**Case Summary: Babington vs. Park Scottsdale II Townhouse HOA**
**Case No:** 13F-H1313004-BFS
**Forum:** Arizona Office of Administrative Hearings
**Date of Hearing:** March 10, 2014

**Overview and Proceedings**
Petitioner Nancy L. Babington filed a petition against Respondent Park Scottsdale II Townhouse HOA ("Park"), alleging violations of state statutes regarding homeowners' association meetings. The hearing took place before Administrative Law Judge M. Douglas, with the Petitioner appearing on her own behalf and the Respondent represented by legal counsel.

**Key Arguments and Facts**
The central issue was whether Park violated A.R.S. § 33-1248(B) by failing to hold required annual meetings.

* **Petitioner’s Position:** Ms. Babington argued that the association had not held an annual meeting or board election since 2009. She testified that the current Board consisted of individuals who were either never elected or whose terms had expired, and that repeated attempts to force a meeting had been ignored.
* **Respondent’s Position:** Park admitted in its Amended Answer that it did not hold annual meetings in 2010, 2011, 2012, or 2013. A Board member testified that the Board "chose not to have annual meetings" due to the association's poor financial situation. The Respondent noted an attempt to hold a meeting in 2014 failed due to a lack of quorum and stated that the Board currently only held executive sessions.

**Legal Findings**
The Administrative Law Judge (ALJ) relied on A.R.S. § 33-1248(B), which mandates that a "meeting of the unit owners' association shall be held at least once each year" regardless of provisions in condominium documents.

The ALJ found the Petitioner met the burden of proof by a preponderance of the evidence. The tribunal concluded that Park violated A.R.S. § 33-1248(B) by failing to hold annual meetings for five consecutive years (2010 through 2014).

**Final Decision and Order**
The ALJ ruled in favor of the Petitioner and issued the following orders:
1. **Compliance:** Park was ordered to comply with A.R.S. § 33-1248(B) and schedule an annual meeting within 60 days of the order's effective date.
2. **Restitution:** Park was ordered to reimburse the Petitioner’s filing fee of $550.00 within 30 days.
3. **Civil Penalty:** Park was assessed a $200.00 civil penalty payable to the Department of Fire, Building and Life Safety.

**Certification**
Because the Department of Fire, Building and Life Safety took no action to accept, reject, or modify the decision within the statutory timeframe, the ALJ’s decision was certified as the final administrative decision on April 18, 2014.