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Scheinholtz, Martin F. vs. Corte Bella Country Club Association

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Case Summary

Case ID 13F-H1313001-BFS
Agency DFBLS
Tribunal OAH
Decision Date 2013-06-19
Administrative Law Judge M. Douglas
Outcome no
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Martin F. Scheinholtz Counsel Yvette D. Ansel
Respondent Corte Bella Country Club Association Counsel Troy B. Stratman

Alleged Violations

A.R.S. § 33-1804

Outcome Summary

The Administrative Law Judge ruled in favor of the Respondent, Corte Bella Country Club Association. The ALJ concluded that the Petitioner failed to meet the burden of proof to establish a violation of A.R.S. § 33-1804 or the Bylaws. The Board's appointment of a director during the 'new business' portion of a meeting, though not on the written agenda, was found to be permissible as members were allowed to comment prior to the vote.

Why this result: Petitioner failed to prove the existence of a secret meeting or that the omission of the specific item from the agenda violated the statute or bylaws.

Key Issues & Findings

Open Meeting Law / Agenda Violation

Petitioner alleged that the Board violated A.R.S. § 33-1804 by meeting secretly to decide on a board appointment prior to the open meeting and by failing to list the appointment of a new director on the agenda for the December 11, 2012 meeting.

Orders: The petition is dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • 4
  • 29
  • 46
  • 49

Decision Documents

13F-H1313001-BFS Decision – 344903.pdf

Uploaded 2026-01-25T15:28:43 (151.3 KB)

13F-H1313001-BFS Decision – 350917.pdf

Uploaded 2026-01-25T15:28:43 (59.6 KB)

**Case Summary: Scheinholtz v. Corte Bella Country Club Association (No. 13F-H1313001-BFS)**

**Proceedings and Parties**
The hearing was conducted on June 3, 2013, before Administrative Law Judge M. Douglas at the Office of Administrative Hearings in Phoenix, Arizona. The Petitioner, Martin F. Scheinholtz, is a homeowner and member of the Corte Bella Country Club Association. The Respondent is the Corte Bella Country Club Association, a homeowners' association.

**Key Facts and Arguments**
The Petitioner filed a complaint alleging the Respondent violated A.R.S. § 33-1804 (Open Meeting Law) regarding actions taken during a Board of Directors meeting on December 11, 2012.

* **Petitioner’s Arguments:** The Petitioner alleged that the Board improperly appointed a new director, William Blake, to fill a vacancy during the meeting without listing the item on the agenda. He argued this was a "huge" issue and that the omission prevented members from deciding whether to attend and participate. He further alleged that a quorum of four Board members must have met secretly prior to the open meeting to predetermine the vote.
* **Respondent’s Arguments:** Witnesses for the Respondent testified that the motion to appoint Mr. Blake was raised as "new business" during the open meeting, which is a common practice. While three Board members admitted to discussing the potential motion beforehand, they testified that a quorum (four members) was not involved in any prior discussion or agreement. The Respondent cited Article III, Section 3.6 of the Bylaws, which authorizes the Board to fill vacancies by appointment. Additionally, testimony confirmed that homeowners present at the meeting were allowed to speak on the issue before the Board voted.

**Legal Analysis and Findings**
The Administrative Law Judge (ALJ) evaluated the evidence based on a preponderance of the evidence standard.
* **Secret Meetings:** The Tribunal found no credible evidence that a quorum of the Board met or conducted business regarding the appointment prior to the December 11, 2012, meeting. Evidence showed only three members were aware the matter would "probably" be raised, which does not constitute a quorum violation.
* **Procedural Compliance:** The ALJ determined that the Bylaws explicitly grant the Board the right to declare a vacancy and appoint a successor. The Tribunal noted that the motion passed by a 4-2 vote and that the Board complied with open meeting requirements by allowing member discussion prior to the vote.

**Outcome and Final Decision**
The ALJ concluded that the Petitioner failed to meet the burden of proof to establish a violation of A.R.S. § 33-1804 or the Association's Bylaws.
* **Ruling:** Corte Bella Country Club Association was deemed the prevailing party, and the petition was dismissed.
* **Certification:** The Department of Fire, Building and Life Safety took no action to reject or modify the decision within the statutory timeframe; therefore, the ALJ's decision was certified as the final administrative decision on July 29, 2013.

Case Participants

Petitioner Side

  • Martin F. Scheinholtz (petitioner)
    Corte Bella Country Club Association (Member)
    Homeowner alleging violation of open meeting laws
  • Yvette D. Ansel (attorney)
    Hymson Goldstein & Pantiliat, PLLC

Respondent Side

  • Troy B. Stratman (attorney)
    Mack Watson & Stratman, P.L.C.
  • Regina Shanney-Saborsky (witness)
    Corte Bella Country Club Association
    Board Member; testified she voted against the appointment
  • William Blake (board member)
    Corte Bella Country Club Association
    Appointed to fill vacant director position
  • Robert Moberly (witness)
    Corte Bella Country Club Association
    Board Member
  • Ray Valle (witness)
    Corte Bella Country Club Association
    Former Board Member; testified regarding the motion to appoint Blake
  • Walter E. Kearns (board member)
    Corte Bella Country Club Association
    Mentioned in testimony/proxy
  • Vincent James Petrella (witness)
    Corte Bella Country Club Association
    Former Board Member; admitted to 'orchestrating' the appointment
  • Robert Rosenberg (board member)
    Corte Bella Country Club Association
    Mentioned in testimony as not being aware of the motion beforehand
  • James R. Williams (witness)
    Corte Bella Country Club Association
    Board President

Neutral Parties

  • M. Douglas (ALJ)
    Office of Administrative Hearings
    Administrative Law Judge
  • Gene Palma (agency director)
    Department of Fire, Building and Life Safety
  • Cliff J. Vanell (director)
    Office of Administrative Hearings
    Certified the ALJ decision
  • Joni Cage (recipient)
    Department of Fire, Building and Life Safety
    c/o for Gene Palma
  • Rosella J. Rodriguez (clerk)
    Office of Administrative Hearings
    Mailed/faxed the certification

Tobin, Allen R. vs. Sunland Village Community Association

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Case Summary

Case ID 11F-H1112006-BFS, 11F-H1112010-BFS, 12F-H121001-BFS
Agency DFBLS
Tribunal OAH
Decision Date 2012-04-30
Administrative Law Judge M. Douglas
Outcome partial
Filing Fees Refunded $1,650.00
Civil Penalties $600.00

Parties & Counsel

Petitioner Allen R. Tobin Counsel —
Respondent Sunland Village Community Association Counsel Jason E. Smith; Lindsey O'Conner

Alleged Violations

Article V, Section 7
Article XII, Section 2
Article VI (D)(7)

Outcome Summary

The Homeowner prevailed on claims regarding the lack of a quorum for a Board meeting and unauthorized legal expenditures. The HOA prevailed on its cross-petition regarding the Homeowner's failure to provide proper notice for bylaw amendments proposed at the annual meeting. Both parties were assessed civil penalties for their respective violations.

Why this result: The Homeowner lost one issue because he admitted to violating the notice requirements for bylaw amendments.

Key Issues & Findings

Board Meeting Quorum

Petitioner alleged a minority of the Board conducted a meeting to invalidate annual meeting actions without a quorum. The Bylaws require a majority of directors for a quorum.

Orders: HOA ordered to comply with Bylaws, refund Petitioner's $550 filing fee, and pay $200 civil penalty.

Filing fee: $550.00, Fee refunded: Yes, Civil penalty: $200.00

Disposition: petitioner_win

Cited:

  • 6
  • 16
  • 27
  • 31

Bylaw Amendment Notice

HOA alleged Petitioner (Homeowner) violated Bylaws by proposing amendments from the floor at the annual meeting without required 10-day advance written notice to members.

Orders: Petitioner (Homeowner) ordered to pay HOA's $550 filing fee and pay $200 civil penalty to the Department.

Filing fee: $550.00, Fee refunded: Yes, Civil penalty: $200.00

Disposition: petitioner_loss

Cited:

  • 7
  • 10
  • 24
  • 32

Unauthorized Legal Fees

Petitioner alleged the HOA manager and board members met with attorneys and incurred fees without Board direction, knowledge, or documentation as required by the Policy Manual.

Orders: HOA ordered to comply with Policy Manual, refund Petitioner's $550 filing fee, and pay $200 civil penalty.

Filing fee: $550.00, Fee refunded: Yes, Civil penalty: $200.00

Disposition: petitioner_win

Cited:

  • 8
  • 29
  • 30
  • 33

Decision Documents

12F-H1212001-BFS Decision – 292297.pdf

Uploaded 2026-01-25T15:25:47 (135.4 KB)

12F-H1212001-BFS Decision – 295402.pdf

Uploaded 2026-01-25T15:25:48 (62.4 KB)

**Case Title:** *Allen R. Tobin v. Sunland Village Community Association* (Consolidated Case Nos. 11F-H1112006-BFS, 11F-H1112010-BFS, and 12F-H1212001-BFS)

**Overview**
This hearing before the Arizona Department of Fire, Building and Life Safety addressed three consolidated petitions involving disputes between Allen R. Tobin, a Board member, and the Sunland Village Community Association (Sunland). The disputes arose from a divided Board of Directors unable to form a quorum, resulting in allegations regarding improper bylaw amendments, invalid meetings, and unauthorized legal expenditures,.

**Key Issues and Arguments**

**1. Improper Bylaw Amendments (Sunland v. Tobin)**
* **Issue:** Sunland alleged that Tobin violated the Association's Bylaws by proposing three amendments from the floor during the January 12, 2011, annual meeting without providing prior written notice to the membership.
* **Arguments:** Sunland cited Article XII, Section 2, which requires notice of proposed amendments be given in the same manner as the annual meeting notice,. Tobin admitted he provided no formal notice but argued that because the members present voted on the motions, the defect was waived,.
* **Legal Finding:** The Administrative Law Judge (ALJ) found that the Bylaws explicitly require advance written notice. As a serving Director, Tobin was aware of this requirement. Therefore, his presentation of motions without notice violated Article XII, Section 2 of the Bylaws,.

**2. Lack of Quorum (Tobin v. Sunland)**
* **Issue:** Tobin challenged the validity of a February 11, 2011, Board meeting where three directors met to declare the actions of the annual meeting "null and void",.
* **Arguments:** Tobin argued that a quorum of four directors was required to conduct business, and only three were present.
* **Legal Finding:** The Bylaws define a quorum as a majority of directors then serving. With six serving directors, a quorum required four members. The ALJ ruled that the three members present did not constitute a quorum; therefore, their attempt to conduct business violated Article V, Section 7 of the Bylaws,.

**3. Unauthorized Legal Expenditures (Tobin v. Sunland)**
* **Issue:** Tobin alleged that the Association manager and a minority of Board members incurred legal fees ($640) and authorized legal representation without the knowledge or approval of the full Board,.
* **Arguments:** Tobin argued that Association funds cannot be obligated without Board approval. The manager claimed he had oral authority to contact counsel,.
* **Legal Finding:** The Sunland Policy Manual requires that all contact with the law firm be at the Board's direction and that such contacts be documented and reported to the Board monthly. The ALJ found that Sunland violated Article VI (D)(7) of the Policy Manual because the legal contacts were made without Board direction or proper reporting,.

**Outcome and Final Decision**

The ALJ issued a split decision on April 30, 2012

Case Participants

Petitioner Side

  • Allen R. Tobin (petitioner)
    Sunland Village Community Association Board of Directors
    Board member; appeared on his own behalf
  • Verworst (board member)
    Sunland Village Community Association Board of Directors
    Member of the minority faction aligned with Tobin
  • Linda Wagner (board member)
    Sunland Village Community Association Board of Directors
    Member of the minority faction; witness; co-plaintiff in related civil action

Respondent Side

  • Jason E. Smith (attorney)
    Carpenter, Hazlewood, Delgado & Wood, PLC
    Attorney for Sunland Village Community Association
  • Lindsey O’Conner (attorney)
    Carpenter, Hazlewood, Delgado & Wood, PLC
    Attorney for Sunland Village Community Association
  • Gordon Clark (property manager)
    Sunland Village Community Association
    Full-time employee-manager; witness; named in related civil action
  • Richard Gaffney (board member)
    Sunland Village Community Association Board of Directors
    Member of the majority faction of the Board
  • Kathrine J. Lovitt (board member)
    Sunland Village Community Association Board of Directors
    Also referred to as Kitty Lovitt; Vice President; member of the majority faction
  • Jack Cummins (board member)
    Sunland Village Community Association Board of Directors
    Member of the majority faction of the Board
  • Scott Carpenter (attorney)
    Carpenter, Hazlewood, Delgado & Wood, PLC
    Paid from Association funds for consultations with Board minority
  • Penny Gaffney (named individual)
    Named in related civil action mentioned in testimony
  • Marriane Clark (named individual)
    Named in related civil action mentioned in testimony
  • Robert Lovitt (named individual)
    Named in related civil action mentioned in testimony
  • Karin Cummins (named individual)
    Named in related civil action mentioned in testimony

Neutral Parties

  • M. Douglas (ALJ)
    Office of Administrative Hearings
  • Erwin Paulson (witness)
    Sunland Village Community Association
    Homeowner who filed written objection to Tobin's motions
  • Gene Palma (agency director)
    Department of Fire, Building and Life Safety
  • Cliff J. Vanell (OAH director)
    Office of Administrative Hearings
    Certified the decision
  • Beth Soliere (agency staff)
    Department of Fire, Building and Life Safety
    Recipient of transmitted decision