Aaron J Gragg v. Anthem Parkside at Merrill Ranch Community

Posted on November 1, 2021 by [email protected]

Case Summary

Case ID	21F-H2121042-REL
Agency	ADRE
Tribunal	OAH
Decision Date	2021-11-01
Administrative Law Judge	Sondra J. Vanella
Outcome	none
Filing Fees Refunded	$0.00
Civil Penalties	$0.00

Parties & Counsel

Petitioner	Aaron J. Gragg	Counsel	—
Respondent	Anthem Parkside at Merrill Ranch Community Association, Inc.	Counsel	Curtis Ekmark, Esq.

Alleged Violations

CC&R Article 12.4(a)
A.R.S. § 33-1803
A.R.S. § 33-1805
CC&R 2.4(a)

Outcome Summary

The Petitioner's Petition, alleging four separate violations of Arizona statutes and CC&Rs (regarding ADR procedures, fraudulent violation assessment, failure to produce documents, and selective enforcement), was denied as the Petitioner failed to prove any of the alleged violations by a preponderance of the evidence.

Why this result: Petitioner failed to meet the burden of proving by a preponderance of the evidence that the Respondent violated A.R.S. § 33-1803, A.R.S. § 33-1805, or CC&R sections 2.4(a) and 12.4(a).

Key Issues & Findings

Refusal to participate in Alternate Dispute Resolution (ADR)

Petitioner alleged Respondent failed to comply with CC&R Article 12.4(a) regarding ADR. The ALJ found that CC&R Article 12.4(a) excluded proceedings initiated by the Association to enforce architectural, design, and landscape controls from mandatory arbitration.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

CC&Rs Section 12.4(a)

Fraudulent assessment of violations

Petitioner alleged Respondent assessed violations without observation. Evidence showed Petitioner’s landscape violations were observed during routine inspections by the Community Standards Administrator.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

A.R.S. § 33-1803

Failure to produce documents

Petitioner requested documents establishing design review requirements and enforcement authority. The ALJ found Petitioner’s requests were actually legal questions posed to Respondent regarding the CC&Rs, not requests for specific documents or records.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

A.R.S. § 33-1805

Selective Enforcement / Similar Treatment

Petitioner alleged selective enforcement because he was required to provide a photograph to prove compliance. The ALJ found Respondent has required photographic verification from other similarly situated non-compliant homeowners since 2010.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

CC&R Section 2.4(a)

Analytics Highlights

Topics: HOA enforcement, Landscaping violation, Alternative Dispute Resolution, Selective Enforcement, Document Request

Additional Citations:

A.R.S. § 33-1803
A.R.S. § 33-1805
A.R.S. § 32-2199 et seq.
A.A.C. R2-19-119
CC&Rs Section 12.4(a)
CC&R Section 2.4(a)

Video Overview

Audio Overview

Decision Documents

21F-H2121042-REL Decision – 921903.pdf

Uploaded 2026-01-23T17:37:23 (123.1 KB)

Questions

Question

Can I use a records request to force the HOA to explain their legal authority or justification for fines?

Short Answer

No. A records request must be for existing documents, not a method to pose legal questions to the HOA.

Detailed Answer

The ALJ ruled that requests asking for 'evidence… supporting justification' or the 'location of explicit CC&Rs' are actually interrogatories (questions) rather than requests for existing records. The HOA is not required to create new documents to answer legal questions under the guise of a records request.

Alj Quote

Petitioner’s request was not for documents or records, but rather for answers to legal questions.

Legal Basis

A.R.S. § 33-1805

Topic Tags

records request
legal authority
HOA obligations

Question

Can the HOA require me to submit photos proving I fixed a violation?

Short Answer

Yes, particularly if there is a history of non-compliance.

Detailed Answer

The decision found it reasonable for an HOA to require a homeowner to submit photographic evidence to close a violation file, especially when the homeowner had failed to comply for an extended period. This requirement does not necessarily constitute unequal treatment.

Alj Quote

Respondent has requested of homeowners that have not been in compliance with the Landscape Design Guidelines, to submit photographic evidence when in compliance, in order prove such compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

violations
compliance
evidence

Question

Is it discrimination if the HOA asks me for proof of compliance but doesn't ask my neighbors?

Short Answer

Not if you are in a different situation (e.g., non-compliant) than your neighbors.

Detailed Answer

The ALJ determined that homeowners who are not in compliance are not 'similarly situated' to those who completed their obligations on time. Therefore, the HOA can impose different requirements (like submitting photos) on non-compliant owners without violating equal treatment clauses.

Alj Quote

This request is no different than those requests made by Respondent in the past of similarly situated homeowners, i.e., those not in compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

discrimination
selective enforcement
equal treatment

Question

Who has the burden of proof in a hearing against the HOA?

Short Answer

The homeowner (Petitioner) must prove the HOA violated the law or CC&Rs.

Detailed Answer

The homeowner bears the burden of proving their allegations by a 'preponderance of the evidence,' which means showing that the fact sought to be proved is more probable than not.

Alj Quote

Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1803, A.R.S. § 33-1805, and CC&Rs sections 2.4(a) and 12.4(a).

Legal Basis

A.A.C. R2-19-119

Topic Tags

hearing process
burden of proof
legal standards

Question

Does the HOA have to prove they physically saw a violation?

Short Answer

Yes, but testimony regarding routine inspections is sufficient proof.

Detailed Answer

The homeowner alleged the HOA assessed violations that were not observed. However, the ALJ accepted credible testimony from the Community Standards Administrator that the violations were observed during routine inspections as sufficient proof.

Alj Quote

The credible evidence of record established that Petitioner’s landscape violations were observed during routine inspections by the Community Standards Administrator.

Legal Basis

A.R.S. § 33-1803

Topic Tags

violations
inspections
evidence

Question

Can I sue the HOA for refusing Alternative Dispute Resolution (ADR) if I didn't try to arbitrate?

Short Answer

No. If you skip the arbitration process required by the CC&Rs, you cannot claim the HOA refused ADR.

Detailed Answer

The homeowner claimed the HOA refused ADR procedures. However, the ALJ found that because the homeowner filed a petition with the Department instead of submitting the dispute to binding arbitration as required by the CC&Rs, the claim was invalid.

Alj Quote

Petitioner did not submit the dispute to final and binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, choosing instead to file a Petition with the Department.

Legal Basis

CC&R Section 12.4(a)

Topic Tags

ADR
arbitration
dispute resolution

Case

Docket No: 21F-H2121042-REL
Case Title: Aaron J. Gragg v. Anthem Parkside at Merrill Ranch Community Association, Inc.
Decision Date: 2021-11-01
Alj Name: Sondra J. Vanella
Tribunal: OAH
Agency: ADRE

Questions

Question

Can I use a records request to force the HOA to explain their legal authority or justification for fines?

Short Answer

No. A records request must be for existing documents, not a method to pose legal questions to the HOA.

Detailed Answer

Alj Quote

Petitioner’s request was not for documents or records, but rather for answers to legal questions.

Legal Basis

A.R.S. § 33-1805

Topic Tags

records request
legal authority
HOA obligations

Question

Can the HOA require me to submit photos proving I fixed a violation?

Short Answer

Yes, particularly if there is a history of non-compliance.

Detailed Answer

Alj Quote

Respondent has requested of homeowners that have not been in compliance with the Landscape Design Guidelines, to submit photographic evidence when in compliance, in order prove such compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

violations
compliance
evidence

Question

Is it discrimination if the HOA asks me for proof of compliance but doesn't ask my neighbors?

Short Answer

Not if you are in a different situation (e.g., non-compliant) than your neighbors.

Detailed Answer

Alj Quote

This request is no different than those requests made by Respondent in the past of similarly situated homeowners, i.e., those not in compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

discrimination
selective enforcement
equal treatment

Question

Who has the burden of proof in a hearing against the HOA?

Short Answer

The homeowner (Petitioner) must prove the HOA violated the law or CC&Rs.

Detailed Answer

The homeowner bears the burden of proving their allegations by a 'preponderance of the evidence,' which means showing that the fact sought to be proved is more probable than not.

Alj Quote

Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1803, A.R.S. § 33-1805, and CC&Rs sections 2.4(a) and 12.4(a).

Legal Basis

A.A.C. R2-19-119

Topic Tags

hearing process
burden of proof
legal standards

Question

Does the HOA have to prove they physically saw a violation?

Short Answer

Yes, but testimony regarding routine inspections is sufficient proof.

Detailed Answer

Alj Quote

The credible evidence of record established that Petitioner’s landscape violations were observed during routine inspections by the Community Standards Administrator.

Legal Basis

A.R.S. § 33-1803

Topic Tags

violations
inspections
evidence

Question

Can I sue the HOA for refusing Alternative Dispute Resolution (ADR) if I didn't try to arbitrate?

Short Answer

No. If you skip the arbitration process required by the CC&Rs, you cannot claim the HOA refused ADR.

Detailed Answer

Alj Quote

Legal Basis

CC&R Section 12.4(a)

Topic Tags

ADR
arbitration
dispute resolution

Case

Docket No: 21F-H2121042-REL
Case Title: Aaron J. Gragg v. Anthem Parkside at Merrill Ranch Community Association, Inc.
Decision Date: 2021-11-01
Alj Name: Sondra J. Vanella
Tribunal: OAH
Agency: ADRE

Case Participants

Petitioner Side

Aaron J. Gragg (petitioner)
Appeared on his own behalf

Respondent Side

Curtis Ekmark (HOA attorney)
CARPENTER HAZLEWOOD DELGADO & WOOD, PLC
Represented Respondent
Michelle Haney (community manager)
Appeared as witness for Respondent

Neutral Parties

Sondra J. Vanella (ALJ)
Louis Dettorre (Commissioner)
Arizona Department of Real Estate
AHansen (ADRE staff)
Arizona Department of Real Estate
Recipient of transmittal
djones (ADRE staff)
Arizona Department of Real Estate
Recipient of transmittal
DGardner (ADRE staff)
Arizona Department of Real Estate
Recipient of transmittal

John Sellers vs. Grayhawk Community Association

Posted on February 21, 2017 by [email protected]

Case Summary

Case ID	17F-H1716016-REL
Agency	ADRE
Tribunal	OAH
Decision Date	2017-02-21
Administrative Law Judge	Suzanne Marwil
Outcome	none
Filing Fees Refunded	$500.00
Civil Penalties	$0.00

Parties & Counsel

Petitioner	John Sellers	Counsel	—
Respondent	Grayhawk Community Association	Counsel	Curtis Ekmark, Esq.

Alleged Violations

A.R.S. § 33-1805(A)

Outcome Summary

The Petitioner's petition was denied. The Administrative Law Judge concluded that Petitioner failed to meet the burden of proof showing Respondent restricted electronic access to the bank account, and the issue was moot since the bank closed the account. Respondent complied with the statutory requirement to make records reasonably available.

Why this result: Petitioner failed to meet the burden of proof; lack of evidence that Respondent restricted access; issue was moot due to account closure; Respondent complied with A.R.S. § 33-1805(A) by offering paper copies of documents.

Key Issues & Findings

Wrongful denial of electronic access to the bank account's electronic information

Petitioner alleged Respondent unilaterally restricted his access to online, view-only bank account information and refused to restore access by November 25, 2016, in violation of A.R.S. § 33-1805(A).

Orders: Petition denied.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

A.R.S. § 33-1805(A)
A.R.S. § 32-2199 et seq.
A.R.S. §§ 32-2199.01(D)
32-2199.02
A.A.C. R2-19-119(B)
A.A.C. R2-19-119(A)

Analytics Highlights

Topics: Records Access, HOA Records, Mootness, Burden of Proof

Additional Citations:

A.R.S. § 33-1805(A)
A.R.S. § 32-2199 et seq.
A.R.S. §§ 32-2199.01(D)
32-2199.02
A.A.C. R2-19-119(B)
A.A.C. R2-19-119(A)

Audio Overview

Decision Documents

17F-H1716016-REL Decision – 546761.pdf

Uploaded 2025-10-08T07:01:12 (61.1 KB)

17F-H1716016-REL Decision – 552261.pdf

Uploaded 2025-10-08T07:01:13 (553.3 KB)

Briefing Doc – 17F-H1716016-REL

Administrative Hearing Briefing: Sellers vs. Grayhawk Community Association

Executive Summary

This document synthesizes the findings and rulings in the administrative case of John Sellers (Petitioner) versus the Grayhawk Community Association (Respondent), adjudicated by the Arizona Office of Administrative Hearings and finalized by the Department of Real Estate. The core of the dispute was the Petitioner’s claim that the Respondent unlawfully restricted his electronic, view-only access to a bank account in violation of Arizona Revised Statutes (A.R.S.) § 33-1805(A).

The Administrative Law Judge (ALJ) denied the petition, concluding that the Petitioner failed to meet his burden of proof. The evidence showed the Respondent initially provided the requested electronic access, which the Petitioner successfully used before changing the password. The Petitioner offered no evidence that the Respondent subsequently interfered with or restricted this access. Furthermore, the issue was rendered moot when the bank in question closed the account. The ALJ affirmed that the Respondent’s offer to provide paper records satisfied the statutory requirement to make records “reasonably available.” This decision was subsequently adopted as a Final Order by the Commissioner of the Department of Real Estate.

Case Overview

Details

Case Name

John Sellers, Petitioner, vs. Grayhawk Community Association, Respondent.

Case Numbers

Docket No. 17F-H1716016-REL; Case No. HO 17-16/016

Adjudicating Body

Arizona Office of Administrative Hearings

Administrative Law Judge

Suzanne Marwil

Hearing Date

February 16, 2017

ALJ Decision Date

February 21, 2017

Final Order Date

March 3, 2017

Final Order Issued By

Judy Lowe, Commissioner, Department of Real Estate

The Core Dispute

Petitioner’s Position

John Sellers alleged that after he requested and received view-only access to the Association’s Alliance Association Bank account, the Respondent unilaterally restricted that access. He claimed the Respondent’s failure to restore access by his deadline of the close of business on November 25, 2016, constituted a violation of A.R.S. § 33-1805(A), which governs a member’s right to examine association records. The petition, for which a $500 fee was paid, was specifically focused on this single issue.

Respondent’s Position

The Grayhawk Community Association argued that it had gone beyond its statutory obligations by arranging for the bank to create a new online password specifically for the Petitioner. They maintained that after providing this access, they did not interfere with or restrict it in any way. They contended that the Petitioner’s subsequent inability to access the account was due to unknown reasons. The Respondent noted that the bank closed the account on November 28, 2016, making any form of electronic access permanently unavailable and rendering the issue moot. They also offered to provide paper copies of the relevant bank records.

Chronology of Key Events

• October 18, 2016: Petitioner John Sellers requests, among other items, an electronic, read-only password for the Respondent’s Alliance Association Bank account.

• November 2, 2016: The Respondent notifies the Petitioner that such a password did not exist at the time of the request.

• November 16, 2016: After requesting the bank create a password, the Respondent forwards the new login information to the Petitioner.

• Post-November 16, 2016: The Petitioner successfully logs into the bank account using the provided information and changes the password.

• Thanksgiving Day (November 24, 2016): The Petitioner attempts to log in again but “could not see anything.” Based on the assumption that the Respondent had restricted his access, he emails community manager Michael Fee.

• Thanksgiving Day Demand: In his email, the Petitioner sets a deadline for the Respondent to restore his access by the end of the business day on Friday, November 25, 2016, threatening to file a petition if the deadline is not met. Mr. Fee replies that he will contact the bank.

• November 28, 2016: Having not heard further from the Respondent, the Petitioner files the petition in this matter.

• November 28, 2016: On the same day, the Respondent informs the Petitioner that they do not know the reason for the lack of access and denies that anyone affiliated with the association interfered. It is also on this date that Alliance Association Bank closes the account in question.

Analysis of the Administrative Law Judge’s Decision

The ALJ’s decision was based on a hearing held on February 16, 2017. The ruling systematically dismantled the Petitioner’s case based on the evidence presented.

Burden and Standard of Proof

• Pursuant to Arizona Administrative Code (A.A.C.) R2-19-119(B), the Petitioner held the burden of proof.

• The required standard of proof was a preponderance of the evidence, meaning the Petitioner had to show it was more likely than not that his claim was true.

Key Findings of Fact

1. Access Was Provided: It was undisputed that the Respondent provided the Petitioner with login information and that this information initially worked, enabling him to access the account.

2. Petitioner Changed Password: After gaining access, the Petitioner changed the password.

3. No Evidence of Interference: The Petitioner offered “no evidence that Respondent took any action to deny Petitioner online access.” His belief that access was restricted was a “unilateral assumption.” The record did not establish why the new password failed to work on Thanksgiving Day.

4. Issue Rendered Moot: The undisputed closure of the bank account by the bank on November 28, 2016, made the request for electronic access moot, as such access was no longer available to anyone.

Key Conclusions of Law

1. Failure to Meet Burden of Proof: The ALJ concluded that the “Petitioner has failed to meet his burden of proof.” The record was “devoid of any evidence” that the Respondent denied the requested information or took any action to restrict access.

2. Compliance with A.R.S. § 33-1805(A): The statute requires that association records “be made reasonably available for examination.” The ALJ found that the Respondent complied with the statute by initially providing electronic access and later offering to “furnish the Petitioner paper copies of documents it possessed related to that bank account.”

3. Electronic vs. Paper Access: The Petitioner’s argument that paper access is inferior to electronic access was dismissed as a “policy argument that should be addressed to the Legislature.” The plain language of the existing statute does not mandate a specific format for record examination.

Final Order and Outcome

On March 3, 2017, the Commissioner of the Department of Real Estate issued a Final Order, which fully adopted the ALJ’s decision.

• Petition Denied: The Commissioner accepted the ALJ’s decision that the petition be denied.

• Future Compliance Directive: The order stated, “The Commissioner accepts the Recommended Order that Respondent shall comply with the applicable provisions of Arizona Revised Statutes (‘A.R.S.’) § 33-1804 (A) in the future.”

• Binding Decision: The order became a final administrative action, effective immediately and binding on the parties.

• Rehearing and Appeal Process: Parties were notified that a motion for rehearing or review could be filed within 30 days. A request for rehearing should be addressed to Abby Hansen, 2910 N. 44th Street, Suite 100, Phoenix, Arizona, 85018. The order could also be appealed via a complaint for judicial review.

John Sellers vs. Grayhawk Community Association

Posted on February 21, 2017 by [email protected]

Case Summary

Case ID	17F-H1716016-REL
Agency	ADRE
Tribunal	OAH
Decision Date	2017-02-21
Administrative Law Judge	Suzanne Marwil
Outcome	none
Filing Fees Refunded	$500.00
Civil Penalties	$0.00

Parties & Counsel

Petitioner	John Sellers	Counsel	—
Respondent	Grayhawk Community Association	Counsel	Curtis Ekmark, Esq.

Alleged Violations

A.R.S. § 33-1805(A)

Outcome Summary

Key Issues & Findings

Wrongful denial of electronic access to the bank account's electronic information

Orders: Petition denied.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

A.R.S. § 33-1805(A)
A.R.S. § 32-2199 et seq.
A.R.S. §§ 32-2199.01(D)
32-2199.02
A.A.C. R2-19-119(B)
A.A.C. R2-19-119(A)

Analytics Highlights

Topics: Records Access, HOA Records, Mootness, Burden of Proof

Additional Citations:

A.R.S. § 33-1805(A)
A.R.S. § 32-2199 et seq.
A.R.S. §§ 32-2199.01(D)
32-2199.02
A.A.C. R2-19-119(B)
A.A.C. R2-19-119(A)

Video Overview

Audio Overview

Decision Documents

17F-H1716016-REL Decision – 546761.pdf

Uploaded 2025-10-09T03:31:08 (61.1 KB)

17F-H1716016-REL Decision – 552261.pdf

Uploaded 2025-10-09T03:31:08 (553.3 KB)

Briefing Doc – 17F-H1716016-REL

Administrative Hearing Briefing: Sellers vs. Grayhawk Community Association

Executive Summary

Case Overview

Details

Case Name

John Sellers, Petitioner, vs. Grayhawk Community Association, Respondent.

Case Numbers

Docket No. 17F-H1716016-REL; Case No. HO 17-16/016

Adjudicating Body

Arizona Office of Administrative Hearings

Administrative Law Judge

Suzanne Marwil

Hearing Date

February 16, 2017

ALJ Decision Date

February 21, 2017

Final Order Date

March 3, 2017

Final Order Issued By

Judy Lowe, Commissioner, Department of Real Estate

The Core Dispute

Petitioner’s Position

Respondent’s Position

Chronology of Key Events

• October 18, 2016: Petitioner John Sellers requests, among other items, an electronic, read-only password for the Respondent’s Alliance Association Bank account.

• November 2, 2016: The Respondent notifies the Petitioner that such a password did not exist at the time of the request.

• November 16, 2016: After requesting the bank create a password, the Respondent forwards the new login information to the Petitioner.

• Post-November 16, 2016: The Petitioner successfully logs into the bank account using the provided information and changes the password.

• November 28, 2016: Having not heard further from the Respondent, the Petitioner files the petition in this matter.

Analysis of the Administrative Law Judge’s Decision

The ALJ’s decision was based on a hearing held on February 16, 2017. The ruling systematically dismantled the Petitioner’s case based on the evidence presented.

Burden and Standard of Proof

• Pursuant to Arizona Administrative Code (A.A.C.) R2-19-119(B), the Petitioner held the burden of proof.

• The required standard of proof was a preponderance of the evidence, meaning the Petitioner had to show it was more likely than not that his claim was true.

Key Findings of Fact

1. Access Was Provided: It was undisputed that the Respondent provided the Petitioner with login information and that this information initially worked, enabling him to access the account.

2. Petitioner Changed Password: After gaining access, the Petitioner changed the password.

4. Issue Rendered Moot: The undisputed closure of the bank account by the bank on November 28, 2016, made the request for electronic access moot, as such access was no longer available to anyone.

Key Conclusions of Law

Final Order and Outcome

On March 3, 2017, the Commissioner of the Department of Real Estate issued a Final Order, which fully adopted the ALJ’s decision.

• Petition Denied: The Commissioner accepted the ALJ’s decision that the petition be denied.

• Binding Decision: The order became a final administrative action, effective immediately and binding on the parties.

Study Guide – 17F-H1716016-REL

Study Guide: Sellers v. Grayhawk Community Association

This guide provides a comprehensive review of the administrative legal case No. 17F-H1716016-REL, John Sellers v. Grayhawk Community Association, based on the Administrative Law Judge Decision and the subsequent Final Order from the Department of Real Estate.

Short-Answer Quiz

Answer the following questions in two to three sentences, based on the information provided in the case documents.

1. Identify the primary parties involved in this case and state their respective roles.

2. What was the central accusation made by the Petitioner against the Respondent?

3. According to the Respondent’s argument, what actions did it take in response to the Petitioner’s initial request for electronic bank records?

4. What specific event occurred on Thanksgiving Day that directly prompted the Petitioner to file his petition?

5. What was the required standard of proof in this hearing, and which party was assigned the burden of meeting it?

6. Which specific Arizona Revised Statute (A.R.S.) did the Petitioner allege the Respondent had violated?

7. Summarize the primary reason the Administrative Law Judge found that the Petitioner failed to meet his burden of proof.

8. Why did the Administrative Law Judge determine that the issue of electronic access had become moot?

9. What was the final decision issued by the Administrative Law Judge, and was it accepted by the Commissioner of the Department of Real Estate?

10. How did the Administrative Law Judge address the Petitioner’s argument that paper records are an inferior substitute for electronic access?

——————————————————————————–

Answer Key

1. The primary parties were John Sellers, who served as the Petitioner, and the Grayhawk Community Association, which was the Respondent. The Petitioner, Mr. Sellers, brought the complaint, and the Respondent, Grayhawk Community Association, was the party accused of wrongdoing.

2. The Petitioner accused the Respondent of violating A.R.S. § 33-1805(A) by unilaterally restricting his online, view-only access to a bank account. He claimed they wrongfully denied him this access and failed to restore it by his deadline of November 25, 2016.

3. The Respondent argued it went beyond its statutory obligation by requesting that Alliance Association Bank create an online, view-only password specifically for the Petitioner, as one did not previously exist. The Respondent then forwarded this new login information to the Petitioner on November 16, 2016.

4. On Thanksgiving Day, the Petitioner attempted to log on to the bank account but could not see anything. Based on the assumption that the Respondent had restricted his access, he emailed the community manager and set a deadline for the next business day, which ultimately led to him filing the petition when access was not restored.

5. The standard of proof required was a “preponderance of the evidence.” Pursuant to A.A.C. R2-19-119(B), the Petitioner, John Sellers, had the burden of proof in this matter.

6. The Petitioner alleged that the Respondent had violated A.R.S. § 33-1805(A). This statute requires that all financial and other records of an association be made reasonably available for examination by any member.

7. The Judge found that the Petitioner offered no proof that the Respondent took any action to restrict or interfere with his access to the bank account. The record showed the Respondent provided the initial access, and it was not established why the Petitioner’s new password later failed to work.

8. The issue of electronic access was deemed moot for two reasons. First, the bank closed the account in question on November 28, 2016, making electronic access impossible. Second, the Respondent had offered to furnish the Petitioner with paper copies of the documents it possessed related to that account.

9. The Administrative Law Judge ordered that the Petitioner’s petition be denied. The Commissioner of the Department of Real Estate accepted this recommended decision and issued a Final Order denying the petition.

10. The Judge characterized the Petitioner’s argument as a policy argument that should be addressed to the Legislature, not the court. The Judge stated that the plain language of the statute only requires records to be made “reasonably available,” and concluded the Respondent complied with the law by offering paper copies.

——————————————————————————–

Essay Questions

Construct detailed, essay-format responses to the following prompts. Do not provide answers.

1. Analyze the timeline of events from October 18, 2016, to November 28, 2016. How did the Petitioner’s actions, particularly his assumptions and deadlines, impact the outcome of the case as determined by the Administrative Law Judge?

2. Discuss the concept of “burden of proof” as it applies to this case. Explain why the Petitioner, John Sellers, failed to meet the standard of “preponderance of the evidence” according to the Administrative Law Judge’s findings.

3. Examine the Administrative Law Judge’s interpretation of A.R.S. § 33-1805(A). How does the judge’s distinction between “reasonably available” records and the specific format of access (electronic vs. paper) form the core of the legal conclusion?

4. The Respondent argued it went “beyond its statutory obligation.” Based on the facts presented in the decision, construct an argument either supporting or refuting this claim.

5. Explain the concept of “mootness” in the context of this legal dispute. How did the closure of the Alliance Association Bank account on November 28, 2016, render the central issue of the petition moot?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

A judge who presides over hearings at an administrative agency. In this case, Suzanne Marwil presided for the Office of Administrative Hearings.

A.A.C.

An abbreviation for the Arizona Administrative Code, which is the official compilation of rules and regulations of Arizona state agencies.

A.R.S.

An abbreviation for Arizona Revised Statutes, which is the codified collection of laws passed by the Arizona state legislature.

Burden of Proof

The legal obligation of a party in a proceeding to provide sufficient evidence to prove their claim. In this matter, the burden of proof was on the Petitioner.

Conclusions of Law

The section of a legal decision where the judge applies legal principles and statutes to the established facts of the case to reach a ruling.

Final Order

An official, binding decision issued by an administrative body that resolves a legal dispute. In this case, the Commissioner of the Department of Real Estate issued the Final Order adopting the ALJ’s decision.

Findings of Fact

The section of a legal decision that details the facts of the case as determined by the judge based on the evidence presented during the hearing.

A legal term describing an issue that is no longer in dispute or has become irrelevant due to changed circumstances, making a judicial decision unnecessary. The account’s closure made the access issue moot.

A formal, written direction from a judge or administrative body. The ALJ issued an Order denying the petition.

Petitioner

The party who initiates a legal action by filing a petition. In this case, John Sellers.

Preponderance of the Evidence

The standard of proof required in this administrative hearing. It means that the evidence must demonstrate that a claim is more likely to be true than not true.

Respondent

The party against whom a petition is filed and who is required to respond to the claims. In this case, the Grayhawk Community Association.

Blog Post – 17F-H1716016-REL

How a Thanksgiving Day Login Failure Cost a Homeowner $500: Key Lessons from a Bizarre HOA Dispute

Almost everyone knows the modern frustration of a forgotten password or a website that simply won’t cooperate. But in a peculiar 2017 case, a homeowner’s inability to access a bank account online on Thanksgiving Day escalated from a simple tech issue into a formal legal petition against his Homeowners Association (HOA). The official court ruling offers a case study in failed conflict resolution, with surprising and critical lessons for any homeowner navigating the complex world of community association governance.

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1. An Unproven Assumption Can Be a Costly Mistake

The entire legal dispute was triggered by a critical strategic miscalculation based on an unverified assumption. The sequence of events began when petitioner John Sellers, after having previously changed the password himself, logged in to his HOA’s bank account on Thanksgiving Day and “could not see anything.”

Instead of exploring technical explanations, like a server issue over the holiday, he “unilaterally assumed” that the HOA (the Respondent, Grayhawk Community Association) had intentionally restricted his access. Acting immediately on this assumption, he emailed the community manager, Michael Fee, setting an aggressive deadline for the end of business the following day to have his access restored. When that deadline passed, he filed a formal petition. Crucially, the record notes the petitioner paid a $500.00 fee to file it.

However, the petitioner’s narrative omits a key fact: the community manager was not unresponsive. The case file shows that “Mr. Fee advised he would contact the bank.” This detail reveals the petitioner’s precipitous rush to litigation, bypassing any opportunity for simple clarification. The judge’s finding was decisive, underscoring this failure in de-escalation: the petitioner “offered no evidence that Respondent took any action to deny Petitioner online access to the account.” Acting on a costly assumption led directly to a lost case and a forfeited $500 fee.

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2. The Law Requires “Reasonable Access,” Not Your Preferred Method

The petitioner’s central legal argument was that he was wrongfully denied electronic access to the bank’s information. This complaint, however, was fundamentally misaligned with the plain language of the governing statute.

The relevant law, A.R.S. § 33-1805(A), states that “all financial and other records of the association shall be made reasonably available for examination by any member.” The Administrative Law Judge found that the HOA had fully complied with this duty. When the login issue persisted and the account was later closed by the bank, the Respondent “offered to furnish the Petitioner paper copies of documents it possessed related to that bank account.” This distinction is legally significant; the law does not mandate a specific method of access—especially a preferred or more convenient one—only that the access provided be “reasonable.”

The judge’s decision explicitly rejected the petitioner’s policy argument:

Petitioner’s argument that paper access to the account information is inferior to electronic access constitutes a policy argument that should be addressed to the Legislature. The plain language of the statute requires only that records of Respondent be made reasonable available for Petitioner’s examination. Respondent complied with the statute.

This highlights an important takeaway for all homeowners: understanding the difference between what is legally required versus what is simply convenient can prevent unnecessary and unwinnable disputes.

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3. Even “Going the Extra Mile” Can Lead to a Lawsuit

One of the most ironic details of the case is that the HOA was never obligated to provide online access in the first place. According to the case file, when the petitioner first requested electronic access on October 18, 2016, “such a password did not exist.”

In its defense, the HOA argued—and the facts seem to support—that it went “beyond its statutory obligation” by requesting that its bank create a special view-only password specifically for the petitioner. This was a proactive accommodation, not a statutory duty.

This situation reveals a paradox often seen in community management, where proactive efforts to accommodate a resident can inadvertently create new avenues for conflict. The very courtesy the HOA extended—creating an online access portal that wasn’t legally required—became the foundation of the legal petition filed against them, illustrating the complex and often thankless nature of community governance.

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4. The Burden of Proof Is on the Accuser

In any formal legal dispute, the question of who must prove their case is critical. According to the case file, the “Petitioner has the burden of proof in this matter.” The legal standard he had to meet was a “preponderance of the evidence,” which is the standard of proof required in most civil, non-criminal matters.

In simple terms, this means John Sellers had the responsibility to prove that it was more likely than not that the Grayhawk Community Association actively and intentionally restricted his access. He failed to provide any such proof.

The judge’s conclusion on this point was unambiguous: “Petitioner offered no proof that the Respondent restricted his access to the account in any way.” His case failed because it was built entirely on an assumption, with no evidence to support the accusation. This serves as a fundamental lesson in legal disputes: an accusation alone is not enough; it must be backed by credible evidence to prevail.

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Conclusion: A Final Thought Before You Escalate

A simple holiday login error became a failed legal petition due to a cascade of unverified assumptions and a fundamental misunderstanding of statutory requirements. This strange case serves as a potent reminder for homeowners and board members alike about the risks of escalating a grievance without first establishing the facts and understanding the law.

Before launching a formal, and potentially costly, complaint, it’s worth asking two simple questions: What does the law actually require, and what can I definitively prove?

Case Participants

Petitioner Side

John Sellers (petitioner)

Respondent Side

Curtis Ekmark (HOA attorney)
Grayhawk Community Association
Michael Fee (community manager)
Grayhawk Community Association

Neutral Parties

Suzanne Marwil (ALJ)
Judy Lowe (Commissioner)
Arizona Department of Real Estate
Abby Hansen (HOA Coordinator)

John Sellers vs. Grayhawk Community Association

Posted on February 21, 2017 by [email protected]

Case Summary

Case ID	17F-H1716016-REL
Agency	ADRE
Tribunal	OAH
Decision Date	2017-02-21
Administrative Law Judge	Suzanne Marwil
Outcome	none
Filing Fees Refunded	$500.00
Civil Penalties	$0.00

Parties & Counsel

Petitioner	John Sellers	Counsel	—
Respondent	Grayhawk Community Association	Counsel	Curtis Ekmark, Esq.

Alleged Violations

A.R.S. § 33-1805(A)

Outcome Summary

Key Issues & Findings

Wrongful denial of electronic access to the bank account's electronic information

Orders: Petition denied.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

A.R.S. § 33-1805(A)
A.R.S. § 32-2199 et seq.
A.R.S. §§ 32-2199.01(D)
32-2199.02
A.A.C. R2-19-119(B)
A.A.C. R2-19-119(A)

Analytics Highlights

Topics: Records Access, HOA Records, Mootness, Burden of Proof

Additional Citations:

A.R.S. § 33-1805(A)
A.R.S. § 32-2199 et seq.
A.R.S. §§ 32-2199.01(D)
32-2199.02
A.A.C. R2-19-119(B)
A.A.C. R2-19-119(A)

Video Overview

Audio Overview

Decision Documents

17F-H1716016-REL Decision – 546761.pdf

Uploaded 2026-01-23T17:18:32 (61.1 KB)

17F-H1716016-REL Decision – 552261.pdf

Uploaded 2026-01-23T17:18:37 (553.3 KB)