Warren R. Brown vs. Mogollon Airpark, Inc

Case Summary

Case ID 18F-H1818029-REL-RHG, 18F-H1818045-REL, 18F-H1818054-REL
Agency ADRE
Tribunal OAH
Decision Date 2018-10-18
Administrative Law Judge Thomas Shedden
Outcome partial
Filing Fees Refunded $1,500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Warren R. Brown Counsel
Respondent Mogollon Airpark, Inc. Counsel Gregory A. Stein; Mark K. Sahl

Alleged Violations

A.R.S. § 33-1803(A)
A.R.S. § 33-1803(A)
A.R.S. § 33-1803(A)

Outcome Summary

The ALJ dismissed the petitions regarding the assessment increase (Dockets 029 and 054), ruling that A.R.S. § 33-1803(A)'s 20% cap applies only to 'regular assessments' and not special assessments. However, the ALJ ruled in favor of Petitioner Brown regarding late fees (Docket 045), finding that the statutory limit on late charges applies to all assessments, ordering the HOA to rescind the $25 fee and refund the filing fee.

Why this result: For the assessment issues, the ALJ rejected the petitioners' interpretation that 'regular' refers to the approval process rather than the assessment type, finding that applying the cap to special assessments would violate principles of statutory construction.

Key Issues & Findings

Assessment Increase (Docket 029 – Brown)

Petitioner alleged the HOA violated the statute by increasing assessments by $325 (39.4%), exceeding the 20% limit.

Orders: Petition dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Late Fees (Docket 045 – Brown)

Petitioner alleged the HOA charged a $25 late fee, which exceeds the statutory limit of the greater of $15 or 10%.

Orders: Respondent ordered to rescind the $25 late fee and refund the $500 filing fee.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Assessment Increase (Docket 054 – Stevens)

Petitioner alleged the $325 assessment increase violated the statutory 20% cap and that the HOA used deceptive accounting.

Orders: Petition dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Decision Documents

18F-H1818045-REL Decision – 666285.pdf

Uploaded 2026-01-27T21:14:50 (151.9 KB)

18F-H1818045-REL Decision – 672623.pdf

Uploaded 2026-01-27T21:14:51 (144.6 KB)

Based on the provided administrative hearing records, here is a summary of the proceedings for case **18F-H1818045-REL**.

### **Case Overview**
* **Case Number:** 18F-H1818045-REL (The "045" matter).
* **Petitioner:** Warren R. Brown.
* **Respondent:** Mogollon Airpark, Inc..
* **Administrative Law Judge (ALJ):** Thomas Shedden.
* **Hearing Date:** September 28, 2018.

### **Proceedings**
The hearing was a consolidated matter addressing three separate petitions: two filed by Mr. Brown (the "029" and "045" matters) and one by Brad W. Stevens (the "054" matter). While the petitions initially contained broad allegations regarding accounting improprieties and the Board's authority, the hearing was limited to specific legal questions regarding violations of **ARIZ. REV. STAT. § 33-1803(A)**,.

In the 045 matter, Mr. Brown and Mogollon agreed that the issues could be resolved as a matter of law without presenting witnesses,.

### **Key Facts and Main Issues**
Mogollon Airpark raised its 2018 assessment by $325 and instituted a **$25 late fee** and **18% interest** for past due accounts.

**The specific issue in the 045 matter** was whether these late charges violated A.R.S. § 33-1803(A).
* **Statutory Context:** The statute states that charges for late payment are limited to "the greater of fifteen dollars or ten percent of the amount of the unpaid assessment".
* **Petitioner's Argument:** Mr. Brown argued that the $25 fee exceeded the statutory limit of "$15.00 or 10%",. He requested the unlawful penalties be voided.
* **Respondent's Argument:** Mogollon argued that the statutory limits in § 33-1803(A) apply only to "regular assessments." They contended that because the late fee was applied to a "special assessment," the statutory cap did not apply,.

### **Legal Analysis and Decision**
The Administrative Law Judge ruled in favor of Mr. Brown regarding the 045 matter.

**Statutory Interpretation:**
The ALJ rejected Mogollon's argument that the late fee cap applies only to regular assessments. The decision noted that while the statute mentions "regular assessment" in the context of capping annual increases, the sentence regarding late fees refers simply to "assessments",.
* The ALJ cited principles of statutory construction, stating that courts should not read terms (such as the word "regular") into a section where the legislature chose to omit them,.
* Consequently, the statutory cap applies to *all* assessments, rendering Mogollon's $25 late fee a violation of the statute,.

### **Final Outcome**
While the petitions challenging the assessment increase itself (029 and 054) were dismissed, Mr. Brown prevailed in the 045 matter regarding the late fees.

**Order:**
1. **Violation Found:** Mr. Brown showed by a preponderance of the evidence that the $25 late charge violated § 33-1803(A),.
2. **Remedy:** Mogollon Airpark, Inc. was ordered to **rescind the $25 late fee** assessed against Mr. Brown,.
3. **Costs:** Mogollon was ordered to reimburse Mr. Brown his **$500.00 filing fee** within 30 days of the Order,.

Case Participants

Petitioner Side

  • Warren R. Brown (petitioner)
    Petitioner in docket Nos. 18F-H1818029-REL-RHG and 18F-H1818045-REL; appeared on his own behalf
  • Brad W. Stevens (petitioner)
    Petitioner in docket No. 18F-H1818054-REL; appeared on his own behalf

Respondent Side

  • Gregory A. Stein (respondent attorney)
    Carpenter, Hazlewood, Delgado & Bolen LLP
    Attorney for Respondent Mogollon Airpark, Inc.
  • Mark K. Sahl (respondent attorney)
    Carpenter, Hazlewood, Delgado & Bolen LLP
    Attorney for Respondent Mogollon Airpark, Inc.

Neutral Parties

  • Thomas Shedden (ALJ)
    Office of Administrative Hearings
    Administrative Law Judge presiding over the consolidated hearing
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
    Recipient of the transmitted decision
  • Felicia Del Sol (clerk)
    Office of Administrative Hearings
    Transmitted the decision