Tag Archives: A.R.S. § 12-541(5)

Park, Denise vs. Montezuma Fairway Villas Homeowners Association

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Case Summary

Case ID 12F-H1213010-BFS-rhg
Agency DFBLS
Tribunal OAH
Decision Date 2014-01-17
Administrative Law Judge M. Douglas
Outcome partial
Filing Fees Refunded $2,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Denise Park Counsel J. Roger Wood
Respondent Montezuma Fairway Villas Homeowners Association Counsel Jonathon V. O’Steen

Alleged Violations

A.R.S. § 33-1247
A.R.S. § 33-1248
A.R.S. § 33-1250
A.R.S. § 33-1258

Outcome Summary

The Director accepted the ALJ's recommendation on rehearing. The Petitioner prevailed on claims regarding maintenance of common areas (weeds, wall) and failure to hold elections. The HOA was ordered to comply with statutes and prove weed control. Claims regarding open meetings were dismissed because the Petitioner failed to attend. Claims regarding financial records were dismissed due to the expiration of the one-year statute of limitations. The Respondent was ordered to reimburse half ($1,000) of the filing fee directly to the Petitioner.

Key Issues & Findings

Maintenance of common elements

Petitioner alleged the HOA failed to maintain common areas, citing overflowing trash, weeds, and a broken wall. The ALJ found the evidence established these failures.

Orders: Respondent ordered to comply with statute and provide proof that weeds in common areas have been eliminated or properly controlled.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1247

Open meetings

Petitioner alleged the HOA failed to conduct open meetings. The HOA proved notice was mailed for the May 24, 2012 meeting.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_lose

Cited:

  • A.R.S. § 33-1248

Voting and proxies

Petitioner alleged the HOA failed to hold proper elections. The HOA admitted no election was held at the annual meeting because only three members attended.

Orders: Respondent ordered to comply with A.R.S. § 33-1250 in the future.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1250

Association financial and other records

Petitioner requested financial records in August 2011 which were not provided until Jan/Feb 2012 (late).

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_lose

Cited:

  • A.R.S. § 33-1258
  • A.R.S. § 12-541(5)

Decision Documents

12F-H1213010-BFS-rhg Decision – 370568.pdf

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12F-H1213010-BFS-rhg Decision – 376532.pdf

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**Case Summary: Park v. Montezuma Fairway Villas Homeowners Association**
**Case No.** 12F-H1213010-BFS-rhg
**Nature of Proceeding:** Administrative Rehearing

**Overview**
This summary addresses the **rehearing** of a dispute between Denise Park (Petitioner), a condominium owner, and the Montezuma Fairway Villas Homeowners Association (Respondent). While an original decision was issued in March 2013 finding the Respondent liable for three violations, the rehearing in November 2013 and subsequent Final Order modified these findings based on a statute of limitations defense,.

**Procedural History and Original Decision**
Petitioner originally alleged four statutory violations: failure to maintain common areas, failure to conduct open meetings, failure to hold elections, and failure to provide financial information.
* **Original Outcome:** In the March 28, 2013 decision, the Administrative Law Judge (ALJ) ruled in favor of the Petitioner on three counts (maintenance, elections, and financial records) and ordered the Respondent to reimburse $1,500 of the filing fee.

**Rehearing Proceedings and Legal Analysis**
The rehearing was conducted on November 20, 2013. The ALJ re-evaluated the evidence and new legal arguments regarding the four alleged violations,.

**1. Maintenance of Common Areas (A.R.S. § 33-1247)**
* **Issue:** Petitioner alleged the HOA failed to repair a broken wall, control weeds, and provide adequate trash services,.
* **Argument:** Respondent argued that maintenance was deferred because Petitioner and others failed to pay dues,.
* **Ruling:** **Violation Affirmed.** Evidence established the common areas were not maintained (broken wall, weeds, peeling paint). Although the Respondent performed repairs *after* the original hearing, the ALJ ruled that post-hearing remedial actions did not alter the fact that the violation existed at the time of the petition,.

**2. Open Meetings (A.R.S. § 33-1248)**
* **Issue:** Petitioner claimed she did not receive notice of the annual meeting.
* **Ruling:** **Violation Not Found.** The ALJ found that the Respondent mailed the notice in accordance with the statute. The Petitioner’s failure to attend or receive the notice did not constitute a violation by the HOA,. This upheld the original finding.

**3. Elections (A.R.S. § 33-1250)**
* **Issue:** The HOA failed to hold elections for officers.
* **Argument:** Respondent argued no election was required because only three members attended the meeting, and all agreed to continue in their current officer roles,.
* **Ruling:** **Violation Affirmed.** The ALJ ruled that the HOA failed to hold proper elections as required by state statute and the Association's Bylaws.

**4. Financial Records (A.R.S. § 3

Case Participants

Petitioner Side

  • Denise Park (Petitioner)
    Owner of three condominium units
  • Kevin R. Harper (Attorney)
    Harper Law, PLC
    Receiving mail for Petitioner in Final Order; listed as Respondent's attorney in initial hearing decision text
  • J. Roger Wood (Attorney)
    J. Roger Wood PLLC
    Represented Petitioner in rehearing

Respondent Side

  • Carol Ann Klagge (Treasurer)
    Montezuma Fairway Villas Homeowners Association
    Board member; witness
  • Jay Klagge (Secretary)
    Montezuma Fairway Villas Homeowners Association
    Board member
  • Tony Sturgeon (Vice President)
    Montezuma Fairway Villas Homeowners Association
    Board member
  • Helen Bartels (Board Member)
    Montezuma Fairway Villas Homeowners Association
    Witness; became board member after March 28, 2013
  • Jonathon V. O’Steen (Attorney)
    O’Steen & Harrison, PLC
    Represented Respondent in rehearing and final order; listed as Petitioner's attorney in initial hearing decision text

Neutral Parties

  • M. Douglas (ALJ)
    Office of Administrative Hearings
  • Gene Palma (Director)
    Department of Fire, Building and Life Safety
  • Joni Cage (Complaint Program Manager)
    Department of Fire, Building and Life Safety

Leach, Gregory E. vs. Coronado Pointe Townhomes HOA

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Case Summary

Case ID 11F-H1112009-BFS
Agency Department of Fire, Building and Life Safety
Tribunal OAH
Decision Date 2012-04-30
Administrative Law Judge Sondra J. Vanella
Outcome no
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Gregory E. Leach Counsel —
Respondent Coronado Pointe Townhomes HOA Counsel —

Alleged Violations

A.R.S. § 33-1810
A.R.S. § 33-1805(A)

Outcome Summary

The ALJ dismissed the Petition entirely. The claims were found to be barred by the one-year statute of limitations because the request for records/audits occurred in 2009 and the petition was filed in 2011. Alternatively, on the merits, the Petitioner failed to prove violations of A.R.S. § 33-1810 or A.R.S. § 33-1805(A).

Why this result: The Petition was time-barred by the statute of limitations. Furthermore, the Petitioner failed to meet the burden of proof regarding the requirements of the CC&Rs for audits and the availability of records.

Key Issues & Findings

Financial Audit Requirement

Petitioner alleged the Board refused to provide CPA audited statements. The ALJ ruled the claim was time-barred. On the merits, Petitioner failed to prove the CC&Rs required a CPA audit, which is a prerequisite for a violation of the statute when the documents do not require it.

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1810
  • A.R.S. § 12-541(5)

Association Records

Petitioner alleged records were inadequate or unavailable. Evidence showed Petitioner and another homeowner reviewed records at the HOA attorney's office in 2010.

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1805(A)

Video Overview

Audio Overview

Decision Documents

11F-H1112009-BFS Decision – 291388.pdf

Uploaded 2026-01-25T15:25:27 (80.1 KB)

11F-H1112009-BFS Decision – 294580.pdf

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Briefing Doc – 11F-H1112009-BFS


Case Summary: Leach v. Coronado Pointe Townhomes HOA Case No. 11F-H1112009-BFS Forum: Arizona Office of Administrative Hearings Date of Decision: April 30, 2012 (Certified Final June 6, 2012)

Overview and Proceedings The Petitioner, Gregory E. Leach, a homeowner in the Coronado Pointe Townhomes planned community, filed a petition against the Respondent, Coronado Pointe Townhomes HOA12. The hearing was conducted on April 11, 2012, before Administrative Law Judge (ALJ) Sondra J. Vanella2. The Petitioner appeared on his own behalf, while the Respondent was represented by Board members Dimitrios and Vikki Boukalis2.

Key Facts and Arguments The Petitioner alleged that the HOA Board had refused to provide “CPA Audited Annual Financial Statements” from June 2000 to the present, asserting that the Board was defrauding homeowners and violating governing statutes34. He argued that existing documents were inadequate and requested an accountant review the records5.

The Respondent argued that the Petitioner’s claims were barred by a one-year statute of limitations6. Additionally, the Respondent provided evidence that the Petitioner had been granted access to review the Association’s financial records at the HOA attorney’s office on May 21, 201045.

Main Legal Issues and Analysis The ALJ addressed three primary legal issues:

1. Statute of Limitations (A.R.S. § 12-541(5)): The ALJ concluded the petition was time-barred. The statute creates a one-year limitation for liabilities created by statute. The Petitioner requested the financial statements in December 2009 but did not file the petition until November 25, 2011, nearly two years later78.

2. Audit Requirement (A.R.S. § 33-1810): The ALJ found that while the Petitioner demanded a CPA audit, the statute only requires a general “financial audit” unless the community’s specific documents (CC&Rs) mandate a CPA. The Petitioner failed to prove that the Coronado CC&Rs required a certified public accountant to perform the audit89.

3. Access to Records (A.R.S. § 33-1805(A)): The statute requires associations to make records “reasonably available” for examination. The ALJ found that because the Petitioner had reviewed the financial records on May 21, 2010, the Respondent had complied with the statute910.

Outcome and Final Decision The ALJ ordered that the petition be dismissed, ruling that no action was required of the Respondent10. The decision was based on the expiration of the statute of limitations and the Petitioner’s failure to establish violations of the relevant statutes by a preponderance of the evidence7….

The decision became the final administrative decision of the Department of Fire, Building and Life Safety on June 6, 2012, after the Department took no action to reject or modify the ALJ’s ruling within the statutory timeframe12.


Case Participants

Petitioner Side

  • Gregory E. Leach (Petitioner)
    Coronado Pointe Townhomes
    Appeared on own behalf; Homeowner

Respondent Side

  • Dimitrios Boukalis (Board President)
    Coronado Pointe Townhomes HOA
    Appeared on behalf of Respondent; Developer
  • Vikki Boukalis (Board Treasurer)
    Coronado Pointe Townhomes HOA
    Appeared on behalf of Respondent; Daughter of Dimitrios Boukalis
  • Fueronia Boukalis (Board Secretary)
    Coronado Pointe Townhomes HOA
    Wife of Dimitrios Boukalis

Neutral Parties

  • Sondra J. Vanella (ALJ)
    Office of Administrative Hearings
  • Michael Kollias (Homeowner)
    Coronado Pointe Townhomes
    Accompanied Petitioner to review financial records
  • Cliff J. Vanell (Director)
    Office of Administrative Hearings
    Signed Certification of Decision
  • Gene Palma (Director)
    Department of Fire, Building and Life Safety
    Recipient of decision transmission
  • Beth Soliere (Agency Staff)
    Department of Fire, Building and Life Safety
    Recipient of decision transmission