Tag Archives: Jonathan A. Dessaules

Tom Barrs v. Desert Ranch Homeowners Association

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Case Summary

Case ID 19F-H1918037-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2019-09-12
Administrative Law Judge Jenna Clark
Outcome full
Filing Fees Refunded $500.00
Civil Penalties $500.00

Parties & Counsel

Petitioner Tom Barrs Counsel Jonathan A. Dessaules
Respondent Desert Ranch Homeowners Association Counsel B. Austin Baillio

Alleged Violations

A.R.S. § 33-1805

Outcome Summary

The Administrative Law Judge concluded that the HOA violated ARIZ. REV. STAT. § 33-1805 by failing to provide the full requested documentation relating to EDC actions and communications. The Petitioner's request for relief was granted, resulting in the reimbursement of the $500 filing fee and the imposition of a $500 civil penalty against the HOA.

Key Issues & Findings

Whether Desert Ranch Homeowners Association (Respondent) violated A.R.S. § 33-1805 by failing to fulfill a records request.

The Association violated A.R.S. § 33-1805 by failing to fully comply with Petitioner's specific request for EDC records (submissions, requests, and approvals) by providing only a summary table instead of the totality of requested communications within the statutory deadline.

Orders: Petitioner's petition granted. Respondent ordered to reimburse Petitioner's $500.00 filing fee (ARIZ. REV. STAT. § 32-2199.01) and tender a $500.00 civil penalty to the Department (ARIZ. REV. STAT. § 32-2199.02(A)).

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $500.00

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-2199.01
  • ARIZ. REV. STAT. § 32-2199.02(A)

Analytics Highlights

Topics: Records Request, HOA Violation, Civil Penalty, Filing Fee Reimbursement
Additional Citations:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-2199.01
  • ARIZ. REV. STAT. § 32-2199.02(A)
  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2199(2)
  • ARIZ. REV. STAT. § 32-2199.01(D)
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 41-1092
  • ARIZ. ADMIN. CODE R2-19-119
  • ARIZ. REV. STAT. § 1-243
  • ARIZ. ADMIN. CODE R2-19-107
  • ARIZ. REV. STAT. § 33-1804

Video Overview

Audio Overview

Decision Documents

19F-H1918037-REL Decision – 737525.pdf

Uploaded 2026-04-28T10:46:18 (176.7 KB)

19F-H1918037-REL Decision – 700566.pdf

Uploaded 2026-04-28T10:46:31 (149.3 KB)

19F-H1918037-REL Decision – 737525.pdf

Uploaded 2026-04-24T11:18:19 (176.7 KB)

19F-H1918037-REL Decision – 700566.pdf

Uploaded 2026-04-24T11:18:22 (149.3 KB)

Briefing Document: Barrs v. Desert Ranch Homeowners Association (Case No. 19F-H1918037-REL)

Executive Summary

This briefing document synthesizes two Administrative Law Judge (ALJ) decisions concerning a records request dispute between homeowner Tom Barrs (Petitioner) and the Desert Ranch Homeowners Association (Respondent). The core of the dispute was the Association’s failure to fully comply with a request for records under Arizona Revised Statutes (A.R.S.) § 33-1805.

The case is notable for its complete reversal upon rehearing. An initial ruling on April 10, 2019, favored the Association, finding that the Petitioner had failed to properly submit his request by not emailing all Board members. However, this decision was overturned in a final, binding order on September 12, 2019. In the rehearing, the Petitioner presented new evidence demonstrating he was following the Association’s own prior written instructions for submitting such requests.

The ALJ ultimately concluded that the Association did violate A.R.S. § 33-1805 by providing only a summary document instead of making the full records available for examination. Consequently, the final order granted the Petitioner’s petition, mandated the full reimbursement of his $500 filing fee, and levied an additional $500 civil penalty against the Association. The case underscores the critical importance of procedural compliance and the weight of documented instructions in governing interactions between homeowners and their associations.

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I. Case Overview

• Parties:

◦ Petitioner: Tom Barrs, a property owner and member of the Association.

◦ Respondent: Desert Ranch Homeowners Association (“the Association”).

• Venue: Arizona Office of Administrative Hearings (OAH).

• Presiding Judge: Administrative Law Judge (ALJ) Jenna Clark.

• Core Allegation: Whether the Desert Ranch Homeowners Association violated A.R.S. § 33-1805 by failing to fulfill a records request submitted by the Petitioner.

• Case Numbers:

◦ 19F-H1918037-REL (Initial Decision)

◦ 19F-H1918037-REL-RHG (Rehearing Decision)

II. Chronology of the Dispute

Jul. 19, 2017

Association President Catherine Overby appoints Environmental Design Committee (EDC) Director Brian Schoeffler as the Petitioner’s primary contact for records requests.

Jul. 18, 2018

Ms. Overby instructs the Petitioner to direct all requests to the Association’s management company, Associated Asset Management (AAM), specifically to Lori Lock-Lee.

Nov. 1, 2018

Petitioner submits the records request at issue via email to Catherine Overby, Brian Schoeffler, and Lori Loch-Lee.

Nov. 2, 2018

Ms. Loch-Lee acknowledges the request, states she will forward it to all Board members, and clarifies that AAM is only the Association’s accounting firm.

Nov. 18, 2018

Mr. Schoeffler responds on behalf of the Association, providing a summary table of EDC actions but not the full records. He also advises the Petitioner that all Board members must be copied on future requests.

Dec. 17, 2018

Petitioner files a single-issue petition against the Association with the Arizona Department of Real Estate, paying a $500 fee.

Mar. 6, 2019

Petitioner sends a follow-up email specifying the exact documents he is seeking, referencing items listed in the summary table he received.

Mar. 11, 2019

Mr. Schoeffler replies, asserting the request was already fulfilled and instructing the Petitioner to submit a new request for the additional items.

Mar. 17, 2019

Mr. Schoeffler emails again, claiming the original request was improperly submitted to only two of four Board members and that providing more documents could be seen as an “admission of guilt.”

Mar. 21, 2019

The first evidentiary hearing is held at the OAH.

Apr. 10, 2019

The initial ALJ Decision is issued, denying the Petitioner’s petition.

Jun. 10, 2019

Petitioner submits an appeal to the Department, which is granted.

Aug. 27, 2019

A rehearing is held at the OAH.

Sep. 12, 2019

The final ALJ Decision is issued, reversing the initial ruling and granting the Petitioner’s petition.

III. The Records Request and Response

Petitioner’s Request (November 1, 2018)

The Petitioner submitted a clear and direct request for specific records via email, citing the relevant statute:

“Pursuant to ARS 33-1805, I am requesting a copy of all EDC actions, written requests, and written approvals from October 2017 through October 2018. Soft copies via return email are preferable; otherwise, please let me know when hard copies are available for pickup.”

Association’s Response (November 18, 2018)

The Association did not provide the requested documents (e.g., letters, emails, applications). Instead, it provided a “summary table listing of some, not all, EDC actions.” As of the August 27, 2019, rehearing, the Petitioner had still not received the full documentation he originally requested.

Petitioner’s Clarification (March 6, 2019)

In an attempt to resolve the issue, the Petitioner sent a detailed follow-up email outlining the specific missing records by referencing the line items in the Association’s own summary table. This demonstrated that his request was not for a vague “list of actions” but for the underlying correspondence. This included requests for:

• Copies of violation notices and “Full Compliance” correspondence.

• Complaint correspondence from homeowners regarding shrubs and subsequent citations.

• Submittal correspondence for a project from Mr. Schoeffler himself, along with approvals.

• Original submittals and approvals for a garage remodel and septic install.

IV. Analysis of the Two Administrative Rulings

The opposite outcomes of the two hearings hinged entirely on the validity of the Petitioner’s original email submission.

A. Initial ALJ Decision (April 10, 2019) – In Favor of Respondent (HOA)

• Central Finding: The Petitioner failed to properly submit his records request because he sent it to only two Board members, not the entire Board.

• Reasoning: The ALJ concluded that because the request was improperly submitted, the Association was not obligated to fulfill it under A.R.S. § 33-1805. Therefore, its failure to provide the full records did not constitute a violation. The decision noted, “Because the credible evidence of record reflects that Petitioner failed to properly submit his records request to the Board, Petitioner has failed established by a preponderance of the evidence that the Association was in violation…”

• Outcome: The petition was denied. The Association was not required to reimburse the Petitioner’s filing fee, and his request for a civil penalty was denied.

B. Rehearing ALJ Decision (September 12, 2019) – In Favor of Petitioner (Barrs)

• Central Finding: The Petitioner did properly submit his records request by emailing the designated contacts.

• Key New Evidence: The Petitioner introduced two exhibits proving he had received explicit instructions from the Association President on where to direct his requests:

1. A July 19, 2017 communication appointing EDC Chairman Brian Schoeffler as his primary records request contact.

2. A July 18, 2018 communication instructing him to direct requests to the management company (AAM).

• Reasoning: The ALJ found this evidence dispositive, stating, “Petitioner’s November 01, 2018, records request was not required to be sent to all members of the Association’s Board, as Petitioner had expressly been instructed to only send his records requests to the Association’s EDC Chairman, Mr. Schoeffler, which he did.” With the submission deemed proper, the focus shifted to the response. The ALJ concluded that providing a summary table was not compliant with the statute’s requirement to make records “reasonably available for examination.”

• Outcome: The initial decision was reversed, and the Petitioner’s petition was granted.

V. Key Arguments and Testimonies

• Petitioner (Tom Barrs):

◦ Argued his dispute was with the adequacy of the Association’s response, not its timeliness.

◦ Alleged the Association acted in bad faith and willfully withheld records, citing a previous OAH adjudication over a similar request.

◦ Successfully demonstrated he had followed the Association’s own prior instructions for submitting requests.

• Respondent (via Brian Schoeffler):

◦ Maintained that the request was invalid because it was not sent to all four Board members, an argument that collapsed during the rehearing.

◦ Admitted the Association’s governing documents do not contain a requirement that all Board members be copied on records requests.

◦ Justified the incomplete response by stating that providing additional documents after the petition was filed could be “interpreted as an admission of guilt.”

◦ Reasoned that the Association acted as it did because a previous, similar dispute had been decided in its favor.

VI. Final Order and Penalties

The binding order issued on September 12, 2019, following the rehearing, mandated the following:

1. Petition Granted: The Petitioner’s petition was granted in its entirety.

2. Filing Fee Reimbursement: The Association was ordered to reimburse the Petitioner’s $500 filing fee.

3. Civil Penalty: The Association was ordered to pay a civil penalty of $500 to the Arizona Department of Real Estate for its violation of A.R.S. § 33-1805.

Study Guide: Barrs v. Desert Ranch Homeowners Association

This guide provides a comprehensive review of the administrative legal case between petitioner Tom Barrs and respondent Desert Ranch Homeowners Association, covering the initial hearing and the subsequent rehearing. It includes a quiz to test factual recall, essay questions for deeper analysis, and a glossary of key terms.

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Short-Answer Quiz

Instructions: Answer the following questions in 2-3 complete sentences based on the provided source documents.

1. Who are the primary parties in this legal dispute, and what are their respective roles?

2. What specific Arizona Revised Statute was the Desert Ranch Homeowners Association accused of violating, and what does this statute generally require?

3. What was the exact nature of the records request Tom Barrs submitted on November 1, 2018?

4. In the initial hearing, what was the key reason the Administrative Law Judge ruled in favor of the Association?

5. What was the Association’s initial response to Barrs’ records request, and why did Barrs consider it incomplete?

6. Upon what grounds was a rehearing of the case granted?

7. What crucial new evidence presented at the rehearing changed the outcome of the case?

8. How did the Association’s own bylaws and concessions during the rehearing weaken its defense?

9. What was the final ruling in the Administrative Law Judge’s decision after the rehearing?

10. What financial penalties were imposed on the Desert Ranch Homeowners Association in the final order?

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Answer Key

1. The primary parties are Tom Barrs, the Petitioner, and the Desert Ranch Homeowners Association, the Respondent. Barrs, a homeowner and member of the Association, filed a petition alleging the Association failed to comply with a records request. The Association, represented in the hearings by Brian Schoeffler, defended its actions against this claim.

2. The Association was accused of violating A.R.S. § 33-1805. This statute requires a homeowners’ association to make its financial and other records reasonably available for examination by a member within ten business days of a request. It also allows the association to charge a fee of not more than fifteen cents per page for copies.

3. On November 1, 2018, Tom Barrs requested “a copy of all EDC actions, written requests, and written approvals from October 2017 through October 2018.” He specified that electronic copies were preferable but that he was also willing to pick up hard copies.

4. In the initial hearing, the judge ruled for the Association because the evidence indicated Barrs had failed to properly submit his request to all members of the Association’s Board. This procedural error meant Barrs failed to establish by a preponderance of the evidence that the Association was in violation of the statute.

5. The Association responded on November 18, 2018, by providing Barrs with a summary table of Environmental Design Committee (EDC) actions. Barrs considered this incomplete because his request was for the underlying communications, including all written requests and approvals, not just a summary list of actions.

6. A rehearing was granted after Petitioner Tom Barrs submitted an appeal to the Arizona Department of Real Estate on June 10, 2019. The Department granted the appeal and referred the matter back to the Office of Administrative Hearings for a new evidentiary hearing.

7. The crucial new evidence showed that the Association’s President had previously appointed Brian Schoeffler as Barrs’ primary contact for records requests. This evidence demonstrated that Barrs had, in fact, followed the specific instructions given to him and was not required to send his request to all board members, directly contradicting the basis for the initial ruling.

8. The Association conceded that its governing documents do not require members to copy all Board members on records requests. It also admitted that its own bylaws regarding the submission of forms for such requests were not adhered to or enforced, which undermined its argument that Barrs had failed to follow proper procedure.

9. The final ruling, issued September 12, 2019, granted the Petitioner’s petition. The Administrative Law Judge concluded that the Association’s conduct violated A.R.S. § 33-1805 because it did not fully comply with Barrs’ specific and properly submitted request.

10. The Association was ordered to reimburse Petitioner Tom Barrs’ $500.00 filing fee. Additionally, a civil penalty of $500.00 was levied against the Association, payable to the Arizona Department of Real Estate.

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Essay Questions

Instructions: The following questions are designed for longer, essay-format answers that require critical thinking and synthesis of information from the case documents. Answers are not provided.

1. Compare and contrast the Findings of Fact and Conclusions of Law in the initial decision (April 10, 2019) with those in the rehearing decision (September 12, 2019). Analyze how specific factual clarifications led to a complete reversal of the legal conclusion.

2. Explain the legal standard of “preponderance of the evidence” as defined in the decisions. Detail why the petitioner initially failed to meet this burden and what specific evidence allowed him to successfully meet it in the rehearing.

3. Analyze the testimony and arguments presented by Brian Schoeffler on behalf of the Association across both hearings. Discuss the consistency of his defense, his reasoning based on prior OAH decisions, and his stated fear that providing more documents could be interpreted as an “admission of guilt.”

4. Trace the complete procedural timeline of case No. 19F-H1918037-REL, from the filing of the initial petition on December 17, 2018, to the final, binding order on September 12, 2019. Highlight the roles of the Arizona Department of Real Estate and the Office of Administrative Hearings (OAH).

5. Using the details of this case, write an analysis of the function and importance of A.R.S. § 33-1805 in regulating the relationship between a homeowner and a homeowners’ association. Discuss the statute’s requirements for both parties and the consequences of non-compliance.

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent, impartial judge who presides over administrative hearings at government agencies like the Office of Administrative Hearings. In this case, the ALJ was Jenna Clark.

A.R.S. § 33-1805

The section of the Arizona Revised Statutes that governs a homeowner’s right to access the records of a homeowners’ association. It mandates that an association must make records available for examination within ten business days of a request.

Associated Asset Management (AAM)

The management company that served as the accounting firm for the Desert Ranch Homeowners Association. Petitioner was instructed at one point to direct requests to Lori Lock-Lee at AAM.

Board of Directors (the Board)

The governing body that oversees the operations of the Desert Ranch Homeowners Association.

Covenants, Conditions, and Restrictions (CC&Rs)

The governing legal documents that set up the rules for a planned community or subdivision. The Desert Ranch HOA is governed by its CC&Rs.

Environmental Design Committee (EDC)

A committee within the Desert Ranch Homeowners Association responsible for reviewing and approving architectural and landscaping changes. Brian Schoeffler was the Chairman of the EDC.

Petitioner

The party who files a petition to initiate a legal proceeding. In this case, Tom Barrs is the Petitioner.

Preponderance of the evidence

The standard of proof in this civil administrative case. It is defined as evidence that is more convincing and has superior weight, inclining a fair mind to one side of the issue over the other.

Rehearing

A second hearing of a case, granted upon appeal, to re-examine the issues and evidence. The rehearing in this case took place on August 27, 2019, and resulted in the reversal of the initial decision.

Respondent

The party against whom a petition is filed. In this case, the Desert Ranch Homeowners Association is the Respondent.

Office of Administrative Hearings (OAH)

An independent state agency in Arizona that conducts evidentiary hearings for other state agencies, providing a neutral forum for resolving disputes like the one between Barrs and the Association.

Briefing Document: Barrs v. Desert Ranch Homeowners Association (Case No. 19F-H1918037-REL)

Executive Summary

This briefing document synthesizes two Administrative Law Judge (ALJ) decisions concerning a records request dispute between homeowner Tom Barrs (Petitioner) and the Desert Ranch Homeowners Association (Respondent). The core of the dispute was the Association’s failure to fully comply with a request for records under Arizona Revised Statutes (A.R.S.) § 33-1805.

The case is notable for its complete reversal upon rehearing. An initial ruling on April 10, 2019, favored the Association, finding that the Petitioner had failed to properly submit his request by not emailing all Board members. However, this decision was overturned in a final, binding order on September 12, 2019. In the rehearing, the Petitioner presented new evidence demonstrating he was following the Association’s own prior written instructions for submitting such requests.

The ALJ ultimately concluded that the Association did violate A.R.S. § 33-1805 by providing only a summary document instead of making the full records available for examination. Consequently, the final order granted the Petitioner’s petition, mandated the full reimbursement of his $500 filing fee, and levied an additional $500 civil penalty against the Association. The case underscores the critical importance of procedural compliance and the weight of documented instructions in governing interactions between homeowners and their associations.

——————————————————————————–

I. Case Overview

• Parties:

◦ Petitioner: Tom Barrs, a property owner and member of the Association.

◦ Respondent: Desert Ranch Homeowners Association (“the Association”).

• Venue: Arizona Office of Administrative Hearings (OAH).

• Presiding Judge: Administrative Law Judge (ALJ) Jenna Clark.

• Core Allegation: Whether the Desert Ranch Homeowners Association violated A.R.S. § 33-1805 by failing to fulfill a records request submitted by the Petitioner.

• Case Numbers:

◦ 19F-H1918037-REL (Initial Decision)

◦ 19F-H1918037-REL-RHG (Rehearing Decision)

II. Chronology of the Dispute

Jul. 19, 2017

Association President Catherine Overby appoints Environmental Design Committee (EDC) Director Brian Schoeffler as the Petitioner’s primary contact for records requests.

Jul. 18, 2018

Ms. Overby instructs the Petitioner to direct all requests to the Association’s management company, Associated Asset Management (AAM), specifically to Lori Lock-Lee.

Nov. 1, 2018

Petitioner submits the records request at issue via email to Catherine Overby, Brian Schoeffler, and Lori Loch-Lee.

Nov. 2, 2018

Ms. Loch-Lee acknowledges the request, states she will forward it to all Board members, and clarifies that AAM is only the Association’s accounting firm.

Nov. 18, 2018

Mr. Schoeffler responds on behalf of the Association, providing a summary table of EDC actions but not the full records. He also advises the Petitioner that all Board members must be copied on future requests.

Dec. 17, 2018

Petitioner files a single-issue petition against the Association with the Arizona Department of Real Estate, paying a $500 fee.

Mar. 6, 2019

Petitioner sends a follow-up email specifying the exact documents he is seeking, referencing items listed in the summary table he received.

Mar. 11, 2019

Mr. Schoeffler replies, asserting the request was already fulfilled and instructing the Petitioner to submit a new request for the additional items.

Mar. 17, 2019

Mr. Schoeffler emails again, claiming the original request was improperly submitted to only two of four Board members and that providing more documents could be seen as an “admission of guilt.”

Mar. 21, 2019

The first evidentiary hearing is held at the OAH.

Apr. 10, 2019

The initial ALJ Decision is issued, denying the Petitioner’s petition.

Jun. 10, 2019

Petitioner submits an appeal to the Department, which is granted.

Aug. 27, 2019

A rehearing is held at the OAH.

Sep. 12, 2019

The final ALJ Decision is issued, reversing the initial ruling and granting the Petitioner’s petition.

III. The Records Request and Response

Petitioner’s Request (November 1, 2018)

The Petitioner submitted a clear and direct request for specific records via email, citing the relevant statute:

“Pursuant to ARS 33-1805, I am requesting a copy of all EDC actions, written requests, and written approvals from October 2017 through October 2018. Soft copies via return email are preferable; otherwise, please let me know when hard copies are available for pickup.”

Association’s Response (November 18, 2018)

The Association did not provide the requested documents (e.g., letters, emails, applications). Instead, it provided a “summary table listing of some, not all, EDC actions.” As of the August 27, 2019, rehearing, the Petitioner had still not received the full documentation he originally requested.

Petitioner’s Clarification (March 6, 2019)

In an attempt to resolve the issue, the Petitioner sent a detailed follow-up email outlining the specific missing records by referencing the line items in the Association’s own summary table. This demonstrated that his request was not for a vague “list of actions” but for the underlying correspondence. This included requests for:

• Copies of violation notices and “Full Compliance” correspondence.

• Complaint correspondence from homeowners regarding shrubs and subsequent citations.

• Submittal correspondence for a project from Mr. Schoeffler himself, along with approvals.

• Original submittals and approvals for a garage remodel and septic install.

IV. Analysis of the Two Administrative Rulings

The opposite outcomes of the two hearings hinged entirely on the validity of the Petitioner’s original email submission.

A. Initial ALJ Decision (April 10, 2019) – In Favor of Respondent (HOA)

• Central Finding: The Petitioner failed to properly submit his records request because he sent it to only two Board members, not the entire Board.

• Reasoning: The ALJ concluded that because the request was improperly submitted, the Association was not obligated to fulfill it under A.R.S. § 33-1805. Therefore, its failure to provide the full records did not constitute a violation. The decision noted, “Because the credible evidence of record reflects that Petitioner failed to properly submit his records request to the Board, Petitioner has failed established by a preponderance of the evidence that the Association was in violation…”

• Outcome: The petition was denied. The Association was not required to reimburse the Petitioner’s filing fee, and his request for a civil penalty was denied.

B. Rehearing ALJ Decision (September 12, 2019) – In Favor of Petitioner (Barrs)

• Central Finding: The Petitioner did properly submit his records request by emailing the designated contacts.

• Key New Evidence: The Petitioner introduced two exhibits proving he had received explicit instructions from the Association President on where to direct his requests:

1. A July 19, 2017 communication appointing EDC Chairman Brian Schoeffler as his primary records request contact.

2. A July 18, 2018 communication instructing him to direct requests to the management company (AAM).

• Reasoning: The ALJ found this evidence dispositive, stating, “Petitioner’s November 01, 2018, records request was not required to be sent to all members of the Association’s Board, as Petitioner had expressly been instructed to only send his records requests to the Association’s EDC Chairman, Mr. Schoeffler, which he did.” With the submission deemed proper, the focus shifted to the response. The ALJ concluded that providing a summary table was not compliant with the statute’s requirement to make records “reasonably available for examination.”

• Outcome: The initial decision was reversed, and the Petitioner’s petition was granted.

V. Key Arguments and Testimonies

• Petitioner (Tom Barrs):

◦ Argued his dispute was with the adequacy of the Association’s response, not its timeliness.

◦ Alleged the Association acted in bad faith and willfully withheld records, citing a previous OAH adjudication over a similar request.

◦ Successfully demonstrated he had followed the Association’s own prior instructions for submitting requests.

• Respondent (via Brian Schoeffler):

◦ Maintained that the request was invalid because it was not sent to all four Board members, an argument that collapsed during the rehearing.

◦ Admitted the Association’s governing documents do not contain a requirement that all Board members be copied on records requests.

◦ Justified the incomplete response by stating that providing additional documents after the petition was filed could be “interpreted as an admission of guilt.”

◦ Reasoned that the Association acted as it did because a previous, similar dispute had been decided in its favor.

VI. Final Order and Penalties

The binding order issued on September 12, 2019, following the rehearing, mandated the following:

1. Petition Granted: The Petitioner’s petition was granted in its entirety.

2. Filing Fee Reimbursement: The Association was ordered to reimburse the Petitioner’s $500 filing fee.

3. Civil Penalty: The Association was ordered to pay a civil penalty of $500 to the Arizona Department of Real Estate for its violation of A.R.S. § 33-1805.

Case Participants

Petitioner Side

  • Tom Barrs (petitioner)
    Appeared on his own behalf in the initial hearing; appeared as a witness in the rehearing.
  • Jonathan Dessaules (petitioner attorney)
    Dessaules Law Group
    Appeared on behalf of Petitioner in the rehearing.

Respondent Side

  • Brian Schoeffler (respondent representative / EDC chairman / witness)
    Desert Ranch Homeowners Association
    Also identified as a Board Director.
  • Catherine Overby (HOA president / board member)
    Desert Ranch Homeowners Association
    Appointed Mr. Schoeffler as Petitioner’s primary records request contact.
  • Lori Loch-Lee (property manager)
    Associated Asset Management (AAM)
    Vice President of Client Services.
  • Amanda Shaw (property manager)
    AAM LLC
    Contact for Respondent.
  • B. Austin Baillio (HOA attorney)
    Maxwell & Morgan, P.C.
    Received electronic transmission of the rehearing decision.

Neutral Parties

  • Jenna Clark (ALJ)
    OAH
  • Judy Lowe (Commissioner)
    ADRE
  • Dan Gardner (ADRE staff)
    ADRE
    HOA Coordinator.

Other Participants

  • Gerard Manieri (observer)
    Listed as 'G. Mangiero' in initial hearing source.
  • Peter Ashkin (observer)
    Observed initial hearing.
  • Stephen Banks (observer)
    Observed initial hearing.
  • Noah Banks (observer)
    Observed initial hearing.
  • Stephen Barrs (observer)
    Observed rehearing.
  • Abraham Barrs (observer)
    Observed rehearing.

Linda Haderli vs. Carriage Manor RV Resort Association, Inc.

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Case Summary

Case ID 17F-H1717029-REL
Agency ADRE
Tribunal OAH
Decision Date 2017-06-18
Administrative Law Judge Tammy L. Eigenheer
Outcome Petitioner was deemed the prevailing party. The HOA (Respondent) was found to have acted beyond the scope of its authority under its governing documents by removing the Petitioner as the Pickleball Club President and banning her from holding office for 24 months. The imposed discipline was quashed, and the HOA was ordered to refund the Petitioner's $500.00 filing fee.
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Linda Haderli Counsel Jonathan A. Dessaules
Respondent Carriage Manor RV Resort Association, Inc. Counsel Samuel E. Arrowsmith

Alleged Violations

A.R.S. § 32-2199 et seq.

Outcome Summary

Petitioner was deemed the prevailing party. The HOA (Respondent) was found to have acted beyond the scope of its authority under its governing documents by removing the Petitioner as the Pickleball Club President and banning her from holding office for 24 months. The imposed discipline was quashed, and the HOA was ordered to refund the Petitioner's $500.00 filing fee.

Key Issues & Findings

HOA lacked authority to impose discipline (removal as club president and 24-month ban on holding office) under governing documents.

Petitioner alleged Respondent lacked authority pursuant to governing documents to remove her as President of the Pickleball Club and preclude her from serving as any officer for 24 months as purported discipline. The Tribunal concluded the Board’s decision was in excess of its authority because Respondent did not establish that removal and the prohibition on holding office were remedies available under the governing documents.

Orders: Petitioner was deemed the prevailing party; Respondent's imposed discipline was quashed; Respondent was ordered to pay Petitioner her filing fee of $500.00.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • CC&R’s Section 14.2
  • CC&R’s Section 15.2B
  • CC&R’s Section 12.2

Analytics Highlights

Topics: discipline, governing documents, authority, club officer removal, homeowner vs HOA
Additional Citations:

  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • CC&R’s Section 14.2
  • CC&R’s Section 15.2B
  • CC&R’s Section 12.2

Video Overview

Audio Overview

Decision Documents

17F-H1717029-REL Decision – 570378.pdf

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17F-H1717029-REL Decision – 575026.pdf

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Briefing Document: Haderli vs. Carriage Manor RV Resort Association

Executive Summary

This document synthesizes the key findings and legal conclusions from an administrative hearing concerning a dispute between resident Linda Haderli (Petitioner) and the Carriage Manor RV Resort Association, Inc. (Respondent). The core of the dispute was the Association’s decision to remove Ms. Haderli from her position as President of the Pickleball Club and to bar her from holding any club office for 24 months as a disciplinary measure.

The Administrative Law Judge (ALJ) ultimately ruled in favor of Ms. Haderli. The central finding was that the disciplinary action imposed by the Association was in excess of the authority granted by its own governing documents (CC&Rs). While the Association’s rules allowed for remedies such as financial assessments up to $500 or the suspension of common area use rights for violations, they did not provide for the removal of a resident from an elected club office. Consequently, the ALJ ordered that Ms. Haderli be deemed the prevailing party, the Association’s disciplinary action be quashed, and the Association reimburse Ms. Haderli’s $500 filing fee. This decision was formally adopted by the Commissioner of the Arizona Department of Real Estate, making it a final administrative order.

Case Overview

• Parties:

◦ Petitioner: Linda Haderli

◦ Respondent: Carriage Manor RV Resort Association, Inc., a homeowners association in Mesa, Arizona.

• Legal Venue: The Office of Administrative Hearings, State of Arizona.

• Case Number: 17F-H1717029-REL

• Hearing Date: May 30, 2017

• Core Issue: On March 28, 2017, Ms. Haderli filed a petition with the Arizona Department of Real Estate. She alleged that the Association lacked the authority under its governing documents to remove her as President of the Pickleball Club and to prohibit her from serving in any club officer position for two years as a form of discipline.

The Association’s Disciplinary Action and Justification

The Association took disciplinary action against Ms. Haderli and provided three specific reasons for its decision in a formal letter:

1. Challenging Board Policies: The letter accused Ms. Haderli of harassing Association employees and circumventing established systems designed to implement Association policies.

2. Improper Officer Representation: The Association stated that Ms. Haderli had permitted Ms. Joyce Wooton to represent herself as an “Advisor” to the Pickleball Club, a position not recognized as an official Officer position in the Pickleball By-Laws.

3. Unauthorized Representation to External Entities: The Association claimed Ms. Haderli had represented herself to the City of Mesa and SRP (Salt River Project) as having the authority to make decisions on behalf of the Association, which had not been granted by the Board of Directors.

Analysis of Allegations and Testimony

During the May 30, 2017 hearing, testimony was presented by both parties regarding the three justifications for the disciplinary action.

Allegation 1: Harassment of an Association Employee

• Respondent’s Testimony (Mary Candelaria, General Manager): Ms. Candelaria testified that on January 4, 2017, Ms. Haderli had a “contentious interaction” with an employee, Barb Putnam. According to some observers, Ms. Haderli was yelling. The following day, Ms. Putnam was hospitalized with a hemorrhage in her eye. Ms. Candelaria “theorized” that the stress from the encounter caused the medical issue. She collected written statements from observers but did not speak with Ms. Haderli about the incident, citing confidentiality concerns.

• Petitioner’s Testimony (Linda Haderli): Ms. Haderli denied yelling at Ms. Putnam, explaining that her hearing loss sometimes causes her to speak louder than intended, which can be misinterpreted as yelling. She stated she was attempting to reserve dates for Pickleball Club fundraising events and that Ms. Putnam was uncooperative. Ms. Haderli testified she was unaware of the harassment accusation until reviewing exhibits for the hearing with her attorney.

Allegation 2: Improper Officer Representation (Joyce Wooton)

• Petitioner’s Testimony (Linda Haderli): Ms. Haderli testified that Ms. Wooton was already serving as an advisor to the Pickleball Club when Ms. Haderli was elected Vice President, a full year before she became President on March 1, 2016.

Allegation 3: Unauthorized Representation to External Entities

• Respondent’s Testimony (Mary Candelaria, General Manager): Ms. Candelaria stated that while the Pickleball Club was exploring a project to build a small structure, Ms. Haderli contacted the City of Mesa and SRP directly, representing herself as acting on behalf of the Association. This continued even after Ms. Haderli was advised to work through the project’s architect for technical questions.

• Petitioner’s Testimony (Linda Haderli): Ms. Haderli denied representing herself as having authority to act for the Association. She testified that her intent was merely to gather background information to be better informed about the project. She initially did not want to provide her name or address to the entities for fear of appearing to act in an official capacity, only providing the address when required because regulations differ by city area.

Governing Documents and Permitted Remedies

The Administrative Law Judge’s decision hinged on the specific remedies available to the Association as outlined in its governing documents, the CC&Rs. The Association clarified that the discipline was imposed on Ms. Haderli in her capacity as a resident who violated community rules, not as a disciplinary action against the Pickleball Club itself.

The following sections of the CC&Rs were cited as relevant:

CC&R Section

Description

Authorized Remedy

Section 14.2

Employee Abuse: Prohibits physical or verbal harassment of employees by residents.

Enforcement as an “Other Violation” under Section 15.2B.

Section 15.2B

Other Violations: Stipulates that such violations are subject to a financial penalty.

An assessment set by the Board of Directors, not to exceed $500.00.

Section 12.2

Suspension of Rights: Grants the Association the right to suspend an Owner’s rights for infractions.

Suspension of an Owner’s voting rights and Common Areas use rights.

Legal Conclusions and Final Ruling

The Administrative Law Judge reached several key conclusions of law that led to the final order.

• Burden of Proof: The petitioner, Linda Haderli, bore the burden of proving by a preponderance of the evidence that the Association acted without the authority granted by its governing documents.

• Excess of Authority: The Respondent (the Association) “did not establish that removal as the Pickleball Club President and/or a prohibition of holding any other officer position for a period of 24 months is a remedy available under the governing documents.”

• Final Conclusion: The Tribunal concluded that the Board of Directors’ decision to impose this specific discipline was in excess of its authority.

Recommended and Final Order

Based on these conclusions, Administrative Law Judge Tammy L. Eigenheer issued a recommended order on June 18, 2017:

1. Petitioner Deemed Prevailing Party: Linda Haderli was declared the prevailing party in the matter.

2. Discipline Quashed: The disciplinary action imposed by the Association against Ms. Haderli was ordered to be quashed.

3. Filing Fee Reimbursement: The Association was ordered to pay Ms. Haderli her $500.00 filing fee within thirty days.

On June 21, 2017, Judy Lowe, the Commissioner of the Arizona Department of Real Estate, issued a Final Order adopting the Administrative Law Judge’s decision in its entirety. This order became a final administrative action, effective immediately.

Study Guide: Haderli v. Carriage Manor RV Resort Association, Inc.

Quiz: Short-Answer Questions

Instructions: Answer the following questions in 2-3 complete sentences based on the provided case documents.

1. Who are the primary parties in this legal dispute, and what are their respective roles?

2. What was the central violation alleged by the Petitioner, Linda Haderli, in her petition?

3. What specific disciplinary action did the Carriage Manor RV Resort Association, Inc. impose on Linda Haderli?

4. List the three reasons the Association provided to justify its disciplinary action against the Petitioner.

5. How did Linda Haderli explain her interaction with the Association employee, Barb Putnam, which the Association characterized as harassment?

6. What was the Petitioner’s explanation for contacting the City of Mesa and SRP regarding the Pickleball Club’s building project?

7. According to the Association’s governing documents (CC&R’s), what specific remedies are available for non-monetary infractions and “Other Violations”?

8. What is the legal standard of proof that the Petitioner was required to meet in this case, and how is it defined in the document?

9. What was the final conclusion of the Administrative Law Judge regarding the Association’s authority to impose its chosen discipline?

10. What were the three components of the Recommended Order issued by the Administrative Law Judge, which was later adopted as the Final Order?

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Answer Key

1. The primary parties are Linda Haderli, the Petitioner, and Carriage Manor RV Resort Association, Inc., the Respondent. The Petitioner is the individual homeowner who filed the dispute, while the Respondent is the homeowners association (HOA) that took disciplinary action against her.

2. The Petitioner alleged that the Respondent did not have the authority under its own governing documents to take the disciplinary action it imposed. Specifically, she challenged her removal as President of the Pickleball Club and the subsequent ban from holding any officer position.

3. The Association removed Linda Haderli from her position as President of the Pickleball Club. Additionally, it precluded her from serving as any officer of the Pickleball Club for a period of 24 months.

4. The Association cited three reasons: (1) harassing Association employees and circumventing policies; (2) improperly permitting Ms. Joyce Wooton to represent herself as an “Advisor,” a non-existent officer position; and (3) representing herself to the City of Mesa and SRP as having authority to make decisions on behalf of the Association.

5. Ms. Haderli denied yelling at Ms. Putnam, attributing her loud voice to hearing loss which can be misinterpreted. She stated she was simply trying to reserve dates for Pickleball Club fundraising events and that the employee was not being cooperative in providing information.

6. The Petitioner testified that she approached the City of Mesa and SRP merely to gather background information to be more informed about the building project. She denied ever representing herself as having authority to act for the Association and was initially hesitant to even provide her name for fear of creating that impression.

7. For “Other Violations,” Section 15.2B of the CC&R’s allows for a monetary assessment up to $500.00. For non-monetary infractions, Section 12.2 allows the Association to suspend an Owner’s voting rights and Common Areas use rights until the infraction is cured.

8. The Petitioner was required to prove her case by a preponderance of the evidence. The document defines this as “Evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.”

9. The Administrative Law Judge concluded that the Board’s decision to remove the Petitioner as Pickleball Club President and ban her from holding office for 24 months was in excess of its authority. The judge found that this specific penalty was not a remedy available to the Association under its governing documents.

10. The Order dictated that (1) the Petitioner be deemed the prevailing party in the matter, (2) the Respondent’s imposed discipline against the Petitioner be quashed (nullified), and (3) the Respondent pay the Petitioner her filing fee of $500.00 within thirty days.

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Essay Questions

Instructions: Consider the following prompts for longer, essay-style responses. Use evidence and specific details from the case documents to construct your arguments.

1. Analyze the discrepancy between the disciplinary penalties available to the Association under its CC&R’s (Sections 12.2 and 15.2B) and the penalty it actually imposed on Linda Haderli. Explain why this discrepancy was the pivotal factor in the Administrative Law Judge’s final decision.

2. Discuss the three allegations made by the Association against Linda Haderli. For each allegation, present the evidence and testimony offered by the Association (via Mary Candelaria) and the counter-evidence or explanation provided by the Petitioner.

3. Trace the procedural timeline of this case, starting from the filing of the Homeowners Association (HOA) Dispute Process Petition. Describe each key step, including the date of filing, the Notice of Hearing, the hearing itself, the Administrative Law Judge Decision, and the final adoption of that decision by the Commissioner of the Department of Real Estate.

4. The Respondent stated that the discipline was against Linda Haderli in her capacity as a resident, not as a representative of the Pickleball Club. Evaluate this argument in the context of the specific penalties imposed. Did the nature of the discipline align with the Association’s claim?

5. Explain the legal concept of “burden of proof” as it applies to this case. How did the Petitioner, Linda Haderli, successfully meet the burden of proving by a “preponderance of the evidence” that the Association acted outside its authority?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The judicial officer, Tammy L. Eigenheer, who presided over the administrative hearing, evaluated evidence, and issued a decision and recommended order.

Answer

The formal response filed by the Respondent (Carriage Manor RV Resort Association, Inc.) denying the violation alleged in the Petitioner’s petition.

CC&R’s

An abbreviation for Covenants, Conditions, and Restrictions. These are part of the Association’s governing documents that outline the rules for residents and the remedies available to the Association for violations.

Commissioner

The Commissioner of the Arizona Department of Real Estate, Judy Lowe, who has the authority to adopt the ALJ’s decision, making it a Final Order.

Department

The Arizona Department of Real Estate, the state agency with jurisdiction to hear disputes between homeowners and homeowners associations.

Final Order

The official, binding order issued by the Commissioner of the Department of Real Estate that adopts the ALJ’s decision. This order becomes effective immediately and is appealable through judicial review.

Governing Documents

The collection of rules, bylaws, and CC&R’s that legally govern the operation of the Homeowners Association and the conduct of its members.

Homeowners Association (HOA) Dispute Process Petition

The formal document filed by the Petitioner (Linda Haderli) with the Arizona Department of Real Estate on or about March 28, 2017, to initiate the legal dispute against the Association.

Petitioner

The party who filed the petition initiating the legal action. In this case, homeowner Linda Haderli.

Preponderance of the Evidence

The standard of proof required for the Petitioner to win the case. It is defined as “Evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.”

Prevailing Party

The party that wins the legal dispute. The Administrative Law Judge’s order deemed the Petitioner, Linda Haderli, to be the prevailing party.

Quashed

A legal term meaning to nullify, void, or set aside. The Judge’s order quashed the disciplinary action that the Respondent had imposed on the Petitioner.

Respondent

The party against whom the petition is filed and who is responding to the allegations. In this case, Carriage Manor RV Resort Association, Inc.

She Fought Her HOA Over Pickleball—And Won on a Technicality. Here Are 4 Surprising Lessons.

Introduction: The David vs. Goliath of Neighborhood Disputes

For many homeowners, a dispute with their Homeowners Association (HOA) can feel like an unwinnable battle. The board holds what seems like absolute power, leaving residents feeling powerless. However, a recent administrative hearing in Arizona offers a powerful counter-narrative and a series of crucial lessons for anyone living in a planned community. The case involved Linda Haderli, the President of a community Pickleball Club, and her HOA, the Carriage Manor RV Resort Association, Inc. What started as a disagreement over her conduct escalated into a formal disciplinary action that was ultimately overturned. The story of her victory reveals surprising truths about the limits of an HOA’s authority.

Takeaway 1: Your HOA’s Power Isn’t Unlimited—It’s Written in Black and White

An HOA Board Can’t Invent Punishments.

The core of the dispute was the punishment the HOA Board imposed on Linda Haderli. In response to alleged rule violations, the Board removed her from her elected position as President of the Pickleball Club and banned her from holding any club office for 24 months.

However, a close look at the Association’s own governing documents—the CC&Rs—revealed a critical flaw in the Board’s action. The documents specified exactly which remedies were available for violations. These included a monetary assessment not to exceed $500, or the suspension of an owner’s voting rights and their right to use common areas.

The punishment the Board chose—removal from an elected position and a ban from future office—was simply not on that list. The Administrative Law Judge’s decision was unequivocal on this point:

Therefore, this Tribunal concludes that the Board’s decision to remove Petitioner as the Pickleball Club President and to preclude her from holding any other officer position for a period of 24 months was in excess of its authority under the Association’s governing documents.

Ultimately, the HOA was bound by the rules it had created. Its failure to adhere to its own documents was the key to its defeat.

Takeaway 2: It Might Not Matter Who Was “Right”

The Case Can Hinge on Procedure, Not on the Facts of the Dispute.

The HOA levied three main accusations against Haderli: harassing an Association employee during a contentious interaction, improperly allowing an “Advisor” to participate in the club, and misrepresenting herself to the City of Mesa while researching a project. For her part, Haderli explained that her hearing loss can cause her to speak loudly, that the advisor had served in that capacity previously, and that she was only gathering information from the city and never claimed to have authority.

Here is the counter-intuitive twist: the judge never ruled on whether Haderli was actually guilty of any of these actions. The final decision did not weigh the evidence to determine who was “right” or “wrong” about the incidents. The entire case was decided on the grounds that the punishment itself was invalid because it was not authorized by the HOA’s governing documents, regardless of the alleged offenses that prompted it.

This procedural victory underscores the first lesson: it didn’t matter if the Board’s accusations were 100% true, because they attempted to enforce their judgment with a punishment they had no authority to invent. This is a crucial lesson. In an HOA dispute, winning isn’t always about proving your innocence regarding an incident. It can be about proving the board failed to follow its own established rules and procedures for discipline.

Takeaway 3: You May Have to Prove the HOA is Wrong

The Burden of Proof Can Fall on the Homeowner.

Many might assume that an HOA, as the governing body imposing discipline, would be required to prove it had the authority to do so. In this case, however, the legal burden was reversed. The administrative ruling states that the homeowner, referred to as the “Petitioner,” had the “burden of proving by a preponderance of the evidence” that the HOA acted without authority. This is not unusual; in an administrative hearing, the person who files the petition is the one bringing the complaint, and it is standard procedure for them to carry the burden of proving their claim.

The court defined “preponderance of the evidence” as:

[E]vidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.

This is a significant hurdle. It meant that Haderli couldn’t just question the Board’s power; she had to affirmatively prove, with more convincing evidence, that they didn’t have the authority they claimed. Despite this challenge, she successfully met that burden.

Takeaway 4: Victory Can Be Found in the Fine Print

Knowing Your Governing Documents is Your Greatest Weapon.

This case was not won through complex legal maneuvering or emotional arguments about who was to blame. Victory was found in a straightforward reading of the HOA’s own Covenants, Conditions, and Restrictions (CC&Rs).

The judge’s decision specifically cited Sections 14.2, 15.2B, and 12.2 of the CC&Rs as the foundation for what constituted authorized punishments—namely, fines and the suspension of privileges. By pointing out that the Board’s chosen discipline was absent from these sections, Haderli demonstrated that the Board had overstepped.

This reinforces the central lesson for every homeowner. The most powerful tool you have in a dispute with your association is a copy of your own governing documents. The answer to whether a board is overstepping its authority is often written right there in the text. Homeowners should treat their CC&Rs not as a dusty rulebook, but as a binding contract that holds their Board accountable.

Conclusion: Knowledge is Power

In the end, Linda Haderli was officially deemed the “prevailing party.” The judge ordered that the HOA’s imposed discipline be “quashed” and that her $500 filing fee be returned. This victory was possible for one primary reason: the HOA board exceeded the specific authority granted to it by its own rules. The case serves as a powerful reminder that an HOA’s power is not absolute; it is defined and limited by its documents.

The Board’s power ended where their documents said it did. Do you know where that line is drawn in your community?

Case Participants

Petitioner Side

  • Linda Haderli (petitioner)
  • Jonathan A. Dessaules (attorney)
  • Ashley C. Hill (attorney)

Respondent Side

  • Samuel E. Arrowsmith (attorney)
  • Ryan J. McCarthy (attorney)
  • Mary Candelaria (general manager)
    Respondent's General Manager; testified
  • Barb Putnam (employee)
    Association employee allegedly harassed by Petitioner

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
  • Judy Lowe (Commissioner)
    Commissioner of the Arizona Department of Real Estate
  • Abby Hansen (HOA Coordinator)

Other Participants

  • Joyce Wooton (involved individual)
    Individual associated with the Pickleball Club, subject of allegation

Ferne Skidmore vs. Velda Rose Estates Homeowner Association

Posted on by

Case Summary

Case ID 15F-H1515006-BFS
Agency Department of Fire, Building and Life Safety
Tribunal OAH
Decision Date 2015-09-14
Administrative Law Judge M. Douglas
Outcome The ALJ ruled in favor of the Petitioner, finding that the HOA's restriction of the 'Stocking Project' from the clubhouse violated the non-discrimination provisions of the CC&Rs (Article IV, Section 3). The ALJ determined the project was charitable, not religious, and that the HOA had historically allowed non-members and other activities.
Filing Fees Refunded $550.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Ferne Skidmore Counsel Jonathan A. Dessaules
Respondent Velda Rose Estates Homeowners Association Counsel Clint G. Goodman

Alleged Violations

Article IV, Section 3

Outcome Summary

The ALJ ruled in favor of the Petitioner, finding that the HOA's restriction of the 'Stocking Project' from the clubhouse violated the non-discrimination provisions of the CC&Rs (Article IV, Section 3). The ALJ determined the project was charitable, not religious, and that the HOA had historically allowed non-members and other activities.

Key Issues & Findings

Discrimination in Common Area Use

Petitioner alleged the HOA violated the CC&Rs non-discrimination clause by prohibiting the 'Christmas Stocking Project' from using the clubhouse. The HOA argued the project had a religious affiliation and non-members participated. The ALJ found the project was a charitable organization for homeless children without religious affiliation and that the HOA's exclusion was discriminatory.

Orders: Respondent ordered to fully comply with CC&Rs; Respondent ordered to pay Petitioner $550.00 filing fee.

Filing fee: $550.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • Article IV, Section 3
  • Article VII, paragraph 2

Video Overview

Audio Overview

Decision Documents

15F-H1515006-BFS Decision – 457186.pdf

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15F-H1515006-BFS Decision – 463653.pdf

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15F-H1515006-BFS Decision – 457186.pdf

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15F-H1515006-BFS Decision – 463653.pdf

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Administrative Law Judge Decision Briefing: Skidmore v. Velda Rose Estates Homeowners Association

Executive Summary

This briefing document analyzes the administrative hearing and subsequent final decision regarding a dispute between Ferne Skidmore (Petitioner) and the Velda Rose Estates Homeowners Association (Respondent/VRE). The case, No. 15F-H1515006-BFS, centered on the Petitioner's allegation that the Association’s Board of Directors (BOD) engaged in discrimination by banning a charitable group, the "Stocking Project," from using the community clubhouse.

The Board justified the ban by citing the group's alleged "religious affiliation" and concerns regarding the handling of monetary donations. However, the Administrative Law Judge (ALJ) found that the Stocking Project was a secular charitable organization and that the Board’s actions were inconsistent with its own practices and governing documents. The ALJ ruled in favor of the Petitioner, concluding that the Association violated the nondiscrimination clauses of its Covenants, Conditions, and Restrictions (CC&Rs). The decision was certified as final on October 28, 2015.

Detailed Analysis of Key Themes

1. Definition of Religious vs. Charitable Activity

A central conflict in the case was the Board’s characterization of the "Stocking Project"—a group of women who create and fill Christmas stockings for needy children—as a religious entity.

  • The Petitioner’s Perspective: Ms. Skidmore and several Board members testified that the project was strictly charitable, non-secular, and intended solely to provide for homeless children.
  • The Board’s Perspective: Former and current Board presidents argued the project’s association with Christmas and its "religious affiliation" posed a liability risk and violated clubhouse rules against religious activities.
  • Legal Standard: The ALJ applied the definition from Rosenberger v. Rector & Visitors of the Univ. of Va., which defines religious activity as that which "primarily promotes or manifests a particular belief in or about a deity or an ultimate reality." The ALJ concluded the Stocking Project did not meet this threshold.
2. Inconsistency in Policy Enforcement

The evidence highlighted significant inconsistencies in how Velda Rose Estates applied its rules regarding religious and social activities:

  • Religious Presence: Despite banning the Stocking Project for "religious affiliation," the Board regularly began sessions with prayer, and the clubhouse was historically decorated with a Christmas tree and lights.
  • Non-Member Participation: The Board cited the participation of non-members in the Stocking Project as a reason for exclusion. However, testimony revealed that other clubhouse activities, such as card games (with money prizes) and shuffleboard, allowed non-members to participate without restriction.
3. Financial Oversight and Non-Profit Status

The Association raised concerns regarding the Stocking Project's handling of funds.

  • HOA Concerns: Board members testified that any money collected by groups using the clubhouse should go through the Association’s treasurer to protect VRE’s IRS non-profit status.
  • Factual Finding: While Ms. Skidmore admitted to receiving approximately $250 in donations between 2012 and 2014, the ALJ found that the primary purpose of the project remained charitable and the exclusion based on these financial concerns was part of a larger discriminatory action.
4. Violation of Governing Documents

The ALJ focused on Article IV, Section 3 of the Velda Rose CC&Rs, which empowers the Board to adopt rules for the common areas but explicitly states: "The Rules and Regulations may not discriminate among Owners and shall not be inconsistent with this Declaration, the Articles, or Bylaws." The ALJ determined that targeting the Petitioner's group for exclusion constituted a discriminatory application of these rules.

Important Quotes with Context

Quote Context
"The VRE BOD ruled 'to follow our CCR’s and Bylaws to restrict use of the clubhouse due to religious affiliation.' This violates VRE’s bylaws and CCR’s nondiscrimination clauses." Source: Petitioner’s Original Filing. This outlines the core grievance regarding the Board's decision on February 8, 2015.
"The sole purpose of the Stocking Project is 'to give children who have nothing at least one thing for Christmas.'" Source: Testimony of Ferne Skidmore. Ms. Skidmore emphasizes the charitable nature of the group to counter claims of religious proselytizing.
"The Board had prohibited the Christmas Stocking Project from utilizing the clubhouse… due to the Christmas Stocking Project’s 'religious affiliation.'" Source: Testimony of Darrell Walklin (Former Board President). This confirms the Board's specific intent and reasoning for the ban.
"The preponderance of the evidence established that the Board’s actions in excluding the Petitioner and the Stocking Project… was discriminatory in violation of Article IV, Section 3 of the CC&Rs." Source: ALJ Conclusions of Law. The final legal determination that the Association overstepped its authority and violated its governing documents.

Final Order and Outcomes

The Administrative Law Judge issued the following mandates in the Recommended Order, which was later certified as final:

Requirement Description
Prevailing Party Ferne Skidmore was officially deemed the prevailing party.
Future Compliance Velda Rose Estates must fully comply with all applicable provisions of its CC&Rs in the future.
Financial Restitution The Association was ordered to pay the Petitioner $550.00 to reimburse her filing fee within 30 days of the Order.
Civil Penalties The ALJ determined that no civil penalty was appropriate in this specific matter.

Actionable Insights for Homeowners Associations

  • Uniform Policy Application: Boards must ensure that rules regarding the use of common areas are applied consistently across all groups. If non-members are allowed in certain social activities (like shuffleboard), they cannot be used as a basis to exclude other groups.
  • Evidence-Based Definitions: Before banning an activity on religious grounds, associations should look to established legal definitions (e.g., whether the activity primarily promotes a belief in a deity) rather than personal interpretations of holiday-related events.
  • Documentation of Board Actions: The ALJ noted that the 2010 minutes did not show official action against the Stocking Project, despite Board claims. All restrictions on member rights should be clearly documented in meeting minutes.
  • Conflict Between Secular and Religious Activities: Maintaining religious symbols (Christmas trees) or practices (prayers) while simultaneously banning member groups for "religious affiliation" creates a high risk of successful discrimination claims.

Case Study Guide: Skidmore vs. Velda Rose Estates Homeowners Association

This study guide provides a comprehensive analysis of the administrative law case Ferne Skidmore vs. Velda Rose Estates Homeowners Association (No. 15F-H1515006-BFS). It covers the factual background, legal principles, and the final decision rendered by the Office of Administrative Hearings.

Case Overview

The case involves a dispute between a homeowner, Ferne Skidmore (Petitioner), and the Velda Rose Estates Homeowners Association (Respondent). The Petitioner alleged that the Association’s Board of Directors (BOD) violated the community’s Covenants, Conditions and Restrictions (CC&Rs) by discriminating against a charitable group, the "Stocking Project," by banning its use of the community clubhouse based on alleged religious affiliation.

Core Themes
  • Non-Discrimination: The application of HOA bylaws regarding the fair use of common areas.
  • Religious vs. Charitable Activity: The legal distinction between secular charitable work and religious promotion.
  • Board Authority: The limits of a Board’s power to adopt or enforce rules that contradict existing declarations or bylaws.
  • Administrative Procedure: The process by which Arizona homeowners can seek redress through the Department of Fire, Building and Life Safety.

Summary of Findings and Evidence

The Stocking Project

The "Stocking Project" (also referred to as the "Christmas Stocking Project") is a group that creates and fills holiday stockings with donated items—such as toothbrushes, toothpaste, and toys—for homeless and needy children. Testimony established that:

  • The project had operated out of the Velda Rose clubhouse for approximately six years.
  • The clubhouse served as a pick-up and drop-off point for materials and finished stockings.
  • While the group operated during the Christmas season, testimony from multiple witnesses (including Board members) stated the project had no religious affiliation and religion was never mentioned during its activities.
The Association's Position

The Board prohibited the group from using the clubhouse in 2015, citing several reasons:

  1. Religious Affiliation: The Board claimed the activity was religious and thus prohibited in the clubhouse.
  2. Financial Concerns: The Board alleged that monetary donations received by the project should have been processed through the Association's treasurer to protect its IRS non-profit status.
  3. Participation: The Board noted that many participants were non-members of the Association.
Contradictory Evidence

Evidence presented during the hearing undermined the Association's claims:

  • Inconsistency in Rules: The Board itself began sessions with prayer and decorated the clubhouse with Christmas trees, yet claimed the Stocking Project was "too religious."
  • Prior Usage: The clubhouse was regularly used for secular activities involving non-members, such as shuffleboard and card games where money prizes were awarded, without Board interference.
  • Lack of Documentation: Board members claimed the project had been banned as early as 2010, but official meeting minutes contained no record of such an action.

Legal Principles and Conclusions of Law

Standards of Proof
  • Burden of Proof: The party asserting the claim (Petitioner) bears the burden of proof.
  • Preponderance of the Evidence: The standard used is "more likely true than not." The Petitioner successfully met this burden.
Applicable Statutes and Bylaws
  • A.R.S. § 41-2198.01: Authorizes the Department of Fire, Building and Life Safety to hear petitions regarding violations of planned community documents.
  • Article IV, Section 3 (CC&Rs): Grants the Board power to adopt rules for common areas, provided those rules do not discriminate among owners and are not inconsistent with the Declaration or Bylaws.
  • Legal Definition of Religious Activity: Based on Rosenberger v. Rector & Visitors of the Univ. of Va., religious activity is defined as that which "primarily promotes or manifests a particular belief in or about a deity or an ultimate reality."
Final Decision

The Administrative Law Judge (ALJ) concluded that the Stocking Project was a secular charitable organization, not a religious one. Consequently, the Board’s decision to exclude the Petitioner and the group from the clubhouse was deemed discriminatory in violation of the Association’s CC&Rs.

Short-Answer Practice Questions

  1. Who is the Petitioner and who is the Respondent in this case?
  2. What specific group was at the center of the dispute, and what was its primary purpose?
  3. Which section of the Velda Rose CC&Rs did the Petitioner claim the Association violated?
  4. How does the case define "Preponderance of the Evidence"?
  5. What were the three main reasons provided by the Board for banning the Stocking Project?
  6. Why did the ALJ find the Board’s claim regarding "religious affiliation" to be inconsistent with the Board’s own practices?
  7. According to the CC&Rs, what is the limitation on the Board's power to adopt, amend, or repeal Rules and Regulations?
  8. What was the total amount of the filing fee the Respondent was ordered to pay the Petitioner?
  9. Which legal case was cited to define "Religious Activity"?
  10. What happens to an ALJ decision if the Department of Fire, Building and Life Safety takes no action within the statutory timeframe?

Essay Prompts for Deeper Exploration

  1. The Threshold of Discrimination: Analyze how the ALJ determined that the Association’s actions were discriminatory. In your response, contrast the Board's treatment of the Stocking Project with its treatment of other clubhouse activities like card games and shuffleboard.
  2. Charity vs. Religion in Private Communities: Discuss the legal challenges of distinguishing between secular charitable acts and religious activities within the context of a private homeowners association. Use the definition from Rosenberger v. Rector to support your argument.
  3. Board Governance and Transparency: Examine the importance of official documentation (such as meeting minutes) in administrative hearings. How did the lack of recorded Board action from 2010 affect the credibility of the Respondent's testimony?
  4. The Role of Administrative Oversight: Evaluate the process of seeking redress through the Department of Fire, Building and Life Safety versus traditional court systems. What are the benefits of this administrative path for homeowners as evidenced by this case?

Glossary of Important Terms

Term Definition
A.R.S. § 41-2198.01 The Arizona Revised Statute that allows homeowners or associations to file petitions regarding violations of community documents.
Administrative Law Judge (ALJ) A judge who over-sees hearings and makes recommended orders for government agencies.
Bylaws The rules adopted by an organization for its internal administration and management.
CC&Rs Covenants, Conditions, and Restrictions; the governing documents that dictate the rules for a planned community.
Certification of Decision The process by which an ALJ decision becomes the final administrative action, often due to the passing of a statutory deadline for agency review.
Common Area Areas within a development (like a clubhouse) that are owned and used by all members of the association.
Non-Secular Relating to religious or spiritual matters (used in the petition to describe the group the Petitioner argued was being discriminated against).
Preponderance of the Evidence A legal standard of proof meaning that a claim is more likely to be true than not true.
Prevailing Party The party in a lawsuit or administrative hearing that wins the case.
Religious Activity Activity that primarily promotes or manifests a belief in a deity or ultimate reality.
Secular Denoting attitudes, activities, or other things that have no religious or spiritual basis.

The Case of the Christmas Stocking Project: A Victory for Homeowner Rights

1. Introduction: A Conflict Between Charity and Compliance

At Velda Rose Estates in Mesa, Arizona, a long-standing tradition of neighborly charity recently became the center of a landmark legal battle over homeowner rights and the limits of board authority. For years, a dedicated group of residents gathered to create and fill Christmas stockings for children in need. However, in early 2015, the Velda Rose Estates Homeowners Association (HOA) Board of Directors abruptly banned the group from the community clubhouse.

The Board's justification—a purported "religious affiliation"—led to a striking narrative irony: a secular group of "old ladies" was barred from their own community space on religious grounds, eventually forcing them to seek refuge in a local church hall to continue their work. This conflict led resident Ferne Skidmore to file a formal petition, sparking a legal inquiry into whether an HOA can selectively use "compliance" as a tool for discrimination.

2. The Heart of the Project: What was the "Stocking Project"?

According to the credible testimony of Ferne Skidmore and fellow resident Brodie Poole, the "Stocking Project"—frequently referred to as the "Christmas Stocking Project"—was a strictly volunteer, secular effort focused on local philanthropy.

  • Charitable Mission: The group created and filled stockings for homeless children with essential hygiene items and small gifts, including toothbrushes, toothpaste, and toys.
  • A Staple of the Community: The project had operated within the Velda Rose clubhouse for six years before the Board intervened.
  • A Secular Purpose: Despite the "Christmas" moniker, the Administrative Law Judge (ALJ) found the group’s witnesses to be highly credible in their assertion that the project was non-religious. As Ms. Skidmore testified, the sole purpose was "to give children who have nothing at least one thing for Christmas."

In a poignant turn of events highlighted during the hearing, witness Gwendolyn Krogstad—whom the Judge also found credible—testified that the Board’s ban forced this secular charitable group to relocate its operations to a hall owned by a local church.

3. The Board’s Defense: Justifying the Ban

The Velda Rose Estates Board, represented primarily through the testimony of former president Darrell Walklin and then-current president Roger A. Walklin, defended the exclusion by citing three primary concerns:

  1. Religious Affiliation
  • The Board claimed the project’s name and association with Christmas constituted a prohibited religious activity.
  • President Roger A. Walklin argued that the ban was necessary to avoid potential liability stemming from groups related to religious organizations.
  1. Financial Management
  • Darrell Walklin alleged that the project collected money that should have been processed through the HOA Treasurer to protect the association’s non-profit status.
  • While Mr. Walklin claimed he heard the group received up to $500, the Judge favored Ms. Skidmore’s credible testimony that the group received only $250 in donations over three years, all of which went toward supplies.
  1. Non-Member Participation
  • The Board alleged the group consisted primarily of non-residents, which they argued violated clubhouse usage policies.

Notably, Roger A. Walklin claimed the group had been banned since 2010, yet he was forced to acknowledge that the 2010 Board minutes contained no record of such an action.

4. Challenging the Narrative: Inconsistency and "Religious Activity"

The legal challenge hinged on the Board’s inconsistent application of its own rules. While the Board targeted the Stocking Project for "religious" and "non-member" issues, their own practices suggested a double standard.

Consistency Check

HOA Claim/Restriction Observed Reality/Board Practice
Religious activities are prohibited in the clubhouse. The Board begins its own sessions with a formal prayer.
The Stocking Project is a prohibited religious activity. The Board decorates the clubhouse with Christmas trees and lights annually.
Use is restricted due to non-member participation. The Board allows shuffleboard and card games where non-members participate without restriction.
Use is restricted because money (donations) is involved. The Board permits card games in which money prizes are awarded to players.

To adjudicate the "religious" claim, the ALJ applied the standard from Rosenberger v. Rector & Visitors of the Univ. of Va., which defines religious activity as an effort that "primarily promotes or manifests a particular belief in or about a deity or an ultimate reality." The ALJ found that the Stocking Project’s gift-giving did not meet this threshold; it was a secular charity, not a religious ministry.

5. The Legal Verdict: Why the HOA Lost

The ALJ’s Conclusions of Law provided a stern reminder that Board power is tethered to its governing documents. The HOA lost primarily because its actions were found to be discriminatory.

  • The Non-Discrimination Mandate: The Judge cited Article IV, Section 3 of the Velda Rose Bylaws. While the Board has the power to adopt rules, the Bylaws explicitly state that such rules "may not discriminate among Owners."
  • Selective Enforcement: Because the Board allowed other activities involving non-members and money (like card games), they could not legally single out the Stocking Project for the same factors.
  • The Recommended Order: Finding the Petitioner’s witnesses credible and the Board’s arguments inconsistent, the Judge ordered the HOA to:
  1. Comply with the non-discrimination provisions of the CC&Rs in all future dealings.
  2. Reimburse Ms. Skidmore for her $550 filing fee within 30 days.
6. Key Takeaways for HOA Members and Boards

This case serves as a vital precedent for community governance in Arizona, offering several critical lessons:

  1. The Burden of Proof: In administrative hearings, the petitioner must prove their case by a preponderance of the evidence. Ms. Skidmore succeeded because her credible testimony made her claims "more likely true than not."
  2. Non-Discrimination is Non-Negotiable: Boards cannot selectively enforce rules. If a clubhouse is open to secular groups that include non-residents, the Board cannot ban another secular group simply because they dislike the nature of the charity.
  3. Defining Religious vs. Charitable: Legally, "religious activity" requires the promotion of a deity. General acts of kindness or holiday-themed charity do not automatically qualify as religious, and Boards should be wary of using this label to exclude residents.
  4. Administrative Recourse: Arizona homeowners have a specialized venue for justice. The Department of Fire, Building and Life Safety provides an accessible path to dispute CC&R violations through the Office of Administrative Hearings, avoiding the high costs of Superior Court.
7. Conclusion: The Final Certification

On October 28, 2015, the decision was officially certified as the final administrative action. Because the Department did not reject or modify the ALJ's findings, the ruling became a binding victory for homeowner rights.

The Case of the Christmas Stocking Project underscores a fundamental principle of community living: the Board’s duty to govern is not a license to discriminate. When the spirit of community service is met with arbitrary barriers, the law provides a clear mechanism to ensure that fairness and the community’s own bylaws prevail.

Case Participants

Petitioner Side

  • Ferne Skidmore (Petitioner)
    Velda Rose Estates Homeowners Association (Member)
    Homeowner; organizer of the Stocking Project
  • Jonathan A. Dessaules (Attorney)
    Dessaules Law Group
    Represented Petitioner
  • F. Robert Connelly (Attorney)
    Dessaules Law Group
    Listed on service list for Petitioner

Respondent Side

  • Clint G. Goodman (Attorney)
    Goodman Law Office, P.C.
    Represented Respondent
  • Brodie Poole (Witness)
    Velda Rose Estates Homeowners Association
    Board Member since January 2015; testified Stocking Project had no religious affiliation
  • Gwendolyn Krogstad (Witness)
    Velda Rose Estates Homeowners Association
    Board Member since January 2015
  • Darrell Walklin (Witness)
    Velda Rose Estates Homeowners Association
    Former Board President
  • Gloria Denesen (Witness)
    Velda Rose Estates Homeowners Association
    Board Treasurer
  • Roger A. Walklin (Witness)
    Velda Rose Estates Homeowners Association
    Board President (appointed/elected 2013)

Neutral Parties

  • M. Douglas (ALJ)
    Office of Administrative Hearings
    Administrative Law Judge
  • Debra Blake (Agency Director)
    Department of Fire, Building and Life Safety
    Interim Director
  • Greg Hanchett (Agency Director)
    Office of Administrative Hearings
    Interim Director; certified the decision
  • Joni Cage (Agency Staff)
    Department of Fire, Building and Life Safety
    c/o for Debra Blake
  • Rosella J. Rodriguez (Clerk)
    Office of Administrative Hearings
    Mailed/faxed the decision