Case Summary
| Case ID | 16F-H1616009-BFS/REL |
|---|---|
| Agency | ADRE |
| Tribunal | OAH |
| Decision Date | 2016-09-30 |
| Administrative Law Judge | Diane Mihalsky |
| Outcome | no |
| Filing Fees Refunded | $0.00 |
| Civil Penalties | $0.00 |
Parties & Counsel
| Petitioner | Kristi Hillebrand | Counsel | Mark J. Bainbridge |
|---|---|---|---|
| Respondent | Camelback Garden Farms Homeowners Association | Counsel | Mark E. Lines |
Alleged Violations
A.R.S. § 33-1812
A.R.S. § 33-1804
A.R.S. § 33-1805
CC&Rs
Outcome Summary
The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the Association violated statutes or governing documents regarding election procedures, open meeting notices, or records requests. The ALJ accepted the Association's interpretation of election notice requirements as reasonable and found evidence of proper meeting notices and records production.
Why this result: Petitioner failed to meet the burden of proof to establish violations by a preponderance of the evidence.
Key Issues & Findings
Election Procedures (Write-in Candidates and Quorum)
Petitioner alleged the HOA violated election procedures by refusing floor nominations/write-ins and failing to have a quorum. The ALJ found the HOA's interpretation of notice statutes to preclude floor nominations was reasonable and that Petitioner failed to prove the election was improper.
Orders: Dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
- A.R.S. § 33-1812
Open Meeting Law (Notice)
Petitioner alleged the Board held meetings without proper notice. The ALJ found that the Board had adopted reasonable procedures for noticing meetings and credited testimony/evidence that notices were sent.
Orders: Dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
- A.R.S. § 33-1804
Records Request
Petitioner alleged the HOA withheld documents including emails and payment ledgers. The ALJ found Respondent provided all responsive records in its possession and that requested personal financial info of members was exempt.
Orders: Dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
- A.R.S. § 33-1805
Enforcement of RV Parking Restrictions
Petitioner alleged the HOA failed to enforce RV parking rules. This claim was dismissed prior to hearing based on a previous settlement agreement between the parties.
Orders: Dismissed prior to hearing
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
Decision Documents
16F-H1616009-BFS Decision – 520854.pdf
16F-H1616009-BFS Decision – 528135.pdf
**Case Summary: 16F-H1616009-BFS**
**Kristi Hillebrand v. Camelback Garden Farms Homeowners Association**
**Overview**
This administrative hearing addressed a petition filed by homeowner Kristi Hillebrand (Petitioner) against the Camelback Garden Farms Homeowners Association (Respondent). The case was heard by Administrative Law Judge (ALJ) Diane Mihalsky on July 29 and September 26, 2016. The Petitioner alleged violations of the Association’s Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and Arizona statutes regarding election irregularities, open meeting laws, and records requests.
**Key Facts and Proceedings**
The Petitioner filed her complaint on March 21, 2016. Prior to the hearing, the ALJ dismissed a claim regarding RV parking enforcement because the issue had been resolved in a previous Superior Court settlement. The hearing proceeded on three remaining claims:
1. **Election Procedures:** The Petitioner attempted to run for the Board as a write-in candidate/floor nominee during the February 20, 2016, annual meeting but was denied,. She also argued the election lacked a quorum because the HOA counted votes from members who were delinquent in their dues,.
2. **Open Meeting Law:** The Petitioner alleged the Board held meetings without proper notice to the membership,.
3. **Records Requests:** The Petitioner claimed the Respondent failed to provide all responsive documents, specifically seeking a ledger showing which members had paid assessments,.
**Arguments and Legal Analysis**
The ALJ ruled in favor of the Respondent on all counts, finding the Petitioner failed to prove violations by a preponderance of the evidence,.
* **Election Validity:** The Respondent argued that Arizona law requires candidate names to be listed on ballots before mailing, prohibiting floor nominations. The ALJ found this interpretation reasonable, noting that no statute, CC&R, or bylaw explicitly authorized write-ins or floor nominations. regarding the quorum, the ALJ determined that no governing document prohibited members with delinquent assessments from voting; therefore, the Petitioner did not prove the election results were invalid,.
* **Open Meetings:** The Petitioner and witnesses testified they did not receive notice of specific Board meetings. The ALJ found that the January 9 meeting was properly held as an executive session to discuss candidate qualifications. regarding open sessions, the Respondent provided affidavits proving notices were emailed and posted,. The ALJ cited A.R.S. § 33-1804(B), which states that a member's failure to receive actual notice does not invalidate actions taken at a meeting.
* **Records Access:** The Respondent testified that it produced all existing responsive records, including ballots and bank information,. The ALJ accepted testimony that the specific "QuickBooks spreadsheet" requested by the Petitioner did not exist
Case Participants
Petitioner Side
- Kristi Hillebrand (petitioner)
Camelback Garden Farms HOA member
Homeowner and member - Mark J. Bainbridge (attorney)
The Bainbridge Law Firm, LLC - Louise Vaccaro (witness)
Former Board Member
Called by Petitioner; resigned from board Jan 7, 2016 - Greg Josey (witness)
Camelback Garden Farms HOA member
Called by Petitioner - Mary Ellen Kunz (witness)
Camelback Garden Farms HOA member
Called by Petitioner
Respondent Side
- Mark E. Lines (attorney)
Shaw & Lines, LLC - Neil Stafford (witness)
Board Member
Referred to as Dr. Stafford; called by Respondent - Kathy Loscheider (witness)
Former Board Member
Served as secretary until Feb 20, 2016; called by Respondent - Aaron Chournos (board member)
Former Board President
Did not testify; resigned prior to hearing - Daniel Shuler (board member)
Mentioned in minutes - Alice Thomas (board member)
Elected Feb 2016 - Becky Bernal (board member)
Elected Feb 2016 - Melissa Cruz (board member)
Appointed to fill vacancy Feb 2016
Neutral Parties
- Diane Mihalsky (ALJ)
Office of Administrative Hearings - Judy Lowe (agency official)
Arizona Department of Real Estate
Commissioner - Louis Dettorre (agency official)
Arizona Department of Real Estate
Deputy Commissioner - Greg Hanchett (agency official)
Office of Administrative Hearings
Interim Director; signed Certification of Decision - Rosella J. Rodriguez (staff)
Office of Administrative Hearings
Mailed/processed the certification
