Case Summary
| Case ID | 14F-H1415011-BFS |
|---|---|
| Agency | Department of Fire, Building and Life Safety |
| Tribunal | OAH |
| Decision Date | 2015-05-11 |
| Administrative Law Judge | Thomas Shedden |
| Outcome | no |
| Filing Fees Refunded | $0.00 |
| Civil Penalties | $0.00 |
Parties & Counsel
| Petitioner | Kenneth Nowell | Counsel | — |
|---|---|---|---|
| Respondent | Greenfield Village RV Resort Association, Inc. | Counsel | Steven D. Leach |
Alleged Violations
CC&Rs 6.4, 6.5; Bylaws 6.4, 10.2
Bylaws 6.4
CC&Rs 3.25, 6.4(b)
Outcome Summary
The ALJ dismissed the petition, ruling that the Petitioner failed to prove by a preponderance of the evidence that the Association violated the CC&Rs or Bylaws regarding land acquisition, financial assessments, or construction projects.
Why this result: Burden of proof not met; Association actions were found to be within their authority and properly voted upon where required.
Key Issues & Findings
Land Purchase and Funding of Improvements
Petitioner alleged the Association violated governing documents by purchasing land and levying assessments/loans without a 2/3 vote. The ALJ found the Association had authority and the required majority votes were obtained.
Orders: Dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
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The $20,000 Option
Petitioner alleged the Board required a membership vote to purchase a $20,000 land option. The ALJ found the expenditure did not exceed the threshold requiring a vote.
Orders: Dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
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The Beverage Serving Center
Petitioner alleged the Board constructed a serving center without a vote (changing common area nature) and improperly used reserve funds. The ALJ found it was a replacement (allowed) and did not change the nature of the area.
Orders: Dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
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Decision Documents
14F-H1415011-BFS Decision – 440536.pdf
14F-H1415011-BFS Decision – 446583.pdf
**Case Summary: Nowell v. Greenfield Village RV Resort**
**Case No.** 14F-H1415011-BFS
**Hearing Proceedings and Background**
The hearing was conducted on April 21, 2015, before Administrative Law Judge Thomas Shedden at the Office of Administrative Hearings in Phoenix, Arizona. Petitioner Kenneth Nowell, a resident, filed a petition alleging that Respondent Greenfield Village RV Resort Association, Inc. violated its Covenants, Conditions, and Restrictions (CC&Rs) and Bylaws.
The dispute centered on the Association’s authority and procedures regarding three specific actions: the purchase of land at 4711 East Main Street, the purchase of an option to buy that land, and the construction of a beverage serving center. The Petitioner bore the burden of proof by a preponderance of the evidence.
**Key Arguments and Legal Findings**
**1. Land Purchase and Assessment**
The Association held an election in February 2014 where the membership voted to purchase and improve specific land.
* **Petitioner’s Argument:** Nowell alleged the Association lacked the authority to acquire property and that the assessment used to fund the purchase required approval by two-thirds of the membership.
* **Legal Finding:** The ALJ found that the Articles of Incorporation expressly authorize the Association to acquire property. Regarding the vote, the evidence showed the land was funded by a general assessment, not a special assessment as alleged. Regardless, the CC&Rs and Bylaws require only a majority vote for ratification of assessments, not a two-thirds vote. The assessments were properly ratified .
**2. The $20,000 Land Option**
Prior to the 2014 election, the Board authorized a $20,000 expenditure from operating funds to secure an option on the land.
* **Petitioner’s Argument:** Nowell argued the Association was required to hold a membership vote to authorize this expenditure.
* **Legal Finding:** The Bylaws require a membership vote only for capital expenditures *in excess* of $20,000. Because the expenditure did not exceed this threshold, Nowell failed to prove a vote was required.
**3. The Beverage Serving Center**
The Board approved the construction of a new beverage serving center to replace an old facility located in a flood-prone retention basin
Case Participants
Petitioner Side
- Kenneth Nowell (Petitioner)
Resident appearing on his own behalf
Respondent Side
- Steven D. Leach (attorney)
Jones, Skelton & Hochuli, P.L.C.
Attorney for Respondent - Ron Thorstad (witness)
Greenfield Village RV Resort Association, Inc.
Association President; testified at hearing
Neutral Parties
- Thomas Shedden (ALJ)
Office of Administrative Hearings
Administrative Law Judge - Gene Palma (Agency Director)
Department of Fire Building and Life Safety
Director listed on transmission - Greg Hanchett (OAH Director)
Office of Administrative Hearings
Interim Director; signed Certification of Decision - Debra Blake (Agency Director)
Department of Fire Building and Life Safety
Director; recipient of certified decision - Joni Cage (Agency Staff)
Department of Fire Building and Life Safety
c/o for Debra Blake - Rosella J. Rodriguez (OAH Staff)
Office of Administrative Hearings
Signed mailing certificate
