Wiercinski v. Long Meadow Ranch East POA: A Case Study

This study guide provides a comprehensive overview of the administrative case of Patricia Wiercinski versus the Long Meadow Ranch East Property Owners Association, Inc. The case revolves around a homeowner’s request for association records and the legal definition of what constitutes an official document that a homeowners’ association is required to produce under Arizona law. The material is drawn from two Administrative Law Judge Decisions, dated January 22, 2019, and May 1, 2019.

Key Parties and Individuals

Role / Title

Affiliation

Patricia Wiercinski

Petitioner

Homeowner, Member of Respondent

Wayne Coates

Petitioner’s Husband

Homeowner

Long Meadow Ranch East POA, Inc.

Respondent

Homeowners’ Association (HOA)

Diane Mihalsky

Administrative Law Judge (ALJ)

Office of Administrative Hearings

Ashley N. Moscarello, Esq.

Legal Counsel for Respondent

Goodman Law Group

Michael “Mike” Olson

President of the Board

Respondent (HOA)

Gregg Arthur

Director on the Board

Respondent (HOA)

Kathy Andrews

Community Manager

HOAMCO (Respondent’s management company)

John Allen

Property Owner / HOA Member

Long Meadow Ranch East

Joe Zielinski

Director on the Board

Respondent (HOA)

Jim Robertson

Director on the Board

Respondent (HOA)

Tom Reid

Director on the Board

Respondent (HOA)

Boris Biloskirka

Former Board Member

Respondent (HOA)

Timeline of Key Events

June 19, 2017

An incident occurs where Wayne Coates allegedly acts belligerently toward potential buyers of John Allen’s property.

June 20, 2017

An email exchange regarding the incident occurs between John Allen, his realtor, and members of the HOA Board.

October 18, 2018

Patricia Wiercinski files a petition with the Arizona Department of Real Estate, alleging the HOA violated A.R.S. § 33-1805.

January 10, 2019

The initial evidentiary hearing is held before Administrative Law Judge Diane Mihalsky.

January 22, 2019

The ALJ issues a decision denying Wiercinski’s petition.

Post-Jan 22, 2019

Wiercinski requests a rehearing, alleging misconduct by the judge. The request is granted.

April 22, 2019

The rehearing is held.

May 1, 2019

The ALJ issues a final decision, again dismissing Wiercinski’s petition.

The Core Dispute: The June 19, 2017 Incident

On June 19, 2017, potential buyers, along with their builder, architect, and son, were viewing a lot for sale owned by John Allen on Puntenney Rd. The lot was across the street from the home of Patricia Wiercinski and Wayne Coates. An elderly man, later identified as Wayne Coates, came out of the house and was allegedly “belligerent and cursing” at the group, telling them nothing was for sale and they should not be snooping around. The potential buyers described the individual as “verbally abusive and extremely confrontational,” displaying “extreme aggressive behavior.” As a result of this encounter, the potential buyers decided to remove the lot from their list of considerations, stating they were seeking a “quiet, peaceful, and neighborly place to retire. Not a place with hostility and confrontation.”

This incident prompted John Allen to contact his realtor and members of the HOA Board, seeking action to prevent such behavior from interfering with future property sales.

The Legal Proceedings

Petitioner’s Argument: Patricia Wiercinski alleged that the HOA (Respondent) violated A.R.S. § 33-1805 by failing to produce documents related to its deliberations, decisions, and actions regarding the June 19, 2017 incident. Her core arguments were:

• The email about the incident was sent to a quorum of the Board, making it official business.

• The Board was required to make a formal motion and decision, even if it decided to take no action against her husband.

• She never received documents showing the Board addressed the incident in an executive session or open meeting.

• She did not receive a map referenced in one of the emails or a letter mentioned by board member Joe Zielninski in a video.

• An HOA resolution to electronically store all association business documents meant the requested records must exist.

Respondent’s Argument: The HOA denied violating any statute. Its defense was based on the following points:

• The Board never took any official action against Wiercinski or Coates as a result of the incident.

• The email string was an informal communication among Board Directors on their personal servers and was not kept as an official record. It was provided to Wiercinski voluntarily.

• The names of the potential purchasers and real estate agent were redacted from the emails because Wayne Coates has a known history of “threatening and bullying neighbors and others.”

• No official discussion or vote on the incident ever occurred in an executive session or general meeting.

ALJ’s Decision (January 22, 2019): The Administrative Law Judge denied the petition. The decision concluded that Wiercinski did not meet her burden of proof to establish that any official documents regarding the incident existed that the Respondent failed to produce. The judge reasoned that the mere fact a quorum of Board members informally discusses a topic in private emails does not make it official Board business, especially when no action is taken.

Reason for Rehearing: Wiercinski requested a rehearing, alleging misconduct by the judge. The Commissioner of the Department of Real Estate granted the request without noting any specific misconduct or stating why it should have changed the result.

Petitioner’s Changed Argument: At the rehearing, Wiercinski changed her theory of the case. She no longer argued that the Board failed to produce a record of a formal decision. Instead, she argued that:

• The email string itself was an official record of the association’s business.

• A.R.S. § 33-1805 therefore required the HOA to produce a fully un-redacted copy of the emails.

• She and Mr. Coates had a right to know the names of the individuals accusing Mr. Coates of belligerence.

Respondent’s Rebuttal: The HOA maintained its position:

• The email string was not an official record because the Board never took any action on the matter. The incident did not violate any of the HOA’s CC&Rs, bylaws, or anything else it was empowered to enforce.

• Community Manager Kathy Andrews testified that official records include governing documents, minutes, and items submitted to the Board for action. Since the Board took no action, the email was not included in the association’s archived records.

• The names were redacted because of Mr. Coates’s history of intimidation, and the Board president feared he would harass the individuals involved.

ALJ’s Final Decision (May 1, 2019): The petition was dismissed again. The ALJ reaffirmed that the email string was not a “record of the association.” Therefore, A.R.S. § 33-1805(A) did not require the Respondent to provide an un-redacted version to the Petitioner. The judge also noted that the fear of harassment by Mr. Coates, which prompted the redactions, “does not appear unreasonable.”

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Answer the following questions in 2-3 sentences based on the information provided in the case documents.

1. What specific event on June 19, 2017, initiated the legal dispute?

2. What Arizona statute did Patricia Wiercinski claim the HOA violated, and what does that statute generally require?

3. Why did the HOA state it redacted names from the email chain it provided to Wiercinski?

4. In the initial hearing, what did Wiercinski argue the HOA Board was required to do even if it decided to take no action on the incident?

5. How did Wiercinski’s primary legal argument change between the first hearing and the rehearing?

6. Who is Kathy Andrews, and what was her testimony regarding the HOA’s official records?

7. Did the HOA Board ever hold a formal meeting or take an official vote regarding the incident involving Wayne Coates?

8. According to the ALJ, does an informal email discussion among a quorum of board members automatically constitute “official Board business”?

9. What was the final ruling in the case after the rehearing?

10. What reason did HOA President Mike Olson give for the Board not taking official action on the June 19, 2017 incident?

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Answer Key

1. The event was an alleged confrontation where Wayne Coates was belligerent and verbally abusive toward potential buyers who were viewing a property for sale across the street from his home. This encounter caused the buyers to lose interest in the property.

2. Wiercinski claimed the HOA violated A.R.S. § 33-1805. This statute requires that all financial and other records of a homeowners’ association be made reasonably available for examination by any member.

3. The HOA stated it redacted the names of the potential purchasers and their real estate agent due to Wayne Coates’s history of “threatening and bullying neighbors and others.” Board President Mike Olson testified he feared Mr. Coates would harass the individuals if their identities were revealed.

4. In the initial hearing, Wiercinski argued that the Board was required to make a formal motion and arrive at a formal, documented decision even if it decided it was not going to take any action against her husband.

5. In the rehearing, Wiercinski’s argument shifted from claiming the HOA failed to produce a record of a decision to arguing the email string itself was an official record. She then demanded that the HOA provide a fully un-redacted version of this email string.

6. Kathy Andrews is the community manager for the HOA, employed by the management company Hoamco. She testified that the association’s official records include items like governing documents, meeting minutes, and anything submitted to the Board for action, and that the email was not an official record because the Board took no action.

7. No. Testimony from multiple witnesses, including Mike Olson and Gregg Arthur, confirmed that the Board never discussed the incident at an executive meeting or general membership meeting and never voted or took any official action as a result of the incident.

8. No. The ALJ’s decision states that the mere fact a quorum of Board members discusses a topic does not make it official Board business, especially if they do not take any action to make it so.

9. The final ruling was that the Petitioner’s petition was dismissed. The ALJ found that the email string was not an official record of the association, so the HOA was not required by law to provide an un-redacted version.

10. Mike Olson testified that the Board never voted to take any action because the alleged incident did not violate the Respondent’s CC&Rs, bylaws, or anything else that the HOA was authorized or empowered to enforce.

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Essay Questions

1. Analyze the distinction made by the Administrative Law Judge between informal discussions among board members and “official Board business.” How did this distinction shape the outcome of both hearings?

2. Discuss the evolution of Patricia Wiercinski’s legal strategy from the initial hearing to the rehearing. Was the change in argument effective, and why or why not?

3. Examine the roles of A.R.S. § 33-1805 and A.R.S. § 33-1804 in this case. Explain how the Petitioner and Respondent interpreted these statutes differently and how the Administrative Law Judge ultimately applied them.

4. Based on the testimony of Mike Olson and Kathy Andrews, describe the HOA’s official position on record-keeping and its justification for not treating the email string as an official document.

5. Evaluate the Respondent’s decision to redact the names of non-members from the email string. What reasons were given for this action, and how did the Administrative Law Judge view this justification in the final ruling?

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Glossary

• Administrative Law Judge (ALJ): The impartial judge who presides over administrative hearings, hears evidence, and makes legal decisions. In this case, the ALJ was Diane Mihalsky.

• A.R.S. § 33-1805(A): An Arizona Revised Statute cited in the case which provides that “all financial and other records of the association shall be made reasonably available for examination by any member.”

• A.R.S. § 33-1804(E)(4): An Arizona Revised Statute cited in the case which provides that any quorum of the board of directors that meets informally to discuss association business must comply with open meeting and notice provisions.

• Homeowners’ Association (HOA): An organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents. In this case, the Long Meadow Ranch East Property Owners Association, Inc.

• Petitioner: The party who files a petition to initiate a legal proceeding. In this case, Patricia Wiercinski.

• Preponderance of the Evidence: The standard of proof required in this administrative hearing. It is defined as “such proof as convinces the trier of fact that the contention is more probably true than not” and as evidence with the “most convincing force.”

• Quorum: The minimum number of members of a deliberative assembly (such as a board of directors) necessary to conduct the business of that group. The petitioner argued that because a quorum of the board was included on the emails, the discussion constituted official business.

• Respondent: The party against whom a petition is filed. In this case, the Long Meadow Ranch East Property Owners Association, Inc.