McNally v. Sun Lakes HOA: Elected Directors and Executive Sessions

Arizona HOA Board Governance | Executive Sessions | 1 CA-CV 15-0744

McNally limits a majority board’s power to sideline an elected director. The Court of Appeals held the Sun Lakes board lacked authority to exclude Colette McNally from all executive sessions as an ad hoc discipline tool.

Last updated June 3, 2026. Case: Colette McNally v. Sun Lakes Homeowners Association #1, Inc., Arizona Court of Appeals No. 1 CA-CV 15-0744; Maricopa County Superior Court No. CV2014-009496.

Scope note: This page covers the published Court of Appeals opinion and the uploaded trial/appellate record. The complete uploaded source-document index below is generated from the local raw source folder, including court PDFs, court DOC/DOCX notices, and AI/source CSVs where present. AI-generated CSV summaries were reviewed only as orientation and are not treated as court authority.

The rule in one sentence

An HOA board cannot invent a blanket executive-session exclusion that strips an elected director of core board participation rights without legal authority in statutes, bylaws, or a proper removal process.

Case snapshot

Court result

Denial of preliminary injunction was reversed and remanded.

Board action

Sun Lakes excluded McNally from all executive sessions for the balance of her term.

Core statutes

A.R.S. 10-3801, 10-3822, 10-3825, 10-3810, and 33-1804.

Practical use

Director discipline must follow real authority, not majority convenience.

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 / citation1 CA-CV 15-0744
Court / tribunalCourt of Appeals
Decision / key dateOctober 13, 2016
Judge / panelPresiding Judge Andrew W. Gould, Judge Peter B. Swann, Judge Patricia A. Orozco
PartiesA duly elected board member sued the HOA after the board voted to exclude her from executive sessions.
Topics
board-governancemeetings-and-records
Outcome / holding

The court held that the HOA board lacked authority to exclude a duly elected director from executive sessions and reversed the denial of injunctive relief.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Uploaded source package134 PDFs, 3 supporting source/review files
Step-by-step docket roadmap4 roadmap entries
Video overviewMcNally v. Sun Lakes HOA: Can an HOA Board Exclude an Elected Director?
Study / briefing material2 sections
FAQ / homeowner questions3 questions
Curated download aliases3 download links

Key Issues & Findings

Case Summary

After internal conflict on the board, Sun Lakes voted to bar one of its own elected directors from executive sessions. The excluded director sought injunctive relief, arguing the board had no authority to cut her out of board deliberations simply because other directors believed she had breached confidentiality or loyalty duties. The Court of Appeals agreed with her and reversed. The court treated board membership as carrying the right to participate in board meetings, including executive sessions, unless some legally valid removal or other recognized mechanism had been used. It would not let the rest of the board create an ad hoc punishment that effectively stripped an elected director of core board functions without following the governing legal framework.

Key Issues & Findings

The court focused on the nature of board office itself. A director is elected to participate in governing the corporation, and executive sessions are still board meetings, not separate private clubs for a board majority. Without a valid removal, suspension, or other recognized authority, the majority could not invent a partial-disqualification remedy.

The association argued that exclusion was justified by the director’s alleged misconduct and by the board’s need to protect confidential matters. The court was not persuaded that those concerns created authority where none existed. Governance has to follow the corporation’s legal structure and governing documents, not improvisation by fellow directors.

Why It Matters

McNally is highly useful in HOA board-power disputes. It limits majority control tactics against dissident directors and reinforces that board process must track real authority, not political convenience.

For directors and members, the case supports the idea that elected office in an HOA carries enforceable participation rights unless the association follows the proper path to remove or discipline the director.

Why this case matters

McNally is one of the strongest Arizona HOA board-governance cases because it treats board service as a real office with enforceable participation rights. The board had confidentiality concerns, but the court held that excluding an elected director from every executive session prevented her from performing director duties.

The opinion does not say a director may disclose confidential information. It says the remedy for confidentiality concerns must come from lawful tools such as recusal in a particular conflict, judicial removal, or an injunction tailored to confidentiality, not a blanket board-created exclusion.

Video overview: elected HOA directors and executive sessions

Watch this overview for McNally v. Sun Lakes HOA, where the Court of Appeals held that a board majority could not use confidentiality concerns to impose a blanket executive-session ban on a duly elected director.

Homeowner study guide: director rights and executive sessions

Homeowner or director questionStudy-guide answerPractical lesson
What topics may an Arizona planned-community board discuss in executive session?A.R.S. 33-1804 allows closed discussion for limited subjects such as legal advice, pending or contemplated litigation, personal or financial information, employee matters, and member appeals.Executive session is limited-purpose; it is not a general substitute for open board governance.
Can a board exclude an elected director from all executive sessions because it distrusts that director?No. McNally held the board lacked statutory or bylaw authority to impose that blanket exclusion.A board majority cannot use self-help to strip an elected director of core management participation rights.
Can a board create a committee of everyone except the targeted director?Not as a workaround to eliminate the director’s management role.Committee authority cannot be used to make the director-participation statutes meaningless.
What lawful remedies exist if a director may disclose confidential information?The association can seek tailored injunctive relief, conflict-specific recusal, or judicial removal where statutory grounds exist.The remedy has to match lawful authority; it cannot be an invented blanket ban.
Does McNally give directors permission to disclose confidential information?No. The case addresses the board’s lack of authority for the exclusion, not a license to publish protected information.Confidentiality duties and participation rights both matter.
Can a director be forced to sign a confidentiality oath as a condition of attending meetings?McNally rejected conditioning participation on terms that effectively preserved the unauthorized exclusion.Boards should use lawful, specific confidentiality tools rather than broad participation waivers.
What was the appellate outcome?The Court of Appeals reversed the denial of preliminary injunctive relief and held the board had no authority to ban McNally from executive sessions.The parties later settled after the appellate ruling.

Briefing notes from the review packet

Triggering dispute

The conflict began after former employee Jeannie Martens sent an email alleging staff misconduct, and McNally later attempted to read it during an open board meeting.

Board sanction

On September 20, 2013, the board approved screening McNally out of executive sessions for the balance of her term.

Conditioned re-entry

The briefing materials state the board offered readmission only if McNally acknowledged wrongdoing and signed a confidentiality pledge.

Association theory

The association framed the exclusion as a confidentiality and fiduciary-duty remedy, and argued it could operate as a special committee without McNally.

Director theory

McNally argued the board majority had no statutory or bylaw authority to strip an elected director of management participation rights.

Post-opinion status

After the appellate reversal, the parties filed a notice of settlement in November 2016, and McNally withdrew her fee application.

Director-rights analysis from the briefing

Legal pointCourt’s treatmentPractical meaning
Director participationA.R.S. 10-3801(B) requires directors to participate in managing the corporation.A blanket executive-session exclusion interferes with core director duties.
Meeting noticeA.R.S. 10-3822(B) requires notice of meetings to directors.A notice right is hollow if the board can invite a director but bar attendance.
Special committee theoryThe court rejected use of A.R.S. 10-3825 to make the full board minus one director the functional decision-maker.A committee statute cannot be used to nullify a director’s elected office.
Lawful alternativesThe opinion pointed to judicial removal, tailored injunctions, and conflict-specific recusal as available tools.Boards need a real legal remedy, not self-help discipline.

Litigation roadmap

Step 1 2013-2014

Sun Lakes excluded McNally from executive sessions after confidentiality and loyalty disputes.

Filed by: Board and director

Creates the board-power conflict that drove the case.

Download PDF
Step 2 July 2014

Filed suit seeking declaratory and injunctive relief plus damages claims.

Filed by: McNally

Shows how the director framed the exclusion as unlawful board action.

Download PDF
Step 3 August 12, 2015

Denied preliminary injunction after an evidentiary hearing.

Filed by: Superior Court

This was the order McNally appealed.

Download PDF
Step 4 October 13, 2016

Reversed and directed further proceedings because the board lacked authority to exclude her.

Filed by: Court of Appeals

This is the controlling appellate result.

Download PDF

Complete uploaded source-document index

This index is generated from every public-facing source file currently present in assets/court_case_downloads/mcnally-v-sun-lakes-homeowners-association-1/raw/: 134 PDFs, 3 supporting review/media files. Files are ordered by the date/sequence embedded in the normalized filename; AI-generated review materials are labeled separately and should not be treated as court filings.

Source 3 2015-11-10

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 4 2015-11-10

Notice Of Payment

Type: Procedural/service filing

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

Source 5 2015-11-10

Certificate Of Service

Type: Procedural/service filing

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

Source 7 2015-11-10

Certificate Of Service

Type: Procedural/service filing

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

Source 8 2015-11-24

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.

Download source file
Source 9 2015-11-24

Verified Complaint

Type: Opening pleading

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

Source 11 2015-11-24

Civil Cover Sheet

Type: Court/source PDF

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

Source 12 2015-11-24

Summons

Type: Procedural/service filing

Service document used to notify a defendant or respondent that the case has been filed.

Download source file
Source 17 2015-11-24

Rule 38 Demand For Jury Trial

Type: Court/source PDF

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

Source 18 2015-11-24

Notice Of Change Of Address

Type: Procedural/service filing

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

Source 19 2015-11-24

Minute Entry 150 Day Minute Entry 12062014

Type: Court order/minute entry

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

Source 20 2015-11-24

Minute Entry 100 Day Minute Entry 12102014

Type: Court order/minute entry

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

Source 24 2015-11-24

Stipulation Re Briefing On Plainti

Type: Briefing paper

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

Source 35 2015-11-24

Minute Entry Ruling 02232015

Type: Court order/minute entry

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

Source 39 2015-11-24

Minute Entry Case On Inactive Calendar 040420

Type: Court/source PDF

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

Source 45 2015-11-24

Joint Report

Type: Court/source PDF

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

Download source file
Source 49 2015-11-24

Minute Entry Status Conference Set 05112015

Type: Court/source PDF

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

Source 51 2015-11-24

Minute Entry Hearing Set 05122015

Type: Court/source PDF

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

Source 52 2015-11-24

Stipulation For Entry Of Protectiv

Type: Court/source PDF

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

Source 53 2015-11-24

Stipulated Protective Order

Type: Court order/minute entry

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

Source 55 2015-11-24

Minute Entry Status Conference Set 08052015

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 2015-11-24

Part 1 of 4 Joint Hearing Statement

Type: Court/source PDF

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

Source 57 2015-11-24

Part 2 of 4 Joint Hearing Statement

Type: Court/source PDF

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

Source 58 2015-11-24

Part 3 of 4 Joint Hearing Statement

Type: Court/source PDF

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

Source 59 2015-11-24

Part 4 of 4 Joint Hearing Statement

Type: Court/source PDF

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

Source 60 2015-11-24

Original Deposition Of Colette Mcn

Type: Court/source PDF

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

Source 61 2015-11-24

Trial Hearing Worksheet

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 2015-11-24

Exhibit Worksheet Hd 08122015

Type: Court/source PDF

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

Source 63 2015-11-24

Minute Entry Status Conference 08102015

Type: Court/source PDF

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

Source 64 2015-11-24

Minute Entry Hearing 08122015

Type: Court/source PDF

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

Source 65 2015-11-24

Minute Entry Settlement Conference Set 08172

Type: Court/source PDF

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

Source 66 2015-11-24

Notice Of Settlement Conference

Type: Procedural/service filing

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

Source 68 2015-11-24

Scheduling Order

Type: Court order/minute entry

Sets or changes case deadlines, hearing dates, disclosure dates, or other procedural milestones.

Source 70 2015-11-24

Proposed Order

Type: Court order/minute entry

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

Download source file
Source 73 2015-11-24

Defendantappellees Designation O

Type: Court/source PDF

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

Source 76 2015-11-30

Defendantappellee Sun Lakes Homeo

Type: Court/source PDF

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

Source 77 2015-11-30

Certificate Of Service

Type: Procedural/service filing

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

Source 80 2015-12-01

Certificate Of Service

Type: Procedural/service filing

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

Source 81 2015-12-11

Order Re Motion To File Under Seal

Type: Court order/minute entry

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

Source 82 2015-12-17

Order Re Motion To Expedite Appeal

Type: Court order/minute entry

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

Source 84 2016-01-20

Certificate Of Service

Type: Procedural/service filing

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

Source 88 2016-03-25

Appellants Reply Brief

Type: Briefing paper

Reply paper; usually the final written response before the court takes the issue under advisement.

Source 89 2016-03-25

Certificate Of Compliance

Type: Procedural/service filing

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

Source 90 2016-03-25

Certificate Of Service

Type: Procedural/service filing

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

Source 92 2016-03-29

Certificate Of Service

Type: Procedural/service filing

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

Source 94 2016-04-08

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 95 2016-04-08

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 96 2016-04-08

Court Of Appeals Letter Of Transmit

Type: Court/source PDF

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

Source 98 2016-04-08

Court Of Appeals Memorandum

Type: Court/source PDF

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

Source 99 2016-04-15

Defendantappellee Sun Lakes Homeo

Type: Court/source PDF

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

Source 100 2016-04-15

Certificate Of Service

Type: Procedural/service filing

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

Source 102 2016-04-29

Certificate Of Service

Type: Procedural/service filing

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

Source 105 2016-07-18

Certificate Of Service

Type: Procedural/service filing

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

Source 106 2016-08-08

Order Re Oral Argument

Type: Court order/minute entry

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

Source 110 2016-09-09

Notice Of Appearance

Type: Procedural/service filing

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

Source 111 2016-09-09

Certificate Of Service

Type: Procedural/service filing

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

Source 112 2016-09-14

Sign-in Sheetcase Is Under Adviseme

Type: Court/source PDF

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

Source 113 2016-10-13

Enotification Of Opinion

Type: Court notice/document

Court notice or document from the appellate upload; read it with the surrounding docket filings.

Source 114 2016-10-13

Enotification Of Opinion

Type: Court notice/document

Court notice or document from the appellate upload; read it with the surrounding docket filings.

Source 115 2016-10-13

Opinion

Type: Decision or judgment

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

Download source file
Source 117 2016-10-27

Certificate Of Service

Type: Procedural/service filing

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

Source 118 2016-10-27

Affidavit Of Steven Wcheifetz In Su

Type: Procedural/service filing

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

Source 120 2016-11-02

Certificate Of Service

Type: Procedural/service filing

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

Source 125 2016-11-03

Certificate Of Service 2

Type: Procedural/service filing

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

Source 126 2016-11-03

Certificate Of Service

Type: Procedural/service filing

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

Source 127 2016-11-03

Amended Affidavit Of Steven Wcheif

Type: Procedural/service filing

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

Source 128 2016-11-22

Notice Of Settlement

Type: Procedural/service filing

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

Source 129 2016-11-22

Certificate Of Service

Type: Procedural/service filing

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

Source 131 2016-11-23

Certificate Of Service

Type: Procedural/service filing

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

Source 132 2016-12-05

Stipulation To Dismiss With Prejud

Type: Court/source PDF

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

Source 133 2016-12-05

Certificate Of Service

Type: Procedural/service filing

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

Source 134 2016-12-07

Div 1 Civil Termination Transmitta

Type: Court/source PDF

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

Source 135 2016-12-07

Order Dismissing Appeal

Type: Court order/minute entry

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

For homeowners and directors

  • Use McNally when a board majority tries to silence or sideline an elected director without following removal procedures.
  • Separate confidentiality rules from participation rights. A director may have duties, but the board needs authority for the remedy it chooses.
  • Preserve meeting notices, executive-session exclusions, board minutes, and any conditions imposed on re-entry.

For boards and managers

  • Do not use a blanket executive-session ban as informal discipline against a director.
  • Use conflict-specific recusals, confidentiality orders, bylaws, or judicial remedies where legally supported.
  • Document the legal authority for any limit placed on a director before voting on it.

FAQ

Did McNally say directors can ignore confidentiality?

No. The opinion acknowledged confidentiality concerns but held the board lacked authority for a blanket exclusion from executive sessions.

Can a director ever be recused?

Yes. The opinion distinguished conflict-specific recusal from a blanket exclusion from all executive sessions.

Why is this case useful?

It gives directors and members a concrete Arizona authority for the idea that elected board service includes participation in board deliberations unless a lawful removal or restriction process is used.

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