Keith and Kathy Campbell, husband and wife, Plaintiffs/Appellants/Cross-Appellees, v. Florence Gardens Mobile Home Association, an Arizona non-profit corporation; Gail and Steven Haskett; Nick and JoAnn Treinen; Emily J. Webster; Gerald C. and Patricia M. Palmatier; Judith A. and Martin C. Weber, Defendants/Appellees/Cross-Appellants: HOA Court Case Guide

CC&R Amendments & Pleading Procedure | A.R.S. §§ 33-1804, 33-1812, 33-1817 | 2 CA-CV 2021-0091

An unpublished Division Two decision affirming dismissal of a homeowner fiduciary-duty claim while reviving CC&R-amendment claims, holding a court cannot order a more definite statement of a meeting the HOA concedes never happened.

Last updated July 1, 2026. Case: Keith and Kathy Campbell, husband and wife, Plaintiffs/Appellants/Cross-Appellees, v. Florence Gardens Mobile Home Association, an Arizona non-profit corporation; Gail and Steven Haskett; Nick and JoAnn Treinen; Emily J. Webster; Gerald C. and Patricia M. Palmatier; Judith A. and Martin C. Weber, Defendants/Appellees/Cross-Appellants; 2 CA-CV 2021-0091; S1100CV201901839.

Current-status note: This page is published as a litigation record based on the source files available through 2022-07-05. Later filings, appeals, mandates, settlements, or dismissal orders may change the posture; the linked court records control.

Allegations, settlements, procedural dismissals, and notices are not findings of liability unless a cited court order expressly makes that finding.

Video/audio is held from this page until a fresh media package is generated from the approved source record.

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

The court affirmed dismissal of the homeowners’ breach-of-fiduciary-duty claim, holding the allegations were conclusory and the challenged conduct — counting written CC&R concurrences after the 30-day window — did not involve any collection or misuse of funds giving rise to a fiduciary duty. It held, however, that the trial court erred in ordering a more definite statement, because the Association’s own motion admitted no membership or board meeting ever occurred, so it was impossible for the homeowners to supply a meeting date; the striking of the amended complaint and dismissal of the remaining claims were therefore vacated and remanded.

Case Participants

Neutral Parties

  • Florence Gardens Mobile Home Association (Appellee)
    Arizona non-profit corporation and mobile-home community HOA (Defendant below; Appellee/Cross-Appellant); counted the written concurrences and adopted the amended CC&Rs.
  • Keith Campbell (Appellant)
    Homeowner and former board president (Plaintiff below; Appellant/Cross-Appellee) who objected to counting late concurrences and resigned from the board.
  • Kathy Campbell (Appellant)
    Homeowner and co-plaintiff (Appellant/Cross-Appellee); Keith Campbell's wife.
  • Gail Haskett (Appellee)
    Individual board-member defendant named in the caption.
  • Steven Haskett (Appellee)
    Individual defendant named in the caption (spouse of Gail Haskett).
  • Nick Treinen (Appellee)
    Individual board-member defendant named in the caption.
  • JoAnn Treinen (Appellee)
    Individual defendant named in the caption (spouse of Nick Treinen).
  • Emily J. Webster (Appellee)
    Individual board-member defendant named in the caption.
  • Gerald C. Palmatier (Appellee)
    Individual board-member defendant named in the caption.
  • Patricia M. Palmatier (Appellee)
    Individual defendant named in the caption (spouse of Gerald C. Palmatier).
  • Judith A. Weber (Appellee)
    Individual board-member defendant named in the caption.
  • Martin C. Weber (Appellee)
    Individual defendant named in the caption (spouse of Judith A. Weber).
  • Melanie C. McKeddie (Counsel)
    McKeddie Cooley G.P. (Scottsdale)
    Counsel for Plaintiffs/Appellants/Cross-Appellees (the Campbells).
  • Justin R. Cooley (Counsel)
    McKeddie Cooley G.P. (Scottsdale)
    Counsel for Plaintiffs/Appellants/Cross-Appellees (the Campbells).
  • Edith I. Rudder (Counsel)
    Carpenter Hazlewood Delgado & Bolen LLP (Tempe)
    Counsel for Defendants/Appellees/Cross-Appellants (the Association and board members).
  • Nicholas C. S. Nogami (Counsel)
    Carpenter Hazlewood Delgado & Bolen LLP (Tempe)
    Counsel for Defendants/Appellees/Cross-Appellants (the Association and board members).
  • Brearcliffe (Judge)
    Arizona Court of Appeals, Division Two
    Judge who authored the memorandum decision.
  • Eppich (Judge)
    Arizona Court of Appeals, Division Two
    Presiding Judge who concurred in the decision.
  • Staring (Judge)
    Arizona Court of Appeals, Division Two
    Vice Chief Judge who concurred in the decision.
  • Steven J. Fuller (Judge)
    Pinal County Superior Court
    Trial judge who ordered a more definite statement, struck the amended complaint, and dismissed the suit with prejudice.

What happened and why it matters

Keith and Kathy Campbell own property in the Florence Gardens Mobile Home Association community, a Pinal County non-profit governed by CC&Rs recorded in 1998. In March 2019 the board mailed owners a letter, a proposed Amended and Restated Declaration, and a written-concurrence form, explaining that adoption required the written concurrence of 878 owners (two-thirds of the assessed lots) and asking owners to return the form within thirty days. The Association reached the required number of concurrences “shortly after the 30-day window” and counted them all; Keith Campbell, then board president, objected that late concurrences should not count, and resigned. The Campbells sued for breach of contract, negligence per se under the Planned Community Act, breach of the duty of good faith and fair dealing, and breach of fiduciary duty. The trial court dismissed the fiduciary-duty claim under Rule 12(b)(6), ordered a more definite statement identifying the specific meeting date, then struck the amended complaint and dismissed the case with prejudice when no date was supplied. Division Two affirmed dismissal of the fiduciary-duty claim as conclusory and outside the fund-related duty recognized in Divizio, but held that ordering a more definite statement was error because the Association’s own motion admitted no relevant meeting ever occurred, making a meeting date impossible to provide. The court vacated the striking and dismissal, remanded, and awarded no fees or costs on appeal.

Reviewing the dismissals de novo under Coleman v. City of Mesa, the court analyzed the two rulings separately. On the fiduciary-duty claim, dismissal under Rule 12(b)(6) is proper only where, as a matter of law, plaintiffs could not obtain relief under any provable interpretation of the facts, and the court may look only to the pleading itself. The Campbells alleged the Association “acts as a fiduciary with the fees collected from its members” and breached that duty by labeling the vote a “concurrence” and counting it past the statutory time frames. The court held these were merely conclusory statements insufficient under Cullen v. Auto-Owners Insurance: even assuming the collection of member fees could create a fiduciary relationship, the Campbells never alleged how the Association’s actions amounted to an improper use of funds. It distinguished Divizio v. Kewin Enterprises, where mobile-home-park members were entitled to accountings of dues collected for community upkeep; here the challenged conduct — collecting signed concurrences after the 30-day deadline — did not involve the collection or use of funds to which the Divizio duty would extend. Merely paying dues does not convert every alleged wrong into a breach of fiduciary duty.

On the striking of the amended complaint, the court explained that a defendant may move for a more definite statement under Rule 12(e) only when a pleading is so vague or ambiguous that it cannot frame a response, and a court may strike a pleading for disobeying such an order. But the Association’s own motion, while demanding that the Campbells identify the meeting date of the alleged statutory violations, candidly admitted that “there was no such meeting” and “no meeting of the membership related to the collection of the concurrences.” Because it was clear from the Association’s own filing that it was impossible for the Campbells to state a meeting date that never existed, ordering a more definite statement was error — and, that order being error, striking the amended complaint and dismissing the remaining claims for noncompliance with it was likewise error. Because neither party completely prevailed, the court declined to award appellate fees or costs and left the Association’s fee cross-appeal for the trial court on remand.

The decision is a mixed result that highlights two recurring HOA-litigation pressure points: whether a board owes homeowners a fiduciary duty, and how much factual specificity a complaint about governance procedures must contain. On the fiduciary-duty question, the court did not announce a categorical rule that HOA boards never owe fiduciary duties; instead it treated the claim as a pleading failure, distinguishing Divizio and emphasizing that a fiduciary theory tied to member dues requires concrete allegations of improper use of funds, not a general assertion that the board mishandled a vote. Homeowners advancing fiduciary-duty claims should therefore plead specific, fund-related misconduct rather than relabeling a covenant or voting dispute.

The striking ruling is the more consequential procedural lesson: a defendant cannot use a motion for a more definite statement to force a plaintiff to allege a fact the defendant itself concedes does not exist. Because the Association admitted no relevant meeting occurred, the trial court could not condition the survival of the suit on the Campbells’ identifying a meeting date, and dismissal on that basis was reversible. The case also confirms that CC&Rs constitute a contract among owners, so disputes over amendment and concurrence procedures can support contract-based claims and fee awards under A.R.S. § 12-341.01 — though here, with neither side fully prevailing, the court awarded no appellate fees. As an unpublished memorandum decision, it is not precedential and may be cited only as authorized by rule.

Step-by-step litigation record

Step 1998-04-16 Amended Declaration of CC&Rs for Florence Gardens dated (and recorded in 1998); governs the community until 2019.
Step 2019-02-08 Board's proposed Amended and Restated Declaration of CC&Rs is dated.
Step 2019-03 Board mails owners a letter, the amended and restated CC&Rs, a summary, and a written-concurrence form, requiring the written concurrence of 878 owners (two-thirds of assessed lots) and asking for return within 30 days.
"Shortly after the 30-day window," the Association receives enough concurrences to adopt the amended CC&Rs and counts all of them; board president Keith Campbell objects to counting late concurrences and resigns.
Step 2019-12 Keith and Kathy Campbell file a verified complaint in Pinal County Superior Court (No. S1100CV201901839) alleging breach of contract, negligence per se, breach of good faith and fair dealing, and breach of fiduciary duty.
The Association files a combined Rule 12(b)(6) motion to dismiss the fiduciary-duty claim and a Rule 12(e) motion for a more definite statement, while admitting no relevant meeting occurred.
After a hearing, the trial court grants the more-definite-statement motion (ordering the specific meeting dates) and later grants dismissal of the fiduciary-duty claim.
Step 2020-06-03 The Campbells file an amended complaint that again does not identify any meeting dates.
The Association moves to strike; the trial court strikes the amended complaint, dismisses the suit with prejudice, denies the Association's fee request, and enters final judgment under Rule 54(c).
Step 2022-07-05 Court of Appeals, Division Two, affirms the fiduciary-duty dismissal, vacates the striking and dismissal of the remaining claims, remands, and awards no fees or costs on appeal.

Complete source-document index

This index contains 1 PDF 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 1 2022-07-05

Opinion

Type: Decision or judgment

Opinion holding that the court affirmed dismissal of the homeowners' breach-of-fiduciary-duty claim, holding the allegations were conclusory and the challenged conduct — counting written CC&R concurrences after the 30-day window — did not involve any collection or misuse of funds giving rise to a fiduciary duty.

Download source file

FAQ

Who won Campbell v. Florence Gardens?

The result was split. Division Two affirmed the dismissal of the homeowners’ breach-of-fiduciary-duty claim, but it vacated the trial court’s decision to strike the amended complaint and dismiss the remaining claims, remanding those for further proceedings. Because neither side completely prevailed, the court awarded no attorneys’ fees or costs on appeal and left the Association’s fee cross-appeal for the trial court.

What was the dispute about?

The Florence Gardens board circulated written-concurrence forms to adopt amended CC&Rs, asking owners to return them within 30 days. The Association reached the required two-thirds concurrence ‘shortly after the 30-day window’ and counted the late-returned forms. Homeowners Keith and Kathy Campbell — Keith was then board president — sued, alleging breach of contract, negligence per se under the Planned Community Act, breach of good faith and fair dealing, and breach of fiduciary duty.

Why did the breach-of-fiduciary-duty claim fail?

The court held the allegations were merely conclusory. Even assuming the Association’s collection of member fees could create a fiduciary relationship, the Campbells never alleged how the Association improperly used those funds. The challenged conduct — counting concurrences after the 30-day deadline — did not involve the collection or misuse of funds to which the fiduciary duty recognized in Divizio v. Kewin Enterprises would extend.

Why did the court revive the homeowners' other claims?

The trial court had ordered the Campbells to file a more definite statement identifying the specific meeting date of the alleged violations, then struck their amended complaint and dismissed the case when no date was given. But the Association’s own motion admitted ‘there was no such meeting.’ Because it was impossible for the Campbells to state a meeting date that never existed, ordering a more definite statement was error, and so was dismissing the case for failing to comply with that order.

Does an Arizona HOA board owe homeowners a fiduciary duty?

This decision did not adopt a categorical rule. It treated the claim as a pleading failure, distinguishing Divizio (where mobile-home-park members were entitled to accountings of dues collected for community upkeep) and stressing that a fiduciary theory tied to member dues requires concrete allegations of improper use of funds, not a general assertion that the board mishandled a vote. Because it is an unpublished memorandum decision, it sets no precedent on the issue.

Is this decision precedential?

No. It is an unpublished memorandum decision of the Arizona Court of Appeals, Division Two (Ariz. R. Sup. Ct. 111(c)(1); Ariz. R. Civ. App. P. 28(a)(1), (f)). It does not create legal precedent and may be cited only as authorized by applicable rules.

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 / citation2 CA-CV 2021-0091
Court / tribunalCourt of Appeals
Decision / key dateJuly 5, 2022
Judge / panelBrearcliffe, Eppich, Staring
PartiesKeith and Kathy Campbell (homeowners / Plaintiffs-Appellants-Cross-Appellees) v. Florence Gardens Mobile Home Association and individual board members (HOA / Defendants-Appellees-Cross-Appellants)
Governing law
Topics
CC&RsElectionsProcedureAttorney FeesGood Faith & Fair Dealing
Outcome / holding

The court affirmed dismissal of the homeowners' breach-of-fiduciary-duty claim, holding the allegations were conclusory and the challenged conduct — counting written CC&R concurrences after the 30-day window — did not involve any collection or misuse of funds giving rise to a fiduciary duty. It held, however, that the trial court erred in ordering a more definite statement, because the Association's own motion admitted no membership or board meeting ever occurred, so it was impossible for the homeowners to supply a meeting date; the striking of the amended complaint and dismissal of the remaining claims were therefore vacated and remanded.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap10 roadmap entries
Video overviewTemporarily unavailable while the expanded case record is reviewed
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Keith and Kathy Campbell own property in the Florence Gardens Mobile Home Association community, a Pinal County non-profit governed by CC&Rs recorded in 1998. In March 2019 the board mailed owners a letter, a proposed Amended and Restated Declaration, and a written-concurrence form, explaining that adoption required the written concurrence of 878 owners (two-thirds of the assessed lots) and asking owners to return the form within thirty days. The Association reached the required number of concurrences "shortly after the 30-day window" and counted them all; Keith Campbell, then board president, objected that late concurrences should not count, and resigned. The Campbells sued for breach of contract, negligence per se under the Planned Community Act, breach of the duty of good faith and fair dealing, and breach of fiduciary duty. The trial court dismissed the fiduciary-duty claim under Rule 12(b)(6), ordered a more definite statement identifying the specific meeting date, then struck the amended complaint and dismissed the case with prejudice when no date was supplied. Division Two affirmed dismissal of the fiduciary-duty claim as conclusory and outside the fund-related duty recognized in Divizio, but held that ordering a more definite statement was error because the Association's own motion admitted no relevant meeting ever occurred, making a meeting date impossible to provide. The court vacated the striking and dismissal, remanded, and awarded no fees or costs on appeal.

Key Issues & Findings

Reviewing the dismissals de novo under Coleman v. City of Mesa, the court analyzed the two rulings separately. On the fiduciary-duty claim, dismissal under Rule 12(b)(6) is proper only where, as a matter of law, plaintiffs could not obtain relief under any provable interpretation of the facts, and the court may look only to the pleading itself. The Campbells alleged the Association "acts as a fiduciary with the fees collected from its members" and breached that duty by labeling the vote a "concurrence" and counting it past the statutory time frames. The court held these were merely conclusory statements insufficient under Cullen v. Auto-Owners Insurance: even assuming the collection of member fees could create a fiduciary relationship, the Campbells never alleged how the Association's actions amounted to an improper use of funds. It distinguished Divizio v. Kewin Enterprises, where mobile-home-park members were entitled to accountings of dues collected for community upkeep; here the challenged conduct — collecting signed concurrences after the 30-day deadline — did not involve the collection or use of funds to which the Divizio duty would extend. Merely paying dues does not convert every alleged wrong into a breach of fiduciary duty.

On the striking of the amended complaint, the court explained that a defendant may move for a more definite statement under Rule 12(e) only when a pleading is so vague or ambiguous that it cannot frame a response, and a court may strike a pleading for disobeying such an order. But the Association's own motion, while demanding that the Campbells identify the meeting date of the alleged statutory violations, candidly admitted that "there was no such meeting" and "no meeting of the membership related to the collection of the concurrences." Because it was clear from the Association's own filing that it was impossible for the Campbells to state a meeting date that never existed, ordering a more definite statement was error — and, that order being error, striking the amended complaint and dismissing the remaining claims for noncompliance with it was likewise error. Because neither party completely prevailed, the court declined to award appellate fees or costs and left the Association's fee cross-appeal for the trial court on remand.

Why It Matters

The decision is a mixed result that highlights two recurring HOA-litigation pressure points: whether a board owes homeowners a fiduciary duty, and how much factual specificity a complaint about governance procedures must contain. On the fiduciary-duty question, the court did not announce a categorical rule that HOA boards never owe fiduciary duties; instead it treated the claim as a pleading failure, distinguishing Divizio and emphasizing that a fiduciary theory tied to member dues requires concrete allegations of improper use of funds, not a general assertion that the board mishandled a vote. Homeowners advancing fiduciary-duty claims should therefore plead specific, fund-related misconduct rather than relabeling a covenant or voting dispute.

The striking ruling is the more consequential procedural lesson: a defendant cannot use a motion for a more definite statement to force a plaintiff to allege a fact the defendant itself concedes does not exist. Because the Association admitted no relevant meeting occurred, the trial court could not condition the survival of the suit on the Campbells' identifying a meeting date, and dismissal on that basis was reversible. The case also confirms that CC&Rs constitute a contract among owners, so disputes over amendment and concurrence procedures can support contract-based claims and fee awards under A.R.S. § 12-341.01 — though here, with neither side fully prevailing, the court awarded no appellate fees. As an unpublished memorandum decision, it is not precedential and may be cited only as authorized by rule.

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Arizona Biltmore Estates Association v. Tezak: HOA Court Case Guide

CC&R Enforcement | A.R.S. § 12-341.01 | 1 CA-CV 92-0188

Division One construes a “trailer, camper, boat or similar equipment” covenant as a whole and holds that a large customized bus is exactly the kind of bulky, nonstandard conveyance the drafters intended to restrict.

Last updated July 1, 2026. Case: Arizona Biltmore Estates Association v. Tezak; 177 Ariz. 447, 868 P.2d 1030 (App. 1993); Not stated in the opinion (action filed in Maricopa County Superior Court).

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

Construing the declaration of covenants as a whole to give effect to the drafters’ paramount intent, the Court of Appeals held that the Tezaks’ large customized bus was “similar equipment” within the deed restriction on parking a “trailer, camper, boat or similar equipment,” notwithstanding the rule that restrictive covenants are strictly construed. Because no Architectural Committee approval had been obtained, the Association was entitled to an injunction requiring the bus’s removal, and the trial court’s contrary summary judgment was reversed.

Case Participants

Neutral Parties

  • Arizona Biltmore Estates Association (Appellant)
    Non-profit Arizona corporation and homeowners association for the Arizona Biltmore Estates subdivision; plaintiff below and appellant, seeking an injunction to remove the bus.
  • Robert Tezak (Appellee)
    Lot owner in the subdivision who, with his wife, parked the customized bus on the residential property; defendant below and appellee. The bus was registered to "UNO Products, Inc., Robert J. Tezak."
  • Nancy Tezak (Appellee)
    Co-owner and Robert Tezak's wife; co-defendant below and co-appellee.
  • Donald E. Dyekman (Counsel)
    O'Connor, Cavanagh, Anderson, Westover, Killingsworth & Beshears, P.A.
    Counsel for Plaintiff-Appellant Arizona Biltmore Estates Association (Phoenix).
  • Christopher Robbins (Counsel)
    O'Connor, Cavanagh, Anderson, Westover, Killingsworth & Beshears, P.A.
    Counsel for Plaintiff-Appellant Arizona Biltmore Estates Association (Phoenix).
  • Michael P. West (Counsel)
    Mariscal, Weeks, McIntyre & Friedlander, P.A.
    Counsel for Defendants-Appellees Robert and Nancy Tezak (Phoenix).
  • Donna M. Somsky (Counsel)
    Mariscal, Weeks, McIntyre & Friedlander, P.A.
    Counsel for Defendants-Appellees Robert and Nancy Tezak (Phoenix).
  • Contreras (Judge)
    Arizona Court of Appeals, Division One, Department B
    Judge who authored the opinion reversing the trial court.
  • Jacobson (Judge)
    Arizona Court of Appeals, Division One, Department B
    Presiding Judge; concurred.
  • Lankford (Judge)
    Arizona Court of Appeals, Division One, Department B
    Judge; concurred.

What happened and why it matters

The Arizona Biltmore Estates Association, the homeowners association for a Phoenix-area subdivision, sued lot owners Robert and Nancy Tezak seeking an injunction to remove a large customized bus—weighing more than 29,000 pounds and resembling a commercial bus—that the Tezaks began parking at the back of their residential lot around September 1989. The Association contended the vehicle violated a recorded deed restriction (Article XI, Section 6) barring any “trailer, camper, boat or similar equipment” from being kept on the property without approval from the Architectural Committee. The Maricopa County Superior Court denied the injunction and granted the Tezaks summary judgment, reasoning that the bus was not covered by the covenant, and awarded the Tezaks their attorney’s fees. On appeal, Division One of the Arizona Court of Appeals reversed. The court acknowledged that restrictive covenants are strictly construed in favor of the free use of property, but explained that the paramount principle is the intent of the parties who drafted the declaration, determined by reading the document as a whole. Considering the “or similar equipment” language together with the declaration’s stated purpose of protecting the value and attractiveness of the property and its many other use restrictions, the court concluded the drafters intended to restrict large, bulky, nonstandard conveyances, and the Tezaks’ bus plainly qualified. The court distinguished a Missouri decision the Tezaks relied on, followed a Washington case reaching the same result on similar facts, reversed, and remanded for entry of summary judgment and an injunction for the Association, while awarding the Association its attorney’s fees under A.R.S. § 12-341.01.

Because the interpretation of the deed restrictions presented a question of law, the Court of Appeals reviewed the trial court’s summary judgment de novo and was not bound by its conclusions of law. The court treated the recorded restrictions as a covenant running with the land that forms a contract between the subdivision’s owners as a whole and each individual lot owner (citing Divizio v. Kewin Enterprises). It first observed that Article XI, Section 6 does not categorically ban the listed conveyances; it bars them only when they have not been approved by the Architectural Committee, and no such approval had been sought or given for the Tezaks’ bus.

The Association conceded the bus was neither a trailer, a camper, nor a boat, and argued instead that it was “similar equipment.” The Tezaks invoked the rule of ejusdem generis—that general words following a specific enumeration are limited by that enumeration unless a contrary intent is clearly shown—and contended that trailers and campers share a feature of temporary living arrangements that their bus lacked. They also urged strict construction, under which ambiguities in restrictive covenants are resolved in favor of the free use of property (citing Duffy v. Sunburst Farms East).

The court rejected the “temporary living arrangements” limitation as implausible, noting that boats are expressly enumerated yet usually contain no living quarters, so adopting that limitation would mean boats should never have been listed. It then explained that although strict construction applies in some circumstances, the cardinal principle in construing restrictive covenants is the paramount intent of the parties, ascertained by reading the declaration as a whole, and that a covenant should not be read to defeat its plain and obvious meaning. The declaration’s recitals stated that the covenants existed to enhance and protect the value, desirability, and attractiveness of the property and the quality of life within the Village, and Section 6 was one of eleven provisions restricting uses that would be unsightly or annoying. Read together, these provisions showed the drafters intended to restrict the display of large, bulky, nonstandard conveyances, and the Tezaks’ very large bus unquestionably fell within that class. The court followed Krein v. Smith (Wash. App.), where a motor home was held covered by a similar restriction after construing the document as a whole, and distinguished Lake St. Louis Community Association v. Leidy (Mo. App.), reasoning that the phrase “or similar equipment” is broader and less limiting than the Missouri covenant’s “trailers of every other description,” and that size was not the only characteristic the drafters intended to restrict. Having found the parking covenant violated, the court did not reach the Association’s alternative argument that the bus also breached the covenant against business or non-residential use.

Tezak is an Arizona illustration of how courts reconcile two competing canons that govern deed-restriction disputes: the rule that restrictive covenants are strictly construed in favor of the free use of land, and the overriding principle that the drafters’ intent—gathered from the declaration read as a whole—controls. The decision shows that a catch-all phrase like “or similar equipment,” when read alongside a declaration’s stated purposes and its other use restrictions, can reach vehicles the drafters never specifically named, so long as the vehicle shares the essential character the restriction targets (here, large, bulky, nonstandard conveyances).

For associations and owners alike, the case is a practical reminder that a covenant’s general language is not automatically neutralized by strict construction or by ejusdem generis; the outcome turns on what the governing documents, taken together, were plainly designed to prevent. It also highlights the role of an architectural-approval mechanism—the restriction bars unapproved conveyances rather than banning them outright—and confirms that a prevailing association in a covenant-enforcement action may recover attorney’s fees under A.R.S. § 12-341.01. This summary is educational and neutral; it is not legal advice, and results in other disputes will depend on the specific covenant language and facts.

Video overview of the ruling

An AI-generated video overview of Arizona Biltmore Estates Association v. Tezak (177 Ariz. 447, 868 P.2d 1030 (App. 1993)). Declaration text and purpose controlled whether architectural covenants barred a second-story addition. This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Arizona Biltmore Estates Association v. Tezak. Generated from the case filings; verify against the linked ruling below.

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

Step-by-step litigation record

Step 1976-02-05 Restrictive covenants (CC&Rs) for the Arizona Biltmore Estates subdivision are recorded, including Article XI, Section 6 restricting a "trailer, camper, boat or similar equipment."
Step 1989-09 The Tezaks begin parking a customized bus weighing more than 29,000 pounds at the back of their residential lot.
Step 1989-1990 After the Association learns of the bus and the parties fail to resolve the matter, the Association files a civil action in Maricopa County Superior Court seeking an injunction to remove the vehicle.
Step 1992 On cross-motions for summary judgment, the trial court denies the Association's requested injunction, grants the Tezaks summary judgment, and awards the Tezaks attorney's fees; the Association appeals (No. 1 CA-CV 92-0188).
Step 1993-11-18 Division One of the Arizona Court of Appeals issues its opinion reversing and remanding for entry of summary judgment and an injunction for the Association.
Step 1993-11-19 Opinion "As Corrected."
Step 1994-02-14 Reconsideration denied.

Complete source-document index

This index contains 0 PDFs, 1 other source file 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 1 1993-11-18

Cap Opinion

Type: Decision or judgment

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

Download source file

FAQ

What was the dispute in Arizona Biltmore Estates Association v. Tezak about?

The homeowners association sued lot owners Robert and Nancy Tezak for an injunction to remove a large customized bus (more than 29,000 pounds, resembling a commercial bus) that they parked on their residential lot. The Association argued the bus violated a recorded deed restriction barring any “trailer, camper, boat or similar equipment” from the property without approval by the Architectural Committee. The trial court sided with the owners, but the Court of Appeals reversed and held the bus was covered by the restriction.

Did the deed restriction specifically mention a bus or a motor home?

No. Article XI, Section 6 listed only a “trailer, camper, boat or similar equipment.” The Association conceded the bus was not a trailer, camper, or boat and argued it fell within the catch-all phrase “or similar equipment.” The court agreed, concluding that a very large, bulky, self-propelled vehicle of this kind was “similar equipment” within the meaning the drafters intended.

How did the court handle the rule that restrictive covenants are strictly construed?

The court acknowledged that restrictive covenants are strictly construed against those enforcing them, with ambiguities resolved in favor of the free use of property. But it explained that the cardinal principle is the paramount intent of the parties, determined by reading the declaration as a whole, and that a covenant should not be read in a way that defeats its plain and obvious meaning. Strict construction did not override the drafters’ evident intent here.

What is ejusdem generis, and why didn't it help the homeowners?

Ejusdem generis is a rule that general words following a list of specific items are limited to things of the same kind. The Tezaks argued trailers and campers share “temporary living arrangements” that their bus lacked. The court rejected that limitation as implausible because boats—expressly listed—usually have no living quarters, and because reading the declaration as a whole showed the drafters were targeting large, bulky, nonstandard conveyances, a class the bus plainly fit.

Could the homeowners have kept the bus if they had gotten approval?

The restriction did not ban the listed conveyances outright; it barred them only when they had not been placed or maintained in a manner approved by the Architectural Committee under Article VI of the declaration. In this case, no such approval had been sought or obtained for the bus, so the unapproved vehicle violated the covenant.

Who paid attorney's fees, and is the decision binding precedent?

The trial court had awarded the Tezaks their fees, but the Court of Appeals vacated that award on reversal and instead awarded the Association its attorney’s fees for both the trial and the appeal under A.R.S. § 12-341.01, with the amount to be set after compliance with the appellate fee rule. The decision is a published Arizona Court of Appeals opinion (177 Ariz. 447, 868 P.2d 1030), so it is precedential.

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 / citation177 Ariz. 447, 868 P.2d 1030 (App. 1993)
Court / tribunalCourt of Appeals
Decision / key dateNovember 18, 1993
Judge / panelContreras (author), Jacobson, P.J., Lankford, J.
PartiesA homeowners association (Arizona Biltmore Estates Association) sued lot owners Robert and Nancy Tezak for an injunction to remove a 29,000-pound customized bus parked on their residential lot, contending it violated a recorded deed restriction barring any "trailer, camper, boat or similar equipment" kept without Architectural Committee approval.
Governing law
  • A.R.S. § 12-341.01 (discretionary award of attorney's fees in an action arising out of contract)
Topics
CC&RsCovenantsArchitectural ReviewAttorney FeesProcedure
Outcome / holding

Construing the declaration of covenants as a whole to give effect to the drafters' paramount intent, the Court of Appeals held that the Tezaks' large customized bus was "similar equipment" within the deed restriction on parking a "trailer, camper, boat or similar equipment," notwithstanding the rule that restrictive covenants are strictly construed. Because no Architectural Committee approval had been obtained, the Association was entitled to an injunction requiring the bus's removal, and the trial court's contrary summary judgment was reversed.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 other source file
Step-by-step docket roadmap7 roadmap entries
Video overviewArizona Biltmore Estates Association v. Tezak
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links0 download links

Key Issues & Findings

Case Summary

The Arizona Biltmore Estates Association, the homeowners association for a Phoenix-area subdivision, sued lot owners Robert and Nancy Tezak seeking an injunction to remove a large customized bus—weighing more than 29,000 pounds and resembling a commercial bus—that the Tezaks began parking at the back of their residential lot around September 1989. The Association contended the vehicle violated a recorded deed restriction (Article XI, Section 6) barring any "trailer, camper, boat or similar equipment" from being kept on the property without approval from the Architectural Committee. The Maricopa County Superior Court denied the injunction and granted the Tezaks summary judgment, reasoning that the bus was not covered by the covenant, and awarded the Tezaks their attorney's fees. On appeal, Division One of the Arizona Court of Appeals reversed. The court acknowledged that restrictive covenants are strictly construed in favor of the free use of property, but explained that the paramount principle is the intent of the parties who drafted the declaration, determined by reading the document as a whole. Considering the "or similar equipment" language together with the declaration's stated purpose of protecting the value and attractiveness of the property and its many other use restrictions, the court concluded the drafters intended to restrict large, bulky, nonstandard conveyances, and the Tezaks' bus plainly qualified. The court distinguished a Missouri decision the Tezaks relied on, followed a Washington case reaching the same result on similar facts, reversed, and remanded for entry of summary judgment and an injunction for the Association, while awarding the Association its attorney's fees under A.R.S. § 12-341.01.

Key Issues & Findings

Because the interpretation of the deed restrictions presented a question of law, the Court of Appeals reviewed the trial court's summary judgment de novo and was not bound by its conclusions of law. The court treated the recorded restrictions as a covenant running with the land that forms a contract between the subdivision's owners as a whole and each individual lot owner (citing Divizio v. Kewin Enterprises). It first observed that Article XI, Section 6 does not categorically ban the listed conveyances; it bars them only when they have not been approved by the Architectural Committee, and no such approval had been sought or given for the Tezaks' bus.

The Association conceded the bus was neither a trailer, a camper, nor a boat, and argued instead that it was "similar equipment." The Tezaks invoked the rule of ejusdem generis—that general words following a specific enumeration are limited by that enumeration unless a contrary intent is clearly shown—and contended that trailers and campers share a feature of temporary living arrangements that their bus lacked. They also urged strict construction, under which ambiguities in restrictive covenants are resolved in favor of the free use of property (citing Duffy v. Sunburst Farms East).

The court rejected the "temporary living arrangements" limitation as implausible, noting that boats are expressly enumerated yet usually contain no living quarters, so adopting that limitation would mean boats should never have been listed. It then explained that although strict construction applies in some circumstances, the cardinal principle in construing restrictive covenants is the paramount intent of the parties, ascertained by reading the declaration as a whole, and that a covenant should not be read to defeat its plain and obvious meaning. The declaration's recitals stated that the covenants existed to enhance and protect the value, desirability, and attractiveness of the property and the quality of life within the Village, and Section 6 was one of eleven provisions restricting uses that would be unsightly or annoying. Read together, these provisions showed the drafters intended to restrict the display of large, bulky, nonstandard conveyances, and the Tezaks' very large bus unquestionably fell within that class. The court followed Krein v. Smith (Wash. App.), where a motor home was held covered by a similar restriction after construing the document as a whole, and distinguished Lake St. Louis Community Association v. Leidy (Mo. App.), reasoning that the phrase "or similar equipment" is broader and less limiting than the Missouri covenant's "trailers of every other description," and that size was not the only characteristic the drafters intended to restrict. Having found the parking covenant violated, the court did not reach the Association's alternative argument that the bus also breached the covenant against business or non-residential use.

Why It Matters

Tezak is an Arizona illustration of how courts reconcile two competing canons that govern deed-restriction disputes: the rule that restrictive covenants are strictly construed in favor of the free use of land, and the overriding principle that the drafters' intent—gathered from the declaration read as a whole—controls. The decision shows that a catch-all phrase like "or similar equipment," when read alongside a declaration's stated purposes and its other use restrictions, can reach vehicles the drafters never specifically named, so long as the vehicle shares the essential character the restriction targets (here, large, bulky, nonstandard conveyances).

For associations and owners alike, the case is a practical reminder that a covenant's general language is not automatically neutralized by strict construction or by ejusdem generis; the outcome turns on what the governing documents, taken together, were plainly designed to prevent. It also highlights the role of an architectural-approval mechanism—the restriction bars unapproved conveyances rather than banning them outright—and confirms that a prevailing association in a covenant-enforcement action may recover attorney's fees under A.R.S. § 12-341.01. This summary is educational and neutral; it is not legal advice, and results in other disputes will depend on the specific covenant language and facts.

← Back to Court of Appeals cases

Ahwatukee Custom Estates Management Association, Inc. v. George M. Turner and Betty C. Turner: HOA Court Case Guide

CC&R Enforcement & Architectural Review | A.R.S. § 12-341.01 | 196 Ariz. 631 (1 CA-CV 98-0233)

Division One holds that enforcing CC&Rs and architectural-approval requirements by mandatory injunction is an equitable remedy, not a matter of right, and can be denied where the board acted arbitrarily and the violations caused no material harm.

Last updated July 1, 2026. Case: Ahwatukee Custom Estates Management Association, Inc. v. George M. Turner and Betty C. Turner; 196 Ariz. 631, 2 P.3d 1276 (App. 2000) (Nos. 1 CA-CV 98-0233, 1 CA-CV 98-0528).

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

Although the homeowners violated the association’s CC&Rs and Architectural Committee Guidelines, the trial court did not abuse its equitable discretion in denying the association a mandatory retrospective injunction where the board had acted arbitrarily and unreasonably and the violations caused no irreparable harm. Because neither side was a prevailing party, the denial of attorneys’ fees was also affirmed.

Case Participants

Neutral Parties

  • Ahwatukee Custom Estates Management Association, Inc. (Appellant)
    Arizona non-profit homeowners association; plaintiff/appellant and cross-appellee that sought to enjoin the pool and compel correction of past CC&R violations.
  • George M. Turner (Appellee)
    Owner of lot 6796; defendant/appellee and cross-appellant found to have violated the CC&Rs but against whom no mandatory injunction issued.
  • Betty C. Turner (Appellee)
    Co-owner of lot 6796 with her husband; defendant/appellee and cross-appellant.
  • Neil Vincent Wake (Counsel)
    Bryan Cave LLP
    Counsel for Plaintiff/Appellant/Cross-Appellee ACEMA (Phoenix).
  • Sarah L. Chilton (Counsel)
    Bryan Cave LLP
    Counsel for Plaintiff/Appellant/Cross-Appellee ACEMA (Phoenix).
  • Roger R. Foote (Counsel)
    Jackson, White, Gardner, Weech & Walker, P.C.
    Counsel for Defendants/Appellees/Cross-Appellants the Turners (Mesa).
  • Patricia A. Terian (Counsel)
    Jackson, White, Gardner, Weech & Walker, P.C.
    Counsel for Defendants/Appellees/Cross-Appellants the Turners (Mesa); name reconstructed from OCR hyphenation ('Teri-an').
  • Fidel (Judge)
    Judge, Arizona Court of Appeals, Division One, Department E; authored the opinion.
  • Sheldon H. Weisberg (Judge)
    Judge, Arizona Court of Appeals, Division One; concurred.
  • E.G. Noyes, Jr. (Judge)
    Judge, Arizona Court of Appeals, Division One; concurred.

What happened and why it matters

The Ahwatukee Custom Estates Management Association, Inc. (ACEMA), an Arizona non-profit homeowners association, sued lot owners George and Betty Turner after the Turners were denied board permission to install a swimming pool and then threatened to build it without approval. ACEMA sought to enjoin the pool and also asked for a mandatory injunction directing the Turners to correct three past violations of the subdivision’s CC&Rs and Architectural Committee Guidelines: adding fill and grading their lot without board approval, and building two fences without board approval. A special master heard three days of testimony, visited the site, and found the Turners had violated the CC&Rs in each respect, but concluded ACEMA suffered no irreparable injury and was not entitled to corrective relief. The trial court adopted those findings and denied both sides’ attorneys’ fees for lack of a prevailing party. On appeal, Division One of the Arizona Court of Appeals treated the CC&Rs as a contract among the subdivision’s owners and reviewed the injunction and fee rulings for abuse of discretion. It affirmed. The court held that a mandatory retrospective injunction should not issue to enforce approval requirements the board had applied arbitrarily and unreasonably, especially where the interrelated, largely invisible violations caused no material harm and ACEMA had delayed until after construction. Invoking the maxim that one who seeks equity must do equity, the court left the board with prospective authority to require approval of any future pool, and affirmed the denial of fees under the CC&Rs’ fee clause and A.R.S. section 12-341.01 because neither party prevailed.

The court began with the governing framework: CC&Rs constitute a contract between the subdivision’s property owners as a whole and the individual lot owners, so their interpretation is a question of law reviewed de novo (Arizona Biltmore Estates Ass’n v. Tezak). Factual findings are binding unless clearly erroneous (Lee Dev. Co. v. Papp), and the grant or denial of both injunctive relief and attorneys’ fees rests in the sound discretion of the trial court (Financial Associates v. Hub Properties; A.R.S. section 12-341.01).

On the grading-and-fill violation, the court agreed the Turners had filled and graded without board approval in breach of the CC&Rs and Guidelines, but held no equitable relief was warranted. The Turners had graded to conform to the developer’s FS-20 Grading and Drainage Plan; the CC&Rs did not clearly say whether the proper grade was the FS-20 plan or the condition at time of purchase, and ambiguities in restrictive covenants are resolved in favor of the free use of property. The board could not even establish the grade at time of purchase, the City had issued permits based on the FS-20 plan, ACEMA proved no drainage disruption or irreparable injury, and it waited until after the house and fences were built to sue. Enforcement of restrictive covenants by injunction is not a matter of right but is governed by equity, weighing relative hardships, the public interest, party misconduct, delay, and the adequacy of other remedies (McRae v. Lois Grunow Memorial Clinic). A mandatory injunction should not issue to enforce an approval requirement withheld arbitrarily and unreasonably (Young v. Tortoise Island; Donoghue v. Prynnwood), and ‘one who seeks equity must do equity.’ The board’s grading demands were arbitrary and unreasonable.

The fencing violations followed the same logic. The 6796/6795 fence had been restored to a height compliant with the Phoenix City Code (which measures pool-fence height from the higher adjacent lot); forcing the Turners to lower it would have reinstated a code violation, an arbitrary demand. The 6796/6794 fence atop the retaining wall was the closest question, and in isolation ACEMA might have shown adequate harm under Continental Oil Co. v. Fennemore by pointing to the diluted protection of the deed restrictions. But the court declined to view it in isolation: it was one of a cluster of interrelated violations arising from the arbitrary grading dispute, the changes were invisible to the public and caused no material harm, and the board’s future enforcement authority was adequately preserved by the judgment’s requirement that any future pool obtain board approval. The court also upheld denial of a new trial under Rule 59(A)(4) because ACEMA failed to show it could not have discovered the neighbors’ withdrawn consent with reasonable diligence. Finally, under CC&R Article IX and A.R.S. section 12-341.01, neither party prevailed: ACEMA established the violations and preserved prospective authority but lost its principal claim for retrospective relief, so each side bore its own fees.

The decision is a leading Arizona statement that enforcing CC&Rs and architectural-approval requirements through a mandatory injunction is an equitable remedy, not an automatic right. Even when a board proves that an owner technically violated the governing documents, a court may withhold retrospective relief where the board itself acted arbitrarily or unreasonably, where the violations caused no material or irreparable harm, and where the association delayed enforcement until after the improvements were built. The maxim that ‘one who seeks equity must do equity’ gives trial courts broad discretion to deny an order compelling removal of structures that are invisible to the community and harmless in fact.

For associations and owners alike, the case underscores several practical points: approval standards must be applied consistently and reasonably; a board that takes an unreasonable position on one issue may find its related enforcement demands treated as part of a single, tainted ‘cluster’; and prevailing-party fee clauses cut both ways, so a mixed result where the association proves violations but loses its main remedy can leave each side paying its own attorneys’ fees. Because the opinion is published, it remains citable precedent on the equitable limits of covenant enforcement and on when a homeowners association is, and is not, a ‘prevailing party.’

Video overview of the ruling

An AI-generated video overview of Ahwatukee Custom Estates Management Association, Inc. v. George M. Turner and Betty C. Turner (196 Ariz. 631, 2 P.3d 1276 (App. 2000) (Nos. 1 CA-CV 98-0233, 1 CA-CV 98-0528)). Although the homeowners violated the association’s CC&Rs and Architectural Committee Guidelines, the trial court did… This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Ahwatukee Custom Estates Management Association, Inc. v. George M. Turner and Betty C. Turner. Generated from the case filings; verify against the linked ruling below.

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

Step-by-step litigation record

Step 1992 The Turners purchased lot 6796, one of nine lots in the Ahwatukee subdivision governed by the ACEMA CC&Rs.
Step 1995 The Turners had completed building their house on the lot; before construction they added fill and regraded the lot without board approval to conform to the FS-20 Grading and Drainage Plan.
Step 1997 After being denied board permission to install a swimming pool, the Turners notified the board they intended to build it without approval; ACEMA filed suit to enjoin the pool and to compel correction of past CC&R violations.
A special master heard three days of testimony and conducted an on-site visit, finding the Turners had violated the CC&Rs in three respects but that ACEMA suffered no irreparable injury and neither party prevailed.
Step 1998 The trial court adopted the special master's findings and entered judgment; both sides appealed (docketed as 1 CA-CV 98-0233 and 1 CA-CV 98-0528). ACEMA's motion for a new trial based on the 6794 owners' withdrawn consent was denied.
Step 2000-06-06 Division One of the Arizona Court of Appeals affirmed the judgment in full, upholding the denial of a mandatory injunction, the denial of attorneys' fees, and the denial of a new trial.

Complete source-document index

This index contains 0 PDFs, 1 other source file 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 1 2000-06-06

Cap Opinion

Type: Decision or judgment

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

Download source file

FAQ

What was Ahwatukee Custom Estates Management Association v. Turner about?

The Ahwatukee Custom Estates Management Association (ACEMA) sued homeowners George and Betty Turner after they were denied permission to build a swimming pool and threatened to build it anyway. ACEMA also sought a mandatory injunction ordering the Turners to undo three past violations of the CC&Rs and architectural guidelines: unapproved grading and fill, and two fences built without board approval. A special master and the trial court found the violations occurred but denied corrective relief.

What did the Arizona Court of Appeals decide?

Division One affirmed the trial court in full. It held the Turners did violate the CC&Rs, but that the trial court did not abuse its discretion in denying ACEMA a mandatory retrospective injunction, because the board had acted arbitrarily and unreasonably and the violations caused no irreparable or material harm. It also affirmed the denial of attorneys’ fees to both sides.

Why didn't the HOA get an injunction even though it won on the violations?

Because enforcing restrictive covenants by injunction is an equitable remedy, not an automatic right. Courts weigh relative hardship, the public interest, party misconduct, delay, and the adequacy of other remedies. The court found the board’s grading demands arbitrary and unreasonable, the changes largely invisible and harmless, and that ACEMA had waited until after construction to sue. Under the maxim that ‘one who seeks equity must do equity,’ the trial court could deny retrospective relief.

What happened with the two fences?

The court treated both fences as part of a single cluster of interrelated violations tied to the arbitrary grading dispute. Forcing the Turners to lower the 6796/6795 fence would have reinstated a Phoenix pool-fence code violation. The 6796/6794 fence atop the retaining wall was a closer call, but because it was invisible from the street, caused no material harm, and the board’s future authority was preserved, the court declined to order its removal.

Did either party recover attorneys' fees?

No. The CC&Rs’ Article IX fee clause and A.R.S. section 12-341.01 award fees to a prevailing party, but the trial court found, and the Court of Appeals agreed, that neither side prevailed. ACEMA established the violations and preserved its future enforcement authority but lost its principal claim for a mandatory injunction, so each party bore its own fees and costs, including on appeal.

Is this decision binding precedent in Arizona?

Yes. Unlike an unpublished memorandum decision, this is a published opinion of the Arizona Court of Appeals, reported at 196 Ariz. 631 and 2 P.3d 1276. It remains citable authority on the equitable limits of enforcing CC&Rs and architectural-approval requirements and on when a homeowners association is a ‘prevailing party.’

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 / citation196 Ariz. 631, 2 P.3d 1276 (App. 2000) (Nos. 1 CA-CV 98-0233, 1 CA-CV 98-0528)
Court / tribunalCourt of Appeals
Decision / key dateJune 6, 2000
Judge / panelFidel (author), Sheldon H. Weisberg, E.G. Noyes, Jr.
PartiesAhwatukee Custom Estates Management Association, Inc. (Plaintiff/Appellant/Cross-Appellee) v. George M. and Betty C. Turner (Defendants/Appellees/Cross-Appellants)
Governing law
  • A.R.S. § 12-341.01
  • Ariz. R. Civ. P. 59(A)(4)
Topics
CC&RsArchitectural ReviewAttorney FeesProcedure
Outcome / holding

Although the homeowners violated the association's CC&Rs and Architectural Committee Guidelines, the trial court did not abuse its equitable discretion in denying the association a mandatory retrospective injunction where the board had acted arbitrarily and unreasonably and the violations caused no irreparable harm. Because neither side was a prevailing party, the denial of attorneys' fees was also affirmed.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 other source file
Step-by-step docket roadmap6 roadmap entries
Video overviewAhwatukee Custom Estates Management Association, Inc. v. George M. Turner and Betty C. Turner
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links0 download links

Key Issues & Findings

Case Summary

The Ahwatukee Custom Estates Management Association, Inc. (ACEMA), an Arizona non-profit homeowners association, sued lot owners George and Betty Turner after the Turners were denied board permission to install a swimming pool and then threatened to build it without approval. ACEMA sought to enjoin the pool and also asked for a mandatory injunction directing the Turners to correct three past violations of the subdivision's CC&Rs and Architectural Committee Guidelines: adding fill and grading their lot without board approval, and building two fences without board approval. A special master heard three days of testimony, visited the site, and found the Turners had violated the CC&Rs in each respect, but concluded ACEMA suffered no irreparable injury and was not entitled to corrective relief. The trial court adopted those findings and denied both sides' attorneys' fees for lack of a prevailing party. On appeal, Division One of the Arizona Court of Appeals treated the CC&Rs as a contract among the subdivision's owners and reviewed the injunction and fee rulings for abuse of discretion. It affirmed. The court held that a mandatory retrospective injunction should not issue to enforce approval requirements the board had applied arbitrarily and unreasonably, especially where the interrelated, largely invisible violations caused no material harm and ACEMA had delayed until after construction. Invoking the maxim that one who seeks equity must do equity, the court left the board with prospective authority to require approval of any future pool, and affirmed the denial of fees under the CC&Rs' fee clause and A.R.S. section 12-341.01 because neither party prevailed.

Key Issues & Findings

The court began with the governing framework: CC&Rs constitute a contract between the subdivision's property owners as a whole and the individual lot owners, so their interpretation is a question of law reviewed de novo (Arizona Biltmore Estates Ass'n v. Tezak). Factual findings are binding unless clearly erroneous (Lee Dev. Co. v. Papp), and the grant or denial of both injunctive relief and attorneys' fees rests in the sound discretion of the trial court (Financial Associates v. Hub Properties; A.R.S. section 12-341.01).

On the grading-and-fill violation, the court agreed the Turners had filled and graded without board approval in breach of the CC&Rs and Guidelines, but held no equitable relief was warranted. The Turners had graded to conform to the developer's FS-20 Grading and Drainage Plan; the CC&Rs did not clearly say whether the proper grade was the FS-20 plan or the condition at time of purchase, and ambiguities in restrictive covenants are resolved in favor of the free use of property. The board could not even establish the grade at time of purchase, the City had issued permits based on the FS-20 plan, ACEMA proved no drainage disruption or irreparable injury, and it waited until after the house and fences were built to sue. Enforcement of restrictive covenants by injunction is not a matter of right but is governed by equity, weighing relative hardships, the public interest, party misconduct, delay, and the adequacy of other remedies (McRae v. Lois Grunow Memorial Clinic). A mandatory injunction should not issue to enforce an approval requirement withheld arbitrarily and unreasonably (Young v. Tortoise Island; Donoghue v. Prynnwood), and 'one who seeks equity must do equity.' The board's grading demands were arbitrary and unreasonable.

The fencing violations followed the same logic. The 6796/6795 fence had been restored to a height compliant with the Phoenix City Code (which measures pool-fence height from the higher adjacent lot); forcing the Turners to lower it would have reinstated a code violation, an arbitrary demand. The 6796/6794 fence atop the retaining wall was the closest question, and in isolation ACEMA might have shown adequate harm under Continental Oil Co. v. Fennemore by pointing to the diluted protection of the deed restrictions. But the court declined to view it in isolation: it was one of a cluster of interrelated violations arising from the arbitrary grading dispute, the changes were invisible to the public and caused no material harm, and the board's future enforcement authority was adequately preserved by the judgment's requirement that any future pool obtain board approval. The court also upheld denial of a new trial under Rule 59(A)(4) because ACEMA failed to show it could not have discovered the neighbors' withdrawn consent with reasonable diligence. Finally, under CC&R Article IX and A.R.S. section 12-341.01, neither party prevailed: ACEMA established the violations and preserved prospective authority but lost its principal claim for retrospective relief, so each side bore its own fees.

Why It Matters

The decision is a leading Arizona statement that enforcing CC&Rs and architectural-approval requirements through a mandatory injunction is an equitable remedy, not an automatic right. Even when a board proves that an owner technically violated the governing documents, a court may withhold retrospective relief where the board itself acted arbitrarily or unreasonably, where the violations caused no material or irreparable harm, and where the association delayed enforcement until after the improvements were built. The maxim that 'one who seeks equity must do equity' gives trial courts broad discretion to deny an order compelling removal of structures that are invisible to the community and harmless in fact.

For associations and owners alike, the case underscores several practical points: approval standards must be applied consistently and reasonably; a board that takes an unreasonable position on one issue may find its related enforcement demands treated as part of a single, tainted 'cluster'; and prevailing-party fee clauses cut both ways, so a mixed result where the association proves violations but loses its main remedy can leave each side paying its own attorneys' fees. Because the opinion is published, it remains citable precedent on the equitable limits of covenant enforcement and on when a homeowners association is, and is not, a 'prevailing party.'

← Back to Court of Appeals cases

Desert Crown III Homeowners Association, an Arizona nonprofit corporation v. Debabrata Gupta, an unmarried man: Arizona HOA Appellate Case Guide

Lien Foreclosure | A.R.S. §§ 12-341, 12-341.01 | 2 CA-CV 2025-0138

An unpublished Division Two memorandum decision affirming an HOA assessment-lien foreclosure — and a cautionary example of how a self-represented appeal can be waived for lack of legal authority and argument.

Last updated June 30, 2026. Case: Desert Crown III Homeowners Association, an Arizona nonprofit corporation v. Debabrata Gupta, an unmarried man, 2 CA-CV 2025-0138.

Current-status note: This page is published as a litigation record based on the source files available through 2026-03-19. Later filings, appeals, mandates, settlements, or dismissal orders may change the posture; the linked court records control.

Scope note: This page covers Desert Crown III Homeowners Association, an Arizona nonprofit corporation v. Debabrata Gupta, an unmarried man (2 CA-CV 2025-0138) as a public Arizona Court of Appeals HOA case guide. The downloadable source-document index below is generated from local raw source files when a PDF opinion is available. This page is educational and is not legal advice.

The takeaway

Affirmed. A self-represented (in propria persona) appellant is held to the same procedural standards as a licensed attorney; an appellant whose briefs cite no supporting legal authority and develop no legal argument waives appellate review, and the appellate court will not reweigh evidence already considered by the trial court.

Case Participants

Petitioner Side

  • Debabrata Gupta (Defendant/Appellant)
    Homeowner; self-represented (in propria persona / pro se); listed as an unmarried man of Scottsdale.

Respondent Side

  • Desert Crown III Homeowners Association (Plaintiff/Appellee)
    Arizona nonprofit corporation
    The homeowners association that filed the lien-foreclosure suit; prevailing party on appeal.
  • Garren R. Laymon (Counsel)
    Maxwell & Morgan P.C., Mesa
    Counsel for Plaintiff/Appellee Desert Crown III Homeowners Association.

Neutral Parties

  • Judge Eckerstrom (Judge (author of the decision))
    Arizona Court of Appeals, Division Two
    Authored the memorandum decision of the court.
  • Presiding Judge Gard (Presiding Judge)
    Arizona Court of Appeals, Division Two
    Concurred in the decision.
  • Judge O'Neil (Judge)
    Arizona Court of Appeals, Division Two
    Concurred in the decision.
  • Hon. Adam D. Driggs (Superior Court Judge)
    Maricopa County Superior Court
    Trial judge whose judgment was affirmed on appeal.

What happened

Desert Crown III Homeowners Association, an Arizona nonprofit corporation, initiated a lien-foreclosure suit against homeowner Debabrata Gupta in Maricopa County Superior Court (No. CV2023096287).

The superior court granted the association’s motion to dismiss Gupta’s counterclaim.

The superior court granted summary judgment in favor of the association.

The superior court denied Gupta’s motion for reconsideration and entered judgment against him as to the lien foreclosure.

Gupta, representing himself (in propria persona), appealed, arguing the superior court erred in finding a factual basis for the monetary claims underlying the judgment.

The Court of Appeals held Gupta to the same procedural standards as a represented appellant.

The court found Gupta’s opening brief cited no legal authority and that his reply brief cited Rule 403, Ariz. R. Evid., without developing any legal argument, warranting waiver of appellate review.

The court noted that, even reaching the merits, it would not reweigh the evidence as Gupta requested.

On March 19, 2026, the Court of Appeals, Division Two, affirmed the superior court’s judgment in an unpublished memorandum decision, denied the association’s request for attorney fees, and awarded it costs on appeal as the prevailing party.

Video overview of the ruling

An AI-generated video overview of Desert Crown III Homeowners Association, an Arizona nonprofit corporation v. Debabrata Gupta, an unmarried man (2 CA-CV 2025-0138). Affirmed. A self-represented (in propria persona) appellant is held to the same procedural standards as a licensed… This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Desert Crown III Homeowners Association, an Arizona nonprofit corporation v. Debabrata Gupta, an unmarried man. Generated from the case filings; verify against the linked ruling below.

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

Procedural timeline

Step Date not specified Desert Crown III Homeowners Association initiates a lien-foreclosure suit against Debabrata Gupta in Maricopa County Superior Court (No. CV2023096287).
Step Date not specified Superior court grants the association's motion to dismiss Gupta's counterclaim.
Step Date not specified Superior court grants summary judgment in favor of the association.
Step Date not specified Superior court denies Gupta's motion for reconsideration and enters a lien-foreclosure judgment against him.
Step Date not specified Gupta, self-represented, appeals to the Arizona Court of Appeals, Division Two (No. 2 CA-CV 2025-0138).
Step 2026-03-19 Court of Appeals, Division Two, files an unpublished memorandum decision affirming the superior court's judgment.

Complete source-document index

This index contains 1 PDF 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.

FAQ

What was Desert Crown III Homeowners Association v. Gupta about?

Desert Crown III Homeowners Association sued homeowner Debabrata Gupta in Maricopa County Superior Court to foreclose an assessment lien. The superior court dismissed Gupta’s counterclaim, granted summary judgment for the association, and entered a lien-foreclosure judgment. Gupta appealed, and the Arizona Court of Appeals, Division Two, affirmed.

Why did Gupta lose the appeal?

The Court of Appeals held that Gupta’s appeal was procedurally deficient: his opening brief cited no legal authority as required by Ariz. R. Civ. App. P. 13(a)(7)(A), and although his reply brief cited Rule 403 of the Arizona Rules of Evidence, he developed no legal argument. These deficiencies warranted waiver of appellate review. The court also noted that, even reaching the merits, it would not reweigh the evidence.

Does it matter that Gupta represented himself?

The court afforded Gupta, who appeared in propria persona (pro se), the same consideration as a represented appellant and held him to the same familiarity with court procedures and rules expected of a lawyer. Representing himself did not lower the procedural standards he had to meet.

Did the association get its attorney fees and costs?

The association requested attorney fees and costs under Rule 21, Ariz. R. Civ. App. P., and A.R.S. §§ 12-341 and 12-341.01. The court exercised its discretion to deny attorney fees, but awarded the association its costs on appeal as the prevailing party under A.R.S. § 12-341.

Is this decision binding precedent?

No. The decision is an unpublished memorandum decision and does not create legal precedent. It may not be cited except as authorized by applicable rules (see Ariz. R. Sup. Ct. 111(c)(1); Ariz. R. Civ. App. P. 28(a)(1), (f)). It is offered here only as an educational illustration of how assessment-foreclosure appeals are handled.

What is the practical takeaway for homeowners and associations?

An appellate court will not reweigh the evidence a trial court considered, and a brief that cites no legal authority and develops no legal argument can result in the issues being waived. Disagreeing with a trial court’s factual findings, without identifying a specific legal error supported by authority, is unlikely to succeed on appeal.

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 / citation2 CA-CV 2025-0138
Court / tribunalCourt of Appeals
Decision / key dateMarch 19, 2026
Judge / panelJudge Eckerstrom (author), Presiding Judge Gard, Judge O'Neil, Hon. Adam D. Driggs (Maricopa County Superior Court)
PartiesDesert Crown III Homeowners Association v. Debabrata Gupta
Governing law
  • A.R.S. § 12-120.21
  • A.R.S. § 12-2101
  • A.R.S. § 12-341
  • A.R.S. § 12-341.01
Topics
ForeclosureAssessmentsProcedureAttorney Fees
Outcome / holding

Affirmed. A self-represented (in propria persona) appellant is held to the same procedural standards as a licensed attorney; an appellant whose briefs cite no supporting legal authority and develop no legal argument waives appellate review, and the appellate court will not reweigh evidence already considered by the trial court.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap6 roadmap entries
Video overviewDesert Crown III Homeowners Association, an Arizona nonprofit corporation v. Debabrata Gupta, an unm
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Desert Crown III Homeowners Association sued homeowner Debabrata Gupta in Maricopa County Superior Court to foreclose an assessment lien on his property. The superior court granted the association's motion to dismiss Gupta's counterclaim, granted summary judgment for the association, denied Gupta's motion for reconsideration, and entered a lien-foreclosure judgment against him. Representing himself, Gupta appealed, arguing the superior court lacked a factual basis for the monetary claims underlying the judgment. The Arizona Court of Appeals, Division Two, affirmed in an unpublished memorandum decision. The court held that a self-represented appellant is held to the same procedural standards as a licensed attorney, and that Gupta's briefs cited no supporting legal authority and developed no legal argument, which waived appellate review. The court added that, even reaching the merits, it would not reweigh the evidence as Gupta requested. It denied the association's request for attorney fees but awarded it costs on appeal as the prevailing party.

Key Issues & Findings

Reviewing the record in the light most favorable to upholding the superior court's decision (Tucson Estates Property Owners Ass'n v. Jenkins, 247 Ariz. 475, ¶ 2 (App. 2019)), the court confirmed it had jurisdiction over the appeal under A.R.S. §§ 12-120.21(A)(1) and 12-2101(A)(1). Although Gupta represented himself, the court explained that a self-represented litigant is afforded the same consideration as a represented appellant and is held to the same familiarity with court procedures and rules expected of a lawyer (Higgins v. Higgins, 194 Ariz. 266, ¶ 12 (App. 1999)).

The court found Gupta's appeal procedurally deficient. His opening brief cited no legal authority to support his claim of error, contrary to Ariz. R. Civ. App. P. 13(a)(7)(A), which requires citations of legal authority and references to the record for each issue. While his reply brief cited Rule 403, Ariz. R. Evid., he developed no supporting legal argument. Citing Ritchie v. Krasner, Boswell v. Fintelmann, and Sholes v. Fernando, the court held these deficiencies warranted waiver of appellate review.

Even if it reached the argument, the court noted Gupta was effectively asking it to reweigh the evidence, which is not part of an appellate court's duty on review (Hurd v. Hurd, 223 Ariz. 48, ¶ 16 (App. 2009)). On fees, the court exercised its discretion to deny the association's request for attorney fees under Rule 21, Ariz. R. Civ. App. P., and A.R.S. §§ 12-341 and 12-341.01, but awarded the association its costs on appeal as the prevailing party under A.R.S. § 12-341.

Why It Matters

This is a current, real-world example of how Arizona courts handle an appeal from an HOA assessment-lien foreclosure judgment, and of the practical risk of appealing without counsel. The decision illustrates two recurring points for homeowners and associations: self-represented litigants are held to the same procedural rules as attorneys, and an appellate brief that cites no legal authority and develops no legal argument can be deemed to waive the issues entirely. It also shows that appellate courts will not reweigh the evidence a trial court considered, so disagreement with the trial court's factual findings is unlikely to succeed on appeal without identifying a legal error. Because the decision is unpublished, it does not create binding precedent, but it is instructive about how assessment-foreclosure appeals proceed and the consequences of procedural missteps.

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Paul Gounder, Plaintiff/Appellant, v. Royal Riviera Condominium Association, Defendant/Appellee.: Arizona HOA Appellate Case Guide

Board Governance & Arbitration | A.R.S. §§ 12-1512, 12-349 | 1 CA-CV 24-0594

How a self-represented condo owner’s fiduciary-duty and quorum claims were resolved through dismissal, arbitration, and a strict appellate deadline—and why the association recovered its fees.

Last updated June 30, 2026. Case: Paul Gounder, Plaintiff/Appellant, v. Royal Riviera Condominium Association, Defendant/Appellee., 1 CA-CV 24-0594.

Current-status note: Allegations, settlements, procedural dismissals, and notices are not findings of liability unless a cited court order expressly makes that finding.

Scope note: This page covers Paul Gounder, Plaintiff/Appellant, v. Royal Riviera Condominium Association, Defendant/Appellee. (1 CA-CV 24-0594) as a public Arizona Court of Appeals HOA case guide. The source decision came from Division One. The downloadable source-document index below is generated from local raw source files when a PDF opinion is available. This page is educational and is not legal advice.

The takeaway

The Court of Appeals affirmed the superior court’s confirmation of the arbitration award, holding that Gounder failed to file a notice of appeal within the 20-day window and, even if his filings were treated as a timely appeal, he made no adequate showing of any statutory ground—such as arbitrator partiality—to vacate the award.

Case Participants

Petitioner Side

  • Paul Gounder (Appellant)
    Condominium owner (Plaintiff/Appellant) who sued his HOA; appeared self-represented (in propria persona).

Respondent Side

  • Royal Riviera Condominium Association (Appellee)
    The condominium homeowners' association (Defendant/Appellee) sued by one of its owners; prevailing party below and on appeal.
  • Charles D. Onofry (Counsel)
    Schneider & Onofry, P.C.
    Counsel for Defendant/Appellee Royal Riviera Condominium Association.
  • ReNae A. Nachman (Counsel)
    Schneider & Onofry, P.C.
    Counsel for Defendant/Appellee Royal Riviera Condominium Association.
  • Dee R. Giles (Counsel)
    Schneider & Onofry, P.C.
    Counsel for Defendant/Appellee Royal Riviera Condominium Association.

Neutral Parties

  • Randall M. Howe (Judge)
    Vice Chief Judge; authored the memorandum decision for the Court of Appeals, Division One.
  • Brian Y. Furuya (Judge)
    Presiding Judge; joined the memorandum decision.
  • David B. Gass (Judge)
    Chief Judge; joined the memorandum decision.
  • Susanna C. Pineda (Judge)
    Maricopa County Superior Court judge whose judgment confirming the arbitration award was affirmed.

What happened

In early 2023, Paul Gounder sued the Royal Riviera Condominium Association, the HOA for his community, in Maricopa County Superior Court. His complaint listed a range of grievances, including allegations that the association held meetings without a quorum, that it breached its fiduciary duty by “not enforcing the rules,” and that the HOA’s president and secretary were “in cahoots” and had “hijacked” the association.

The association moved to dismiss, arguing the complaint violated basic pleading rules and made it impossible to answer. The superior court agreed that the complaint did not comply with the Arizona Rules of Civil Procedure and dismissed it, but gave Gounder leave to amend. His amended complaint raised functionally the same claims while adding requests for the maximum compensatory and punitive damages, liens against individual units, and a permanent ban on certain individuals serving on the board. The court dismissed several of these claims and the punitive-damages request.

The association then successfully moved to compel arbitration. Both sides submitted documents and attended the arbitration hearing, after which the arbitrator ruled for the association and awarded it costs and attorney’s fees. Gounder objected to the arbitrator’s notice of decision and later moved to sanction both the arbitrator and the association, but he did not file a notice of appeal from the final award within the 20-day period set by the rules. The superior court entered judgment confirming the award.

Representing himself, Gounder appealed to the Arizona Court of Appeals, arguing that the arbitrator made procedural errors and was biased and that the superior court violated his due-process rights and possibly engaged in misconduct. Division One affirmed, concluding that Gounder had not timely appealed the arbitration award and, regardless, had not made the required showing of any statutory ground to overturn it. The court awarded the association its appellate attorney’s fees and costs but declined to impose sanctions.

Video overview of the ruling

An AI-generated video overview of Paul Gounder, Plaintiff/Appellant, v. Royal Riviera Condominium Association, Defendant/Appellee. (1 CA-CV 24-0594). Gounder failed to file a notice of appeal within the 20-day window and, even if his filings were treated as a timely… This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Paul Gounder, Plaintiff/Appellant, v. Royal Riviera Condominium Association, Defendant/Appellee.. Generated from the case filings; verify against the linked ruling below.

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

Procedural timeline

Step Date not specified Early 2023 — Paul Gounder, an owner, sued Royal Riviera Condominium Association, his HOA, in Maricopa County Superior Court (No. CV2023-002759), alleging meetings without a quorum, breach of fiduciary duty, and that board officers had "hijacked" the association.
Step Date not specified The superior court granted the association's motion to dismiss for failure to state a claim, finding the complaint did not comply with the Arizona Rules of Civil Procedure, and granted Gounder leave to amend.
Step Date not specified Gounder filed an amended complaint raising functionally the same claims and seeking maximum and punitive damages, liens on individual units, and a permanent ban on certain board members; the court dismissed several claims and the punitive-damages request.
Step Date not specified The superior court granted the association's motion to compel arbitration; both parties submitted documents and attended the arbitration hearing.
Step 2024-02-22 The arbitrator issued a notice of decision.
Step 2024-03-03 Gounder filed an objection to the arbitrator's notice of decision.
Step 2024-03-18 The arbitrator filed the final award in favor of Royal Riviera, including costs and attorney's fees; Gounder moved to sanction the arbitrator the same day, referencing the February 22 notice.
Step 2024-03-21 Gounder moved to sanction Royal Riviera.
Step Date not specified The superior court entered judgment confirming the arbitration award for Royal Riviera; Gounder appealed.
Step 2025-03-13 Division One of the Arizona Court of Appeals affirmed the judgment confirming the arbitration award and awarded the association its appellate attorney's fees and costs.

Complete source-document index

This index contains 1 PDF 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 1 2025-03-13

Memorandum Decision

Type: Decision or judgment

Memorandum decision holding that the Court of Appeals affirmed the superior court's confirmation of the arbitration award, holding that Gounder failed to file a notice of appeal within the 20-day window and, even if his filings were treated as a timely appeal, he made no adequate showing of any statutory ground—such as arbitrator partiality—to vacate the award.

FAQ

Who won Gounder v. Royal Riviera Condominium Association?

The condominium association won. The Arizona Court of Appeals affirmed the superior court’s judgment confirming the arbitration award in the association’s favor and awarded the association its reasonable attorney’s fees and costs on appeal.

Why did the owner's appeal fail?

Primarily because it was untimely. Under Arizona Rule of Civil Procedure 77(b), a party must file a notice of appeal from a compulsory arbitration award within 20 days after the award is filed. The award was filed March 18, 2024, and none of Gounder’s filings—an earlier objection and later sanction motions—qualified as a timely notice of appeal.

What claims did the owner make against the HOA?

Gounder alleged, among other things, that the association held meetings without a quorum, breached its fiduciary duty by not enforcing the rules, and that board officers had “hijacked” the association. The courts never reached the merits of these claims; the case was resolved on pleading, arbitration, and procedural grounds.

What happened with the arbitrator-bias argument?

The court explained that a party claiming arbitrator partiality bears the burden of producing evidence of bias. Gounder offered no adequate evidence, and his objections—such as the arbitrator accepting hard-copy documents or once using an incorrect name for the association—did not show prejudice, so there was no statutory ground to vacate the award under A.R.S. § 12-1512(A).

Did the owner have to pay the association's attorney's fees?

Yes. As the successful party on appeal, Royal Riviera was awarded its reasonable attorney’s fees and costs under A.R.S. §§ 12-341 and 12-341.01, upon compliance with the appellate rules. The court declined, however, to impose additional sanctions under A.R.S. § 12-349.

Is this decision binding precedent in Arizona?

No. It is an unpublished memorandum decision. Under Arizona Supreme Court Rule 111(c), it is not precedential and may be cited only as authorized by rule.

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 / citation1 CA-CV 24-0594
Court / tribunalCourt of Appeals
Decision / key dateMarch 13, 2025
Judge / panelRandall M. Howe, Brian Y. Furuya, David B. Gass
PartiesPaul Gounder (Plaintiff/Appellant) v. Royal Riviera Condominium Association (Defendant/Appellee)
Governing law
  • A.R.S. § 12-1512
  • A.R.S. § 12-341.01
  • A.R.S. § 12-349
Topics
ProcedureBoard GovernanceMeetings & RecordsAttorney Fees
Outcome / holding

The Court of Appeals affirmed the superior court's confirmation of the arbitration award, holding that Gounder failed to file a notice of appeal within the 20-day window and, even if his filings were treated as a timely appeal, he made no adequate showing of any statutory ground—such as arbitrator partiality—to vacate the award.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap10 roadmap entries
Video overviewPaul Gounder, Plaintiff/Appellant, v. Royal Riviera Condominium Association, Defendant/Appellee.
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Paul Gounder, an owner in the Royal Riviera Condominium Association, sued his HOA in Maricopa County Superior Court, alleging that the association held meetings without a quorum, breached its fiduciary duty by not enforcing the rules, and that board officers had "hijacked" the association. The superior court dismissed his original complaint for failing to comply with the Arizona Rules of Civil Procedure but allowed him to amend. After the amended complaint, the court dismissed several claims and compelled arbitration. The arbitrator found for the association and awarded it costs and attorney's fees, and the superior court confirmed the award. Representing himself, Gounder appealed, arguing procedural errors, arbitrator bias, and due-process violations. Division One of the Arizona Court of Appeals affirmed, holding that Gounder did not timely appeal the arbitration award and, in any event, made no adequate showing of any statutory ground to overturn it. The court awarded the association its appellate attorney's fees.

Key Issues & Findings

The court reviewed the confirmation of an arbitration award for an abuse of discretion, emphasizing that judicial review of arbitration awards is severely limited. Under Arizona Rule of Civil Procedure 77(b), a party who participates in compulsory arbitration must file a notice of appeal within 20 days after the award is filed. The arbitrator filed the award on March 18, 2024, but none of Gounder's filings functioned as a timely appeal: his objection was filed March 3—before the final award—and his motions to sanction the arbitrator (March 18) and the association (March 21) could not be construed as a notice of appeal. Because Gounder did not timely appeal, the superior court did not err in entering judgment on the award.

The court further explained that, even if Gounder's motions were treated as a timely appeal, an appeal from an arbitration award requires an adequate showing of one of the narrow statutory grounds in A.R.S. § 12-1512(A). Gounder disagreed with the arbitrator's findings and asserted bias, but the party alleging partiality bears the burden of producing evidence of it, and Gounder offered none. His complaints that the arbitrator accepted hard-copy documents and once used an incorrect name for the association did not show prejudice, because he had received the documents beforehand and both the award and the judgment used the association's correct name.

The court also rejected Gounder's contention that the superior court disregarded due process or engaged in misconduct, noting that he failed to support those allegations with references to the record as required by ARCAP 13(7). Affirming the judgment, the court awarded Royal Riviera its reasonable appellate attorney's fees and costs under A.R.S. §§ 12-341 and 12-341.01, but in its discretion denied the association's request for sanctions under A.R.S. § 12-349.

Why It Matters

This unpublished decision is a useful cautionary example of how condominium-governance disputes can go wrong procedurally for an owner acting without a lawyer. Gounder raised the kinds of concerns owners often have about their associations—meetings allegedly held without a quorum, claims that the board breached its fiduciary duty by not enforcing the rules, and assertions that officers had improperly taken control of the association—but the merits of those grievances were never decided on appeal. Instead, the case turned on procedure: a complaint dismissed for not following the pleading rules, an order compelling arbitration, and, ultimately, the failure to file a notice of appeal from the arbitration award within the 20-day deadline.

For owners and boards alike, the opinion underscores that even legitimate-sounding governance complaints must be pleaded properly, supported with evidence, and pursued within strict deadlines—and that the losing party in HOA litigation can face liability for the association's attorney's fees. It is not a homeowner victory, but it illustrates the practical importance of pleading standards, arbitration procedure, appellate deadlines, and the evidentiary burden for claims like arbitrator bias.

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Lakewood Estates Homeowners Association, Plaintiff/Appellee, v. Michael A. Urbano, Defendant/Appellant: Arizona HOA Appellate Case Guide

Assessments | A.R.S. §§ 22-201, 12-341.01 | 1 CA-CV 24-0377

A homeowner argued a prior settlement order permanently excused him from HOA assessments. Division One explained why the order was a nullity and why the association’s contract-based fee award stood while the third-party defendants’ fees did not.

Last updated June 30, 2026. Case: Lakewood Estates Homeowners Association, Plaintiff/Appellee, v. Michael A. Urbano, Defendant/Appellant, 1 CA-CV 24-0377.

Scope note: This page covers Lakewood Estates Homeowners Association, Plaintiff/Appellee, v. Michael A. Urbano, Defendant/Appellant (1 CA-CV 24-0377) as a public Arizona Court of Appeals HOA case guide. The source decision came from Division One. The downloadable source-document index below is generated from local raw source files when a PDF opinion is available. This page is educational and is not legal advice.

The takeaway

A justice court’s 2014 order purporting to void all of a homeowner’s future HOA assessments was void for lack of subject-matter jurisdiction, so the HOA was entitled to summary judgment and contract-based attorney fees on the unpaid assessments; however, the third-party defendants’ attorney-fee award was reversed because the tort claims against them did not arise out of the contract.

Case Participants

Petitioner Side

  • Michael A. Urbano (Appellant)
    Homeowner and defendant below who appealed the summary judgment and the attorney-fee awards.
  • Ernest Collins, Jr. (Counsel)
    The Collins Law Firm, PLLC
    Counsel for Defendant/Appellant Michael A. Urbano.

Respondent Side

  • Lakewood Estates Homeowners Association (Appellee)
    HOA and plaintiff below; sued Urbano for unpaid assessments and prevailed on its contract claims at trial and on appeal.
  • Susan Smith (Defendant)
    HOA's property manager; third-party defendant sued by Urbano on tort claims.
  • AAM (Defendant)
    Property management company; third-party defendant sued by Urbano on tort claims (collectively, with Susan Smith, the Third-Party Defendants).
  • Quinten T. Cupps (Counsel)
    Vial Fotheringham, LLP
    Co-counsel for Plaintiff/Appellee Lakewood Estates HOA.
  • Christina N. Morgan (Counsel)
    Vial Fotheringham, LLP
    Co-counsel for Plaintiff/Appellee Lakewood Estates HOA.
  • Deeann M. Barnes (Counsel)
    Vial Fotheringham, LLP
    Co-counsel for Plaintiff/Appellee Lakewood Estates HOA.
  • Andrew Apodaca (Counsel)
    Goering Roberts Rubin Brogna Enos & Treadwell-Ruben, PC
    Co-counsel for Plaintiff/Appellee Lakewood Estates HOA.

Neutral Parties

  • David D. Weinzweig (Judge)
    Court of Appeals judge who authored the memorandum decision.
  • Michael S. Catlett (Judge)
    Presiding Judge of the Court of Appeals panel; joined the decision.
  • Daniel J. Kiley (Judge)
    Court of Appeals judge; joined the decision.
  • Timothy J. Ryan (Judge)
    Maricopa County Superior Court judge whose orders were reviewed on appeal.

What happened

Michael Urbano purchased a house in the Lakewood Estates community in 2005. In doing so, he agreed to the recorded covenants, conditions, and restrictions (CC&Rs) running with the property and promised to pay assessments used to maintain the community’s common areas.

In 2014, the Lakewood Estates Homeowners Association sued Urbano in justice court, alleging he had failed to pay assessments. The parties settled, and the justice court entered an order dismissing the case with prejudice. That 2014 order stated that any and all future liens, encumbrances, and assessments against Urbano would be deemed void and invalid.

Six years later, the HOA again sued Urbano in justice court for unpaid assessments. Urbano contended that the 2014 order and a confidential settlement agreement relieved him of any obligation to pay, and he counterclaimed for breach of contract, breach of the duty of good faith and fair dealing, abuse of process, and punitive damages. The matter was transferred to the superior court.

While the lawsuit was pending, Urbano had an altercation with the HOA’s property manager over tree trimmings; police were called and a report was filed, but nothing further came of it. Urbano then asserted tort claims (harassment, defamation, and negligent and intentional infliction of emotional distress) against the HOA and two third-party defendants — property manager Susan Smith and management company AAM — and added them to his abuse-of-process and punitive-damages claims.

The HOA and the third-party defendants moved for summary judgment, which the superior court granted. The court found the 2014 order void because the justice court had lacked subject-matter jurisdiction to relieve Urbano of all future assessments. After an evidentiary hearing, the court awarded attorney fees of $31,830 to the HOA and $83,413 to the third-party defendants.

Urbano appealed. The Court of Appeals, Division One, affirmed the rulings voiding the 2014 order, granting the HOA summary judgment, and awarding the HOA’s fees, and it granted the HOA’s appellate fees under the CC&Rs. It reversed the award of attorney fees to the third-party defendants because Urbano’s tort claims against them did not arise out of the contract.

Video overview of the ruling

An AI-generated video overview of Lakewood Estates Homeowners Association, Plaintiff/Appellee, v. Michael A. Urbano, Defendant/Appellant (1 CA-CV 24-0377). Justice court lacked jurisdiction to void all future HOA assessments in a small-claims collection case. This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Lakewood Estates Homeowners Association, Plaintiff/Appellee, v. Michael A. Urbano, Defendant/Appellant. Generated from the case filings; verify against the linked ruling below.

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

Procedural timeline

Step Date not specified 2005: Urbano bought a house in Lakewood Estates and agreed to the CC&Rs, including the obligation to pay HOA assessments.
Step Date not specified 2014: The HOA sued Urbano in justice court for unpaid assessments; the parties settled and the justice court entered the 2014 order dismissing the case with prejudice and purporting to void all of Urbano's future liens, encumbrances, and assessments.
Step Date not specified 2020: The HOA again sued Urbano in justice court for unpaid assessments (Maricopa County Superior Court No. CV2020-010651 after transfer); Urbano invoked the 2014 order, counterclaimed, and later added tort claims against the HOA and third-party defendants Susan Smith and AAM.
Step Date not specified The superior court granted summary judgment to the HOA and third-party defendants, finding the 2014 order void for lack of jurisdiction, and after an evidentiary hearing awarded $31,830 in fees to the HOA and $83,413 to the third-party defendants. Urbano appealed.
Step 2025-03-06 The Arizona Court of Appeals, Division One, filed its memorandum decision affirming in part and reversing in part.

Complete source-document index

This index contains 1 PDF 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 1 2025-03-06

Memorandum Decision

Type: Decision or judgment

Memorandum decision holding that a justice court's 2014 order purporting to void all of a homeowner's future HOA assessments was void for lack of subject-matter jurisdiction, so the HOA was entitled to summary judgment and contract-based attorney fees on the unpaid assessments; however, the third-party defendants' attorney-fee award was reversed because the tort claims against them did not arise out of the contract.

FAQ

Did a prior settlement or court order excuse Urbano from paying HOA assessments?

No. The 2014 justice-court order purported to void all of Urbano’s future liens, encumbrances, and assessments, but the Court of Appeals held that order was void because the justice court lacked subject-matter jurisdiction to grant that relief. A void order is treated as a nullity, so it could not excuse him from paying assessments.

Why did the justice court lack jurisdiction to void future assessments?

Under A.R.S. § 22-201, justice courts can hear civil matters only when the amount involved is under $10,000 or when the dispute concerns the right to possess (not title to) real property. Declaring all of an owner’s future assessments void fit neither category, so the 2014 order exceeded the justice court’s authority and was void.

How did the CC&Rs affect the outcome?

The court treated the CC&Rs as a contract between the association and the lot owners. Because it was undisputed that Urbano agreed to the CC&Rs, failed to pay assessments, and had an outstanding balance, the HOA was entitled to summary judgment. Urbano’s claimed oral agreement could not override the CC&Rs, which required any amendment to the declaration to be signed by the president or vice president and recorded — which never happened.

Why was the HOA awarded attorney fees but the third-party defendants' fee award reversed?

Under A.R.S. § 12-341.01(A), a court may award fees to the successful party in an action arising out of contract, and the HOA’s assessment dispute arose from the CC&Rs. The third-party defendants (the property manager and management company) were sued on tort claims stemming from an altercation over tree trimmings, which did not arise out of the contract, so their $83,413 fee award was reversed.

What was the final outcome of the appeal?

The Court of Appeals affirmed the rulings voiding the 2014 order, granting the HOA summary judgment, and awarding the HOA $31,830 in fees, and it granted the HOA’s appellate fees under the CC&Rs. It reversed only the award of attorney fees to the third-party defendants.

Is this decision binding precedent?

No. It is an unpublished memorandum decision of the Arizona Court of Appeals, Division One. Under Arizona Supreme Court Rule 111(c), it is not precedential and may be cited only as authorized by the rule.

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 / citation1 CA-CV 24-0377
Court / tribunalCourt of Appeals
Decision / key dateMarch 6, 2025
Judge / panelDavid D. Weinzweig, Michael S. Catlett, Daniel J. Kiley
PartiesLakewood Estates Homeowners Association (Plaintiff/Appellee) v. Michael A. Urbano (Defendant/Appellant)
Governing law
  • A.R.S. § 22-201
  • A.R.S. § 12-341.01
Topics
AssessmentsAttorney FeesCC&RsProcedure
Outcome / holding

A justice court's 2014 order purporting to void all of a homeowner's future HOA assessments was void for lack of subject-matter jurisdiction, so the HOA was entitled to summary judgment and contract-based attorney fees on the unpaid assessments; however, the third-party defendants' attorney-fee award was reversed because the tort claims against them did not arise out of the contract.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap5 roadmap entries
Video overviewLakewood Estates Homeowners Association, Plaintiff/Appellee, v. Michael A. Urbano, Defendant/Appella
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Michael Urbano bought a home in Lakewood Estates in 2005 and agreed to the community's CC&Rs, which obligated owners to pay HOA assessments. After the HOA sued him for unpaid assessments in justice court in 2014, the parties settled and the justice court entered a 2014 order stating that any and all future liens, encumbrances, and assessments against Urbano would be void. Six years later the HOA again sued for unpaid assessments; Urbano invoked the 2014 order and a confidential settlement agreement, counterclaimed, and added tort claims against the HOA's property manager and management company. The superior court found the 2014 order void for lack of jurisdiction, granted the HOA summary judgment, and awarded attorney fees to the HOA and the third-party defendants. On appeal, Division One affirmed the void ruling, the summary judgment, and the HOA's fee award, but reversed the fee award to the third-party defendants.

Key Issues & Findings

Justice courts are courts of limited jurisdiction and possess only the authority statutes affirmatively confer. Under A.R.S. § 22-201, they may hear civil actions when the amount involved is under $10,000 or when the dispute concerns the right to possess (but not title to) real property. The 2014 order declared all of Urbano's future liens, encumbrances, and assessments void — relief that is neither a monetary remedy under $10,000 nor a matter of possession — so the justice court exceeded its subject-matter jurisdiction and the order was void. A void order is a nullity, and the parties may proceed as though it had never been entered. Urbano's new promissory-estoppel theory was waived because he never raised it below.

On the merits, to prove breach of contract the HOA had to establish a contract, a breach, and resulting damages. CC&Rs constitute a contract between the association and the individual lot owners, and it was undisputed that Urbano agreed to the CC&Rs, failed to pay assessments, and carried an outstanding balance. Urbano's affirmative defense rested on the void 2014 order (a nullity, ineffective for any purpose) and an alleged oral agreement, but the CC&Rs required any amendment to the declaration to be signed by the HOA's president or vice president and recorded, which never occurred. The alleged oral agreement therefore could not create a material factual dispute, and summary judgment was proper.

As to fees, A.R.S. § 12-341.01(A) permits a court to award reasonable fees to the successful party in a contested action arising out of contract, and fees on tort claims only when the tort is so interwoven with the contract that it could not exist but for the breach. The HOA's $31,830 fee award was within the court's discretion, supported by consideration of relevant factors such as Urbano's counterclaims and discovery, and no on-the-record findings were required. The third-party defendants' fee award, however, had to be reversed: Urbano's tort claims arose from his altercation with the property manager over tree trimmings, which was unrelated to the assessment/contract dispute. The court also granted the HOA its appellate fees under the CC&Rs but declined the third-party defendants' appellate fee request for lack of a contractual or other basis.

Why It Matters

This decision illustrates that a settlement or court order does not necessarily eliminate an owner's ongoing obligation to pay HOA assessments — especially where the order was entered by a court that lacked authority to grant that relief. Homeowners sometimes assume that one settlement, dismissal, or order permanently resolves future HOA charges, but here the 2014 justice-court order was treated as a nullity, and assessments continued to accrue and remain enforceable under the CC&Rs.

The case also highlights attorney-fee exposure. Because CC&Rs operate as a contract, an owner who unsuccessfully litigates an assessment dispute can be ordered to pay the association's fees (here $31,830 plus appellate fees), while unrelated tort claims may not support a fee award against the party who brought them. For anyone relying on a prior agreement to avoid future assessments, the decision underscores the importance of ensuring that any change to assessment obligations is made through a valid, properly recorded amendment to the governing documents.

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Barcelona Manor Association, Inc. v. Travis L. Nolte: Arizona HOA Appellate Case Guide

Assessments | A.R.S. §§ 33-1256, 33-1247, 33-1803 | 2 CA-CV 2025-0183

Division Two affirms summary judgment foreclosing a condominium assessment lien, holding that an owner cannot self-help by withholding assessments even when alleging the association failed to maintain or repair the unit.

Last updated June 30, 2026. Case: Barcelona Manor Association, Inc. v. Travis L. Nolte, 2 CA-CV 2025-0183.

Current-status note: This page is published as a litigation record based on the source files available through 2026-02-10. Later filings, appeals, mandates, settlements, or dismissal orders may change the posture; the linked court records control.

Scope note: This page covers Barcelona Manor Association, Inc. v. Travis L. Nolte (2 CA-CV 2025-0183) as a public Arizona Court of Appeals HOA case guide. The downloadable source-document index below is generated from local raw source files when a PDF opinion is available. This page is educational and is not legal advice.

The takeaway

A condominium unit owner has no self-help remedy to withhold monthly assessments, even when alleging that the association breached its statutory maintenance duty under A.R.S. § 33-1247(A); the owner cited no authority granting such a right, and the court found none. Any affirmative defense of setoff failed because the owner submitted only unsworn descriptions, photos, fire department reports, and county permits without authentication, and thus produced no admissible evidence to create a genuine dispute of material fact under Ariz. R. Civ. P. 56 and Ariz. R. Evid. 901(a); self-representation does not excuse compliance with the rules of procedure and evidence. The 20% annual assessment-increase limit in A.R.S. § 33-1803 applies only to planned communities, from which condominiums are expressly excluded under A.R.S. § 33-1802(6)(b)(ii), and A.R.S. § 33-1242 imposes no limit on assessment increases. The owner’s argument that assessments could not be charged while the property was condemned was not considered because it was raised for the first time in a motion for reconsideration. The trial court did not abuse its discretion in denying a stay where the owner posted no supersedeas bond, did not move for a stay in the appellate court, and had not yet filed his contemplated damages action. Summary judgment and the decree of foreclosure were affirmed.

Case Participants

Neutral Parties

  • Barcelona Manor Association, Inc. (Party)
  • Travis L. Nolte (Party)
  • John J. Halk (Counsel)
    Halk, Oetinger and Brown PLLC
  • Andrea J. Miska (Counsel)
    Halk, Oetinger and Brown PLLC
  • Travis Nolte (Counsel)
    In Propria Persona
  • Judge Sklar (Judge)
    Arizona Court of Appeals, Division Two
  • Presiding Judge Kelly (Judge)
    Arizona Court of Appeals, Division Two
  • Judge Brearcliffe (Judge)
    Arizona Court of Appeals, Division Two
  • The Honorable Greg Sakall (Judge)
    Pima County Superior Court

What happened

Travis Nolte purchased a condominium unit in Barcelona Manor in 2017, subject to a Declaration of CC&Rs requiring monthly assessments.

Nolte stopped paying assessments; in July 2022 the association recorded a lien notice for nonpayment and later obtained a money judgment against him for breach of contract.

Nolte alleged that since 2020 three floods and a fire (linked to a shared drainage pipe serving units above his) left the unit without drywall or cabinets and filled with mold, and that the county condemned the property between 2022 and 2024.

In May 2024 the association sued to foreclose its assessment lien; Nolte answered, contending he was excused from paying because the association failed to repair the property.

The association moved for summary judgment under A.R.S. § 33-1256(A) and the CC&Rs Nolte argued he could withhold assessments until repairs were made.

The trial court ordered supplemental briefing on whether Nolte’s negligence allegations, if true, would create a legally recognizable defense or counterclaim, then granted summary judgment for the association.

Nolte’s motion for reconsideration was denied; his motion to stay collection was denied in the final order and decree of foreclosure; Nolte appealed.

The Court of Appeals, Division Two, affirmed on February 10, 2026, and awarded the association its appellate attorney fees and costs under the CC&Rs.

Video overview of the ruling

An AI-generated video overview of Barcelona Manor Association, Inc. v. Travis L. Nolte (2 CA-CV 2025-0183). Condo owners cannot withhold assessments as self-help even when alleging association nonperformance. This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Barcelona Manor Association, Inc. v. Travis L. Nolte. Generated from the case filings; verify against the linked ruling below.

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

Procedural timeline

Step 2017 Nolte purchased a condominium unit in Barcelona Manor, subject to the Declaration of CC&Rs requiring monthly assessments.
Step 2020 Beginning in 2020, three flooding incidents and a fire allegedly damaged the unit, leaving it without drywall or cabinets and filled with mold.
Step 2022-07 Barcelona Manor filed a lien notice for nonpayment of assessments.
Step 2022 The county began a roughly 28-month period (through 2024) during which the property was condemned due to fire and flood damage.
Step 2024-05 Barcelona Manor filed this action to foreclose its assessment lien in Pima County Superior Court (No. C20242617).
Step 2026-02-10 The Arizona Court of Appeals, Division Two, affirmed summary judgment and the decree of foreclosure and awarded the association appellate attorney fees.

Complete source-document index

This index contains 1 PDF 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 1 2026-02-10

Memorandum Decision

Type: Decision or judgment

Memorandum decision holding that a condominium unit owner has no self-help remedy to withhold monthly assessments, even when alleging that the association breached its statutory maintenance duty under A.R.S. § 33-1247(A); the owner cited no authority granting such a right, and the court found none.

FAQ

Can a condominium owner stop paying assessments if the association fails to make repairs?

No. The Court of Appeals held there is no self-help remedy that lets a condominium owner withhold monthly assessments, even if the association breached its statutory duty under A.R.S. § 33-1247(A) to maintain, repair, and replace common elements. Nolte cited no authority granting such a right, and the court found none. An owner who believes the association breached its duties must pursue a recognized legal claim rather than simply not paying.

Why did the owner's claim that the property was uninhabitable not defeat the foreclosure?

The court treated his theory as a possible setoff defense but held he failed to create a genuine dispute of material fact. To oppose summary judgment, a party must cite specific, admissible evidence. Nolte offered only an unsworn description of the damage, photos, fire department reports, and county permits, none of which were authenticated under Ariz. R. Evid. 901(a), so they were inadmissible and could not be considered.

Does the 20% annual cap on assessment increases apply to condominiums?

No. The 20% one-year limit on regular assessment increases in A.R.S. § 33-1803 is part of the statutory scheme governing planned communities, and A.R.S. § 33-1802(6)(b)(ii) expressly excludes condominiums from that scheme. The court also noted that A.R.S. § 33-1242 authorizes a condominium association to collect common-expense assessments but does not cap increases.

Why didn't the court address the argument about assessments accruing while the unit was condemned?

The court declined to reach that argument because Nolte raised it for the first time in his motion for reconsideration in the trial court. Under Arizona law, an appellate court generally will not consider issues raised for the first time on reconsideration unless the facts or arguments were unavailable when the challenged ruling was entered.

Does representing yourself change the rules that apply?

No. The court emphasized that although Nolte was not represented by counsel, he was still required to comply with the rules of civil procedure and evidence. Self-represented litigants must, for example, authenticate exhibits and support disputed facts with admissible evidence just as represented parties must.

Is this decision binding precedent in Arizona?

No. The decision is an unpublished memorandum decision marked NOT FOR PUBLICATION. It does not create legal precedent and may not be cited except as authorized by applicable rules (see Ariz. R. Sup. Ct. 111(c) and Ariz. R. Civ. App. P. 28). It is useful as an educational example rather than as binding authority.

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 / citation2 CA-CV 2025-0183
Court / tribunalCourt of Appeals
Decision / key dateFebruary 10, 2026
Judge / panelPeter J. Eckerstrom Sklar (Judge Sklar, author), Presiding Judge Kelly, Judge Brearcliffe
PartiesA condominium association (Barcelona Manor Association, Inc.) sued to foreclose its assessment lien against a unit owner (Travis L. Nolte), who argued he could withhold assessments because the association failed to repair flood and fire damage that left his unit uninhabitable.
Governing law
Topics
AssessmentsForeclosureProcedureAttorney Fees
Outcome / holding

A condominium unit owner has no self-help remedy to withhold monthly assessments, even when alleging that the association breached its statutory maintenance duty under A.R.S. § 33-1247(A); the owner cited no authority granting such a right, and the court found none. Any affirmative defense of setoff failed because the owner submitted only unsworn descriptions, photos, fire department reports, and county permits without authentication, and thus produced no admissible evidence to create a genuine dispute of material fact under Ariz. R. Civ. P. 56 and Ariz. R. Evid. 901(a); self-representation does not excuse compliance with the rules of procedure and evidence. The 20% annual assessment-increase limit in A.R.S. § 33-1803 applies only to planned communities, from which condominiums are expressly excluded under A.R.S. § 33-1802(6)(b)(ii), and A.R.S. § 33-1242 imposes no limit on assessment increases. The owner's argument that assessments could not be charged while the property was condemned was not considered because it was raised for the first time in a motion for reconsideration. The trial court did not abuse its discretion in denying a stay where the owner posted no supersedeas bond, did not move for a stay in the appellate court, and had not yet filed his contemplated damages action. Summary judgment and the decree of foreclosure were affirmed.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap6 roadmap entries
Video overviewBarcelona Manor Association, Inc. v. Travis L. Nolte
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Travis Nolte bought a condominium in Barcelona Manor in 2017, subject to CC&Rs requiring monthly assessments. After he stopped paying, the association recorded an assessment lien in July 2022, obtained a money judgment for breach of contract, and in May 2024 sued to foreclose the lien. Nolte argued he was excused from paying because the association allegedly failed to repair shared-drainage flooding and fire damage that left the unit moldy, gutted, and condemned by the county from 2022 to 2024. The trial court granted summary judgment for the association and denied Nolte's request to stay collection. The Court of Appeals, Division Two, affirmed. It held that Arizona law gives a condominium owner no self-help right to withhold assessments even if the association breached its maintenance duty under A.R.S. § 33-1247(A); that any setoff defense failed because Nolte offered no admissible, authenticated evidence; that the 20% assessment-increase cap in A.R.S. § 33-1803 governs planned communities and does not apply to condominiums; and that his condemnation argument was waived because he raised it for the first time on reconsideration. The court also upheld the denial of a stay and awarded the association its appellate attorney fees under the CC&Rs.

Key Issues & Findings

The court reviewed summary judgment de novo, viewing the facts in the light most favorable to Nolte, and addressed his three challenges in turn. On the central question, it agreed with the trial court that nothing in Arizona law lets a condominium owner withhold assessments as self-help. Even assuming the association violated its duty under A.R.S. § 33-1247(A) to maintain, repair, and replace common elements, that statute supplies no remedy of nonpayment, and Nolte identified no other authority creating such a right. The court next considered whether his position could be recast as the affirmative defense of setoff, citing Granmo v. Superior Court. It assumed without deciding that setoff might be theoretically available, but held Nolte failed to create a genuine dispute of material fact because a party opposing summary judgment must support each disputed fact with specific, admissible evidence under Ariz. R. Civ. P. 56(c). Nolte's unsworn narrative, photographs, fire department reports, and county work permits were not authenticated under Ariz. R. Evid. 901(a) and were therefore inadmissible, and his self-represented status did not relieve him of compliance with the rules.

The court then rejected Nolte's statutory cap argument. The 20% one-year limit on regular assessment increases in A.R.S. § 33-1803 sits within the statutory scheme for planned communities, and A.R.S. § 33-1802(6)(b)(ii) expressly excludes condominiums from that scheme, so the cap did not constrain Barcelona Manor. A.R.S. § 33-1242 was also unavailing because, while it authorizes a condominium association to collect common-expense assessments, it imposes no ceiling on increases. The court declined to reach Nolte's argument that no assessments could accrue while the unit was condemned, applying the rule from RT Automotive Center v. Westlake Services that an appellate court will not consider issues raised for the first time in a motion for reconsideration absent newly available facts or arguments.

Finally, the court upheld the denial of a stay, reviewed for abuse of discretion. A defendant seeking to halt enforcement of a judgment may post a supersedeas bond under Ariz. R. Civ. App. P. 7(a) or move for a stay in the appellate court under Rule 7(c); Nolte did neither, and he cited no authority allowing a stay to persist past issuance of the appellate mandate. Even assuming a stay were available, the discretionary factors from Apache Produce Imports and Tonnemacher did not favor Nolte because he had not yet filed a separate damages action and judgment had already been entered. As the prevailing party, the association was entitled to its appellate attorney fees and costs under Section 13.2(B) of the CC&Rs upon compliance with Ariz. R. Civ. App. P. 21(b).

Why It Matters

This memorandum decision illustrates, in the condominium context, a principle that closely parallels Arizona HOA assessment disputes: an owner generally cannot engage in self-help by simply withholding assessments, even when alleging that the association neglected its own maintenance and repair obligations. The court explains that the statutory maintenance duty (A.R.S. § 33-1247(A)) does not carry a built-in remedy of nonpayment, and that an owner who believes the association breached its duties must pursue a recognized legal avenue and support it with admissible evidence rather than treating unpaid assessments as leverage. The decision also clarifies that the 20% annual assessment-increase cap in A.R.S. § 33-1803 applies to planned communities, not condominiums, a distinction owners and boards frequently confuse. For self-represented owners, it underscores that the rules of civil procedure and evidence apply equally to them, that exhibits must be authenticated to be considered on summary judgment, and that arguments must be preserved (not raised for the first time on reconsideration) to be reviewed on appeal. Because the decision is unpublished, it does not create binding precedent, but it is a useful educational example of how Arizona courts approach assessment-lien foreclosures and condition-of-property defenses.

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Daniel Mason, et al. v. La Glorieta Homeowners Association, et al.: Arizona HOA Appellate Case Guide

CC&R Enforcement | A.R.S. §§ 12-1832, 12-341.01 | 1 CA-CV 23-0437

Division One reaffirms that an Arizona HOA’s enforcement of its CC&Rs is discretionary unless the governing documents expressly create a duty to enforce.

Last updated June 30, 2026. Case: Daniel Mason, et al. v. La Glorieta Homeowners Association, et al., 1 CA-CV 23-0437.

Scope note: This page covers Daniel Mason, et al. v. La Glorieta Homeowners Association, et al. (1 CA-CV 23-0437) as a public Arizona Court of Appeals HOA case guide. The source decision came from Division One. The downloadable source-document index below is generated from local raw source files when a PDF opinion is available. This page is educational and is not legal advice.

The takeaway

An HOA has no duty to enforce its CC&Rs against a violating owner unless the governing documents expressly obligate it to do so; La Glorieta’s CC&Rs granted enforcement powers but imposed no such duty, so summary judgment for the HOA was affirmed.

Case Participants

Petitioner Side

  • Daniel Mason (Appellant)
    Homeowner in La Glorieta subdivision; plaintiff who sued the HOA over a drainage obstruction.
  • Toni Mason (Appellant)
    Homeowner and co-plaintiff/appellant with Daniel Mason.
  • Keith L. Hendricks (Counsel)
    Moyes Sellers & Hendricks
    Counsel for Plaintiffs/Appellants the Masons.
  • Natalya Ter-Grigoryan (Counsel)
    Moyes Sellers & Hendricks
    Counsel for Plaintiffs/Appellants the Masons.

Respondent Side

  • La Glorieta Homeowners Association (Appellee)
    The defendant HOA; obtained summary judgment and a fee award, affirmed on appeal.
  • Yinong Chen (Appellee)
    Neighbor two lots from the Masons whose lot allegedly obstructed drainage; denied summary judgment below (not part of this appeal).
  • Hongyan Shi (Appellee)
    Co-owner of the neighboring lot with Yinong Chen; defendant/appellee.
  • Mark E. Lines (Counsel)
    Shaw & Lines, LLC
    Counsel for Defendant/Appellee La Glorieta Homeowners Association.
  • Patrick Whelan (Counsel)
    Shaw & Lines, LLC
    Counsel for Defendant/Appellee La Glorieta Homeowners Association.
  • Hyung Choi (Counsel)
    Choi & Fabian, PLC
    Counsel for Defendants/Appellees Yinong Chen and Hongyan Shi.
  • Veronika Fabian (Counsel)
    Choi & Fabian, PLC
    Counsel for Defendants/Appellees Yinong Chen and Hongyan Shi.

Neutral Parties

  • Anni Hill Foster (Judge)
    Presiding Judge, Arizona Court of Appeals, Division One; authored the memorandum decision.
  • Brian Y. Furuya (Judge)
    Judge, Arizona Court of Appeals, Division One; joined the decision.
  • Randall M. Howe (Judge)
    Vice Chief Judge, Arizona Court of Appeals, Division One; joined the decision.
  • Joan M. Sinclair (Judge)
    Honorable Judge of the Maricopa County Superior Court who granted the HOA summary judgment and the fee award below.

What happened

Daniel and Toni Mason own a home in the La Glorieta residential subdivision in Chandler, two lots away from a home owned by Yinong Chen and Hongyan Shi. A drainage swale runs in front of both properties, designed to route runoff from the Masons’ lot to an outlet grate on the Chen and Shi lot. In September 2014, a severe thunderstorm flooded the Masons’ basement, causing roughly $2,000 in damage. The day after, Mr. Mason found water still pooling and concluded an obstruction on the neighbors’ lot was blocking the flow.

Over the next several years the Masons tried to resolve the issue by talking to the neighbors, raising it at two HOA meetings, and filing a written complaint with the HOA. In mid-2019 the HOA’s counsel sent the neighbors a letter noting that work on their lot may have contributed to water backups up the street. City of Chandler officials told the Masons the HOA, not the city, was responsible for subdivision drainage, and a civil engineer the Masons hired reported obstructions in the swale on the neighbors’ lot. The home has not flooded since 2014.

In September 2020 the Masons sued the HOA, Chen, and Shi for breach of contract and declaratory judgment, claiming the neighbors’ pathway blocked drainage in violation of CC&Rs § 12.17 and that the HOA was required to enforce the covenants. The HOA moved for summary judgment; the superior court granted it and dismissed all claims against the HOA (the neighbors were denied summary judgment, and that ruling was not appealed).

After a procedural detour — the Court of Appeals initially stayed the appeal because the superior court had not yet ruled on the HOA’s fee request, defeating Rule 54(b) certification — the superior court denied reconsideration, awarded the HOA its attorneys’ fees, and entered final judgment. The Masons appealed, and the Court of Appeals affirmed, holding the CC&Rs gave the HOA enforcement power but no duty to enforce.

Video overview of the ruling

An AI-generated video overview of Daniel Mason, et al. v. La Glorieta Homeowners Association, et al. (1 CA-CV 23-0437). An HOA has no duty to enforce its CC&Rs against a violating owner unless the governing documents expressly obligate… This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Daniel Mason, et al. v. La Glorieta Homeowners Association, et al.. Generated from the case filings; verify against the linked ruling below.

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

Procedural timeline

Step 2014-09 A severe thunderstorm flooded the Masons' basement, causing about $2,000 in damage; Mr. Mason concluded an obstruction on the neighbors' lot was blocking drainage.
Step 2019 The HOA's counsel sent Chen and Shi a letter stating work done to their lot may have contributed to water backups on lots up the street (mid-2019).
Step 2020 The Masons hired a civil engineer whose report found obstructions in the drainage swale on Chen and Shi's lot (late 2019 or early 2020).
Step 2020-09 The Masons sued the HOA, Chen, and Shi for breach of contract and declaratory judgment, alleging a violation of CC&Rs § 12.17.
Step 2022-03 The superior court entered judgment for the HOA and certified it under Rule 54(b); the Masons appealed.
Step 2022-12 The Court of Appeals stayed the appeal and reinstated superior court jurisdiction because the HOA's fee request was unresolved, defeating Rule 54(b) certification.
Step 2023-05 The superior court denied the Masons' motion for reconsideration and awarded the HOA its attorneys' fees.
Step 2023-06 The superior court entered final judgment; the Masons timely appealed.
Step 2024-04-02 The Court of Appeals, Division One, affirmed the judgment in favor of the HOA.

Complete source-document index

This index contains 1 PDF 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 1 2024-04-02

Memorandum Decision

Type: Decision or judgment

Memorandum decision holding that an HOA has no duty to enforce its CC&Rs against a violating owner unless the governing documents expressly obligate it to do so; La Glorieta's CC&Rs granted enforcement powers but imposed no such duty, so summary judgment for the HOA was affirmed.

FAQ

What was Mason v. La Glorieta Homeowners Association about?

Two La Glorieta homeowners, the Masons, sued their HOA and two neighbors after a 2014 storm flooded their basement. They alleged an obstruction on the neighbors’ lot violated the CC&Rs’ drainage provision (§ 12.17) and claimed the HOA was contractually required to enforce the CC&Rs against the neighbors. They sought damages for breach of contract and a declaratory judgment.

What did the Arizona Court of Appeals decide?

The court affirmed summary judgment in favor of the HOA. It held that while the CC&Rs gave the HOA the power to enforce its covenants, none of the provisions required the HOA to exercise that power. With no duty to enforce, the breach-of-contract and declaratory-judgment claims both failed as a matter of law.

Does an Arizona HOA have to enforce its CC&Rs?

Not automatically. The court reaffirmed that under Arizona law — citing Tierra Ranchos v. Kitchukov and the Restatement (Third) of Property: Servitudes § 6.13 — enforcement is a discretionary power. An HOA must act reasonably in exercising that discretion, but it has no duty to enforce a particular violation unless the governing documents expressly obligate it to do so.

Why did the homeowners' reliance on the CC&R language fail?

The court read every enforcement-related provision (the recitals and §§ 4.7, 12.21, 15.1, and 15.3) and found each one used permissive, power-granting language such as ‘may enter’ or ‘shall have the power to file an action.’ None imposed a mandatory duty. Because the language was unambiguous, there was no room to interpret an implied enforcement obligation into the CC&Rs.

The trial court misread one CC&R section — why didn't that change the result?

The superior court had treated § 4.5 as disclaiming HOA liability for drainage, but the appellate court found § 4.5 created two separate easements and its disclaimer reached only landscaping, not drainage. The error was harmless because the Masons were not asking the HOA to maintain landscaping; they were asking it to enforce a violation, which remained discretionary either way.

Who paid attorneys' fees in the case?

The Masons. As the prevailing party in a contract dispute, the HOA was awarded its attorneys’ fees and costs under A.R.S. §§ 12-341 and 12-341.01, and the Court of Appeals found no abuse of discretion. The appellate court also granted the HOA its fees on appeal and denied the Masons’ fee request as the non-prevailing party.

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 / citation1 CA-CV 23-0437
Court / tribunalCourt of Appeals
Decision / key dateApril 2, 2024
Judge / panelAnni Hill Foster, Brian Y. Furuya, Randall M. Howe
PartiesDaniel and Toni Mason (Plaintiffs/Appellants) v. La Glorieta Homeowners Association (Defendant/Appellee)
Governing law
  • A.R.S. § 12-1832
  • A.R.S. § 12-1842
  • A.R.S. § 12-341
  • A.R.S. § 12-341.01
Topics
CC&RsBoard GovernanceAttorney Fees
Outcome / holding

An HOA has no duty to enforce its CC&Rs against a violating owner unless the governing documents expressly obligate it to do so; La Glorieta's CC&Rs granted enforcement powers but imposed no such duty, so summary judgment for the HOA was affirmed.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap9 roadmap entries
Video overviewDaniel Mason, et al. v. La Glorieta Homeowners Association, et al.
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Two homeowners in the La Glorieta subdivision sued their HOA (and two neighbors) after a 2014 storm flooded their basement, alleging an obstruction on the neighbors' lot violated the CC&Rs' drainage provision (§ 12.17). The homeowners claimed the HOA was contractually required to enforce the CC&Rs against the neighbors and sought both breach-of-contract damages and a declaratory judgment. The superior court granted summary judgment to the HOA and awarded it attorneys' fees. The Arizona Court of Appeals, Division One, affirmed. Reviewing the CC&Rs de novo, the court held that although several provisions gave the HOA the power to enforce its covenants, none obligated it to do so. Under Arizona law, an HOA's enforcement of its CC&Rs is discretionary unless the governing documents expressly create a duty to enforce. Because no such duty existed, both the contract and declaratory-judgment claims failed as a matter of law, and the fee award stood.

Key Issues & Findings

The court reviewed the summary-judgment ruling and the interpretation of the CC&Rs de novo, treating the recorded covenants as a contract. It examined every CC&R provision addressing enforcement — the recitals, the § 4.7 easement for investigating and correcting violations, § 12.21 (the HOA "may" enter a lot and correct a violation at the owner's expense), § 15.1, and § 15.3 (the HOA "shall have the power to file an action"). Each provision granted the association authority to act, but none required it to exercise that authority. That absence of a mandatory duty was fatal to the homeowners' claims.

The court corrected one point in the HOA's favor's analysis: the superior court had read § 4.5 as disclaiming HOA liability for drainage, but the appellate court found § 4.5 created two distinct easements (landscape and drainage) and its disclaimer language reached only the landscape easement. That interpretive error was harmless, however, because the homeowners were not asking the HOA to install or maintain landscaping — they were asking it to enforce an alleged violation, which remained discretionary. The court also distinguished Gfeller v. Scottsdale Vista N. Townhomes Ass'n (which involved CC&Rs with an express enforcement duty) and reaffirmed, citing Tierra Ranchos Homeowners Ass'n v. Kitchukov and the Restatement (Third) of Property: Servitudes § 6.13, that discretionary enforcement is the default rule in Arizona.

Because the CC&Rs' language was unambiguous and imposed no duty to enforce, the breach-of-contract claim failed for lack of any breach, and the declaratory-judgment claim failed because the homeowners had no corresponding right to compel enforcement. Finally, the court held the superior court did not abuse its discretion in awarding the prevailing HOA its fees and costs under A.R.S. §§ 12-341 and 12-341.01, and it granted the HOA its appellate fees while denying the homeowners' request.

Why It Matters

This decision reinforces a recurring principle in Arizona community-association law: language that gives an HOA the power to enforce its CC&Rs ("may enter," "shall have the power to file an action") is not the same as language requiring it to enforce. Absent an express, mandatory duty in the governing documents, enforcement is discretionary, and a homeowner generally cannot force the HOA to pursue a neighbor over an alleged violation.

It complements Johnson v. The Pointe and Tierra Ranchos v. Kitchukov, which likewise frame HOA enforcement as a discretionary power the board must exercise reasonably rather than a duty owed to any individual owner. Homeowners frequently sue on the theory that the HOA "must" act against a neighbor; Mason illustrates that such claims typically fail unless the CC&Rs create a specific enforcement obligation — and that a losing homeowner in a CC&R contract dispute can be ordered to pay the association's attorneys' fees.

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Sundance Adult Village Homeowners Association v. Elliott

Common-Area Costs | A.R.S. §§ 12-341, 12-341.01 | 2 CA-CV 2024-0314

An Arizona active-adult community sued homeowners to make them pay half the cost of repairing a wall between the common area and their lots. The Court of Appeals affirmed judgment for the homeowners, holding the wall is part of the common area the association must maintain and that a committee-adopted guideline could not shift those costs in conflict with the recorded CC&Rs.

Last updated June 30, 2026. Case: SUNDANCE ADULT VILLAGE HOMEOWNERS ASSOCIATION, Plaintiff/Appellant, v. BILL ELLIOTT AND MARY ELLIOTT, HUSBAND AND WIFE; ROBERT C. LAMB AND SHARON R. LAMB, HUSBAND AND WIFE, AKA ROBERT LAMB AND SHARON LAMB, HUSBAND AND WIFE; HELEN J. HORNE AND EDWARD L. HORNE, WIFE AND HUSBAND AS COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP; JASON JOSEPH, A SINGLE MAN; MIKE MARTIN, AN UNMARRIED MAN; KATHLEEN LAMONT, AN UNMARRIED WOMAN; LELAND PINNEY, AN UNMARRIED MAN; CAROLINA ALCALA, AN UNMARRIED WOMAN; DAVID H. OTIS AND LEANN K. OTIS, TRUSTEES OF THE DAVE AND LEANN OTIS FAMILY TRUST, DATED MARCH 27, 2008, Defendants/Appellees., 2 CA-CV 2024-0314.

Scope note: This page covers SUNDANCE ADULT VILLAGE HOMEOWNERS ASSOCIATION, Plaintiff/Appellant, v. BILL ELLIOTT AND MARY ELLIOTT, HUSBAND AND WIFE; ROBERT C. LAMB AND SHARON R. LAMB, HUSBAND AND WIFE, AKA ROBERT LAMB AND SHARON LAMB, HUSBAND AND WIFE; HELEN J. HORNE AND EDWARD L. HORNE, WIFE AND HUSBAND AS COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP; JASON JOSEPH, A SINGLE MAN; MIKE MARTIN, AN UNMARRIED MAN; KATHLEEN LAMONT, AN UNMARRIED WOMAN; LELAND PINNEY, AN UNMARRIED MAN; CAROLINA ALCALA, AN UNMARRIED WOMAN; DAVID H. OTIS AND LEANN K. OTIS, TRUSTEES OF THE DAVE AND LEANN OTIS FAMILY TRUST, DATED MARCH 27, 2008, Defendants/Appellees. (2 CA-CV 2024-0314) as a public Arizona Court of Appeals HOA case guide. The downloadable source-document index below is generated from local raw source files when a PDF opinion is available. This page is educational and is not legal advice.

The takeaway

The Court of Appeals held that the wall is a structure located on the common area under Section 1.17 of the Declaration, so Section 5.01 makes the Association responsible for repairing the entire wall absent proof that the homeowners caused the damage; the conflicting 2012 Architectural Committee guideline shifting repair costs to owners could not be enforced because it would effectively amend the Declaration without the required 75% vote, and the Architectural Committee lacked authority to impose new financial obligations not found in the original Declaration. Affirmed.

Case Participants

Petitioner Side

  • Sundance Adult Village Homeowners Association (Plaintiff)
    Arizona homeowners association governing the active-adult residential community in Buckeye, Arizona; Plaintiff/Appellant.
  • Lauren Elliott Stine (Counsel)
    Quarles & Brady LLP
    Counsel for Plaintiff/Appellant Sundance Adult Village Homeowners Association.
  • Kristin N. Leaptrott (Counsel)
    Quarles & Brady LLP
    Counsel for Plaintiff/Appellant Sundance Adult Village Homeowners Association.

Respondent Side

  • Bill Elliott (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. Husband of Mary Elliott.
  • Mary Elliott (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. Wife of Bill Elliott.
  • Robert C. Lamb (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. Also known as Robert Lamb. Husband of Sharon R. Lamb.
  • Sharon R. Lamb (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. Also known as Sharon Lamb. Wife of Robert C. Lamb.
  • Helen J. Horne (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. Holds title as community property with right of survivorship with Edward L. Horne.
  • Edward L. Horne (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. Holds title as community property with right of survivorship with Helen J. Horne.
  • Jason Joseph (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. A single man per the caption.
  • Mike Martin (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. An unmarried man per the caption.
  • Kathleen Lamont (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. An unmarried woman per the caption.
  • Leland Pinney (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. An unmarried man per the caption.
  • Carolina Alcala (Defendant)
    Homeowner of a lot bordering the wall; Defendant/Appellee. An unmarried woman per the caption.
  • David H. Otis (Defendant)
    Defendant/Appellee, sued as trustee of the Dave and LeAnn Otis Family Trust, dated March 27, 2008, which owns a lot bordering the wall.
  • LeAnn K. Otis (Defendant)
    Defendant/Appellee, sued as trustee of the Dave and LeAnn Otis Family Trust, dated March 27, 2008, which owns a lot bordering the wall.
  • Jonathan A. Dessaules (Counsel)
    Dessaules Law Group
    Counsel for Defendants/Appellees (the homeowners).
  • David E. Wood (Counsel)
    Dessaules Law Group
    Counsel for Defendants/Appellees (the homeowners).

Neutral Parties

  • Hon. Kelly (Judge)
    Arizona Court of Appeals, Division Two
    Authored the memorandum decision of the court.
  • Hon. Vásquez (Judge)
    Arizona Court of Appeals, Division Two
    Presiding Judge who concurred in the decision.
  • Hon. Gard (Judge)
    Arizona Court of Appeals, Division Two
    Judge who concurred in the decision.
  • Hon. Rodrick Coffey (Judge)
    Maricopa County Superior Court
    Trial judge who granted the homeowners' motion for summary judgment in No. CV2022090753.

What happened

Sundance Adult Village Homeowners Association governs an active-adult residential community in Buckeye, Arizona. In one part of the community, a wall separates the common area from eight adjoining private lots that contain single-family homes. The wall straddles the property lines, sitting partly on the common area and partly on the owners’ lots. About a year before suit, water damage to the wall was discovered, prompting repair efforts.

In 2022, the Association filed a complaint in Maricopa County Superior Court seeking, among other things, a declaration that the owners of the eight bordering lots were responsible for contributing half the cost of repairing and replacing the wall. In 2023, both sides moved for summary judgment. In 2024, after a hearing, the superior court granted the homeowners’ motion and denied the Association’s, ruling that the Association was responsible for repairing the entire wall absent a showing that the homeowners caused the damage.

The Association appealed. On January 6, 2026, Division Two of the Arizona Court of Appeals affirmed in an unpublished memorandum decision, holding that the wall is part of the common area the Association must repair, that a conflicting 2012 architectural guideline could not be enforced because it would amend the Declaration without the required vote, and that the homeowners, as the prevailing party, were entitled to their attorney fees and costs.

Video overview of the ruling

An AI-generated video overview of Sundance Adult Village Homeowners Association v. Elliott (2 CA-CV 2024-0314). HOA had to repair a common-area wall; architectural guidelines could not shift the cost to owners. This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Sundance Adult Village Homeowners Association v. Elliott. Generated from the case filings; verify against the linked ruling below.

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

Procedural timeline

Step 2006 Sundance adopts the original Architectural Design Guidelines and Association Rules.
Step 2012 The Architectural Committee amends the Guidelines, adopting Guideline I(h)(7), which assigns lot owners responsibility for maintaining and repairing walls separating a lot from the common area.
Step 2021 Water damage to the wall separating the common area from the Residents' lots is discovered (approximately a year before the complaint).
Step 2022 Sundance files a complaint in Maricopa County Superior Court (No. CV2022090753) seeking a declaration that the owners of eight bordering lots must contribute half the cost of repairing and replacing the wall.
Step 2023 Both parties file competing motions for summary judgment.
Step 2024 After a hearing, the superior court grants the Residents' motion for summary judgment and denies Sundance's motion, holding Sundance responsible for repairing the entire wall absent proof the Residents caused the damage.
Step 2026-01-06 Division Two of the Arizona Court of Appeals files a memorandum decision affirming the superior court.

Complete source-document index

This index contains 1 PDF 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 1 2026-01-06

Memorandum Decision

Type: Decision or judgment

Memorandum decision holding the HOA must repair the common-area wall and cannot shift that cost through architectural guidelines.

FAQ

Is Sundance Adult Village HOA v. Elliott binding precedent in Arizona?

No. It is an unpublished memorandum decision from the Arizona Court of Appeals, Division Two. Under the applicable rules, it does not create legal precedent and generally may not be cited as binding authority, though it can still illustrate how Arizona courts approach these issues.

Who is responsible for repairing a wall between an HOA common area and a homeowner's lot in this case?

The court held the Association was responsible for repairing the entire wall. Because the wall is a structure located on the common area under the Declaration, the Association’s duty to maintain, repair, and replace the common area applied, absent proof that the homeowners caused the damage.

Can an HOA shift common-area repair costs to homeowners through an architectural guideline?

Not here. The court held that a 2012 architectural guideline assigning repair costs to lot owners conflicted with the Declaration, which made the Association solely responsible. Enforcing the guideline would effectively amend the Declaration without the required 75% owner vote, so it could not be enforced.

Did the homeowners cause the wall damage in this case?

The opinion notes the repairs followed water damage discovered about a year before suit, and that on appeal the Association did not allege the homeowners’ actions necessitated the repairs. The Declaration would have allowed cost-shifting only for repairs necessitated by an owner.

Who pays attorney fees after this appeal?

The homeowners. Because they prevailed in an action to enforce the Declaration, which requires a fee award to the prevailing party, the Court of Appeals held they were entitled to recover their appellate attorney fees and costs upon complying with Rule 21 of the Arizona Rules of Civil Appellate Procedure.

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 / citation2 CA-CV 2024-0314
Court / tribunalCourt of Appeals
Decision / key dateJanuary 6, 2026
Judge / panelHon. Kelly, Hon. Vásquez, Hon. Gard
PartiesSundance Adult Village Homeowners Association (Plaintiff/Appellant) v. Bill and Mary Elliott, Robert and Sharon Lamb, Helen and Edward Horne, Jason Joseph, Mike Martin, Kathleen Lamont, Leland Pinney, Carolina Alcala, and David and LeAnn Otis as trustees of the Dave and LeAnn Otis Family Trust (Defendants/Appellees)
Governing law
  • A.R.S. § 12-120.21(A)(1)
  • A.R.S. § 12-2101(A)(1)
  • A.R.S. § 12-341
  • A.R.S. § 12-341.01
Topics
CC&RsArchitectural ReviewAttorney FeesProcedure
Outcome / holding

The Court of Appeals held that the wall is a structure located on the common area under Section 1.17 of the Declaration, so Section 5.01 makes the Association responsible for repairing the entire wall absent proof that the homeowners caused the damage; the conflicting 2012 Architectural Committee guideline shifting repair costs to owners could not be enforced because it would effectively amend the Declaration without the required 75% vote, and the Architectural Committee lacked authority to impose new financial obligations not found in the original Declaration. Affirmed.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap7 roadmap entries
Video overviewSundance Adult Village Homeowners Association v. Elliott
Study / briefing material1 section
FAQ / homeowner questions5 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Sundance Adult Village Homeowners Association governs an active-adult community in Buckeye, Arizona, where a wall straddling the property line separates the common area from eight adjoining lots. After water damage to the wall was discovered, the Association sued the owners of those lots, seeking a declaration that they must contribute half the cost of repairing and replacing the wall. Both sides moved for summary judgment. The superior court ruled for the homeowners, holding the Association responsible for repairing the entire wall absent proof that the owners caused the damage. On appeal, Division Two of the Arizona Court of Appeals affirmed. It held that the wall is a structure located on the common area under the Declaration, so the Association's maintenance and repair duty applies, and that a later architectural guideline shifting costs to owners conflicted with the Declaration and was therefore unenforceable. This is an unpublished memorandum decision.

Key Issues & Findings

Reviewing the summary judgment de novo, the court interpreted the community's Declaration of Covenants, Conditions and Restrictions as a contract among the landowners. Section 5.01 makes the Association responsible for maintaining, repairing, and replacing the "Common Area," which Section 1.17 defines to include structures located on the common area tracts. The court agreed with the Association that the definition distinguishes tangible structures "located on" the tracts from intangible "rights, easements, and appurtenances relating to" them. But because the parties agreed the disputed wall is a structure that sits, at least partially, on the common area tract, the wall falls within the ordinary meaning of being "on" the common area, and thus within the definition of Common Area. The Association was therefore responsible for repairing the entire wall.

The Association relied on a 2012 Architectural Committee guideline, Guideline I(h)(7), which assigned lot owners responsibility for maintaining and repairing walls separating a lot from the common area. The court held this guideline could not override the Declaration. Section 5.01 assigned sole repair responsibility to the Association absent a repair necessitated by an owner, and the Association did not allege the owners caused this damage. Enforcing the guideline would effectively amend the Declaration, which Section 11.07 permits only by a 75% affirmative vote, and Section 11.16 provides that the Declaration prevails over conflicting documents "in all instances." The court declined to rewrite the parties' agreement by ignoring those provisions.

Finally, the court rejected the argument that the Architectural Committee had authority to impose this new financial obligation. Reading Article Seven of the Declaration as a whole, the court found the committee's powers concern aesthetic matters and related procedures, not the creation of new financial burdens that did not exist in the original Declaration. Because the homeowners prevailed in an action to enforce the Declaration, which requires a fee award to the prevailing party, the court held they were entitled to their appellate attorney fees and costs upon compliance with Rule 21.

Why It Matters

For Arizona homeowners and associations, this decision illustrates that an association generally cannot shift common-area repair costs onto individual owners without clear authority in the governing documents or proof that the owners caused the damage. Where a board rule or architectural guideline conflicts with the recorded CC&Rs, the CC&Rs control, and an association cannot use committee-adopted guidelines to create new financial obligations that the declaration's formal amendment process never approved. Owners facing a demand to pay for common-area repairs should check whether the CC&Rs actually assign that cost to them and how the documents must be amended.

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Colin Preston, et al., Plaintiffs/Appellants, v. Las Sendas Community Association, Inc., Defendant/Appellee: Arizona HOA Appellate Case Guide

CC&Rs & Short-Term Rentals | A.R.S. §§ 33-1806.01, 33-1817 | 1 CA-CV 22-0761

An unpublished Division One decision holding that a planned community’s short-term rental amendment was a foreseeable extension of its original CC&Rs, and thus valid and enforceable.

Last updated June 30, 2026. Case: Colin Preston, et al., Plaintiffs/Appellants, v. Las Sendas Community Association, Inc., Defendant/Appellee, 1 CA-CV 22-0761.

Scope note: This page covers Colin Preston, et al., Plaintiffs/Appellants, v. Las Sendas Community Association, Inc., Defendant/Appellee (1 CA-CV 22-0761) as a public Arizona Court of Appeals HOA case guide. The source decision came from Division One. The downloadable source-document index below is generated from local raw source files when a PDF opinion is available. This page is educational and is not legal advice.

The takeaway

The 1995 CC&Rs, read in their entirety, provided sufficient notice that a durational limit on leases could be imposed by amendment; the 2022 short-term rental amendment is therefore valid and enforceable, and the superior court properly denied the homeowners’ requests for injunctive relief. Affirmed.

Case Participants

Petitioner Side

  • Colin Preston (Appellant)
    Named homeowner-plaintiff who, with several other single-family owners ("et al."), challenged the amendment and sought injunctive relief.
  • Brian Locker (Counsel)
    Fowler St. Clair, PLLC (Scottsdale)
    Counsel for Plaintiffs/Appellants (the homeowners).

Respondent Side

  • Las Sendas Community Association, Inc. (Appellee)
    Planned-community HOA (Defendant below) that adopted and recorded the short-term rental amendment; prevailing party.
  • Curtis S. Ekmark (Counsel)
    Carpenter, Hazlewood, Delgado & Bolen, LLP (Tempe)
    Counsel for Defendant/Appellee (the HOA).

Neutral Parties

  • D. Steven Williams (Judge)
    Arizona Court of Appeals, Division One
    Presiding Judge; authored the memorandum decision.
  • Samuel A. Thumma (Judge)
    Arizona Court of Appeals, Division One
    Panel member who joined the decision.
  • Paul J. McMurdie (Judge)
    Arizona Court of Appeals, Division One
    Panel member who joined the decision.
  • John R. Hannah (Judge)
    Maricopa County Superior Court
    Trial judge who granted summary judgment for the HOA and denied injunctive relief.

What happened

Las Sendas is a planned community in Maricopa County governed by CC&Rs, recorded in 1995, that restrict all residential units to residential use by a single family and impose broad restrictions on business and trade within residential units, while exempting an owner’s leasing of a unit from the definition of “trade or business.” Each plaintiff owns a single-family home subject to those CC&Rs.

In 2009 the HOA Board adopted a rule barring leases of fewer than six months. After the legislature enacted A.R.S. § 33-1806.01(A) in 2014 (allowing owners to use property as rental property unless prohibited in the CC&Rs, subject to CC&R rental-time-period restrictions), the Board grew concerned the statute might invalidate the six-months rule and, in July 2021, proposed an amendment prohibiting leases of 31 days or fewer and advertising units as vacation rentals.

Voting opened in November 2021, and in June 2022 the HOA declared the amendment approved with 2,604 of 3,090 votes (84.3%), exceeding the 75% threshold in CC&Rs Section 9.3.1. The HOA recorded the short-term rental amendment in June 2022.

The homeowners sued the HOA, alleging the amendment lessened the value and marketability of their properties, and sought both a preliminary injunction and a permanent injunction barring enforcement. The HOA moved for summary judgment, arguing the amendment was valid; the plaintiffs cross-moved for partial summary judgment on their permanent-injunction claim.

The superior court (Judge John R. Hannah) denied the preliminary injunction, denied the plaintiffs’ partial summary judgment motion, and granted summary judgment for the HOA on the permanent-injunction claim. The plaintiffs appealed.

The Arizona Court of Appeals, Division One, affirmed. It held that, viewed in their entirety, the original CC&Rs gave sufficient notice under Kalway that a durational limit on leases could be imposed, so the amendment was valid and enforceable and injunctive relief was properly denied. As the prevailing party, the HOA was awarded its reasonable appellate attorneys’ fees and costs.

Video overview of the ruling

An AI-generated video overview of Colin Preston, et al., Plaintiffs/Appellants, v. Las Sendas Community Association, Inc., Defendant/Appellee (1 CA-CV 22-0761). The 1995 CC&Rs, read in their entirety, provided sufficient notice that a durational limit on leases could be… This plain-language summary was generated from the court’s filings; the court’s own ruling controls.

Listen: audio deep dive on the ruling

An AI-generated audio deep dive walking through the court’s reasoning and disposition in Colin Preston, et al., Plaintiffs/Appellants, v. Las Sendas Community Association, Inc., Defendant/Appellee. Generated from the case filings; verify against the linked ruling below.

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

Procedural timeline

Step 1995 Original Las Sendas CC&Rs recorded, restricting residential units to single-family residential use and limiting business/trade while exempting owner leasing.
Step Date not specified CC&Rs amended in 1998, 2004, and 2005 (amendments did not alter the provisions relevant to this appeal).
Step 2009 HOA Board adopts a rule barring leases of fewer than six months ("the six-months rule").
Step 2014 Arizona legislature enacts A.R.S. § 33-1806.01(A), allowing owners to use property as rental property unless prohibited in the CC&Rs, subject to rental time-period restrictions.
Step 2021-07 Board announces a proposed amendment prohibiting leases of 31 days or fewer and advertising units as vacation rentals ("the short-term rental amendment").
Step 2021-11 HOA opens owner voting on the short-term rental amendment.
Step 2022-06 HOA declares the amendment approved (2,604 of 3,090 votes, 84.3%, exceeding the 75% threshold) and records the short-term rental amendment.
Step Date not specified Homeowners file suit (Maricopa County Superior Court No. CV2022-010280) seeking preliminary and permanent injunctions against enforcement of the amendment.
Step Date not specified Superior court denies the preliminary injunction, denies plaintiffs' partial summary judgment, and grants summary judgment for the HOA; plaintiffs appeal.
Step 2023-10-31 Court of Appeals, Division One, affirms and awards the HOA its appellate attorneys' fees and costs.

Complete source-document index

This index contains 1 PDF 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 1 2023-10-31

Memorandum Decision

Type: Decision or judgment

Memorandum decision holding that the 1995 CC&Rs, read in their entirety, provided sufficient notice that a durational limit on leases could be imposed by amendment; the 2022 short-term rental amendment is therefore valid and enforceable, and the superior court properly denied the homeowners' requests for injunctive relief.

FAQ

Who won Preston v. Las Sendas?

The HOA. Division One affirmed summary judgment for Las Sendas Community Association, upheld the 2022 short-term rental amendment, and affirmed the denial of the homeowners’ injunctions. As the prevailing party, the HOA was awarded its reasonable appellate attorneys’ fees and costs.

What was the dispute about?

Homeowners challenged a 2022 amendment to the Las Sendas CC&Rs that prohibited leasing units for 31 days or fewer and advertising them as vacation rentals. They argued the original CC&Rs did not give them sufficient notice that such a durational rental restriction could be imposed.

What legal test did the court apply?

The court applied the reasonable-expectations / sufficient-notice framework from Kalway v. Calabria Ranch HOA, LLC. Even an amendment properly adopted under A.R.S. § 33-1817(A) and the CC&Rs’ amendment procedure is unenforceable unless the original CC&Rs, objectively viewed at the time of purchase, foreshadowed the possibility of the amendment.

Why did the homeowners lose?

The court read the CC&Rs as a whole rather than the lease exemption in isolation. The original CC&Rs limited units to single-family residential use, broadly restricted business and trade subject to Board discretion, and already barred apartment units from hotel or transient use, language that tracked the amendment. Together these gave sufficient notice that a durational lease limit could be added.

Does A.R.S. § 33-1806.01 let HOAs restrict rentals?

The statute allows owners to use their property as rental property unless prohibited in the governing CC&Rs, and requires owners to abide by the CC&Rs’ rental time-period restrictions. Here, the court held the amendment validly imposed such a durational restriction under the CC&Rs.

Is this decision precedential?

No. It is an unpublished memorandum decision under Arizona Supreme Court Rule 111(c). It is not precedential and may be cited only as authorized by rule.

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 / citation1 CA-CV 22-0761
Court / tribunalCourt of Appeals
Decision / key dateOctober 31, 2023
Judge / panelD. Steven Williams, Samuel A. Thumma, Paul J. McMurdie
PartiesColin Preston, et al. (homeowners / Plaintiffs-Appellants) v. Las Sendas Community Association, Inc. (HOA / Defendant-Appellee)
Governing law
Topics
CC&RsBoard GovernanceElectionsAttorney Fees
Outcome / holding

The 1995 CC&Rs, read in their entirety, provided sufficient notice that a durational limit on leases could be imposed by amendment; the 2022 short-term rental amendment is therefore valid and enforceable, and the superior court properly denied the homeowners' requests for injunctive relief. Affirmed.

Primary public sourceView source opinion/order

Parties, Court, and Research Coverage

Reviewed source package1 PDF
Step-by-step docket roadmap10 roadmap entries
Video overviewColin Preston, et al., Plaintiffs/Appellants, v. Las Sendas Community Association, Inc., Defendant/A
Study / briefing material1 section
FAQ / homeowner questions6 questions
Featured download links1 download link

Key Issues & Findings

Case Summary

Las Sendas is a Maricopa County planned community whose CC&Rs, recorded in 1995, restrict residential units to single-family residential use and limit business or trade activity while exempting owner leasing. In 2009 the Board adopted a rule barring leases of fewer than six months. After Arizona enacted A.R.S. § 33-1806.01(A) in 2014, the Board proposed a 2021 amendment prohibiting rentals of 31 days or fewer and vacation-rental advertising; owners approved it by 84.3% (well above the 75% threshold), and the HOA recorded it in June 2022. Several homeowners sued, seeking preliminary and permanent injunctions to block enforcement and arguing the original CC&Rs gave insufficient notice under Kalway v. Calabria Ranch that such a restriction could be added. The superior court granted summary judgment to the HOA and denied injunctive relief. Division One affirmed, holding the original CC&Rs, read as a whole, gave sufficient notice that a durational lease limit could be imposed.

Key Issues & Findings

The court reviewed the denial of injunctive relief for abuse of discretion but interpreted the CC&Rs and reviewed the grant of summary judgment de novo. Under Kalway v. Calabria Ranch HOA, LLC, even an amendment adopted in compliance with A.R.S. § 33-1817(A) and the CC&Rs' own amendment procedure will not be enforced unless the original CC&Rs "provided sufficient notice" of the possibility of the amendment; courts strike down "unforeseen" amendments that would alter the nature of the covenants homeowners originally agreed to. The test is objective and measured against a purchaser's reasonable expectations at the time of purchase: the original CC&Rs need not state the precise details of a later amendment, but must make clear that a restriction exists and could be refined or extended, and neither a general-purpose statement nor a general-amendment provision alone suffices.

Applying that standard, the court held the lease exemption in Section 3.12 could not be read in isolation. It is only an exception to Section 3.12's broad prohibition on commercial activity in residential units and has meaning only in the context of the CC&Rs as a whole. The CC&Rs limit units to residential use by a single family who "maintain" a common household, language the court read to imply continuing rather than transient occupancy, and impose extensive restrictions on business and trade subject to the Board's "sole discretion," reasonably placing purchasers on notice that their use could be substantially regulated and even curtailed by future amendment.

The court also relied on the original CC&Rs' treatment of apartment units, which barred the Las Sendas "Rental Apartments" from being used as a hotel or on a transient basis, language that largely tracks the short-term rental amendment. A prospective purchaser could reasonably have anticipated the HOA extending a comparable durational restriction to residential units. Viewed in their entirety, the CC&Rs foreshadowed the amendment, so upholding it did not alter the covenants in a substantial or unforeseen way. The court declined the homeowners' footnote arguments drawn from A.R.S. § 9-500.39 and later online-lodging statutes, did not reach whether the 2009 six-months rule supplied additional notice, and treated the HOA's first-on-appeal standing argument as waived.

Why It Matters

This is a board-favorable short-term-rental outcome: the homeowners' Kalway challenge failed because the original CC&Rs, read as a whole, foreshadowed a durational lease restriction. It illustrates that Kalway's notice-and-foreseeability test cuts both ways, and that not every Kalway or short-term-rental challenge succeeds. Where the original governing documents already contain robust single-family use and commercial-activity restrictions and an analogous transient-use limit (here, on apartment units), a later amendment adding a rental durational cap can be deemed a foreseeable extension rather than an "entirely new and different" restriction, and thus enforceable even against owners who purchased before it was recorded.

As a counterweight to owner-favorable amendment decisions, the case shows the fact-specific nature of the analysis: the enforceability of a short-term-rental amendment turns on the text and structure of the specific CC&Rs, not on a categorical rule. Because it is an unpublished memorandum decision, it is not precedential and may be cited only as authorized by rule.

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