VVE-Casa Grande Home Owners Association v. Duane S & Mary L Eitel

Posted on February 22, 2024 by [email protected]

Case Summary

Case ID	24F-H003-REL
Agency	ADRE
Tribunal	OAH
Decision Date	2024-02-22
Administrative Law Judge	Jenna Clark
Outcome	Petitioner sustained its burden of proof establishing that Respondents violated CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 by operating a cat rescue business (VKNR) from their residence, which involved unauthorized commercial activity, excessive non-pet animals, and creating a nuisance. Violation of 7.29 was not established. The petition was granted.
Filing Fees Refunded	$1,000.00
Civil Penalties	$0.00

Parties & Counsel

Petitioner	VVE-Casa Grande Home Owners Association	Counsel	Anthony Rossetti, Esq.
Respondent	Duane Eitel & Mary Eitel	Counsel	Kevin Harper, Esq.

Alleged Violations

CC&Rs Article VII, sections 7.2, 7.3, 7.25, 7.26, 7.28, 7.29, and 7.31

Outcome Summary

Petitioner sustained its burden of proof establishing that Respondents violated CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 by operating a cat rescue business (VKNR) from their residence, which involved unauthorized commercial activity, excessive non-pet animals, and creating a nuisance. Violation of 7.29 was not established. The petition was granted.

Key Issues & Findings

Violation of CC&Rs by operating an unauthorized business out of their home and housing dozens of cats in excess of a reasonable number of household pets, creating a nuisance.

Respondents operated a nonprofit cat rescue (VKNR) from their single-family residence, housing 50+ cats in a 3-car garage, which constituted an unauthorized commercial use, exceeded a reasonable number of pets, and created traffic and waste nuisances.

Orders: Petitioner's petition is granted. Respondents must henceforth abide by CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31.

Filing fee: $1,000.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

CC&Rs section 7.2
CC&Rs section 7.3
CC&Rs section 7.25
CC&Rs section 7.26
CC&Rs section 7.28
CC&Rs section 7.31

Analytics Highlights

Topics: Home Business, Pets/Animals, Nuisance, CC&Rs, Enforcement, HOA

Additional Citations:

ARIZ. REV. STAT. §§ 32-2102
ARIZ. REV. STAT. §§ 32-2199 et seq.
ARIZ. REV. STAT. § 32-2199.05
ARIZ. REV. STAT. § 32-2199(2)
ARIZ. REV. STAT. § 32-2199.01(A)
ARIZ. REV. STAT. § 32-2199.01(D)
ARIZ. REV. STAT. § 32-2199.02
ARIZ. REV. STAT. §§ 41-1092 et seq.
ARIZ. REV. STAT. § 32-2199.04
ARIZ. REV. STAT. § 41-1092.09
ARIZ. ADMIN. CODE R2-19-119
Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)

Video Overview

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Decision Documents

24F-H003-REL Decision – 1094853.pdf

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24F-H003-REL Decision – 1113338.pdf

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24F-H003-REL Decision – 1125372.pdf

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24F-H003-REL Decision – 1147484.pdf

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24F-H003-REL Decision – 1094853.pdf

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24F-H003-REL Decision – 1113338.pdf

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24F-H003-REL Decision – 1125372.pdf

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24F-H003-REL Decision – 1147484.pdf

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This case, *VVE-Casa Grande Home Owners Association v. Duane S & Mary L Eitel* (No. 24F-H003-REL), was heard before Administrative Law Judge (ALJ) Jenna Clark at the Office of Administrative Hearings (OAH).

Key Facts and Issues

The Petitioner, VVE-Casa Grande Home Owners Association (the Association), filed a petition alleging that the Respondents, Duane S. Eitel and Mary L. Eitel, violated several Covenants, Conditions, and Restrictions (CC&Rs) by operating an unauthorized business out of their home and housing cats far in excess of a "reasonable number of household pets".

The primary CC&R sections alleged to be violated were:

7.2 (Residential Use) & 7.3 (No Commercial Use): Prohibiting commercial use, manufacturing, storing, or vending on the lot.
7.25 (Animals): Limiting animals to a reasonable number of generally recognized household pets, and stating that state and county laws govern pet numbers, noise, and nuisance.
7.26, 7.28, 7.29, and 7.31: Related to nuisance, garbage, debris, diseases, and maintaining a safe and orderly condition.

The core factual dispute centered on the operation of Valley Kitten Nursery & Rescue Inc. (VKNR), a 501(c)(3) nonprofit. Respondents historically stored over fifty (50) cats/kittens in their three-car garage pending private adoption. Pinal County had previously determined the operation was an unauthorized use subject to a zoning violation in 2017.

Hearing Proceedings and Arguments

The evidentiary hearing took place on November 14, 2023.

Petitioner's Argument: The Association argued that Respondents were unequivocally running a business. This assertion was supported by evidence that VKNR has an Employer Identification Number (EIN), charges adoption fees ($125 for kittens, $95 for adult cats), and handles cats as "a product," not pets. Furthermore, housing 50+ non-pet animals in the garage was unreasonable and violated residential use restrictions. Petitioner’s witness testified to observing cars, deliveries, and volunteers cleaning cages in the driveway, creating concerns about debris, waste runoff, and biohazardous materials.

Respondent's Argument: Respondents argued that VKNR is a volunteer nonprofit and therefore not a "commercial business" prohibited by CC&R 7.3. They asserted they were fostering animals and that adoption fees merely covered costs. Respondent Duane Eitel (DE) testified that the operation was run so that adopters did not pick up cats at the residence (with limited exceptions), and that the cleaning processes had been moved to the rear yard in response to earlier complaints. They noted that Pinal County had never issued a final violation regarding the number of cats.

Procedural Outcome and Final Decision

Following the presentation of evidence, the ALJ recessed the hearing to encourage settlement, placing the matter in "Status". The status period was extended until February 2, 2024. As the parties were unable to settle, they requested the ALJ issue a decision based on the hearing record.

The ALJ issued the Administrative Law Judge Decision on February 22, 2024, finding that the Petitioner sustained its burden of proof by a preponderance of the evidence.

Key Legal Findings:

The ALJ concluded that Respondents' operation of VKNR constituted a "clear business model". The assertion that VKNR is not a "business" because it is a nonprofit was deemed "both technically and legally inaccurate".
Respondent DE admitted that the 50+ animals housed in the garage were not pets.
The continued operation, including visible debris and the scope of the operation, created a nuisance and traffic issues.
The ALJ found violations of CC&R sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 were established. (A violation of 7.29 was not established).

Final Order: The Association's petition was granted. Respondents were ordered to **henceforth abide by CC&R sections 7.2,

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24F-H003-REL

7 sources

In a legal dispute before the Arizona Department of Real Estate, the VVE-Casa Grande Home Owners Association alleged that residents Duane and Mary Eitel violated community CC&Rs by operating an unauthorized cat rescue from their garage. The association contended that housing dozens of animals constituted an illegal business and a nuisance that impacted the neighborhood’s residential character. While the homeowners argued their nonprofit fostering was a charitable endeavor rather than a commercial enterprise, the Administrative Law Judge ruled that the large-scale operation exceeded the “reasonable number of pets” allowed. Evidence from Pinal County inspections and neighbor testimony confirmed that the garage held over 50 cats, leading to concerns over traffic, sanitation, and debris. Ultimately, the judge found the homeowners in violation of multiple governing documents and ordered them to cease operations.

What were the main legal arguments regarding the cat rescue?

How did the court define a home-based business versus a nonprofit?

What specific HOA rules were the homeowners found to have violated?

Thursday, February 12

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24F-H003-REL

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What were the main legal arguments regarding the cat rescue?

How did the court define a home-based business versus a nonprofit?

What specific HOA rules were the homeowners found to have violated?

Thursday, February 12

Save to note

Today • 3:04 PM

Video Overview

Mind Map

Reports

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Infographic

Slide Deck

Data Table

Case Participants

Petitioner Side

Anthony Rossetti (petitioner attorney, property manager)
Rossetti Management & Realty Services
Represented Petitioner and owned the newly hired management company.
Douglas Karolak (witness, homeowner)
VVE-Casa Grande HOA Member
Testified on behalf of Petitioner.
Nicole Elliot (property manager)
Norris Management
Former HOA management committee/manager who issued warning letters.
CD Mai (homeowner/neighbor)
VVE-Casa Grande HOA Member
Mentioned by Karolak as a vocal opponent/adjacent neighbor to the Eitels.

Respondent Side

Duane Eitel (respondent, witness)
VVE-Casa Grande HOA Member
Referred to as Duane S Eitel in earlier documents; DE in the decision.
Mary Eitel (respondent)
VVE-Casa Grande HOA Member, CEO/Director of Valley Kitten Nursery & Rescue Inc.
Referred to as Mary L Eitel in earlier documents.
Kevin Harper (respondent attorney)
Harper Law, PLC

Neutral Parties

Jenna Clark (ALJ)
Office of Administrative Hearings
Susan Nicolson (commissioner)
Arizona Department of Real Estate
AHansen (ADRE staff)
Arizona Department of Real Estate
vnunez (ADRE staff)
Arizona Department of Real Estate
djones (ADRE staff)
Arizona Department of Real Estate
labril (ADRE staff)
Arizona Department of Real Estate
Christopher Sinco (code compliance officer)
Pinal County Animal Control
Involved in the 2017/2018 county inspection.

Other Participants

Scott Lenderman (property manager)
HOA management administrator (prior to Rossetti)
Mentioned as the first HOA management administrator.

Anthony Payson v. The Foothills Homeowners Association #1

Posted on May 1, 2023 by [email protected]

Case Summary

Case ID	23F-H041-REL
Agency	ADRE
Tribunal	OAH
Decision Date	2023-05-01
Administrative Law Judge	Velva Moses-Thompson
Outcome	The petition was dismissed after the Administrative Law Judge concluded that the Respondent HOA did not violate CC&R Section 5.4, finding that this section applies to use restrictions on individual Lots and Members, not the Association itself.
Filing Fees Refunded	$500.00
Civil Penalties	$0.00

Parties & Counsel

Petitioner	Anthony Payson	Counsel	—
Respondent	The Foothills Homeowners Association #1	Counsel	Sean K. Mohnihan

Alleged Violations

CC&R Section 5.4

Outcome Summary

The petition was dismissed after the Administrative Law Judge concluded that the Respondent HOA did not violate CC&R Section 5.4, finding that this section applies to use restrictions on individual Lots and Members, not the Association itself.

Why this result: The ALJ found that Petitioner failed to meet the burden of proof to establish the Respondent HOA violated CC&R Section 5.4 because the HOA does not own or operate the nuisance-causing television, and the CC&R section governs restrictions on lot Owners/Members, not the Association. OAH jurisdiction is limited to finding the governing document or statute violated by the respondent.

Key Issues & Findings

HOA's alleged failure to enforce nuisance provision (CC&R Section 5.4) regarding neighbor's outdoor television.

Petitioner alleged that the Respondent HOA failed to perform its duty to enforce CC&R Section 5.4 by refusing to seek removal of a neighbor's large, outdoor television that created noise disturbances and was deemed a nuisance.

Orders: The petition is dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

ARIZ. REV. STAT. § 32-2199(B)
ARIZ. REV. STAT. §32- 2199.02(A)
CC&R Section 5.4

Analytics Highlights

Topics: Homeowners Association, CC&R, Nuisance, Enforcement, Jurisdiction, Outdoor TV

Additional Citations:

ARIZ. REV. STAT. § 32-2199(B)
ARIZ. REV. STAT. §32- 2199.02(A)
ARIZ. REV. STAT. § 33-1803
ARIZ. REV. STAT. § 41-1092.07(G)(2)
A.A.C. R2-19-119(A)
A.A.C. R2-19-119(B)(1)
A.A.C. R2-19-119(B)(2)
Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)

Video Overview

Audio Overview

Decision Documents

23F-H041-REL Decision – 1047496.pdf

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23F-H041-REL Decision – 1053240.pdf

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23F-H041-REL Decision – 1047496.pdf

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23F-H041-REL Decision – 1053240.pdf

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The legal matter of *Anthony Payson v. The Foothills Homeowners Association #1* (No. 23F-H041-REL) was heard virtually by Administrative Law Judge (ALJ) Velva Moses-Thompson on April 13, 2023.

Key Facts and Petitioner's Allegations:

Petitioner Anthony Payson, a homeowner within the community, alleged that the Respondent Homeowners Association (HOA) neglected its duty to enforce the Covenants, Codes, & Restrictions (CC&Rs). Specifically, the Petitioner claimed that a large, outdoor television/movie theater installed by his neighbor violated CC&R Section 5.4 (Nuisances), which prohibits anything kept on a lot that "will or might disturb the peace, quiet, comfort, or serenity of the occupants of the surrounding property". Petitioner sought an order compelling the HOA to enforce the CC&Rs and require the neighbor to remove the television.

Respondent's Key Arguments:

The Respondent HOA, represented by Sean K. Mohnihan, orally moved to dismiss the petition for failure to state a claim for relief. The HOA argued that the Petitioner was alleging a violation of Section 5.4 by the neighbor, not the Association itself, and the Association neither owns nor operates the TV.

Crucially, the HOA asserted that the Office of Administrative Hearings (OAH) lacked jurisdiction to hear disputes among neighbors or to enforce common law duties to enforce CC&Rs. Furthermore, the HOA maintained that the Petitioner failed to provide reliable evidence (such as a log book, police reports, or a noise study) to substantiate a nuisance claim, despite the HOA having requested such documentation before initiating enforcement action.

Hearing Proceedings and Evidence:

The ALJ held the motion to dismiss in abeyance but proceeded with the presentation of evidence. Petitioner Payson testified that the TV had disturbed his peace and quiet on at least one occasion involving a hockey game, and that its mere existence constituted a violation because it *might* cause disturbance. Payson admitted he did not provide the HOA with specific dates, times, decibel readings, or video evidence of the disturbance, as the HOA had requested. The Respondent ultimately elected not to call witnesses, relying instead on the Petitioner's testimony and the jurisdictional arguments.

Outcome and Legal Decision:

In the final decision issued May 1, 2023, the ALJ concluded that the Petitioner failed to establish that the Respondent (The Foothills Homeowners Association #1) violated CC&R Section 5.4.

The ALJ determined that CC&R Section 5.4 addresses use restrictions on Members and Lots. Since the provisions refer to actions of members, any breach of that Article would be a breach by a Member, not the Association. The OAH’s authority, pursuant to ARIZ. REV. STAT. § 32-2199.02(A), is limited to finding whether the governing document or statute has been violated by the respondent. Because the Petitioner did not contend or provide facts establishing that the HOA stored property that caused noise or disturbed the peace, the Petitioner failed to meet the burden of proof against the Association.

The petition was ordered dismissed.

{ “case”: { “docket_no”: “23F-H041-REL”, “case_title”: “In the Matter of Anthony Payson vs The Foothills Homeowners Association #1”, “decision_date”: “2023-05-01”, “alj_name”: “Velva Moses-Thompson”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Can I use the ADRE administrative hearing process to force my HOA to enforce CC&R rules against a neighbor?”, “short_answer”: “Generally no, if the specific rule applies to member conduct rather than Association conduct.”, “detailed_answer”: “The Administrative Law Judge (ALJ) clarified that the dispute process is for determining if the Respondent (the HOA) violated a statute or governing document. If a CC&R provision restricts how a ‘lot’ may be used, a violation of that rule is a breach by the member (the neighbor), not the Association. Therefore, the HOA cannot be found guilty of violating a rule that governs homeowner behavior.”, “alj_quote”: “These provisions refer to what members may and may not do within the Association. Therefore, any breach of this Article would be a breach by a Member, not the Association. Petitioner failed to establish that Respondent violated CC&R Section 5.4.”, “legal_basis”: “CC&R Section 5.4; OAH Jurisdiction”, “topic_tags”: [ “enforcement”, “jurisdiction”, “neighbor disputes” ] }, { “question”: “Does the Office of Administrative Hearings (OAH) have jurisdiction to decide if my HOA was negligent or violated common law duties?”, “short_answer”: “No, the OAH jurisdiction is strictly limited to violations of statutes and governing documents.”, “detailed_answer”: “The tribunal does not have the authority to hear claims based on common law, such as negligence or general failure to perform a duty, unless it is a specific violation of the statutes or the community documents tailored to the Association’s conduct.”, “alj_quote”: “To the extent that Petitioner alleged that Respondent may have violated common law, or any other laws, the OAH lacks jurisdiction to make such a determination.”, “legal_basis”: “ARIZ. REV. STAT. § 32-2199.01”, “topic_tags”: [ “jurisdiction”, “common law”, “negligence” ] }, { “question”: “What remedies or penalties can I request from the administrative judge if I win my case against the HOA?”, “short_answer”: “Relief is limited to a finding of violation, an order to comply, return of filing fees, and civil penalties.”, “detailed_answer”: “The administrative process cannot award damages for things like pain, suffering, or lost property value. The remedies are strictly defined by statute: finding a violation occurred, ordering the HOA to abide by the provision, returning the petitioner’s filing fee, and levying a civil penalty.”, “alj_quote”: “Petitioner’s relief in this venue is limited to e is limited to a finding that the governing document or statute at issue has been violated by the respondent, an order that Respondent abide by the provision in the future, and to have the filing fee returned to the petitioner and a civil penalty levied against Respondent.”, “legal_basis”: “Ariz. Rev. Stat. §32- 2199.02(A)”, “topic_tags”: [ “remedies”, “penalties”, “civil penalty” ] }, { “question”: “Who is responsible for proving that a violation occurred in an HOA dispute hearing?”, “short_answer”: “The Petitioner (the homeowner filing the complaint) bears the burden of proof.”, “detailed_answer”: “The homeowner bringing the case must provide sufficient evidence to prove their claims. It is not the HOA’s job to disprove the claims initially; the burden lies with the person filing the petition.”, “alj_quote”: “Petitioner bears the burden of proof to establish that Respondent violated on its CC&Rs by a preponderance of the evidence.”, “legal_basis”: “A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A)”, “topic_tags”: [ “burden of proof”, “evidence”, “legal standard” ] }, { “question”: “What is the ‘preponderance of the evidence’ standard used in these hearings?”, “short_answer”: “It means the claim is more probable than not to be true.”, “detailed_answer”: “This legal standard requires that the evidence presented must convince the judge that the petitioner’s argument is more likely true than the opposing side’s argument. It is described as the ‘greater weight of the evidence.'”, “alj_quote”: ““A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.””, “legal_basis”: “Morris K. Udall, Arizona Law of Evidence”, “topic_tags”: [ “legal standard”, “definitions”, “evidence” ] }, { “question”: “How are vague or ambiguous rules in the CC&Rs interpreted by the judge?”, “short_answer”: “They are construed to give effect to the intent of the parties and the underlying purpose of the document.”, “detailed_answer”: “When interpreting restrictive covenants, the judge looks at the document as a whole. If the covenant is unambiguous, it is enforced exactly as written to match the intent.”, “alj_quote”: ““Restrictive covenants must be construed as a whole and interpreted in view of their underlying purposes, giving effect to all provisions contained therein.””, “legal_basis”: “Powell v. Washburn, 211 Ariz. 553”, “topic_tags”: [ “interpretation”, “CC&Rs”, “legal principles” ] } ] }

Case Participants

Petitioner Side

Anthony Payson (petitioner)
Homeowner

Respondent Side

Sean K. Mohnihan (HOA attorney)
Smith & Wamsley, PLLC
Appeared for Respondent The Foothills Homeowners Association #1
Jason E Smith (attorney)
Smith & Wamsley, PLLC
Listed with counsel
Gabron (board member)
The Foothills Homeowners Association #1
Board representative/potential witness
Linda Armo (board member)
The Foothills Homeowners Association #1
Board representative/potential witness
Philip Brown (former HOA attorney)
Previously represented the HOA; wrote a letter to Petitioner

Neutral Parties

Velva Moses-Thompson (ALJ)
OAH
Susan Nicolson (Commissioner)
Arizona Department of Real Estate

Other Participants

Barry Callahan (neighbor)
Alleged violator of CC&Rs, neighbor to Petitioner

Jerry R. Collis vs. Laveen Meadows Homeowners Association

Posted on December 18, 2018 by [email protected]

Case Summary

Case ID	19F-H18020-REL
Agency	ADRE
Tribunal	OAH
Decision Date	2018-12-20
Administrative Law Judge	Thomas Shedden
Outcome	The Petitioner's challenge against the HOA was dismissed because the Petitioner failed to prove by a preponderance of the evidence that the HOA violated the community documents or statutes when issuing citations.
Filing Fees Refunded	$0.00
Civil Penalties	$0.00

Parties & Counsel

Petitioner	Jerry R. Collis	Counsel	—
Respondent	Laveen Meadows HOA c/o Planned Development Services	Counsel	Chad Gallacher, Esq.

Alleged Violations

CC&Rs Sections 10.11.2, 10.11.4, and 10.16; A.R.S. § 32-2199.01(A)

Outcome Summary

The Petitioner's challenge against the HOA was dismissed because the Petitioner failed to prove by a preponderance of the evidence that the HOA violated the community documents or statutes when issuing citations.

Why this result: Petitioner failed to meet the burden of proof.

Key Issues & Findings

Challenge to HOA fine citations/improper enforcement of parking and nuisance rules

Petitioner claimed the Respondent HOA improperly issued citations against him for vehicle violations (inoperable vehicle, street parking, nuisance), asserting the HOA could not violate CC&R 10.11.4 but that the citations alleging the violation were unwarranted.

Orders: Petitioner Jerry R. Collis’s petition is dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
ARIZ. ADMIN. CODE § R2-19-119
BLACK’S LAW DICTIONARY 1373 (10th ed. 2014)
McNally v. Sun Lakes Homeowners Ass’n #1, Inc., 241 Ariz. 1, 382 P.3d 1216 (2016 App.)
Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)
ARIZ. REV. STAT. § 32-2199.01

Analytics Highlights

Topics: HOA Enforcement, CC&Rs, Vehicle Parking, Nuisance, Burden of Proof

Additional Citations:

ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
ARIZ. ADMIN. CODE § R2-19-119
BLACK’S LAW DICTIONARY 1373 (10th ed. 2014)
McNally v. Sun Lakes Homeowners Ass’n #1, Inc., 241 Ariz. 1, 382 P.3d 1216 (2016 App.)
Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)
ARIZ. REV. STAT. § 32-2199.01

Video Overview

Audio Overview

Decision Documents

19F-H18020-REL Decision – 677244.pdf

Uploaded 2026-04-24T11:14:51 (97.6 KB)

19F-H18020-REL Decision – 677244.pdf

Uploaded 2026-01-23T17:25:31 (97.6 KB)

Briefing Document: Collis v. Laveen Meadows HOA (Case No. 19F-H18020-REL)

Executive Summary

This document synthesizes the findings and decision in the administrative hearing of Jerry R. Collis (Petitioner) versus the Laveen Meadows HOA (Respondent). The Administrative Law Judge dismissed Mr. Collis’s petition, which alleged the HOA had wrongly issued citations concerning his vehicle.

The central issue revolved around a series of violation notices issued to Mr. Collis for an “Inoperable Vehicle.” While Mr. Collis focused his argument on proving the vehicle was, in fact, operational, the HOA successfully argued that the citations were based on a broader set of violations. These included not only the vehicle’s condition under CC&R Section 10.11.4 but also violations for street parking (Section 10.11.2) and creating a nuisance (Section 10.16) due to its unsightly appearance, which included cobwebs, debris, a flat tire, and a covered window.

The Judge concluded that the petitioner, Mr. Collis, failed to meet the burden of proof. By only addressing the vehicle’s operability, he did not disprove the other valid grounds for the citations. Consequently, the Judge found that the HOA had not violated its own governing documents or state statutes, dismissing the petition and declaring the HOA the prevailing party.

——————————————————————————–

1. Case Overview and Core Dispute

• Case Number: 19F-H18020-REL

• Parties:

◦ Petitioner: Jerry R. Collis (representing himself)

◦ Respondent: Laveen Meadows HOA (represented by Chad Gallacher, Esq.)

• Adjudicator: Thomas Shedden, Administrative Law Judge

• Hearing Date: December 4, 2018

• Decision Date: December 20, 2018

The Petitioner’s Allegation

On September 17, 2018, Jerry R. Collis filed a petition with the Arizona Department of Real Estate. The initial Notice of Hearing framed the allegation as the Laveen Meadows HOA having violated Article 10, Section 10.11.4 of its Covenants, Conditions, and Restrictions (CC&Rs), which pertains to inoperable vehicles.

At the December 4, 2018 hearing, Mr. Collis clarified his position. He argued that the issue was not that the HOA itself could violate that section, but that the HOA had wrongly issued him citations alleging a violation of that provision when his vehicle was fully operational.

The Respondent’s Position

The Laveen Meadows HOA, represented by Community Manager Lisa Riesland, objected to this reframing of the issue. The HOA contended that the citations issued to Mr. Collis were justified under multiple sections of the CC&Rs, not solely the “inoperable vehicle” clause. The HOA’s actions were based on violations of Sections 10.11.2 (street parking), 10.11.4 (inoperable vehicle), and 10.16 (nuisance).

2. Relevant CC&R Provisions

The dispute centered on the interpretation and application of three specific sections within the Laveen Meadows HOA CC&Rs.

Section

Title / Subject

Description

10.11.4

Inoperable Vehicles

Prohibits any motor vehicle “which are not in operating condition” from being parked in unenclosed areas, including driveways. This section was amended in May 2013 to clarify the definition of “operating condition.”

10.11.2

Street Parking

Prohibits parking on the streets within the community.

Nuisances

Prohibits nuisances, which are defined to include conditions that are “unsightly or that could reasonably cause annoyance to other members of the Association.”

3. Analysis of Evidence and Timeline

Violation Notices and Fines

Between September 2016 and June 2017, the HOA sent seven notifications to Mr. Collis regarding his vehicle. A key finding from the hearing was that while all seven notices stated, “Violation: Vehicle Parking – Inoperable Vehicle,” none of them cited a specific provision of the CC&Rs.

The timeline of notifications and fines is as follows:

• September 19, 2016: Initial letter citing expired tags and an inoperable vehicle on the street. Given 10 days to correct.

• October 11, 2016: Letter warning of a potential $25 fine. Notified of appeal rights. No evidence of appeal by Collis.

• December 1, 2016: A $25 fine was charged to Mr. Collis’s account. Mr. Collis appealed this to the HOA Board.

• January 26, 2017: The HOA Board sent a letter to Mr. Collis denying his appeal.

• April 20, 2017: A $50 fine and a $10 mailing fee were charged. No evidence of appeal.

• May 9, 2017: A $100 fine and a $10 mailing fee were charged. No evidence of appeal.

• May 23, 2017: A $100 fine and a $10 mailing fee were charged. No evidence of appeal.

• June 8, 2017: A $100 fine and a $10 mailing fee were charged. No evidence of appeal.

• June 26, 2017: A $100 fine and a $10 mailing fee were charged. No evidence of appeal.

For each fine assessed from October 2016 onwards, the HOA’s letters informed Mr. Collis of his right to appeal to the Board and to request an administrative hearing. The record shows no evidence that Mr. Collis requested an administrative hearing for any of the fines prior to filing his petition in 2018.

Competing Testimonies

• Petitioner (Collis): Testified that his vehicle was never inoperable. He acknowledged that at the time of the June 2017 letters, the vehicle had a flat tire and a covered window, but explained this was the result of vandalism.

• Respondent (HOA): Community Manager Lisa Riesland provided testimony deemed “credible” by the Judge. She stated that the vehicle’s condition constituted a nuisance under Section 10.16. Specific details included:

◦ Cobwebs and debris on or beneath the vehicle.

◦ At various times, cobwebs extended from the vehicle to the ground, trapping leaves.

◦ The condition was deemed “unsightly.”

4. Legal Conclusions and Final Order

Burden of Proof

The Judge established that Mr. Collis, as the petitioner, bore the burden of proof. The standard required was a “preponderance of the evidence,” meaning evidence sufficient to incline a fair and impartial mind to one side of the issue over the other.

Judge’s Rationale

The decision rested on the following legal conclusions:

1. CC&Rs as a Contract: The CC&Rs constitute a binding contract between the homeowner and the HOA, requiring both parties to comply with its terms. The HOA must act reasonably in exercising its authority.

2. Multiple Grounds for Citations: The preponderance of evidence demonstrated that the HOA’s citations were based on violations of Sections 10.11.2 (street parking), 10.11.4 (inoperable vehicle), and 10.16 (nuisance).

3. Insufficiency of Petitioner’s Argument: Because the citations were multifaceted, Mr. Collis’s argument that his vehicle was in operating condition was insufficient to prove the citations were unwarranted. His claim did not address the evidence of street parking or the unsightly conditions that constituted a nuisance.

4. Failure to Meet Burden of Proof: Ultimately, the Judge concluded: “Mr. Collis has failed to show that the Respondent violated any of the CC&Rs, other community documents, or the statutes that regulate planned communities.”

Final Order

IT IS ORDERED that Petitioner Jerry R. Collis’s petition is dismissed.

The decision established the Laveen Meadows HOA as the prevailing party. This order is binding unless a rehearing is requested with the Commissioner of the Department of Real Estate within 30 days of the service of the order (December 20, 2018).

Study Guide: Collis v. Laveen Meadows HOA

This guide provides a detailed review of the Administrative Law Judge Decision in the matter of Jerry R. Collis (Petitioner) versus Laveen Meadows HOA (Respondent), Case No. 19F-H18020-REL. It includes a short-answer quiz with an answer key, a set of essay questions for deeper analysis, and a glossary of key terms found within the legal document.

Short-Answer Quiz

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

1. Who were the primary parties involved in this administrative hearing, and who represented them?

2. What was the original violation Mr. Collis alleged against the Laveen Meadows HOA in his petition filed on September 17, 2018?

3. How did Mr. Collis clarify or reframe the issue he was raising during the December 4, 2018 hearing?

4. According to the HOA’s community manager, Lisa Riesland, what three CC&R sections were the basis for the citations issued to Mr. Collis?

5. What common phrase was used to describe the violation in all seven notifications sent to Mr. Collis, and what crucial detail did these notifications omit?

6. Describe the initial fine issued to Mr. Collis, including the date of the letter and the amount.

7. What physical evidence did the HOA present to support its claim that Mr. Collis’s vehicle created an “unsightly condition” under CC&R Section 10.16?

8. In addition to the unsightly conditions, what two other issues with the vehicle were noted around June 2017, and what was Mr. Collis’s explanation for them?

9. According to the “Conclusions of Law,” who bears the burden of proof in this matter, and what is the required standard of proof?

10. What was the final order issued by the Administrative Law Judge, and what was the legal consequence of this decision for the parties?

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Answer Key

1. The primary parties were Jerry R. Collis, the Petitioner, who appeared on his own behalf, and Laveen Meadows HOA, the Respondent. The Respondent was represented by Chad Gallacher, Esq.

2. Mr. Collis’s original petition, as shown in the Notice of Hearing, alleged that the Laveen Meadows HOA had violated Article 10, Section 10.11.4 of its own CC&Rs. This section pertains to parking motor vehicles that are not in operating condition in unenclosed areas.

3. At the hearing, Mr. Collis acknowledged the HOA could not violate its own rule and clarified that the real issue was that the HOA had wrongly issued him citations for violating Section 10.11.4. He argued that he was not, in fact, in violation of that provision.

4. Lisa Riesland testified that the citations were based not just on Section 10.11.4 (inoperable vehicles), but also on Section 10.11.2, which prohibits parking on the streets, and Section 10.16, which prohibits nuisances.

5. All seven notifications sent to Mr. Collis included the statement: “Violation: Vehicle Parking – Inoperable Vehicle.” However, none of the notifications listed a specific provision of the CC&Rs that had allegedly been violated.

6. The first fine was detailed in a letter dated December 1, 2016. The letter informed Mr. Collis that his account had been charged a $25 fine for the ongoing violation of storing an inoperable vehicle on the street.

7. The HOA presented credible testimony from Lisa Riesland that there were cobwebs and debris on or beneath the vehicle. At various times, these cobwebs extended from the vehicle to the ground and had trapped leaves, creating an unsightly condition.

8. Around June 2017, the vehicle also had a flat tire and a bag or cardboard covering one window. Mr. Collis acknowledged these facts and explained that the vehicle had been vandalized.

9. The “Conclusions of Law” state that Mr. Collis, the petitioner, bears the burden of proof. The standard of proof required to decide all issues in the matter is that of a “preponderance of the evidence.”

10. The Administrative Law Judge ordered that Mr. Collis’s petition be dismissed. This legally binding order deemed the Respondent (Laveen Meadows HOA) to be the prevailing party in the matter.

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Essay Questions

Instructions: The following questions are designed for longer, essay-style responses to encourage a deeper analysis of the case. Answers are not provided.

1. Analyze the discrepancy between Mr. Collis’s initial petition alleging a violation of Section 10.11.4 and the actual issue he raised at the hearing. How did this “reframing” of the issue affect his case, and how did the Respondent react?

2. Discuss the concept of “preponderance of the evidence” as defined in the document. Explain how the Administrative Law Judge applied this standard to the evidence presented by both Mr. Collis and the HOA to reach the final decision.

3. Trace the series of notifications and fines issued by the Laveen Meadows HOA, beginning with the September 19, 2016 letter. Evaluate the HOA’s process and communication based on the details provided in the letters. Did the HOA act reasonably, according to the legal standards cited in the decision?

4. The HOA cited three different CC&R sections (10.11.2, 10.11.4, and 10.16) as the basis for the citations, even though the notifications only stated “Vehicle Parking – Inoperable Vehicle.” Explore the significance of each of these sections and explain why Mr. Collis’s focus on his vehicle being operable was insufficient to win his case.

5. Examine the appeal options available to Mr. Collis at each stage of the violation process. Based on the “Findings of Fact,” what actions did he take or fail to take regarding his appeal rights, and how might this have impacted the overall trajectory of the dispute?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An official (Thomas Shedden in this case) who presides over administrative hearings, weighs evidence, and makes legal rulings and decisions.

ARIZ. ADMIN. CODE

The Arizona Administrative Code, a compilation of rules and regulations of Arizona state agencies. Section R2-19-119 is cited as establishing the standard of proof for the hearing.

ARIZ. REV. STAT.

The Arizona Revised Statutes, which are the codified laws of the state of Arizona. Various sections are cited regarding homeowner association disputes and administrative procedures.

Appearances

A formal term for the individuals present and participating in the hearing. In this case, it was Jerry R. Collis and Chad Gallacher, Esq.

The governing body of the Laveen Meadows HOA, to which Mr. Collis had the right to appeal fines. He appealed one fine to the Board, which was denied.

Burden of Proof

The legal obligation of a party in a dispute to provide sufficient evidence to prove their claim. In this case, the burden of proof was on Mr. Collis.

CC&Rs (Covenants, Conditions & Restrictions)

The governing legal documents that set out the rules for a planned community or homeowners’ association. The decision establishes the CC&Rs as a contract between the HOA and its members.

Community Manager

An individual responsible for managing the operations of the HOA. Lisa Riesland served this role for the Respondent and testified at the hearing.

Conclusions of Law

The section of the decision where the Administrative Law Judge applies legal principles and statutes to the established facts to reach a judgment.

Findings of Fact

The section of the decision that lists the established, undisputed facts of the case based on evidence and testimony presented during the hearing.

Nuisance

A condition prohibited by CC&R Section 10.16. It is defined as a condition that is unsightly or could reasonably cause annoyance to other members of the Association.

Operating Condition

A term from CC&R Section 10.11.4, which was amended in May 2013 to clarify its meaning. Mr. Collis argued his vehicle was always in operating condition.

The final, legally binding ruling of the Administrative Law Judge. In this case, the Order was to dismiss the petitioner’s petition.

Petitioner

The party who initiates a legal action or files a petition. In this matter, Jerry R. Collis is the Petitioner.

Preponderance of the Evidence

The standard of proof required in this hearing. It is defined as “The greater weight of the evidence…sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

Respondent

The party against whom a petition is filed. In this matter, Laveen Meadows HOA is the Respondent.

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19F-H18020-REL

1 source

The provided text consists of an Administrative Law Judge Decision from the Office of Administrative Hearings concerning a dispute between Petitioner Jerry R. Collis and the Laveen Meadows HOA, which is the Respondent. This decision addresses Mr. Collis’s petition alleging the HOA violated its CC&Rs by improperly issuing citations related to his vehicle. The Findings of Fact detail that Mr. Collis’s vehicle was cited for being inoperable, having expired tags, and creating an unsightly condition defined as a nuisance under multiple CC&R sections. Ultimately, the Conclusions of Law state that Mr. Collis failed to meet his burden of proof to show the HOA violated any community documents or statutes, leading to the dismissal of his petition.

Case Participants

Petitioner Side

Jerry R. Collis (petitioner)

Respondent Side

Chad Gallacher (HOA attorney)
Maxwell & Morgan, P.C.
Counsel for Respondent Laveen Meadows HOA
Lisa Riesland (community manager)
Laveen Meadows HOA
Testified for Respondent

Neutral Parties

Thomas Shedden (ALJ)
Office of Administrative Hearings
Judy Lowe (Commissioner)
Arizona Department of Real Estate

Other Participants

f del sol (admin support)
Signed copy distribution notice