep dive walking through the court record and procedural posture in Cao v. PFP Dorsey Investments. Generated from the case filings; verify against the linked case records below.

Audio overview generated with Google NotebookLM from the case’s court filings.

Procedural timeline

2019-11-20

Plaintiffs Jie Cao, Haining Xia, and Stone Xia file their initial Civil Complaint in Maricopa County Superior Court.

2019-12-18

Defendants file a Notice Requesting Assignment to Commercial Court and a Motion for More Definite Statement.

2019-12-20

Defendants file their formal Answer to the initial Complaint.

2020-01-03

Carpenter Hazlewood files a Motion to Withdraw as Counsel for Lorne Polger and Matt Quinn.

2020-01-17

Minute Entry orders the case referred for reassignment to Commercial Court.

2020-01-22

Plaintiffs file a Motion requesting a sheriff lock up of Unit 106 and an injunction on Defendants.

2020-01-24

Case is officially reassigned to the Commercial Court under Hon. Daniel Martin.

2020-02-25

Minute Entry from status conference orders Plaintiffs to file an amended complaint, denies Defendants' MTD as moot, and Plaintiffs withdraw their injunction motion.

2020-03-27

Plaintiffs file their First Amended Complaint.

2020-07-06

Plaintiffs file their Second Amended Complaint.

2020-07-24

Hon. Daniel Martin signs an order dismissing defendants Lorne Polger, Matt Quinn, and Michael A. Schern without prejudice.

2020-08-13

PFP Dorsey and Dorsey Place Condominium Association file separate Motions to Dismiss the Second Amended Complaint.

2020-09-16

Plaintiffs file their Response to the Motions to Dismiss.

2020-10-05

Defendants file their Reply briefs in support of the Motions to Dismiss.

2020-12-15

Virtual Oral Argument is held on the Motions to Dismiss before Hon. Daniel Martin.

2020-12-18

Court files a Minute Entry Under Advisement Ruling dated Dec 15, 2020, granting both Motions to Dismiss with prejudice.

2021-01-07

Defendants file separate Applications for Attorneys' Fees and Costs.

2021-03-15

Hon. Daniel Martin issues a Minute Entry Ruling denying the defendants' fee applications but granting taxable costs.

2021-03-18

Court enters signed judgments in favor of both defendants under Rule 54(b).

2021-04-19

Plaintiffs file their first Notice of Appeal from the March 18 judgments.

2021-04-27

Court enters revised final judgment under Rule 54(c).

2021-05-12

Plaintiffs file a stipulated motion to dismiss the first appeal as moot and file a new Notice of Appeal from the April 27 judgment.

2021-05-18

Arizona Court of Appeals Division One assigns case number 1 CA-CV 21-0275 and issues Appellate Clerk Notice.

Download 92 sources
0000 Appellate Clerk Notice Re Appellan0000 Index Of Record0001 Civil Complaint0002 Certificate Of Compulsory Arbitra0003 Civil Cover Sheet0004 Plaintiffs Demand For Jury Trial0005 Declaration Of Service By Certifie0006 Declaration Of Service By Certifie0007 Declaration Of Service By Certifie0008 Notice Of Appearance0009 Application And Affidavit For Defa0010 Defendants Notice Requesting Assi0011 Motion For More Definite Statement0012 Answer0013 Credit Memo0014 Application And Affidavit For Defa0015 Motion For Entry Of Default Judgmen0016 Motion To Withdraw As Counsel Witho0017 Motion For Treble Damages0018 Minute Entry Order Entered By Court 010620200019 Affidavit Of Service0020 Motion To Compel Defendants To Comp0021 Motion To Strike Quinnpolgers Answ0022 Motion For Entry Of Default Judgmen0023 Defendants Motion To Strike Plaint0024 Minute Entry Order Entered By Court 011720200025 Motion To Support Treble Damages So0026 Minute Entry Ruling 011720200027 Minute Entry Order Entered By Court 012120200028 Motion To Request Look Up Of Unit And0029 Motion To Strike Defendants Answer0030 Minute Entry Order Entered By Court 012220200031 Motion For More Definite Statement0032 Minute Entry Case Reassigned 012420200033 Order Granting Motion To Withdraw A0034 Notice Of Appearance0035 Part 1 of 2 Defendants Notice Of Outs0036 Part 2 of 2 Defendants Notice Of Outs0037 Minute Entry Status Conference Set 021320200038 Minute Entry Status Conference 022520200039 First Amended Complaint0040 Second Amended Complaint0041 Acceptance Of Service For Pfp Dorse0042 Stipulation To Dismiss Certain Def0043 Acceptance Of Service For Dorsey Pl0044 Order Dismissing Certain Defendan0045 Part 1 of 5 Defendant Pfp Dorsey Inve0046 Part 2 of 5 Defendant Pfp Dorsey Inve0047 Part 3 of 5 Defendant Pfp Dorsey Inve0048 Part 4 of 5 Defendant Pfp Dorsey Inve0049 Part 5 of 5 Defendant Pfp Dorsey Inve0050 Defendant Pfp Dorsey Investments L0051 Defendant Dorsey Place Condominiu0052 Defendant Dorsey Place Condominiu0053 Credit Memo0054 Credit Memo0055 Notice Of Plaintiffs First Extenst0056 Plaintiffs Response To Defendants0057 Defendant Dorsey Place Condominiu0058 Defendant Pfp Dorsey Investments L0059 Defendant Dorsey Place Condominiu0060 Minute Entry Oral Argument Set 101220200061 Minute Entry Under Advisement Ruling 12152020062 Notice Of Lodging Judgment0063 Verified Request For An Award Of Tax0064 Motion For Authorization To File Do0065 Part 1 of 3 Defendant Pfp Dorsey Inve0066 Part 2 of 3 Defendant Pfp Dorsey Inve0067 Part 3 of 3 Defendant Pfp Dorsey Inve0068 Part 1 of 2 Affidavit Of Nicholas Nog0069 Part 2 of 2 Affidavit Of Nicholas Nog0070 Part 1 of 4 Defendant Forsey Place Co0072 Part 3 of 4 Defendant Forsey Place Co0073 Part 4 of 4 Defendant Forsey Place Co0074 Part 1 of 2 Defendant Dorsey Place Co0075 Part 2 of 2 Defendant Dorsey Place Co0076 Plaintiffs Opposition To Defendan0077 Notice Of First Extension Of Time To0078 Part 1 of 2 Pfp Dorsey Investments Ll0079 Part 2 of 2 Pfp Dorsey Investments Ll0080 Defendant Dorsey Place Condominiu0081 Order Granting Motion To File Under0082 Minute Entry Order Entered By Court 022220210083 Notice Of Lodging Of Itemized Billi0085 Minute Entry Ruling 031520210086 Judgment0087 Judgment0088 Notice Of Lodging Amended Proposed0089 Notice Of Appeal0090 Judgment0091 Notice Of Appeal0092 Stipulated Motion To Dimisssic Pla
2022-03-17

Court of Appeals issues an Order for Additional Briefing on the applicability of the 1986 versus the 2018 statutory versions of A.R.S. § 33-1228.

2022-03-23

Court of Appeals issues an Order Re: Supplemental Authority requesting briefing on the impact of the newly issued Supreme Court case Kalway v. Calabria Ranch.

2022-09-23

Appellees file a Petition for Review in the Arizona Supreme Court (No. CV-22-0228-PR).

2023-08-22

Arizona Supreme Court grants the Petition and Cross-Petitions for Review in part, rephrasing four statutory and constitutional questions.

2024-03-22

Arizona Supreme Court issues its Opinion (257 Ariz. 82), authored by Justice Bolick for a unanimous Court: vacates the Court of Appeals' decision, affirms the superior court except as to Part II (the single-unit sale), and remands.

Download source
2024-05-16

Arizona Supreme Court issues its Mandate and an order awarding the Xias $56,947.00 in fees and $316.32 in costs (denying appellate fees under ARCAP 21(d)).

2024-08-08

On remand, the superior court denies PFP Dorsey's motion to compel arbitration of the unit's valuation (minute entry).

2024-12-03

The superior court grants the Xias' motion for leave to file a Third Amended Complaint realleging previously dismissed claims (minute entry).

2025-02-25

The Court of Appeals declines special-action jurisdiction over PFP Dorsey's petition challenging the remand rulings (No. 1 CA-SA 25-0015).

2025-03-19

PFP Dorsey files a Petition for Review of the special-action decision, seeking clarification of the Supreme Court's mandate (No. CV-25-0071-PR).

2025-08-20

Arizona Supreme Court issues a per curiam Decision Order: grants review, affirms the superior court, holds the sole remaining issue is the fair market value of the Xias' unit as their total compensation, vacates the August 8 and December 3, 2024 minute entries, remands for final and binding arbitration under A.R.S. § 33-1228, and awards PFP Dorsey reasonable attorney fees.

Complete source-document index

This index contains 193 PDFs from the reviewed public source packet. Byte-identical copies are listed once. Files are ordered by the date and sequence in the public filename, and party filings or research materials are labeled separately from court rulings.

Source 2 2021-05-18

0000 Index Of Record

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 3 2021-05-18

0001 Civil Complaint

Type: Opening pleading

Starts or reframes the case and identifies the claims or relief requested.

Source 5 2021-05-18

0003 Civil Cover Sheet

Type: Court/source PDF

Court intake document classifying the case for filing and assignment purposes.

Source 7 2021-05-18

0005 Declaration Of Service By Certifie

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 8 2021-05-18

0006 Declaration Of Service By Certifie

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 9 2021-05-18

0007 Declaration Of Service By Certifie

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 10 2021-05-18

0008 Notice Of Appearance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 11 2021-05-18

0009 Application And Affidavit For Defa

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 14 2021-05-18

0012 Answer

Type: Responsive pleading

Responding party's first substantive response to the complaint or petition.

Download source file
Source 15 2021-05-18

0013 Credit Memo

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 16 2021-05-18

0014 Application And Affidavit For Defa

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 19 2021-05-18

0017 Motion For Treble Damages

Type: Motion/application

A request for a specific ruling or procedural action; the next document is often a response or order.

Source 21 2021-05-18

0019 Affidavit Of Service

Type: Declaration or affidavit

Proof-of-service material; check it to understand who was served and when deadlines started.

Source 28 2021-05-18

0026 Minute Entry Ruling 01172020

Type: Court order/minute entry

Court or agency order; this is usually the document that tells readers what changed next.

Source 34 2021-05-18

0032 Minute Entry Case Reassigned 01242020

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 36 2021-05-18

0034 Notice Of Appearance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 39 2021-05-18

0037 Minute Entry Status Conference Set 02132020

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 40 2021-05-18

0038 Minute Entry Status Conference 02252020

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 55 2021-05-18

0053 Credit Memo

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 56 2021-05-18

0054 Credit Memo

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 62 2021-05-18

0060 Minute Entry Oral Argument Set 10122020

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 85 2021-05-18

0085 Minute Entry Ruling 03152021

Type: Court order/minute entry

Court or agency order; this is usually the document that tells readers what changed next.

Source 86 2021-05-18

0086 Judgment

Type: Decision or judgment

Decision document; read it to understand the controlling result before moving to later filings.

Download source file
Source 87 2021-05-18

0087 Judgment

Type: Decision or judgment

Decision document; read it to understand the controlling result before moving to later filings.

Download source file
Source 89 2021-05-18

0089 Notice Of Appeal

Type: Procedural/service filing

Moves the dispute into appellate or judicial-review procedure; use it to track the next forum.

Source 90 2021-05-18

0090 Judgment

Type: Decision or judgment

Decision document; read it to understand the controlling result before moving to later filings.

Download source file
Source 91 2021-05-18

0091 Notice Of Appeal

Type: Procedural/service filing

Moves the dispute into appellate or judicial-review procedure; use it to track the next forum.

Source 94 2021-05-28

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 96 2021-06-07

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 100 2021-06-21

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 103 2021-06-25

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 105 2021-07-07

0000 Case Management Statement

Type: Court/source PDF

Case-management filing; it tells the court how the parties propose to schedule and manage the case.

Source 108 2021-07-07

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 112 2021-08-18

0000 Request For Oral Argument

Type: Motion/application

A request for a specific ruling or procedural action; the next document is often a response or order.

Source 113 2021-08-18

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 114 2021-08-18

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 116 2021-09-27

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 117 2021-09-27

0002 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 119 2021-09-30

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 122 2021-11-08

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 123 2021-11-08

0002 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 127 2021-11-29

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 128 2021-11-29

0001 Declaration Of Service

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 129 2021-11-29

0002 Declaration Of Service

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 131 2021-12-09

0093 Court Of Appeals Receipt

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 132 2021-12-09

0094 Electronic Index Of Record

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 139 2021-12-17

0001 Declaration Of Service

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 144 2022-01-10

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 145 2022-01-10

0002 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 148 2022-02-15

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 155 2022-04-15

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 157 2022-04-15

0002 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 158 2022-04-15

0002 Certificate Of Service 2

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 161 2022-05-02

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 163 2022-05-02

0002 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 164 2022-05-02

0002 Certificate Of Service 2

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 165 2022-07-07

0000 Enotification Of Opinion

Type: Decision or judgment

Decision document; read it to understand the controlling result before moving to later filings.

Source 166 2022-07-07

0000 Opinion

Type: Decision or judgment

Opinion holding that the Arizona Supreme Court held that a forced sale following a supermajority condominium termination under A.R.S. § 33-1228 does not violate the eminent-domain (private-takings) provision of the Arizona Constitution as applied to owners who agreed to a recorded declaration incorporating the Condominium Act.

Download source file
Source 167 2022-07-07

0000 Opinion Distribution List

Type: Decision or judgment

Decision document; read it to understand the controlling result before moving to later filings.

Source 169 2022-07-21

0000 Statement Of Costs

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Source 170 2022-07-21

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 171 2022-07-21

0002 Declaration Of Eric M Fraser In Supp

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 173 2022-07-22

0001 Certificate Of Compliance

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 174 2022-07-22

0002 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 177 2022-08-04

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 178 2022-08-04

0001 Certificate Of Service 2

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 179 2022-08-04

0002 Exhibit 1

Type: Court/source PDF

Uploaded source file in the case record; read it in sequence with the surrounding filings to follow the procedure.

Download source file
Source 181 2022-08-08

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 183 2022-08-25

0001 Certificate Of Service

Type: Procedural/service filing

Procedural filing that documents service, appearance, compliance, or a required notice step.

Source 184 2022-08-25

0002 Declaration Of Eric M Fraser In Supp

Type: Declaration or affidavit

Witness statement submitted under oath or declaration; its assertions are evidence offered by a party, not court findings.

Source 190 2024-03-22

0000 Supreme Court Opinion

Type: Decision or judgment

Opinion holding that the Arizona Supreme Court held that a forced sale following a supermajority condominium termination under A.R.S. § 33-1228 does not violate the eminent-domain (private-takings) provision of the Arizona Constitution as applied to owners who agreed to a recorded declaration incorporating the Condominium Act.

Source 193 2025-08-20

0000 Supreme Court Decision Order

Type: Decision or judgment

Decision holding that the Arizona Supreme Court held that a forced sale following a supermajority condominium termination under A.R.S. § 33-1228 does not violate the eminent-domain (private-takings) provision of the Arizona Constitution as applied to owners who agreed to a recorded declaration incorporating the Condominium Act.

FAQ

Is Cao v. PFP Dorsey Investments binding precedent in Arizona?

Yes. The controlling decision is now the Arizona Supreme Court’s published opinion, Cao v. PFP Dorsey Investments, LLC, 257 Ariz. 82 (2024), which vacated the earlier Court of Appeals decision. The Supreme Court’s opinion is binding statewide; the 2022 Court of Appeals opinion is no longer good law.

Can a supermajority investor force minority condo owners to sell their units?

Under A.R.S. § 33-1228, a supermajority can vote to terminate a condominium. The Supreme Court held this forced sale does not violate Arizona’s constitutional ban on takings for private use, because the owners agreed to the recorded Declaration, which incorporates the Condominium Act. However, the Court held the statute requires the sale of the entire condominium upon termination — not the sale of only the holdout owners’ individual unit.

Did the unit owners win or lose?

It was a split result. The owners (Jie Cao and Haining ‘Frazer’ Xia) lost their constitutional eminent-domain argument but won on the statutory ground: because only their unit was force-sold while the investor kept the other 90 units, the sale was improper under § 33-1228. The case was remanded, and a later order limited the remaining issue to the fair market value of their unit as their total compensation.

What did the August 2025 Supreme Court order decide?

In a per curiam order (No. CV-25-0071-PR, Aug. 20, 2025), the Court clarified its mandate: the superior court was affirmed, the sole remaining issue is the fair market value of the owners’ unit (paid as their total compensation), and the matter was remanded for final and binding arbitration under A.R.S. § 33-1228 and the Condominium Termination Agreement.

What happened to the Court of Appeals' 'older statute governs' reasoning?

The Supreme Court rejected it. The Court of Appeals had held that the 1986 version of § 33-1228 governed because the owners bought before the 2018 amendments. The Supreme Court disagreed: the Declaration incorporated the Condominium Act ‘as amended from time to time,’ that amendment was anticipated, and Kalway v. Calabria Ranch did not apply because the Declaration itself was never amended — so the 2018 version of the statute applied.

Case Dossier

This dossier combines the case metadata, linked court sources, and the explanatory sections below. It distinguishes court rulings from party filings, allegations, and requested relief.

Case Summary

Case ID / citation257 Ariz. 82, 545 P.3d 459 (2024)
Court / tribunalArizona Supreme Court
Decision / key dateMarch 22, 2024
Judge / panelJustice Clint Bolick (author), Chief Justice Robert M. Brutinel, Vice Chief Justice Ann A. Scott Timmer, Justice John R. Lopez IV, Justice James P. Beene, Justice William G. Montgomery, Justice Kathryn H. King
PartiesJie Cao and Haining 'Frazer' Xia (condominium unit owners) v. PFP Dorsey Investments, LLC (majority investor) and Dorsey Place Condominium Association (homeowners association)
Governing law
Topics
CC&RsBoard GovernanceProcedureAttorney Fees
Outcome / holding

The Arizona Supreme Court held that a forced sale following a supermajority condominium termination under A.R.S. § 33-1228 does not violate the eminent-domain (private-takings) provision of the Arizona Constitution as applied to owners who agreed to a recorded declaration incorporating the Condominium Act. However, the Court also held that, under these circumstances, § 33-1228 required the sale of the entire condominium upon termination, not the sale of only the minority owners' individual unit. It vacated the Court of Appeals' decision, affirmed the superior court except as to that issue, and remanded.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package193 PDFs
Step-by-step docket roadmap48 roadmap entries
Video overviewCao v. PFP Dorsey Investments
Study / briefing material1 section
FAQ / homeowner questions5 questions
Featured download links4 download links

Key Issues & Findings

Case Summary

Jie Cao and Haining 'Frazer' Xia owned one of 96 units at Dorsey Place Condominiums. After PFP Dorsey Investments acquired 90 units (about 94% of the vote), it invoked A.R.S. § 33-1228 to terminate the condominium and force the sale of the remaining minority units to itself. The Xias sued, arguing the forced sale was an unconstitutional private taking. The superior court dismissed the complaint; the Court of Appeals reversed on a statutory-retroactivity theory. The Arizona Supreme Court vacated that decision. It held the forced sale did not violate Arizona's eminent-domain clause, because the owners agreed to the recorded Declaration incorporating the Condominium Act, but it also held that § 33-1228 required selling the entire condominium, not just the holdout unit. It remanded; a later 2025 order limited the remaining issue to the unit's fair market value as the owners' total compensation, to be fixed by binding arbitration.

Key Issues & Findings

Writing for a unanimous Court, Justice Bolick first addressed the constitutional challenge. The Xias argued that A.R.S. § 33-1228 — which lets a supermajority terminate a condominium and force the sale of objecting owners' units — authorized an unconstitutional taking of private property for private use under Article 2, Section 17 of the Arizona Constitution. The Court disagreed. The sale authority derived not from the State's eminent-domain power but from the recorded Declaration, a contract to which the Xias voluntarily agreed when they purchased their unit; the Declaration expressly submitted the property to the Condominium Act and provided for partition upon dissolution. Because the arrangement was contractual, it was not a governmental taking.

The Court then held, however, that the forced sale as carried out was not authorized by the statute. Termination under § 33-1228 required the sale of all of the condominium property, not the sale of individual holdout units while the terminating owner retained the rest. Here PFP Dorsey force-sold only the Xias' unit and kept the other ninety units, which the statute did not permit. The Court therefore vacated the Court of Appeals' decision, affirmed the superior court except as to this issue (Part II of the opinion), and remanded.

Finally, the Court rejected the Court of Appeals' premise that an older (1986) version of the statute governed because the Xias purchased before the 2018 amendments. The Declaration incorporated the Condominium Act 'as amended from time to time,' so the possibility of statutory amendment was anticipated; Kalway v. Calabria Ranch — which barred unforeseen amendments to a declaration itself — did not apply because the Declaration was never amended, only the incorporated statutes were. Accordingly, the 2018 version of § 33-1228 controlled. On remand the parties disputed the scope of the mandate, and in a per curiam order dated August 20, 2025 (No. CV-25-0071-PR), the Supreme Court clarified that the superior court was affirmed, the only remaining issue is the fair market value of the Xias' unit as their total compensation, and the matter must proceed to final and binding arbitration under § 33-1228 and the Condominium Termination Agreement.

Why It Matters

For Arizona condominium owners, associations, and investors, this decision sets the ground rules for 'bulk buyout' terminations. It confirms that a supermajority may use A.R.S. § 33-1228 to terminate a condominium and that the resulting forced sale is not an unconstitutional taking, because owners agree to the Condominium Act through their recorded declaration. Investors cannot defeat a buyout simply by labeling it a private taking.

But the decision also imposes a critical limit: on termination, the statute requires selling the entire condominium, not cherry-picking and force-selling only holdout units while the majority owner keeps the rest. And owners who are bought out are entitled to the fair market value of their unit as total compensation, which — per the Court's 2025 order — may be fixed through binding arbitration under the termination agreement. Boards and counsel structuring a termination must follow the whole-property sale mechanism and a defensible valuation process, or risk having the sale undone.

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