Robert A. White vs. Aspen Shadows Condominium Association

Case Summary

Case ID 16F-H1616001-BFS
Agency DFBLS
Tribunal OAH
Decision Date 2016-04-01
Administrative Law Judge Diane Mihalsky
Outcome no
Filing Fees Refunded $2,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Robert A. White Counsel
Respondent Aspen Shadows Condominium Association Counsel Maria R. Kupillas

Alleged Violations

A.R.S. § 33-1253
A.R.S. § 33-1247
CC&Rs 4.23
A.R.S. § 33-1260

Outcome Summary

The ALJ dismissed all claims. The HOA was found to be in compliance with insurance and records statutes. The maintenance issue involved a Limited Common Element for which the owner was responsible. The noise issue was barred by CC&R waivers and timing.

Why this result: Petitioner failed to meet the burden of proof on all counts. The HOA demonstrated compliance with statutes (electronic records, reasonably available insurance) and the CC&Rs (Limited Common Element responsibility, noise waivers).

Key Issues & Findings

Failure to Maintain All-Risk Insurance

Petitioner alleged the HOA failed to maintain required insurance coverage because the insurer denied a claim for a slow leak/construction defect.

Orders: Dismissed. Respondent maintained a policy; exclusions for slow leaks/defects are common and reasonably available.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • 4
  • 14
  • 16
  • 54
  • 55

Failure to Maintain Common Elements (Grinder Pump)

Petitioner alleged the HOA failed to repair a grinder pump damaged by storm runoff and improper installation.

Orders: Dismissed. Petitioner failed to prove the pump was defective. As a Limited Common Element, costs were assessable to Petitioner anyway.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • 5
  • 28
  • 31
  • 56
  • 57

Failure to Enforce Floor Covering Restrictions

Petitioner alleged the HOA failed to enforce prohibitions against hard floor coverings in the unit above him, causing noise.

Orders: Dismissed. The flooring was installed years prior to Petitioner's purchase. Petitioner assumed risk of noise under CC&Rs.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • 6
  • 41
  • 44
  • 58
  • 59

Failure to Provide Records (Resale Disclosure)

Petitioner alleged the HOA failed to provide paper copies of governing documents upon purchase, offering electronic versions instead.

Orders: Dismissed. The statute permits electronic delivery.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • 7
  • 47
  • 59
  • 60

Decision Documents

16F-H1616001-BFS Decision – 488610.pdf

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16F-H1616001-BFS Decision – 495160.pdf

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Here is a concise summary of the hearing proceedings for Case No. 16F-H1616001-BFS.

**Case Overview**
**Petitioner:** Robert A. White (Owner of Unit 41)
**Respondent:** Aspen Shadows Condominium Association
**Hearing Date:** March 24, 2016
**Decision Date:** April 1, 2016 (Certified Final May 9, 2016)

The Petitioner filed a complaint alleging the Respondent violated Arizona Revised Statutes (A.R.S.) and the Association’s Covenants, Conditions, and Restrictions (CC&Rs) regarding insurance coverage, common element maintenance, noise enforcement, and document delivery,.

**Key Issues and Arguments**

**1. Insurance Coverage (Water Damage)**
* **Issue:** The Petitioner alleged the Association violated A.R.S. § 33-1253 and CC&R Article 8.1 by denying coverage for water damage caused by a leak from the unit above (Unit 42).
* **Arguments:** The Petitioner claimed the Association withdrew the claim, denying him protection. The Respondent argued it submitted the claim to Farmers Insurance, but the carrier denied it because the damage resulted from a "long-term" slow leak, a policy exclusion,.
* **Finding:** The Administrative Law Judge (ALJ) found the Association maintained the required insurance. The insurer's denial based on standard exclusions for maintenance issues (like slow leaks) did not constitute a violation by the Association,.

**2. Grinder Pump Liability**
* **Issue:** The Petitioner sought reimbursement for a grinder pump ($1,697.50) serving his unit, alleging it was damaged by storm runoff due to an improper diversion wall (a common element).
* **Arguments:** The Respondent contended the pump is a "Limited Common Element" serving only Unit 41. Evidence suggested the pump was previously functional and damage resulted from a dislodged lid allowing debris inside.
* **Finding:** The pump is a Limited Common Element. Under the CC&Rs, the Association may assess repair costs for such elements to the specific unit owner benefiting from them. The Petitioner failed to prove the pump was defective or that the Association was liable for the replacement.

**3. Hard Floor Noise Violation**
* **Issue:** The Petitioner alleged the unit above (Unit 42) had prohibited hard flooring, violating CC&R Article 4.23, and the Association failed to enforce the rule.
* **Arguments:** The Respondent noted the flooring was installed in 2008 (six years prior to the Petitioner's purchase) and argued the Petitioner assumed the risk of noise,.
* **Finding:** The CC&Rs contain a specific provision (Section 13.20) where owners assume the risk of noise and vibrations from adjacent units,. The Petitioner failed to establish the Association was liable for the potential violation or the resulting noise.

**4. Document Delivery**
* **Issue:** The Petitioner claimed the Association violated A.R.S. § 33-1260 by failing to provide paper copies of the CC&Rs and Bylaws before escrow closed.
* **Arguments:** The Respondent argued compliance by providing documents in electronic format, which the Petitioner refused to accept.
* **Finding:** A.R.S. § 33-1260 permits delivery in "either paper or electronic format". The Respondent’s use of electronic delivery was legal, and the Petitioner’s refusal to accept that format did not make the Association's actions a violation.

**Final Decision**
The ALJ determined the Petitioner failed to prove by a preponderance of the evidence that the Respondent violated any statutes or CC&Rs,. The petition was **dismissed**, and no action was required of the Respondent. The decision became the final administrative decision of the Department of Fire, Building and Life Safety on May 9, 2016.

Case Participants

Petitioner Side

  • Robert A. White (Petitioner)
    Owner of Unit 41

Respondent Side

  • Maria R. Kupillas (attorney)
    Choate & Seletos
    Represented Respondent
  • Melanie Lashlee (community manager)
    Testified for Respondent
  • Ty Hart (engineer)
    Flagstaff Ranch
    Facilities Engineer
  • Faith Johnson (escrow officer)
    Respondent's escrow officer, initials 'f.j.'

Neutral Parties

  • Diane Mihalsky (ALJ)
    Office of Administrative Hearings
    Administrative Law Judge
  • Kenji Cassady (witness)
    Royal Plumbing, Inc.
    Plumber who repaired leak in Unit 42
  • Nicolas Boley (claims representative)
    Farmers Insurance
    Senior Field Claims Representative
  • Tyler (contractor)
    DC Restoration
    Mitigation contractor
  • Jacqueline Martinez (contractor)
    Damage Control AZ
    Sent email confirming leak duration
  • Dave Taylor (unit owner)
    Owner of Unit 42
  • Debra Blake (Interim Director)
    Department of Fire Building and Life Safety
    Agency head
  • Greg Hanchett (Interim Director)
    Office of Administrative Hearings
    Signed Certification of Decision
  • Joni Cage (staff)
    Department of Fire Building and Life Safety
    Recipient of decision copy
  • Rosella J. Rodriguez (clerk)
    Office of Administrative Hearings
    Mailed/transmitted decision

Saxton, Nancy vs. The Lakes Community Association

Case Summary

Case ID 13F-H1314007-BFS
Agency ADRE
Tribunal OAH
Decision Date 2014-06-02
Administrative Law Judge M. Douglas
Outcome false
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Nancy Saxton Counsel Steven W. Cheifetz
Respondent The Lakes Community Association Counsel Charles E. Maxwell

Alleged Violations

A.R.S. § 33-1805

Outcome Summary

The Administrative Law Judge ruled in favor of the Respondent and dismissed the case. The Judge found that the Petitioner was contractually obligated to arbitrate disputes under the Association's bylaws, that the petition was filed after the one-year statute of limitations had expired, and that the Respondent had lawfully complied with A.R.S. § 33-1805 by offering inspection of unredacted records.

Why this result: Jurisdictional bar due to mandatory arbitration clause; statute of limitations expiration; finding of compliance by Respondent.

Key Issues & Findings

Request to Review Association Records

Petitioner alleged the Respondent violated statutes by providing heavily redacted financial records and failing to provide unredacted copies for review upon demand.

Orders: The matter was dismissed. The Tribunal found the Petitioner was required to arbitrate, the claim was barred by the statute of limitations, and the Respondent had complied with the statute by making records reasonably available.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • 5
  • 37
  • 38
  • 41

Decision Documents

13F-H1314007-BFS Decision – 396509.pdf

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13F-H1314007-BFS Decision – 401319.pdf

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13F-H1314007-BFS Decision – 404479.pdf

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13F-H1314007-BFS Decision – 404483.pdf

Uploaded 2026-01-25T15:29:42 (53.4 KB)

**Case Title:** *Nancy Saxton v. The Lakes Community Association*
**Case Number:** 13F-H1314007-BFS
**Forum:** Office of Administrative Hearings, State of Arizona

**Proceedings and Background**
The hearing was held on April 29, 2014, before Administrative Law Judge M. Douglas,. Petitioner Nancy Saxton, a homeowner, filed a petition alleging The Lakes Community Association (HOA) violated A.R.S. § 33-1805 regarding the inspection of financial records,. The HOA filed motions to dismiss based on jurisdiction, the statute of limitations, and prior compliance.

**Key Facts**
* **Records Request:** Saxton submitted demands to inspect the HOA's financial records in November 2012,.
* **Production:** The HOA provided approximately 3,700 pages of documents,.
* **Redactions:** The documents contained numerous redactions. The HOA claimed these were necessary to protect personal and payroll information as permitted by statute,. Saxton argued the redactions precluded a proper evaluation of the HOA’s expenditures,.
* **Offer to Inspect:** Upon receiving complaints about the redactions, the HOA offered to allow Saxton to review un-redacted documents at the HOA attorney's office. Saxton declined this offer, feeling it would be "futile" or intimidating,.

**Key Legal Arguments and Issues**
1. **Arbitration:** The HOA argued that an "Alternative Dispute Resolution" amendment to its Bylaws required binding arbitration for governance disputes, precluding administrative action,.
2. **Statute of Limitations:** The HOA contended the claim was barred by the one-year statute of limitations under A.R.S. § 12-541(5) for liabilities created by statute,.
3. **Compliance:** The HOA argued it satisfied its statutory obligation to make records "reasonably available" by providing copies and offering an in-person review of un-redacted files,.

**Administrative Law Judge Decision**
The ALJ ruled in favor of the Respondent (the HOA) on all three major points:

1. **Arbitration Clause Enforced:** The ALJ concluded that under the HOA's Bylaws and Arizona common law, Saxton was required to submit her claims to arbitration. The arbitration clause was deemed valid and enforceable.
2. **Statute of Limitations Expired:** The ALJ determined the cause of action accrued ten business days after Saxton’s November 5, 2012 demand. Because the petition was filed on November 25, 2013, it fell outside the one-year limitation period prescribed by A.R.S. § 12-541(5).
3. **Substantive Compliance:** The ALJ found that the HOA had complied with A.R.S. § 33-1805. By providing redacted copies and subsequently making un-redacted versions available for review at their attorney's office, the HOA satisfied the requirement to make records "reasonably available".

**Outcome**
The matter was dismissed, and The Lakes Community Association was deemed the prevailing party. The decision was certified as the final administrative decision on July 10

Case Participants

Petitioner Side

  • Nancy Saxton (petitioner)
    The Lakes Community Association (Member)
    Homeowner
  • Steven W. Cheifetz (attorney)
    Cheifetz, Iannitelli Marcolini, P.C.
    Listed as 'Heifetz' in mailing list

Respondent Side

  • Charles E. Maxwell (attorney)
    Maxwell & Morgan, P.C.
  • Christine Green Baldanza (community manager)
    The Lakes Community Association
    Community Manager in 2012 and early 2013

Neutral Parties

  • M. Douglas (ALJ)
    Office of Administrative Hearings
  • Cliff J. Vanell (director)
    Office of Administrative Hearings
    Signed Certification of Decision
  • Gene Palma (director)
    Department of Fire, Building and Life Safety
    Agency Director
  • Joni Cage (agency staff)
    Department of Fire, Building and Life Safety
    c/o for Gene Palma
  • Rosella J. Rodriguez (clerk)
    Office of Administrative Hearings
    Mailed/transmitted decision

Other Participants

  • Marsha Hill (witness)
    The Lakes Community Association
    CPA; Former chairman of budget and finance committee
  • Maureen Harrison (witness)
    The Lakes Community Association
    Former Board Member (1993-2000, 2011-2012)