Travis Prall v. Villas at Tierra Buena HOA

Case Summary

Case ID 18F-H1818053-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2019-01-31
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Travis Prall Counsel
Respondent Villas at Tierra Buena Homeowners Association Counsel Lydia Pierce Linsmeier

Alleged Violations

Section 7.1.4 of the CC&Rs

Outcome Summary

The Administrative Law Judge dismissed the Petition following a rehearing, concluding that the Petitioner failed to meet the burden of proof to show the HOA violated Section 7.1.4 of the CC&Rs because there was no credible evidence that the disputed landscaping (tree) had been originally installed by the developer.

Why this result: Petitioner failed to establish by a preponderance of the evidence that the landscaping was originally installed by the Declarant, which was a prerequisite for HOA maintenance responsibility under the relevant CC&R section.

Key Issues & Findings

Neglecting yard maintenance in visible public yards

Petitioner alleged the HOA violated CC&R Section 7.1.4 by failing to maintain a tree in his back yard, arguing the back yard qualified as a 'Public Yard' and the tree was originally installed by the Declarant.

Orders: The Petition was dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 41-2198.01
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: HOA maintenance, CC&R interpretation, burden of proof, landscaping
Additional Citations:

  • A.R.S. § 41-2198.01
  • A.R.S. § 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)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.09
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Audio Overview

Decision Documents

18F-H1818053-REL Decision – 661820.pdf

Uploaded 2025-10-08T07:06:14 (107.3 KB)





Briefing Doc – 18F-H1818053-REL


Briefing: Prall v. Villas at Tierra Buena HOA Dispute

Executive Summary

This briefing synthesizes the findings and legal rationale from a homeowners’ association dispute between Petitioner Travis Prall and Respondent Villas at Tierra Buena HOA. The case centered on whether the HOA was responsible for maintaining a tree in the Petitioner’s backyard. The Petitioner alleged the HOA violated Section 7.1.4 of the community’s Covenants, Conditions, and Restrictions (CC&Rs) by neglecting maintenance in what he defined as a “Public Yard.”

The dispute was adjudicated by the Arizona Office of Administrative Hearings, resulting in two decisions, an initial ruling and a subsequent ruling on rehearing, both of which dismissed the Petitioner’s case. The critical takeaway is that the case was decided not on the ambiguous definition of “Public” versus “Private” yards, but on a crucial qualifying clause in the CC&Rs. Section 7.1.4 obligates the HOA to maintain landscaping only “as originally installed by Declarant.”

The Petitioner failed to provide sufficient evidence that the tree in question was part of the original developer’s landscaping. Conversely, the HOA presented credible testimony from an early homeowner and board member stating that all backyards in the community were sold as “just dirt,” with no developer-installed landscaping or irrigation. The Administrative Law Judge ruled that the Petitioner’s arguments were based on “suppositions and inferences” and did not meet the “preponderance of the evidence” standard required to prove his claim.

Case Overview

This dispute was initiated by a petition filed with the Arizona Department of Real Estate and adjudicated by the Office of Administrative Hearings. The core issue was the interpretation of HOA maintenance responsibilities as defined in the community’s governing documents.

Case Detail

Information

Case Number

18F-H1818053-REL

Petitioner

Travis Prall

Respondent

Villas at Tierra Buena HOA

Adjudicator

Administrative Law Judge Tammy L. Eigenheer

Initial Hearing

September 4, 2018

Initial Decision

September 24, 2018 (Petition Dismissed)

Rehearing

January 11, 2019

Final Decision

January 31, 2019 (Petition Dismissed)

Timeline of Key Events

2010: Petitioner Travis Prall purchases his home, an “interior” unit, and believes the HOA is responsible for both front and backyard maintenance.

July 26, 2014: A storm knocks over a large tree in the Petitioner’s backyard. He pays for its removal while asserting it was the HOA’s responsibility.

Post-2014: The tree regrows from its remaining trunk.

2018: The HOA observes that the regrown tree’s roots are causing a “pony wall” to buckle and hires Sun King Fencing & Gates to perform repairs. The repair company recommends removing the tree to prevent recurrence.

May 3, 2018: The HOA issues a “Courtesy Letter” to the Petitioner, requesting he “trim or remove the tree in the back yard causing damage to the pony wall.”

June 4, 2018: In response, the Petitioner files a Dispute Process Petition with the Arizona Department of Real Estate, initiating the legal proceedings.

Central Allegation and Dispute

The Petitioner alleged that the Villas at Tierra Buena HOA violated Section 7.1.4 of its CC&Rs by “neglecting yard maintenance in visible public yards.” His central claim was that his backyard, though enclosed, qualifies as a “Public Yard” under the CC&Rs and that the HOA was therefore responsible for the maintenance and removal of the problematic tree. The HOA’s demand that he handle the tree himself constituted, in his view, a violation of their duties.

Analysis of Arguments and Evidence

The case presented conflicting interpretations of the CC&Rs and opposing accounts of historical maintenance practices.

Petitioner’s Position (Travis Prall)

The Petitioner’s case was built on his interpretation of the CC&Rs and inferences drawn from circumstantial evidence.

CC&R Interpretation: Argued that his backyard is a “Public Yard” because, while enclosed by a four-foot wall (two-foot block plus two-foot aluminum fence), it is “generally visible from Neighboring Property” via a community walkway.

Claim of Prior Maintenance: Testified that from 2010 to 2013, the HOA did provide landscaping maintenance for his backyard.

Inferences about Original Landscaping:

◦ Posited that the large size of the tree in 2010 indicated it must have been planted by the original developer around 2000.

◦ Argued that the similar design of irrigation systems across the community suggested they were all installed during original construction, including those in backyards.

◦ Noted that the sprinkler system in his backyard wrapped around the tree, further suggesting they were installed together by the developer.

Respondent’s Position (Villas at Tierra Buena HOA)

The Respondent’s defense relied on its own interpretation of the CC&Rs, consistent historical practice, and direct testimony regarding the community’s development.

CC&R Interpretation: Argued that an “enclosed” yard is, by definition, a “Private Yard,” making the homeowner responsible for its maintenance.

Denial of Prior Maintenance: Stated unequivocally that it had never provided landscaping services for any resident’s backyard. Its responsibility is limited to front yards and common areas.

Practical and Liability Concerns: Argued that it has no access to control backyard irrigation systems and that its workers entering enclosed yards would create liability issues, such as pets escaping.

Crucial Rehearing Testimony: Presented testimony from Maureen Karpinski, the HOA Board President.

◦ Ms. Karpinski, a real estate agent, purchased her home from the developer in 2002 and was involved with the community during its construction phase.

◦ She testified with certainty that her backyard was “just dirt” with no landscaping or irrigation when she purchased it.

◦ She stated that, to the best of her knowledge, “none of the homes in Respondent’s community were sold with any landscaping or irrigation in the back yards and were just dirt.”

Interpretation of Governing CC&R Sections

The dispute revolved around the specific language in the Declaration of Covenants, Conditions, Restrictions and Easements.

Section

Provision

Significance in the Case

The HOA must “Replace and maintain all landscaping and other Improvements as originally installed by Declarant on the Public Yards of Lots…

This became the dispositive clause. The Petitioner’s entire claim depended on proving the tree was “originally installed by Declarant.”

“Private Yard” means that portion of a Yard which is enclosed or shielded from view… so that it is not generally Visible from Neighboring Property. “Public Yard” means that portion of a Yard which is generally visible from Neighboring Property

This created a central point of interpretive conflict. The Petitioner argued the clause meant “enclosed and not visible,” while the HOA argued it meant “enclosed or shielded.” The Judge ultimately did not rule on this ambiguity.

“Visible from Neighboring Property” means… visible to a person six feet tall standing on any part of such neighboring property…

This definition supported the Petitioner’s claim that his backyard was, in fact, “visible” from the common area walkway.

Administrative Law Judge’s Rulings and Rationale

The Administrative Law Judge (ALJ) dismissed the Petitioner’s case in both the initial hearing and the rehearing, focusing on the burden of proof related to a single, critical phrase in the CC&Rs.

Initial Decision (September 24, 2018)

Avoidance of Ambiguity: The ALJ acknowledged the potential merit of the Petitioner’s interpretation of “Public Yard,” stating “the language of the CC&Rs may lend itself to a reading that Respondent is responsible for the maintenance of the enclosed back yards of the interior homes.” However, the ALJ concluded the tribunal was “not required to reach that issue in this matter.”

Focus on “Originally Installed by Declarant”: The decision hinged entirely on Section 7.1.4. The ALJ found that the “Petitioner failed to present any evidence that the tree at issue was originally installed by the Declarant.”

Lack of Proof: The ALJ noted that the tree’s rapid regrowth from 2013 to 2018 made it impossible to conclude that the original tree must have been planted by the developer in 2000.

Conclusion: The Petitioner failed to meet the “preponderance of the evidence” burden of proof, and the petition was dismissed.

Rehearing Decision (January 31, 2019)

Rejection of Petitioner’s Inferences: The ALJ characterized the Petitioner’s evidence regarding the tree’s age and the irrigation system as “suppositions and inferences.”

Credibility of Respondent’s Testimony: In contrast, the ALJ found the testimony of HOA President Maureen Karpinski to be “the only credible evidence offered regarding the landscaping of the homes.”

Definitive Factual Finding: Based on Ms. Karpinski’s testimony, the ALJ concluded there was “no evidence there was any landscaping or improvements originally installed by Declarant.”

Final Conclusion: As the precondition of Section 7.1.4 (that landscaping be “originally installed by Declarant”) was not met, the HOA had no maintenance duty for the Petitioner’s backyard. The Petitioner again failed to establish his case by a preponderance of the evidence, and the petition was dismissed with finality.


Gary W. Moselle vs. Desert Mountain Master Association

Note: A Rehearing was requested for this case. The dashboard statistics reflect the final outcome of the rehearing process.

Case Summary

Case ID 18F-H1817005-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-05-10
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Gary W. Moselle Counsel
Respondent Desert Mountain Master Association Counsel Curtis Ekmark

Alleged Violations

A.R.S. § 33-1804

Outcome Summary

The Administrative Law Judge denied the petition, ruling that the DMMA Communication Committee was not subject to the open meetings law (A.R.S. § 33-1804) because it did not hold 'regularly scheduled meetings',,,.

Why this result: The committee met too infrequently and without regular intervals to be deemed 'regularly scheduled' for the purposes of A.R.S. § 33-1804(A),,.

Key Issues & Findings

Whether a Communications Committee meeting must be open to members under the open meetings law.

Petitioner alleged that Respondent violated the open meetings statute by closing the September 6, 2017 meeting of the Communications Committee. The issue was whether this committee constituted a 'regularly scheduled committee meeting' subject to A.R.S. § 33-1804(A),,,,.

Orders: Petitioner's petition was denied. The Administrative Law Judge concluded that the DMMA Communication committee did not hold 'regularly scheduled' meetings, meaning it was not subject to the open meetings law under A.R.S. § 33-1804,,,.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1804
  • A.R.S. Title 33, Chapter 16
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • BLACK'S LAW DICTIONARY 1182 (6th ed. 1990)
  • State ex rel. Thomas v. Contes, 216 Ariz. 525, 527, 169 P.3d 115, 117 (App. 2007)
  • Marsoner v. Pima County, 166 Ariz. 486, 488, 803 P.2d 897, 899 (1991)

Analytics Highlights

Topics: HOA, Open Meetings Law, Committee Meetings, Statutory Interpretation, Planned Community
Additional Citations:

  • A.R.S. § 33-1804
  • A.R.S. Title 33, Chapter 16, Sections 33-1801 to 33-1818
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • State ex rel. Thomas v. Contes, 216 Ariz. 525, 527, 169 P.3d 115, 117 (App. 2007)
  • Marsoner v. Pima County, 166 Ariz. 486, 488, 803 P.2d 897, 899 (1991)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Video Overview

Audio Overview

Decision Documents

18F-H1817005-REL-RHG Decision – 634096.pdf

Uploaded 2025-10-09T03:32:03 (106.4 KB)

18F-H1817005-REL-RHG Decision – ../18F-H1817005-REL/605190.pdf

Uploaded 2026-01-20T13:45:58 (77.0 KB)





Briefing Doc – 18F-H1817005-REL-RHG


Briefing on the Moselle v. Desert Mountain Master Association Case

Executive Summary

This document synthesizes two Administrative Law Judge Decisions regarding a dispute between homeowner Gary W. Moselle (Petitioner) and the Desert Mountain Master Association (DMMA or Respondent). The core of the case, No. 18F-H1817005-REL, is the legal interpretation of the phrase “regularly scheduled committee meetings” as it appears in Arizona’s open meeting statute for planned communities, A.R.S. § 33-1804.

The conflict arose when the DMMA Communications Committee held a closed meeting on September 6, 2017, which Mr. Moselle was barred from attending. He contended this violated the statute’s open meeting requirements. The DMMA argued the committee was exempt because its meetings were infrequent and not held at fixed intervals.

In two separate decisions—an initial ruling on December 7, 2017, and a second after a rehearing on May 10, 2018—Administrative Law Judge Tammy L. Eigenheer consistently ruled in favor of the DMMA. The judge concluded that “regularly scheduled” applies to meetings that occur at regular, predictable intervals (e.g., monthly, quarterly). Since the Communications Committee met only four times in two years without a set schedule, it was not subject to the open meeting law. The judge determined that the statute’s general policy favoring openness does not override its more specific provisions. Ultimately, the petitioner’s petition was denied.

Case Background and Timeline

The dispute proceeded through the Arizona Department of Real Estate and the Office of Administrative Hearings, culminating in a definitive ruling after a granted rehearing.

September 1, 2017

Gary W. Moselle files a petition with the Arizona Department of Real Estate, alleging DMMA violated open meeting laws.

September 6, 2017

The DMMA Communications Committee holds a closed meeting, which Mr. Moselle is not permitted to attend.

September 18, 2017

DMMA files an answer denying all allegations.

November 17, 2017

An initial hearing is conducted before Administrative Law Judge (ALJ) Tammy L. Eigenheer.

December 7, 2017

The ALJ issues a decision denying Mr. Moselle’s petition.

January 4, 2018

Mr. Moselle files a request for rehearing, citing “newly discovered material evidence” and arguing the decision was contrary to law.

January 26, 2018

The Department of Real Estate grants the request for a rehearing.

April 20, 2018

A rehearing is conducted before the ALJ.

May 10, 2018

The ALJ issues a final decision after rehearing, again denying Mr. Moselle’s petition.

Core Legal Issue: Interpretation of A.R.S. § 33-1804

The central legal question was whether the DMMA Communications Committee was subject to the open meeting requirements mandated by Arizona Revised Statute § 33-1804. The resolution of the case hinged on the interpretation of specific language within the statute.

Relevant Statutory Provisions

A.R.S. § 33-1804(A): “Notwithstanding any provision in the declaration, bylaws or other documents to the contrary, all meetings of the members’ association and the board of directors, and any regularly scheduled committee meetings, are open to all members of the association…”

A.R.S. § 33-1804(F): “It is the policy of this state as reflected in this section that all meetings of a planned community… be conducted openly… Toward this end, any person or entity that is charged with the interpretation of these provisions… shall take into account this declaration of policy and shall construe any provision of this section in favor of open meetings.”

Arguments Presented by the Parties

The petitioner and respondent presented starkly different interpretations of the phrase “regularly scheduled.”

Petitioner’s Position (Gary W. Moselle)

Definition of “Regularly Scheduled”: Mr. Moselle argued that “regularly scheduled” should be interpreted to mean a meeting scheduled in a “normal manner” or “ordinary fashion,” not necessarily one that recurs at fixed intervals.

Primacy of Openness Policy: He emphasized the policy statement in A.R.S. § 33-1804(F), asserting that the statute’s clear preference for open meetings should guide the interpretation of any ambiguous terms.

Arguments for Rehearing: In his request for a rehearing, Mr. Moselle cited newly discovered evidence (an email sent by the DMMA after the first hearing) and suggested the ALJ should evaluate whether the DMMA had misled the court regarding the Board’s actions on the committee’s recommendation.

Respondent’s Position (Desert Mountain Master Association)

Definition of “Regularly Scheduled”: DMMA contended that the phrase “regularly scheduled” plainly refers to meetings that occur at regular, predictable intervals, “such as on the third Thursday of every month, quarterly, or even annually.”

Evidence of Infrequent Meetings: As evidence, the DMMA testified that its Communications Committee met infrequently and without a fixed pattern, holding only four meetings in 2016 and 2017 (twice in April 2016, once in June 2017, and the contested meeting of September 6, 2017).

Lack of Board Action: The DMMA further argued that a recommendation from the committee to the Board of Directors was not acted upon, which it presented as evidence that the committee was not “conducting any actual business of the Board.”

Administrative Law Judge’s Analysis and Rulings

Across both decisions, the Administrative Law Judge (ALJ) provided a consistent legal analysis that ultimately favored the respondent’s interpretation of the statute.

Initial Decision (December 7, 2017)

• The ALJ concluded that the DMMA Communications Committee does not hold “regularly scheduled meetings.”

• Based on this finding, the committee was deemed not subject to the open meetings law.

• The decision to hold a closed meeting on September 6, 2017, was therefore ruled not to be a violation of A.R.S. § 33-1804.

• The petitioner’s petition was denied.

Decision After Rehearing (May 10, 2018)

Statutory Interpretation: The ALJ reaffirmed the conclusion that the “plain language” of A.R.S. § 33-1804(A) applies to meetings that “occur at regular intervals.” While acknowledging that “regularly scheduled” could have multiple meanings, the ALJ settled on this interpretation.

Policy vs. Specifics: The decision explicitly states that the general policy favoring open meetings in subsection (F) “does not override the specific provisions of A.R.S. § 33-1804(A) that only ‘regularly scheduled’ committee meetings must be open to the members.”

Petitioner’s Testimony: The ALJ noted that during the rehearing, Mr. Moselle’s own testimony on cross-examination appeared to support the court’s interpretation. When questioned about other DMMA committees, Mr. Moselle stated that five of them “meet at the request of the chair and they’re not regularly scheduled.”

Final Ruling: The ALJ again concluded that the DMMA Communication Committee did not hold “regularly scheduled” meetings at the time of the incident and was therefore not in violation of the statute. The petition was denied for a final time.

Final Disposition

The petition filed by Gary W. Moselle against the Desert Mountain Master Association was denied. The Administrative Law Judge’s order of May 10, 2018, issued after the rehearing, was declared binding on the parties. As per the final notice, any further appeal would require a party to seek judicial review in superior court within thirty-five days of the order.






Study Guide – 18F-H1817005-REL-RHG


Study Guide: Moselle v. Desert Mountain Master Association

This guide provides a comprehensive review of the administrative case between Gary W. Moselle (Petitioner) and the Desert Mountain Master Association (Respondent) concerning Arizona’s open meetings law for planned communities. It includes a short-answer quiz, an answer key, suggested essay questions, and a glossary of key terms.

Short-Answer Quiz

Instructions: Answer the following questions in two to three sentences, based on the information provided in the case documents.

1. Who were the primary parties in this case, and what were their respective roles?

2. What specific event on September 6, 2017, prompted the Petitioner to file his complaint?

3. What specific Arizona statute did the Petitioner allege the Respondent had violated?

4. What was the Respondent’s primary argument for why its Communications Committee was not subject to the open meetings law?

5. How did the Petitioner, Gary W. Moselle, interpret the key statutory phrase “regularly scheduled committee meetings”?

6. What evidence did the Respondent present regarding the frequency of the Communications Committee’s meetings in 2016 and 2017?

7. What is the “preponderance of the evidence” standard, and which party had the responsibility to meet it?

8. What was the Administrative Law Judge’s final conclusion regarding the meaning of “regularly scheduled” in the context of the statute?

9. On what grounds did the Petitioner successfully request a rehearing after the initial decision was issued on December 7, 2017?

10. How did the judge weigh the general policy statement in A.R.S. § 33-1804(F) against the specific language in A.R.S. § 33-1804(A)?

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Answer Key

1. The primary parties were Gary W. Moselle, the Petitioner, and the Desert Mountain Master Association (DMMA), the Respondent. Mr. Moselle was a homeowner who filed a petition against the DMMA, which is the homeowners association for the community.

2. The Petitioner filed his complaint after he was not allowed to attend a “closed” meeting of the DMMA Communications Committee that was held on September 6, 2017. He alleged this violated Arizona’s open meeting statute.

3. The Petitioner alleged that the Respondent had violated Arizona Revised Statute (A.R.S.) § 33-1804. This statute governs open meetings for planned communities, such as homeowners associations.

4. The Respondent argued that the Communications Committee did not meet at regular, established intervals and therefore its meetings were not “regularly scheduled” as required by the statute to be open. They also asserted that the committee’s recommendation was not acted upon by the Board, suggesting it was not conducting official business.

5. The Petitioner argued that “regularly scheduled” should be interpreted to mean a meeting that was scheduled in a normal or ordinary fashion. He asserted this interpretation was supported by the statute’s general policy favoring open meetings.

6. The Respondent provided testimony that the Communications Committee met infrequently and without a set interval, having held only four meetings in 2016 and 2017. These meetings occurred twice in April 2016, once in June 2017, and on September 6, 2017.

7. “Preponderance of the evidence” is the standard of proof requiring evidence to show that a fact is more probable than not. In this proceeding, the Petitioner, Gary W. Moselle, bore the burden of proving the Respondent’s violation by a preponderance of the evidence.

8. The Administrative Law Judge concluded that the plain language of the statute meant “regularly scheduled” referred to meetings that occur at regular intervals, such as monthly, quarterly, or annually. The judge rejected the Petitioner’s alternate interpretation.

9. The Petitioner was granted a rehearing by citing newly discovered material evidence (an email sent after the first hearing) and arguing the need to evaluate whether the Respondent had misled the judge. He also contended that the initial decision was contrary to law.

10. The judge acknowledged the state’s policy favoring open meetings as stated in subsection (F). However, the judge ruled that this general policy statement did not override the specific provision in subsection (A) that only “regularly scheduled” committee meetings are required to be open.

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Essay Questions

Instructions: The following questions are designed for longer, more analytical responses. Formulate an essay-style answer for each, drawing upon the facts, arguments, and legal reasoning presented in the case documents.

1. Analyze the conflicting interpretations of the phrase “regularly scheduled” as presented by the Petitioner and the Respondent. Discuss the principles of statutory construction used by the Administrative Law Judge to resolve this dispute and explain why one interpretation was favored over the other.

2. Examine the procedural history of this case, from the initial petition filed with the Arizona Department of Real Estate to the final order issued after the rehearing. What were the key legal steps, decisions, and turning points in the process?

3. Discuss the evidence presented by the Desert Mountain Master Association to support its case. How did testimony regarding meeting frequency and the Board’s actions on committee recommendations contribute to the final outcome?

4. Explain the legal relationship between A.R.S. § 33-1804(A) and A.R.S. § 33-1804(F). Based on the judge’s decision, what is the hierarchy between a statute’s specific provisions and its general policy declarations?

5. During the rehearing, the Petitioner’s own testimony about other committees was noted by the Administrative Law Judge. Explain this apparent contradiction in the Petitioner’s argument and discuss its potential impact on the case.

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An official who presides over administrative hearings, makes findings of fact and conclusions of law, and issues decisions on behalf of a government agency.

A.R.S. § 33-1804

The specific Arizona Revised Statute at the center of the dispute, which governs open meetings for planned communities and their boards of directors and committees.

Burden of Proof

The obligation of a party in a legal case to provide sufficient evidence to prove their allegations. In this case, the burden was on the Petitioner.

Conclusions of Law

The judge’s application of legal principles to the facts of the case to reach a decision.

Department of Real Estate

The Arizona state agency with jurisdiction to hear disputes between property owners and homeowners associations under A.R.S. § 32-2199 et seq.

Desert Mountain Master Association (DMMA)

The Respondent in the case; a homeowners association located in Scottsdale, Arizona, classified as a Planned Unit Development.

Findings of Fact

The determination of factual events made by a judge from the evidence presented in a trial or hearing.

Gary W. Moselle

The Petitioner in the case; a homeowner within the DMMA who filed the complaint.

Jurisdiction

The official power of a court or agency to hear a case and make legal decisions and judgments.

Open Meetings Law

A law, in this case A.R.S. § 33-1804, that requires meetings of certain entities to be open to all members or the public.

Petition

The formal written request filed with an administrative body or court to initiate a case.

Petitioner

The party who files a petition and initiates a legal action.

Planned Unit Development (PUD)

A type of real estate development and community governed by specific state laws, such as those in A.R.S. Title 33, Chapter 16.

Preponderance of the Evidence

The standard of proof in most civil and administrative cases, defined as evidence that is more convincing and shows a fact is more probable than not.

Rehearing

A second hearing of a case to reconsider the previous decision, typically granted due to new evidence or an argument of legal error.

Regularly Scheduled

The key statutory phrase in dispute. The judge interpreted it to mean meetings that occur at regular, established intervals (e.g., monthly, quarterly).

Respondent

The party against whom a petition is filed; the party defending against the complaint.

Statutory Construction

The process by which judges interpret and apply legislation. The primary goal is to ascertain the legislature’s intent, starting with the plain text of the statute.






Blog Post – 18F-H1817005-REL-RHG


Your HOA Committee Might Be Meeting in Secret—And It Could Be Perfectly Legal

As a homeowner in a planned community, you likely know you have the right to attend your HOA’s board of directors meetings. But what about the committee meetings? The finance, architectural, or communications committees often lay the critical groundwork for decisions that ultimately affect your property and fees. Do you have a right to observe their deliberations?

A recent legal case in Scottsdale, Arizona, hinged on the interpretation of a single, seemingly straightforward phrase and exposed a surprising rule about HOA transparency. The case, Moselle v. Desert Mountain Master Association, reveals critical lessons for any homeowner about the letter of the law and how it can sometimes create legal loopholes that allow committee meetings to happen behind closed doors.

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1. The Crucial Loophole: “Regularly Scheduled” Doesn’t Mean What You Think

The entire dispute rested on how to interpret the phrase “regularly scheduled committee meetings” as written in Arizona statute A.R.S. § 33-1804, which governs open meetings for planned communities.

The Homeowner’s Argument The petitioner, homeowner Gary Moselle, argued that when the Communications Committee of the Desert Mountain Master Association (DMMA) scheduled a meeting for September 6, 2017, it should be open to all members. His logic was simple: a meeting that is formally scheduled and placed on the calendar is, by any common-sense definition, a “regularly scheduled” meeting.

The HOA’s Counter-Argument The DMMA countered with a different interpretation. They argued that the phrase “regularly scheduled” implies a recurring, predictable pattern, such as meetings held monthly, quarterly, or on the third Thursday of every month. The association presented evidence that its Communications Committee met infrequently and without a set pattern, having convened only four times in 2016 and 2017. Because the meetings were sporadic, the HOA contended they were not “regularly scheduled” and therefore not subject to the open meeting law.

To bolster its case, the HOA added a second point: the committee’s work wasn’t essential to board business anyway. They noted that a recommendation from the committee was never acted upon by the board, suggesting the committee was not conducting “any actual business of the Board” and thus did not require the same level of transparency.

The Surprising Verdict Administrative Law Judge Tammy L. Eigenheer sided with the HOA. The final decision concluded that “regularly scheduled” refers to meetings that occur at regular intervals. This created a legal distinction: HOA committees that meet on a fixed, recurring schedule must be open, but those that meet on an as-needed basis may not be.

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2. A Law’s “Spirit” Can Be Trumped by Its “Letter”

Adding another layer to the case was the law’s own powerful statement about its intent. The petitioner pointed to a specific section of the statute designed to ensure transparency.

The Policy Statement The Arizona law contains a strong policy statement declaring that all HOA meetings should be conducted openly. It explicitly directs anyone interpreting the law to favor open meetings.

It is the policy of this state as reflected in this section that all meetings of a planned community… be conducted openly… Toward this end, any person or entity that is charged with the interpretation of these provisions… shall take into account this declaration of policy and shall construe any provision of this section in favor of open meetings.

The Legal Reasoning Despite this clear declaration, Judge Eigenheer ruled that a general policy statement does not override the specific and explicit language of the law. The statute does not say all committee meetings must be open; it says “regularly scheduled committee meetings” must be open. The judge concluded that this specific wording created a clear exception, and the broad policy in favor of transparency could not erase it.

The Impact This is a critical takeaway for understanding how laws are interpreted. This outcome reflects a fundamental principle of statutory construction: while the “spirit” or stated policy of a law provides guidance, it cannot override the plain meaning of the specific words—the “letter”—that the legislature chose to write.

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3. A Cautionary Tale: How a Petitioner Undermined His Own Case

The petitioner was granted a rehearing, giving him another chance to argue his case. However, a statement he made during his own testimony dramatically weakened his position.

The Key Testimony During the rehearing on April 20, 2018, the petitioner was asked about other committees within the DMMA. In explaining how they operated, he unintentionally adopted the very definition of “regularly scheduled” that the HOA was using against him. The judge recorded his exact words in the final decision:

…five of the committees listed in the Volunteer Request page “meet at the request of the chair and they’re not regularly scheduled.”

The Consequence The judge seized on this admission in the final ruling. The decision notes that while “regularly scheduled” could have multiple meanings, the petitioner himself used the phrase to differentiate between committees that meet at fixed intervals and those that do not. By describing committees that “meet at the request of the chair” as being “not regularly scheduled,” he validated the very interpretation the court was now adopting.

The Lesson This moment serves as a dramatic lesson in the power and precision of language in legal proceedings. In an attempt to describe the function of other committees, the petitioner inadvertently validated his opponent’s core legal argument.

——————————————————————————–

Conclusion: A Question of Transparency

The ruling in Moselle v. Desert Mountain Master Association clarifies a significant point in HOA governance. Under this legal interpretation, committees that meet on an ad-hoc basis or “at the call of the chair” may not be subject to open meeting laws. Only those committees that meet on a fixed, recurring schedule are explicitly required to be open to homeowners.

This ruling draws a bright line between standing committees with fixed schedules and ad-hoc committees that meet “at the call of the chair.” Homeowners should now ask: Which of our committees fall into this second category, and are we comfortable with decisions being shaped behind closed doors?


Case Participants

Petitioner Side

  • Gary W. Moselle (petitioner)
    Appeared on his own behalf

Respondent Side

  • Desert Mountain Master Association (respondent)
    Organizational party (HOA)
  • Curtis Ekmark (respondent attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
  • Charles Markle (respondent attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
  • LDettorre (agency staff)
    Arizona Department of Real Estate
    Recipient of order
  • AHansen (agency staff)
    Arizona Department of Real Estate
    Recipient of order
  • djones (agency staff)
    Arizona Department of Real Estate
    Recipient of order
  • DGardner (agency staff)
    Arizona Department of Real Estate
    Recipient of order
  • ncano (agency staff)
    Arizona Department of Real Estate
    Recipient of order

Other Participants

  • Felicia Del Sol (unknown)
    Transmitting staff/clerk

John L. Shields vs. Will Rogers Equestrian Ranch

Note: A Rehearing was requested for this case. The dashboard statistics reflect the final outcome of the rehearing process.

Case Summary

Case ID 17F-H1717034-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-02-26
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John L. Shields Counsel
Respondent Will Rogers Equestrian Ranch Counsel Maria R. Kupillas

Alleged Violations

CC&R § 6.2(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the HOA violated its CC&Rs by approving the wall extension, as the HOA’s approval duties were limited to aesthetic considerations under CC&R § 7.2 and did not extend to enforcing or ensuring adjoining owner approval required by CC&R § 6.2(A).

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent erroneously approved the proposal, as Respondent's duties under CC&R § 7.2 did not require considering adjoining neighbor approval specified in CC&R § 6.2(A).

Key Issues & Findings

Alleged violation of CC&Rs by HOA improperly approving a neighbor's block wall extension without adjoining owner's approval.

Petitioner alleged that the Respondent HOA violated CC&R § 6.2(A) by approving a neighbor's block wall extension that served as a party wall because Petitioner, the adjoining owner, had not approved the wall. Respondent argued their approval duties under CC&R § 7.2 only concerned aesthetics, not ensuring neighbor approval.

Orders: The petition is dismissed and no action is required of Respondent.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • CC&R § 6.2(A)
  • CC&R § 7.2

Analytics Highlights

Topics: HOA, CC&R, Architectural Control Committee, Fence, Party Wall, Rehearing, Burden of Proof
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Video Overview

Audio Overview

Decision Documents

17F-H1717034-REL-RHG Decision – 619560.pdf

Uploaded 2026-01-23T17:20:33 (90.8 KB)

17F-H1717034-REL-RHG Decision – ../17F-H1717034-REL/592935.pdf

Uploaded 2026-01-23T17:20:36 (115.2 KB)





Briefing Doc – 17F-H1717034-REL-RHG


Briefing Document: Shields v. Will Rogers Equestrian Ranch HOA

Executive Summary

This document synthesizes the findings from two administrative law hearings concerning a dispute between homeowner John Shields (Petitioner) and the Will Rogers Equestrian Ranch Homeowners’ Association (Respondent). The core of the dispute is a 5-foot by 6-foot common block wall extension constructed by the Petitioner’s neighbor, Joe Johnson. The Petitioner alleged the Respondent violated its own Covenants, Conditions, and Restrictions (CC&Rs) by approving the wall alteration without the Petitioner’s required consent as the adjoining property owner.

Following an initial hearing and a subsequent rehearing, the Office of Administrative Hearings dismissed the Petitioner’s claims. The decisions established several critical legal and procedural points:

Distinct HOA Obligations: The HOA’s architectural approval role, governed by CC&R § 7.2, is distinct from the neighbor-approval requirement in CC&R § 6.2(A). The HOA’s approval is based solely on aesthetic and community consistency standards and does not obligate it to verify or enforce separate homeowner-to-homeowner agreements or approvals.

Homeowner Responsibility: The responsibility to obtain an adjoining owner’s approval for a shared wall alteration rests entirely with the homeowner undertaking the construction (in this case, Mr. Johnson), not with the HOA.

Discretionary Enforcement: The HOA’s power to enforce CC&R violations is discretionary, not mandatory. CC&R § 8.1 uses the permissive term “may,” granting the board latitude in deciding whether to pursue enforcement actions, particularly in cases with conflicting evidence.

Alternative Remedy: The Petitioner is not without a remedy. The same CC&R section that grants the HOA enforcement power also explicitly authorizes individual owners to bring a private action against another owner to enforce the CC&Rs.

Ultimately, the HOA was found to have acted within its authority as defined by the governing documents, and both petitions against it were dismissed.

I. Case Overview

This matter concerns a petition filed on May 3, 2017, by John Shields with the Arizona Department of Real Estate against his HOA, Will Rogers Equestrian Ranch. The case was referred to the Office of Administrative Hearings for adjudication.

Entity

Details

John Shields

Petitioner

Homeowner at 20431 E. Bronco Drive, Queen Creek, Arizona.

Will Rogers Equestrian Ranch

Respondent

The Homeowners’ Association (HOA) for the development.

Joe and Sandy Johnson

Adjoining Neighbor

Constructed the disputed wall extension between their property and the Petitioner’s.

The Disputed Structure

Wall Extension

An approximately 5-foot long by 6-foot high common block wall extension.

The dispute was adjudicated in two separate hearings:

1. Initial Hearing: Held on September 27, 2017, before Administrative Law Judge (ALJ) Diane Mihalsky. A decision dismissing the petition was issued on October 11, 2017.

2. Rehearing: Granted on December 5, 2017, and held on February 5, 2018, before ALJ Tammy L. Eigenheer. A final decision, again dismissing the petition, was issued on February 26, 2018.

II. Petitioner’s Claim and Central Issue

The Petitioner’s central claim was that the Respondent HOA violated CC&R § 6.2(A) by approving the wall extension built by his neighbor, Joe Johnson, without first securing or verifying the Petitioner’s approval.

Core Allegation: Any alteration to a shared “Party Wall” requires the approval of both the HOA’s Architectural Control Committee (“the Committee”) and the adjoining owner. The Petitioner asserted he never gave his approval.

Petitioner’s Testimony: He steadfastly denied ever approving the wall, stating that he expressed his disapproval to the Johnsons on October 16, 2016, three days after its construction. He submitted a photograph and testified the wall “looked like crap” and was an “eyesore.”

Evolving Argument:

◦ In the first hearing, the Petitioner argued that the HOA was responsible for enforcing the CC&Rs by compelling Mr. Johnson to remove the unapproved wall.

◦ In the rehearing, the Petitioner “vacillated” before firmly asserting his issue was that the HOA had improperly approved Mr. Johnson’s proposal in the first place.

III. Relevant Covenants, Conditions, and Restrictions (CC&Rs)

The decisions in this case hinged on the interpretation and interplay of three specific sections of the Will Rogers Equestrian Ranch CC&Rs.

Section

Key Provision

§ 6.2(A)

Fences as Party Walls

“Such Party Walls and Fences shall not be altered, or changed… without [the] approval of the adjoining Owner(s), if any, and the [Architectural Control] Committee.”

Review by the Committee

“No … fences … shall be commenced [or] erected … until the plans and specifications … have been submitted to and approved by the Committee. … the Committee shall have the right to refuse to approve any Alteration which is not suitable or desirable in their opinion for aesthetic or other reasons…” It also states the Committee’s approval is not an endorsement of compliance with laws or ordinances.

Effect of Declaration and Remedies

“In the event of any violation… they may be enforced by an action brought by [Respondent], the Committee or by the Owner or Owners… at law or in equity…”

IV. Chronology of Events and Factual Evidence

1. Prior to Oct 13, 2016: Mr. Johnson discussed his plans to build the wall extension to hide his RV on multiple occasions with the Petitioner present.

Conflicting Testimony: A.J. Denardo testified he was present for at least three such conversations and that the Petitioner voiced no objection, even stating the wall “looked good” immediately after it was built. Sandy Johnson testified the Petitioner was present for at least ten discussions and never disapproved, sometimes nodding in apparent approval. The Petitioner denied ever giving approval.

2. On/About Oct 13, 2016: Mr. Johnson constructed the wall extension without prior approval from the Committee.

3. On/About Oct 16, 2016: The Petitioner expressed his disapproval of the wall to Mr. and Mrs. Johnson.

4. On/About Nov 2, 2016: Mr. Johnson retroactively submitted plans for the wall extension and a proposal to move his gate forward to the Committee for approval.

5. Nov 16, 2016: The newly elected HOA board, acting as the Committee, met and verbally approved Mr. Johnson’s wall. They specifically advised him that “he will need to seek neighboring property owner’s approval.”

6. December 2016: The board held an executive session to obtain legal advice on enforcement issues.

7. Jan 18, 2017: At a regular board meeting, the board formally approved Mr. Johnson’s proposal, resolving “to ratify the unanimous written consent received outside this regular meeting.”

8. Post-Approval: The City of Queen Creek notified Mr. Johnson that he could not move his gate forward as proposed, as it violated city codes.

V. Legal Analysis and Rulings

Both administrative law judges ultimately concluded that the HOA had not violated its CC&Rs and dismissed the petition. The reasoning in each decision focused on different facets of the HOA’s duties.

A. First Hearing Decision (ALJ Diane Mihalsky)

The initial ruling focused on the HOA’s role in enforcement.

Discretionary Power: The decision centered on the word “may” in CC&R § 8.1. Citing case law (Walker v. Wilkinson), the judge found that “may” indicates a permissive intent, while “shall” indicates a mandatory one. Therefore, the CC&Rs gave the Respondent board the option to bring an enforcement action, but did not require it to do so.

No Abuse of Discretion: The board was aware of the dispute and the conflicting testimony from multiple witnesses regarding the Petitioner’s prior approval (or lack of objection). The board determined it was not its “job to decide who was telling the truth.” Given this conflicting evidence, the judge found that the board’s decision not to pursue enforcement against Mr. Johnson was not an abuse of its discretion.

Petitioner’s Remedy: The decision explicitly noted that the Petitioner was not without a remedy, as CC&R § 8.1 also authorizes him to file his own action directly against the Johnsons for their alleged violation of CC&R § 6.2(A).

B. Rehearing Decision (ALJ Tammy L. Eigenheer)

The rehearing focused on the Petitioner’s clarified claim that the HOA’s approval of the plans was improper.

Separate and Distinct Obligations: The judge ruled that CC&R § 6.2(A) and CC&R § 7.2 create separate obligations for separate parties.

§ 6.2(A) requires the homeowner (Mr. Johnson) to obtain the adjoining neighbor’s approval.

§ 7.2 requires the HOA Committee to review the proposal based only on aesthetic criteria and consistency with the development.

Limited Scope of Committee Review: The decision states, “Nothing in CC&R § 7.2 requires Respondent to consider whether the adjoining neighbor had approved the block wall extension.” The board’s role was to evaluate if the wall was “aesthetically pleasing and consistent” with other structures, which it did.

No Erroneous Approval: Because the HOA’s approval process is defined and limited by § 7.2, its decision to approve the wall based on those criteria was not erroneous. The HOA had “no obligation under CC&R § 6.2(A) to obtain or ensure Petitioner approved the block wall extension.”

VI. Final Outcome

The Petitioner’s petition against the Will Rogers Equestrian Ranch HOA was dismissed. The final order from the February 26, 2018, rehearing, which is binding on the parties, concluded that no action was required of the Respondent. The Petitioner failed to establish by a preponderance of the evidence that the HOA had violated its governing documents in either its approval of the wall extension or its decision not to pursue enforcement.






Study Guide – 17F-H1717034-REL-RHG


Study Guide: Shields v. Will Rogers Equestrian Ranch

This guide provides a comprehensive review of the administrative legal dispute between John Shields and the Will Rogers Equestrian Ranch homeowners’ association. It is based on the findings of fact, conclusions of law, and evidence presented in two separate hearings before the Office of Administrative Hearings.

Short-Answer Quiz

Instructions: Answer the following questions in two to three sentences, drawing exclusively from the information provided in the case documents.

1. Who are the primary parties involved in this legal dispute, and what is their relationship?

2. What specific structure is at the center of the dispute, when was it built, and by whom?

3. According to CC&R § 6.2(A), what two distinct approvals are required before a party wall can be altered?

4. Why did the Respondent’s board state it was unsure whether the Petitioner had approved the wall extension before it was constructed?

5. What criteria did the Architectural Control Committee use when it formally approved the wall extension, as outlined in CC&R § 7.2?

6. Explain the legal significance of the word “may” in CC&R § 8.1 regarding the homeowners’ association’s enforcement duties.

7. On what grounds was the Petitioner, John Shields, granted a rehearing after the initial decision was issued?

8. During the rehearing, what did the Petitioner clarify was his single, primary complaint against the Respondent?

9. What was the final recommended order in both the initial hearing and the subsequent rehearing?

10. According to the first judge’s decision, what other legal remedy is available to the Petitioner to address his grievance against his neighbor?

——————————————————————————–

Answer Key

1. The primary parties are John Shields (the Petitioner) and the Will Rogers Equestrian Ranch homeowners’ association (the Respondent). Mr. Shields is a homeowner and member of the association, and his dispute concerns the association’s handling of a wall built by his next-door neighbor, Joe Johnson.

2. The structure is an approximately 5-foot long by 6-foot high common block wall extension. It was built on or about October 13, 2016, by the Petitioner’s neighbor, Joe Johnson, between their two properties.

3. CC&R § 6.2(A) requires that any alteration to a party wall must have the approval of the adjoining owner(s), if any, as well as the approval of the Architectural Control Committee. Both approvals are necessary.

4. The board was unsure about the Petitioner’s prior approval because at least four witnesses stated they heard the Petitioner either actually approve of the wall or fail to object while Mr. Johnson was discussing plans to build it in his presence. This created a conflict between the Petitioner’s claims and the testimony of others.

5. According to testimony from board member Kristi Hancock, the Committee’s approval was based solely on whether the wall was aesthetically pleasing and consistent with other wall extensions in the development. The Committee’s review under CC&R § 7.2 did not require it to confirm whether the adjoining neighbor had given approval.

6. The first decision concluded that the word “may” in CC&R § 8.1 indicates permissive intent, not a mandatory requirement. This means the association had the discretion, but not the obligation, to bring an enforcement action against Mr. Johnson.

7. A rehearing was granted by Commissioner Judy Lowe because the Petitioner claimed there were errors in the admission or rejection of evidence, other errors of law during the proceeding, and misconduct by the Administrative Law Judge that deprived him of a fair hearing.

8. After some vacillation, the Petitioner firmly asserted during the rehearing that his single issue was that the Respondent had improperly approved Mr. Johnson’s proposal to build the block wall extension and move his gate forward.

9. In both hearings, the recommended order was that no action was required of the Respondent and that the petition should be dismissed.

10. The first decision points out that under CC&R § 8.1, the Petitioner is not without a remedy. This section authorizes an owner, not just the association, to file an action against another owner for an alleged violation of the CC&Rs.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed to test a deeper understanding of the case. Formulate a comprehensive response to each, citing specific facts, testimony, and CC&R provisions from the source documents.

1. Analyze the differing responsibilities of the homeowner (Mr. Johnson), the adjoining neighbor (Mr. Shields), and the homeowners’ association (the Respondent) as outlined in CC&Rs § 6.2(A), § 7.2, and § 8.1. How do these distinct roles and responsibilities intersect and conflict in this case?

2. Compare and contrast the evidence and testimony presented in the first hearing (before ALJ Diane Mihalsky) with the focus of the second hearing (before ALJ Tammy L. Eigenheer). How did the Petitioner’s framing of his central argument change between the two proceedings?

3. Discuss the legal standard “preponderance of the evidence” as it is defined and applied in this case. Explain how the conflicting testimony regarding the Petitioner’s “tacit approval” influenced the Respondent’s decision-making and, ultimately, the Administrative Law Judges’ conclusions.

4. Evaluate the Respondent’s decision-making process regarding the approval of the wall extension. Consider the timeline of events from the wall’s unapproved construction in October 2016 to the formal ratification in January 2017, the conditional verbal approval, and the rationale provided by board members for their actions.

5. The first decision explicitly states that CC&R § 8.1 gives the Petitioner a separate remedy against his neighbor. Based on the information in both documents, construct the legal argument the Petitioner could make in a direct action against Mr. and Mrs. Johnson for their alleged violation of CC&R § 6.2(A).

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings, takes evidence, and makes decisions or recommendations on legal and factual issues. In this case, Diane Mihalsky and Tammy L. Eigenheer served as ALJs.

Architectural Control Committee (The Committee)

A body within the homeowners’ association responsible for reviewing and approving or disapproving proposed alterations to properties, such as fences, based on aesthetic and other considerations as outlined in the CC&Rs. In this case, the board itself acted as the Committee.

Arizona Department of Real Estate (The Department)

The state agency with which the Petitioner initially filed his petition concerning violations of planned community documents. The Department then referred the matter to the Office of Administrative Hearings.

Burden of Proof

The obligation on a party in a legal case to prove their allegations. In this matter, the Petitioner bore the burden of proof to establish that the Respondent violated the CC&Rs.

CC&Rs (Covenants, Conditions, and Restrictions)

The governing legal documents that set out the rights and obligations of the homeowners’ association and its members. The key sections referenced are 6.2(A), 7.2, and 8.1.

Office of Administrative Hearings

The independent state agency responsible for conducting evidentiary hearings for disputes referred by other state agencies, such as the one between Shields and the Will Rogers Equestrian Ranch.

Party Wall

A wall built on the boundary line between two adjoining properties, for the common benefit of both owners. CC&R § 6.2(A) governs the alteration of such walls.

Permissive Intent

A legal interpretation of language, such as the word “may,” which indicates that an action is allowed or discretionary but not required. This was central to the interpretation of CC&R § 8.1.

Petitioner

The party who initiates a legal action or petition. In this case, John Shields is the Petitioner.

Preponderance of the Evidence

The standard of proof in this civil administrative case, defined as evidence that is more convincing and has superior weight, making it more probable that a contention is true than not.

Rehearing

A second hearing of a case, granted in this instance because the Petitioner alleged errors of law and misconduct by the judge in the first proceeding.

Respondent

The party against whom a petition is filed. In this case, the Will Rogers Equestrian Ranch homeowners’ association is the Respondent.

Tacit Approval

Approval that is implied or inferred from actions or from a failure to state an objection, rather than being explicitly stated. Witnesses claimed the Petitioner gave tacit approval to the wall before it was built.






Blog Post – 17F-H1717034-REL-RHG


4 Surprising Lessons From a Neighbor’s Ugly Wall and the HOA That Did Nothing

Introduction: The Homeowner’s Dilemma

In the world of community governance, the gap between homeowner expectation and contractual reality is a fertile ground for conflict. Most people assume their Homeowners’ Association (HOA) exists to be their first line of defense in a neighbor dispute; when a rule is broken, the HOA is expected to step in. But what happens when the HOA decides to do nothing?

This was the exact situation faced by homeowner John Shields, who was appalled when his neighbor, Joe Johnson, built a block wall extension he considered an eyesore. Mr. Shields turned to his HOA, Will Rogers Equestrian Ranch, expecting them to force its removal. The legal battle that followed provides a fascinating case study, revealing surprising realities about the power and obligations of an HOA. For any homeowner in a planned community, the takeaways are as counter-intuitive as they are crucial.

1. Your HOA Isn’t Obligated to Be Your Enforcer

Mr. Shields’s primary argument rested on a common but often mistaken assumption: that an HOA has a strict mandate to enforce every rule. His logic was straightforward: the community’s Covenants, Conditions, and Restrictions (CC&Rs) required his approval for the wall extension. Since he never gave it, he believed the HOA was responsible for forcing his neighbor to tear the wall down.

The court, however, pointed to a different section of the CC&Rs (§ 8.1) which stated that the rules may be enforced by the HOA. This single word was the linchpin of the case. The Administrative Law Judge highlighted the critical legal distinction between a permissive option and a mandatory duty.

“[The] use of the word ‘may’ generally indicates permissive intent . . . while ‘shall’ generally indicates a mandatory provision.”

This gave the HOA discretion on whether to act. Because there was conflicting testimony about whether Mr. Shields had given tacit approval beforehand, the court found that the HOA “did not abuse its discretion by declining to bring an enforcement action.” The lesson is clear: your HOA’s governing documents might grant it the right to enforce rules without creating an obligation to do so in every single case.

2. The HOA’s “Approval” Might Not Mean What You Think

Adding another layer to the conflict, Mr. Johnson submitted plans for the wall and a related gate relocation to the HOA’s Architectural Control Committee after the wall was already built. The Committee ultimately approved it. To Mr. Shields, this seemed like the HOA was siding with his neighbor and ignoring his rights.

But the Committee’s review was far narrower than he assumed. According to CC&R § 7.2, their analysis was limited to whether the wall was “esthetically pleasing and consistent with other wall extensions that had been built in the Will Rogers Equestrian Ranch development.” The Committee wasn’t tasked with policing neighbor-to-neighbor agreements.

A formal rehearing—granted after the petitioner alleged “errors of law”—clarified this crucial point. The judge found that under CC&R § 6.2(A), it was Mr. Johnson’s responsibility to get his neighbor’s approval, not the HOA’s. As the decision stated, “Respondent had no obligation under CC&R § 6.2(A) to obtain or ensure Petitioner approved the block wall extension.” This separation of duties is common in governing documents, as it strategically shields the HOA from liability in member disputes while allowing it to maintain aesthetic control over the community.

3. Your Silence Can Be Used Against You

The case devolved into a classic “he said, she said” scenario that ultimately weakened Mr. Shields’s position. He testified that he never approved the wall and, on October 16, 2016—three days after it was built—told his neighbors he disapproved, calling it an “eyesore” that “looked like crap.”

However, other witnesses told a different story. One, Mr. Denardo, testified that Mr. Shields “did not voice any objection” before the wall was constructed and even said it “looked good” immediately after. The neighbor’s wife, Mrs. Johnson, testified that Mr. Shields was present for at least ten discussions about the wall, “had never voiced any disapproval,” and had “sometimes nodded, apparently indicating his approval.”

This conflicting testimony was the direct basis for the board invoking its discretionary power. A board member testified that because of the conflicting accounts, the board “was less sure about whether Petitioner had actually or tacitly approved the block wall extension before it was built.” This uncertainty was the key factor that led them not to intervene. When it comes to property matters, clear, timely, and preferably documented communication is your strongest asset; ambiguity and silence can be interpreted as consent.

4. When the HOA Steps Aside, the Fight Might Be Yours Alone

While the court dismissed the petition against the HOA, it did not leave Mr. Shields without a path forward. The judge pointed to the very same rule that gave the HOA its discretion—CC&R § 8.1—as a source of the homeowner’s power. This rule proved to be a double-edged sword.

The judge’s first decision stated that CC&R § 8.1 “authorizes Petitioner to file an action against Mr. and Mrs. Johnson for their alleged violation of CC&R § 6.2(A).” The same clause that gave the HOA the discretion to step aside also explicitly empowered individual homeowners to act in the HOA’s stead.

When an association chooses to stay out of a member-to-member dispute, the responsibility—and the power—to enforce the community’s rules can fall directly to the affected homeowner. The HOA’s inaction does not mean a rule can’t be enforced; it just means you may have to be the one to do it by bringing a private legal action against your neighbor.

Conclusion: Read Your Fine Print

The story of the ugly wall serves as a powerful reminder that a homeowner’s assumptions about their HOA’s power can be miles apart from the legal reality written into the CC&Rs. This case perfectly illustrates the interplay between an HOA’s discretionary enforcement powers (Lesson 1), its carefully separated procedural duties (Lesson 2), the critical importance of homeowner communication and proof (Lesson 3), and the ultimate empowerment of members to enforce rules themselves (Lesson 4). These documents are not just a list of rules; they are a legal framework that dictates who has the power to act, when they are obligated to do so, and what recourse you have when a conflict arises.

You might know your community’s rules on trash cans and lawn care, but do you know who is truly responsible for enforcing them when a real dispute arises?


Case Participants

Petitioner Side

  • John Shields (petitioner)

Respondent Side

  • Maria R. Kupillas (HOA attorney)
    Law Offices of Farley Choate & Bergin
    Represented Respondent Will Rogers Equestrian Ranch
  • Dean Kabanuk (board president)
    Will Rogers Equestrian Ranch Board
    Testified for Petitioner via subpoena; elected President Nov 2016
  • Kristi Hancock (board member/witness)
    Will Rogers Equestrian Ranch Board
    Served as Vice President (Nov 2016-Nov 2017) and President (since Nov 2017)
  • Brenda Campbell (community manager)
    Will Rogers Equestrian Ranch
    Witness for Respondent
  • A.J. Denardo (witness)
    Not a member of Respondent; lives near Petitioner
  • Sandy Johnson (witness/neighbor)
    Wife of Joe Johnson; Petitioner's next-door neighbor
  • Joe Johnson (neighbor/homeowner)
    Will Rogers Equestrian Ranch
    Built the block wall extension in question

Neutral Parties

  • Diane Mihalsky (ALJ)
    Office of Administrative Hearings
    Issued initial ALJ Decision
  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
    Issued ALJ Decision following rehearing
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
    Granted Petitioner's request for rehearing

Other Participants

  • Felicia Del Sol (staff)
    Transmitted the decision

John L. Shields vs. Will Rogers Equestrian Ranch

Case Summary

Case ID 17F-H1717034-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-02-26
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John L. Shields Counsel
Respondent Will Rogers Equestrian Ranch Counsel Maria R. Kupillas

Alleged Violations

CC&R § 6.2(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the HOA violated its CC&Rs by approving the wall extension, as the HOA’s approval duties were limited to aesthetic considerations under CC&R § 7.2 and did not extend to enforcing or ensuring adjoining owner approval required by CC&R § 6.2(A).

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent erroneously approved the proposal, as Respondent's duties under CC&R § 7.2 did not require considering adjoining neighbor approval specified in CC&R § 6.2(A).

Key Issues & Findings

Alleged violation of CC&Rs by HOA improperly approving a neighbor's block wall extension without adjoining owner's approval.

Petitioner alleged that the Respondent HOA violated CC&R § 6.2(A) by approving a neighbor's block wall extension that served as a party wall because Petitioner, the adjoining owner, had not approved the wall. Respondent argued their approval duties under CC&R § 7.2 only concerned aesthetics, not ensuring neighbor approval.

Orders: The petition is dismissed and no action is required of Respondent.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • CC&R § 6.2(A)
  • CC&R § 7.2

Analytics Highlights

Topics: HOA, CC&R, Architectural Control Committee, Fence, Party Wall, Rehearing, Burden of Proof
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Audio Overview

Decision Documents

17F-H1717034-REL-RHG Decision – 619560.pdf

Uploaded 2025-10-08T06:58:07 (90.8 KB)





Briefing Doc – 17F-H1717034-REL-RHG


Briefing Document: Analysis of Administrative Law Judge Decision in Shields v. Will Rogers Equestrian Ranch

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in Case No. 17F-H1717034-REL-RHG, dated February 26, 2018. The central issue was a petition filed by homeowner John L. Shields against the Will Rogers Equestrian Ranch Homeowners’ Association (HOA), alleging the HOA improperly approved a wall extension built by his neighbor, Joe Johnson, without Mr. Shields’ required consent.

The petition was ultimately dismissed. The Administrative Law Judge (ALJ) concluded that the petitioner, Mr. Shields, failed to establish by a preponderance of the evidence that the HOA had violated its Covenants, Conditions, and Restrictions (CC&Rs). The decision rests on a critical distinction between the responsibilities of a homeowner and the responsibilities of the HOA under separate articles of the CC&Rs. The ALJ determined that the obligation to secure an adjoining neighbor’s approval for a wall alteration (under CC&R § 6.2) falls exclusively on the homeowner undertaking the project. In contrast, the HOA’s duty (under CC&R § 7.2) is limited to an aesthetic review of the proposed alteration, which it conducted appropriately. The HOA had no legal obligation to enforce or verify neighbor-to-neighbor approval.

I. Case Overview

Case Name

John L. Shields (Petitioner) vs. Will Rogers Equestrian Ranch (Respondent)

Case Number

17F-H1717034-REL-RHG

Jurisdiction

Office of Administrative Hearings, Phoenix, Arizona

Presiding Judge

Administrative Law Judge Tammy L. Eigenheer

Date of Decision

February 26, 2018

Core Dispute

The petitioner alleged the HOA violated CC&R § 6.2(A) by approving a neighbor’s approximately 5’ x 6’ block wall extension without the petitioner’s consent.

Final Outcome

The petition was dismissed, with no action required of the respondent HOA.

II. Petitioner’s Claim and Arguments

John L. Shields, a homeowner at 20431 E. Bronco Drive within the Will Rogers Equestrian Ranch development, filed a petition against the HOA concerning a wall extension built by his next-door neighbor, Joe Johnson.

Core Allegation: After vacillating on the specifics of his complaint during the hearing, Mr. Shields firmly asserted that his single issue was that the HOA improperly approved Mr. Johnson’s proposal to build a block wall extension and move his gate forward.

Basis of Claim: The petitioner argued that under CC&R § 6.2, the HOA should have withheld its approval because Mr. Johnson had not demonstrated that he had first obtained Mr. Shields’ approval for the wall extension between their properties.

Evidence and Testimony: Mr. Shields denied ever having approved the wall. He submitted a photograph he had taken from his front porch and testified that the block wall extension “was an eyesore.”

III. Respondent’s Position and Evidence

The Will Rogers Equestrian Ranch HOA, represented by board president Kristi Hancock, denied all complaint items and argued its actions were consistent with the governing CC&Rs.

Basis of Approval: The HOA contended that its approval was based solely on the criteria outlined in CC&R § 7.2. The board, acting as the Architectural Control Committee, reviewed Mr. Johnson’s proposal for its aesthetic qualities and consistency with other properties in the development.

Aesthetic Review: Ms. Hancock testified that the board inspected other wall extensions and gates and found Mr. Johnson’s proposal to be “aesthetically pleasing and consistent with the other properties.”

Neighbor Consent Issue: The HOA acknowledged its awareness of Mr. Shields’ objection to the wall after it was built. However, Ms. Hancock testified that the board’s understanding of whether Mr. Shields had approved the wall before construction was unclear. She stated that “at least four witnesses had stated that they heard Petitioner either actually approve of or fail to state an objection to the block wall extension while, in Petitioner’s presence, Mr. Johnson discussed having the block wall extension built.”

Separation of Duties: The HOA’s position was that its duty under § 7.2 was distinct from the homeowner’s duty under § 6.2. The HOA was not responsible for obtaining or verifying neighbor approval.

IV. Chronology of Key Events

1. October 13, 2016 (approx.): Mr. Johnson has the block wall extension built without first obtaining approval from the HOA’s board or committee.

2. October 16, 2016 (approx.): Mr. Shields expresses his disapproval of the newly built wall to Mr. and Mrs. Johnson.

3. November 2, 2016 (approx.): Mr. Johnson retroactively submits his proposal for the wall extension and a plan to move his gate forward to the Architectural Control Committee for approval.

4. November 2016: The HOA’s newly elected board meets as the Committee and verbally approves Mr. Johnson’s wall but advises him that “he will need to seek neighboring property owner’s approval.”

5. January 2017: The board formally approves Mr. Johnson’s proposal for the wall extension and gate move.

6. May 3, 2017 (approx.): Mr. Shields files a single-issue petition with the Arizona Department of Real Estate.

7. September 27, 2017: An initial hearing is held, and Administrative Law Judge Diane Mihalsky dismisses the petition.

8. December 5, 2017: The Real Estate Commissioner grants Mr. Shields’ request for a rehearing based on his claims of legal errors and judicial misconduct.

9. February 5, 2018: A rehearing is held before Administrative Law Judge Tammy L. Eigenheer.

V. Analysis of Covenants, Conditions, and Restrictions (CC&Rs)

The judge’s decision hinged on the distinct and separate functions of two key CC&R sections.

This section governs alterations to shared fences and walls.

Such Party Walls and Fences shall not be altered, or changed in design, color, material or construction from the original installation made by the Developer without [the] approval of the adjoining Owner(s), if any, and the [Architectural Control] Committee.

Interpretation: The ALJ interpreted this section as creating two separate approval requirements for the homeowner making the alteration: one from the adjoining owner and one from the Committee. It does not obligate the Committee to enforce the adjoining owner’s approval.

This section defines the scope and limits of the Architectural Control Committee’s power.

No . . . fences . . . shall be commenced [or] erected . . . until the plans and specifications showing the same shall have been submitted to and approved by the Committee. Approval shall not be unreasonably withheld. However, the Committee shall have the right to refuse to approve any Alteration which is not suitable or desirable in their opinion for aesthetic or other reasons…

Interpretation: The ALJ found that this section limits the Committee’s review to specific criteria, including aesthetics, harmony with surroundings, and effect on neighboring property. It explicitly states that approval “shall not be unreasonably withheld” and does not require the Committee to verify compliance with other CC&Rs or city ordinances.

VI. Judge’s Conclusions of Law and Rationale for Dismissal

The ALJ’s decision to dismiss the petition was based on a clear legal interpretation of the CC&Rs and the petitioner’s failure to meet the burden of proof.

Distinct and Separate Obligations: The core of the ruling is that the CC&Rs create parallel but separate responsibilities.

1. Homeowner’s Responsibility: The duty to obtain an adjoining neighbor’s approval for a shared wall alteration under § 6.2(A) rests solely with the homeowner performing the work (Mr. Johnson).

2. HOA’s Responsibility: The HOA’s duty under § 7.2 is limited to reviewing the project on its aesthetic merits and consistency within the community.

Key Legal Finding: The decision explicitly states the separation of these duties:

Scope of HOA Review: The ALJ affirmed that the HOA’s scope of review was properly limited.

Failure to Meet Burden of Proof: Because the HOA acted within the authority and limitations defined by CC&R § 7.2, the petitioner failed to prove by a preponderance of the evidence that the HOA had violated its governing documents.

Other Responsibilities: The decision also noted that the responsibility for ensuring compliance with City of Queen Creek ordinances (related to the gate move) ultimately rested with Mr. Johnson, not the HOA.

VII. Final Order

Based on the findings of fact and conclusions of law, the Administrative Law Judge ordered that the petition be dismissed.

• No action is required of the Respondent, Will Rogers Equestrian Ranch HOA.

• The decision, issued as a result of a rehearing, is binding on the parties.

• Any appeal must be filed with the superior court within thirty-five days from the date the order was served.


John L. Shields vs. Will Rogers Equestrian Ranch

Case Summary

Case ID 17F-H1717034-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-02-26
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John L. Shields Counsel
Respondent Will Rogers Equestrian Ranch Counsel Maria R. Kupillas

Alleged Violations

CC&R § 6.2(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the HOA violated its CC&Rs by approving the wall extension, as the HOA’s approval duties were limited to aesthetic considerations under CC&R § 7.2 and did not extend to enforcing or ensuring adjoining owner approval required by CC&R § 6.2(A).

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent erroneously approved the proposal, as Respondent's duties under CC&R § 7.2 did not require considering adjoining neighbor approval specified in CC&R § 6.2(A).

Key Issues & Findings

Alleged violation of CC&Rs by HOA improperly approving a neighbor's block wall extension without adjoining owner's approval.

Petitioner alleged that the Respondent HOA violated CC&R § 6.2(A) by approving a neighbor's block wall extension that served as a party wall because Petitioner, the adjoining owner, had not approved the wall. Respondent argued their approval duties under CC&R § 7.2 only concerned aesthetics, not ensuring neighbor approval.

Orders: The petition is dismissed and no action is required of Respondent.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • CC&R § 6.2(A)
  • CC&R § 7.2

Analytics Highlights

Topics: HOA, CC&R, Architectural Control Committee, Fence, Party Wall, Rehearing, Burden of Proof
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Audio Overview

Decision Documents

17F-H1717034-REL-RHG Decision – 619560.pdf

Uploaded 2025-10-08T07:02:21 (90.8 KB)





Briefing Doc – 17F-H1717034-REL-RHG


Briefing Document: Analysis of Administrative Law Judge Decision in Shields v. Will Rogers Equestrian Ranch

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in Case No. 17F-H1717034-REL-RHG, dated February 26, 2018. The central issue was a petition filed by homeowner John L. Shields against the Will Rogers Equestrian Ranch Homeowners’ Association (HOA), alleging the HOA improperly approved a wall extension built by his neighbor, Joe Johnson, without Mr. Shields’ required consent.

The petition was ultimately dismissed. The Administrative Law Judge (ALJ) concluded that the petitioner, Mr. Shields, failed to establish by a preponderance of the evidence that the HOA had violated its Covenants, Conditions, and Restrictions (CC&Rs). The decision rests on a critical distinction between the responsibilities of a homeowner and the responsibilities of the HOA under separate articles of the CC&Rs. The ALJ determined that the obligation to secure an adjoining neighbor’s approval for a wall alteration (under CC&R § 6.2) falls exclusively on the homeowner undertaking the project. In contrast, the HOA’s duty (under CC&R § 7.2) is limited to an aesthetic review of the proposed alteration, which it conducted appropriately. The HOA had no legal obligation to enforce or verify neighbor-to-neighbor approval.

I. Case Overview

Case Name

John L. Shields (Petitioner) vs. Will Rogers Equestrian Ranch (Respondent)

Case Number

17F-H1717034-REL-RHG

Jurisdiction

Office of Administrative Hearings, Phoenix, Arizona

Presiding Judge

Administrative Law Judge Tammy L. Eigenheer

Date of Decision

February 26, 2018

Core Dispute

The petitioner alleged the HOA violated CC&R § 6.2(A) by approving a neighbor’s approximately 5’ x 6’ block wall extension without the petitioner’s consent.

Final Outcome

The petition was dismissed, with no action required of the respondent HOA.

II. Petitioner’s Claim and Arguments

John L. Shields, a homeowner at 20431 E. Bronco Drive within the Will Rogers Equestrian Ranch development, filed a petition against the HOA concerning a wall extension built by his next-door neighbor, Joe Johnson.

Core Allegation: After vacillating on the specifics of his complaint during the hearing, Mr. Shields firmly asserted that his single issue was that the HOA improperly approved Mr. Johnson’s proposal to build a block wall extension and move his gate forward.

Basis of Claim: The petitioner argued that under CC&R § 6.2, the HOA should have withheld its approval because Mr. Johnson had not demonstrated that he had first obtained Mr. Shields’ approval for the wall extension between their properties.

Evidence and Testimony: Mr. Shields denied ever having approved the wall. He submitted a photograph he had taken from his front porch and testified that the block wall extension “was an eyesore.”

III. Respondent’s Position and Evidence

The Will Rogers Equestrian Ranch HOA, represented by board president Kristi Hancock, denied all complaint items and argued its actions were consistent with the governing CC&Rs.

Basis of Approval: The HOA contended that its approval was based solely on the criteria outlined in CC&R § 7.2. The board, acting as the Architectural Control Committee, reviewed Mr. Johnson’s proposal for its aesthetic qualities and consistency with other properties in the development.

Aesthetic Review: Ms. Hancock testified that the board inspected other wall extensions and gates and found Mr. Johnson’s proposal to be “aesthetically pleasing and consistent with the other properties.”

Neighbor Consent Issue: The HOA acknowledged its awareness of Mr. Shields’ objection to the wall after it was built. However, Ms. Hancock testified that the board’s understanding of whether Mr. Shields had approved the wall before construction was unclear. She stated that “at least four witnesses had stated that they heard Petitioner either actually approve of or fail to state an objection to the block wall extension while, in Petitioner’s presence, Mr. Johnson discussed having the block wall extension built.”

Separation of Duties: The HOA’s position was that its duty under § 7.2 was distinct from the homeowner’s duty under § 6.2. The HOA was not responsible for obtaining or verifying neighbor approval.

IV. Chronology of Key Events

1. October 13, 2016 (approx.): Mr. Johnson has the block wall extension built without first obtaining approval from the HOA’s board or committee.

2. October 16, 2016 (approx.): Mr. Shields expresses his disapproval of the newly built wall to Mr. and Mrs. Johnson.

3. November 2, 2016 (approx.): Mr. Johnson retroactively submits his proposal for the wall extension and a plan to move his gate forward to the Architectural Control Committee for approval.

4. November 2016: The HOA’s newly elected board meets as the Committee and verbally approves Mr. Johnson’s wall but advises him that “he will need to seek neighboring property owner’s approval.”

5. January 2017: The board formally approves Mr. Johnson’s proposal for the wall extension and gate move.

6. May 3, 2017 (approx.): Mr. Shields files a single-issue petition with the Arizona Department of Real Estate.

7. September 27, 2017: An initial hearing is held, and Administrative Law Judge Diane Mihalsky dismisses the petition.

8. December 5, 2017: The Real Estate Commissioner grants Mr. Shields’ request for a rehearing based on his claims of legal errors and judicial misconduct.

9. February 5, 2018: A rehearing is held before Administrative Law Judge Tammy L. Eigenheer.

V. Analysis of Covenants, Conditions, and Restrictions (CC&Rs)

The judge’s decision hinged on the distinct and separate functions of two key CC&R sections.

This section governs alterations to shared fences and walls.

Such Party Walls and Fences shall not be altered, or changed in design, color, material or construction from the original installation made by the Developer without [the] approval of the adjoining Owner(s), if any, and the [Architectural Control] Committee.

Interpretation: The ALJ interpreted this section as creating two separate approval requirements for the homeowner making the alteration: one from the adjoining owner and one from the Committee. It does not obligate the Committee to enforce the adjoining owner’s approval.

This section defines the scope and limits of the Architectural Control Committee’s power.

No . . . fences . . . shall be commenced [or] erected . . . until the plans and specifications showing the same shall have been submitted to and approved by the Committee. Approval shall not be unreasonably withheld. However, the Committee shall have the right to refuse to approve any Alteration which is not suitable or desirable in their opinion for aesthetic or other reasons…

Interpretation: The ALJ found that this section limits the Committee’s review to specific criteria, including aesthetics, harmony with surroundings, and effect on neighboring property. It explicitly states that approval “shall not be unreasonably withheld” and does not require the Committee to verify compliance with other CC&Rs or city ordinances.

VI. Judge’s Conclusions of Law and Rationale for Dismissal

The ALJ’s decision to dismiss the petition was based on a clear legal interpretation of the CC&Rs and the petitioner’s failure to meet the burden of proof.

Distinct and Separate Obligations: The core of the ruling is that the CC&Rs create parallel but separate responsibilities.

1. Homeowner’s Responsibility: The duty to obtain an adjoining neighbor’s approval for a shared wall alteration under § 6.2(A) rests solely with the homeowner performing the work (Mr. Johnson).

2. HOA’s Responsibility: The HOA’s duty under § 7.2 is limited to reviewing the project on its aesthetic merits and consistency within the community.

Key Legal Finding: The decision explicitly states the separation of these duties:

Scope of HOA Review: The ALJ affirmed that the HOA’s scope of review was properly limited.

Failure to Meet Burden of Proof: Because the HOA acted within the authority and limitations defined by CC&R § 7.2, the petitioner failed to prove by a preponderance of the evidence that the HOA had violated its governing documents.

Other Responsibilities: The decision also noted that the responsibility for ensuring compliance with City of Queen Creek ordinances (related to the gate move) ultimately rested with Mr. Johnson, not the HOA.

VII. Final Order

Based on the findings of fact and conclusions of law, the Administrative Law Judge ordered that the petition be dismissed.

• No action is required of the Respondent, Will Rogers Equestrian Ranch HOA.

• The decision, issued as a result of a rehearing, is binding on the parties.

• Any appeal must be filed with the superior court within thirty-five days from the date the order was served.


John Shields vs. Will Rogers Equestrian Ranch

Case Summary

Case ID 17F-H1717034-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-02-26
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John L. Shields Counsel
Respondent Will Rogers Equestrian Ranch Counsel Maria R. Kupillas

Alleged Violations

CC&R § 6.2(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the HOA violated its CC&Rs by approving the wall extension, as the HOA’s approval duties were limited to aesthetic considerations under CC&R § 7.2 and did not extend to enforcing or ensuring adjoining owner approval required by CC&R § 6.2(A).

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent erroneously approved the proposal, as Respondent's duties under CC&R § 7.2 did not require considering adjoining neighbor approval specified in CC&R § 6.2(A).

Key Issues & Findings

Alleged violation of CC&Rs by HOA improperly approving a neighbor's block wall extension without adjoining owner's approval.

Petitioner alleged that the Respondent HOA violated CC&R § 6.2(A) by approving a neighbor's block wall extension that served as a party wall because Petitioner, the adjoining owner, had not approved the wall. Respondent argued their approval duties under CC&R § 7.2 only concerned aesthetics, not ensuring neighbor approval.

Orders: The petition is dismissed and no action is required of Respondent.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • CC&R § 6.2(A)
  • CC&R § 7.2

Analytics Highlights

Topics: HOA, CC&R, Architectural Control Committee, Fence, Party Wall, Rehearing, Burden of Proof
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Video Overview

Audio Overview

https://open.spotify.com/episode/3l6q5EeQJeD2EtYbIrgYnE

Decision Documents

17F-H1717034-REL Decision – 592935.pdf

Uploaded 2025-12-09T10:03:47 (115.2 KB)

17F-H1717034-REL Decision – 619560.pdf

Uploaded 2025-10-09T03:31:39 (90.8 KB)





Briefing Doc – 17F-H1717034-REL


Briefing Document: Analysis of Administrative Law Judge Decision in Shields v. Will Rogers Equestrian Ranch

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in Case No. 17F-H1717034-REL-RHG, dated February 26, 2018. The central issue was a petition filed by homeowner John L. Shields against the Will Rogers Equestrian Ranch Homeowners’ Association (HOA), alleging the HOA improperly approved a wall extension built by his neighbor, Joe Johnson, without Mr. Shields’ required consent.

The petition was ultimately dismissed. The Administrative Law Judge (ALJ) concluded that the petitioner, Mr. Shields, failed to establish by a preponderance of the evidence that the HOA had violated its Covenants, Conditions, and Restrictions (CC&Rs). The decision rests on a critical distinction between the responsibilities of a homeowner and the responsibilities of the HOA under separate articles of the CC&Rs. The ALJ determined that the obligation to secure an adjoining neighbor’s approval for a wall alteration (under CC&R § 6.2) falls exclusively on the homeowner undertaking the project. In contrast, the HOA’s duty (under CC&R § 7.2) is limited to an aesthetic review of the proposed alteration, which it conducted appropriately. The HOA had no legal obligation to enforce or verify neighbor-to-neighbor approval.

I. Case Overview

Case Name

John L. Shields (Petitioner) vs. Will Rogers Equestrian Ranch (Respondent)

Case Number

17F-H1717034-REL-RHG

Jurisdiction

Office of Administrative Hearings, Phoenix, Arizona

Presiding Judge

Administrative Law Judge Tammy L. Eigenheer

Date of Decision

February 26, 2018

Core Dispute

The petitioner alleged the HOA violated CC&R § 6.2(A) by approving a neighbor’s approximately 5’ x 6’ block wall extension without the petitioner’s consent.

Final Outcome

The petition was dismissed, with no action required of the respondent HOA.

II. Petitioner’s Claim and Arguments

John L. Shields, a homeowner at 20431 E. Bronco Drive within the Will Rogers Equestrian Ranch development, filed a petition against the HOA concerning a wall extension built by his next-door neighbor, Joe Johnson.

Core Allegation: After vacillating on the specifics of his complaint during the hearing, Mr. Shields firmly asserted that his single issue was that the HOA improperly approved Mr. Johnson’s proposal to build a block wall extension and move his gate forward.

Basis of Claim: The petitioner argued that under CC&R § 6.2, the HOA should have withheld its approval because Mr. Johnson had not demonstrated that he had first obtained Mr. Shields’ approval for the wall extension between their properties.

Evidence and Testimony: Mr. Shields denied ever having approved the wall. He submitted a photograph he had taken from his front porch and testified that the block wall extension “was an eyesore.”

III. Respondent’s Position and Evidence

The Will Rogers Equestrian Ranch HOA, represented by board president Kristi Hancock, denied all complaint items and argued its actions were consistent with the governing CC&Rs.

Basis of Approval: The HOA contended that its approval was based solely on the criteria outlined in CC&R § 7.2. The board, acting as the Architectural Control Committee, reviewed Mr. Johnson’s proposal for its aesthetic qualities and consistency with other properties in the development.

Aesthetic Review: Ms. Hancock testified that the board inspected other wall extensions and gates and found Mr. Johnson’s proposal to be “aesthetically pleasing and consistent with the other properties.”

Neighbor Consent Issue: The HOA acknowledged its awareness of Mr. Shields’ objection to the wall after it was built. However, Ms. Hancock testified that the board’s understanding of whether Mr. Shields had approved the wall before construction was unclear. She stated that “at least four witnesses had stated that they heard Petitioner either actually approve of or fail to state an objection to the block wall extension while, in Petitioner’s presence, Mr. Johnson discussed having the block wall extension built.”

Separation of Duties: The HOA’s position was that its duty under § 7.2 was distinct from the homeowner’s duty under § 6.2. The HOA was not responsible for obtaining or verifying neighbor approval.

IV. Chronology of Key Events

1. October 13, 2016 (approx.): Mr. Johnson has the block wall extension built without first obtaining approval from the HOA’s board or committee.

2. October 16, 2016 (approx.): Mr. Shields expresses his disapproval of the newly built wall to Mr. and Mrs. Johnson.

3. November 2, 2016 (approx.): Mr. Johnson retroactively submits his proposal for the wall extension and a plan to move his gate forward to the Architectural Control Committee for approval.

4. November 2016: The HOA’s newly elected board meets as the Committee and verbally approves Mr. Johnson’s wall but advises him that “he will need to seek neighboring property owner’s approval.”

5. January 2017: The board formally approves Mr. Johnson’s proposal for the wall extension and gate move.

6. May 3, 2017 (approx.): Mr. Shields files a single-issue petition with the Arizona Department of Real Estate.

7. September 27, 2017: An initial hearing is held, and Administrative Law Judge Diane Mihalsky dismisses the petition.

8. December 5, 2017: The Real Estate Commissioner grants Mr. Shields’ request for a rehearing based on his claims of legal errors and judicial misconduct.

9. February 5, 2018: A rehearing is held before Administrative Law Judge Tammy L. Eigenheer.

V. Analysis of Covenants, Conditions, and Restrictions (CC&Rs)

The judge’s decision hinged on the distinct and separate functions of two key CC&R sections.

This section governs alterations to shared fences and walls.

Such Party Walls and Fences shall not be altered, or changed in design, color, material or construction from the original installation made by the Developer without [the] approval of the adjoining Owner(s), if any, and the [Architectural Control] Committee.

Interpretation: The ALJ interpreted this section as creating two separate approval requirements for the homeowner making the alteration: one from the adjoining owner and one from the Committee. It does not obligate the Committee to enforce the adjoining owner’s approval.

This section defines the scope and limits of the Architectural Control Committee’s power.

No . . . fences . . . shall be commenced [or] erected . . . until the plans and specifications showing the same shall have been submitted to and approved by the Committee. Approval shall not be unreasonably withheld. However, the Committee shall have the right to refuse to approve any Alteration which is not suitable or desirable in their opinion for aesthetic or other reasons…

Interpretation: The ALJ found that this section limits the Committee’s review to specific criteria, including aesthetics, harmony with surroundings, and effect on neighboring property. It explicitly states that approval “shall not be unreasonably withheld” and does not require the Committee to verify compliance with other CC&Rs or city ordinances.

VI. Judge’s Conclusions of Law and Rationale for Dismissal

The ALJ’s decision to dismiss the petition was based on a clear legal interpretation of the CC&Rs and the petitioner’s failure to meet the burden of proof.

Distinct and Separate Obligations: The core of the ruling is that the CC&Rs create parallel but separate responsibilities.

1. Homeowner’s Responsibility: The duty to obtain an adjoining neighbor’s approval for a shared wall alteration under § 6.2(A) rests solely with the homeowner performing the work (Mr. Johnson).

2. HOA’s Responsibility: The HOA’s duty under § 7.2 is limited to reviewing the project on its aesthetic merits and consistency within the community.

Key Legal Finding: The decision explicitly states the separation of these duties:

Scope of HOA Review: The ALJ affirmed that the HOA’s scope of review was properly limited.

Failure to Meet Burden of Proof: Because the HOA acted within the authority and limitations defined by CC&R § 7.2, the petitioner failed to prove by a preponderance of the evidence that the HOA had violated its governing documents.

Other Responsibilities: The decision also noted that the responsibility for ensuring compliance with City of Queen Creek ordinances (related to the gate move) ultimately rested with Mr. Johnson, not the HOA.

VII. Final Order

Based on the findings of fact and conclusions of law, the Administrative Law Judge ordered that the petition be dismissed.

• No action is required of the Respondent, Will Rogers Equestrian Ranch HOA.

• The decision, issued as a result of a rehearing, is binding on the parties.

• Any appeal must be filed with the superior court within thirty-five days from the date the order was served.






Study Guide – 17F-H1717034-REL


Study Guide: Shields v. Will Rogers Equestrian Ranch

This guide provides a comprehensive review of the Administrative Law Judge Decision in case number 17F-H1717034-REL-RHG, involving John L. Shields and the Will Rogers Equestrian Ranch homeowners’ association. It includes a short-answer quiz to test factual recall, an answer key for verification, essay questions for deeper analysis, and a glossary of key terms as defined and used within the context of the legal decision.

Short-Answer Quiz

Instructions: Answer the following questions in 2-3 complete sentences, drawing all information directly from the provided legal decision.

1. Who are the Petitioner and the Respondent in this case, and what is their relationship?

2. What was the specific, single-issue claim that the Petitioner, John L. Shields, filed with the Arizona Department of Real Estate on May 3, 2017?

3. What is a “party wall” according to CC&R § 6.2(A), and what specific approval is required to alter one?

4. What was the timeline of the wall extension’s construction and Mr. Johnson’s subsequent submission for approval to the Committee?

5. On what grounds did the Respondent’s board, acting as the Architectural Control Committee, approve Mr. Johnson’s proposal?

6. What was the Petitioner’s central argument for why the Respondent should not have approved Mr. Johnson’s proposal?

7. Why was a rehearing granted after the initial hearing on September 27, 2017?

8. What contradictory evidence did the Respondent’s board consider regarding whether the Petitioner had approved the wall extension before it was built?

9. What is the “preponderance of the evidence” standard, and who bore the burden of proof in this case?

10. What was the final recommended order from Administrative Law Judge Tammy L. Eigenheer, and what was the core legal reasoning for this decision?

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Answer Key

1. The Petitioner is John L. Shields, who owns a home at 20431 E. Bronco Drive. The Respondent is the Will Rogers Equestrian Ranch, a homeowners’ association in Queen Creek, Arizona. Mr. Shields is a member of the Respondent association.

2. The Petitioner alleged that the Respondent violated § 6.2(A) of its Covenants, Conditions, and Restrictions (CC&Rs). The violation claim was based on the Respondent approving a common block wall extension built by his neighbor, Joe Johnson, without the Petitioner’s required approval.

3. According to CC&R § 6.2(A), a “party wall” is a fence constructed upon the back of a lot. To alter or change the design, color, material, or construction of such a wall, approval is required from both the adjoining owner(s) and the Architectural Control Committee.

4. Mr. Johnson had the wall extension built on or about October 13, 2016, without prior approval. He subsequently submitted his proposal to the Committee for approval on or about November 2, 2016.

5. The board approved the proposal based on the criteria in CC&R § 7.2, which required it to consider if the alteration was aesthetically pleasing and harmonious with its surroundings. The board inspected other extensions in the development and found Mr. Johnson’s proposal to be consistent with them.

6. The Petitioner argued that the Respondent’s approval was improper because Mr. Johnson had not demonstrated that he had first obtained the Petitioner’s approval for the block wall extension, which is a stated requirement in CC&R § 6.2.

7. A rehearing was granted by Commissioner Judy Lowe on December 5, 2017. The Petitioner requested it based on claims of errors in the admission or rejection of evidence, other errors of law, and alleged misconduct by the initial Administrative Law Judge that deprived him of a fair hearing.

8. The board knew the Petitioner objected to the wall after it was built. However, the board was also aware of at least four witnesses who stated they heard the Petitioner either actually approve of the extension or fail to object while Mr. Johnson discussed building it in his presence.

9. “Preponderance of the evidence” is defined as proof that convinces the trier of fact that a contention is more probably true than not. In this case, the Petitioner, John L. Shields, bore the burden of proof to establish his claim by this standard.

10. The judge ordered that the petition be dismissed and that no action was required of the Respondent. The reasoning was that under CC&R § 6.2(A), the responsibility to get an adjoining neighbor’s approval lies with the property owner (Mr. Johnson), not the Respondent, and CC&R § 7.2 only required the Respondent to consider aesthetic factors, which it did.

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Essay Questions

Instructions: The following questions are designed to provoke deeper analysis of the case. Formulate a comprehensive response to each, structuring your answer in a standard essay format.

1. Analyze the distinct responsibilities assigned to the homeowner (Mr. Johnson) and the homeowners’ association (Respondent) by CC&R § 6.2(A) and § 7.2. How did the separation of these duties form the crux of the Administrative Law Judge’s final decision?

2. Discuss the legal standard of “preponderance of the evidence” as it is defined in the decision. Explain why the evidence presented by the Petitioner, including his testimony and photograph of the wall, failed to meet this burden of proof against the Respondent.

3. Examine the role and limitations of the Architectural Control Committee as described in CC&R § 7.2. In your analysis, consider what the committee is required to evaluate, what it is explicitly not responsible for, and the provision that its approval “shall not be unreasonably withheld.”

4. Trace the procedural history of this case, from the initial petition filing to the final order after the rehearing. What does this progression reveal about the administrative hearing process and the grounds upon which a rehearing can be granted?

5. Although the petition was dismissed, the facts indicate that Mr. Johnson built the wall extension before receiving any approval and that the City of Queen Creek later found his plan to move the gate violated city codes. Argue whether the Respondent (the HOA) bears any ethical, if not legal, responsibility in a situation where its approval process is disconnected from neighbor consent and municipal law compliance.

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Glossary of Key Terms

Definition in Context

Administrative Law Judge (ALJ)

An official, in this case Tammy L. Eigenheer, from the Office of Administrative Hearings who presides over evidentiary hearings and issues decisions on matters referred by state agencies like the Department of Real Estate.

Architectural Control Committee (“the Committee”)

A body within the homeowners’ association, in this case comprised of the board members, responsible for reviewing and approving or denying proposed alterations to properties, such as fences, based on aesthetic and other specified criteria.

A.R.S. § 32-2199.01

The Arizona Revised Statute that permits an owner in a planned community to file a petition with the Department of Real Estate concerning violations of community documents.

Burden of Proof

The obligation of a party in a legal case to provide evidence that proves its claim. In this case, the Petitioner bore the burden to prove his claim by a “preponderance of the evidence.”

Covenants, Conditions, and Restrictions (CC&Rs)

The governing legal documents that set forth the rules for a planned community. This case centers on the interpretation of § 6.2(A) and § 7.2 of the Will Rogers Equestrian Ranch CC&Rs.

Homeowners’ Association (HOA)

An organization in a subdivision, planned community, or condominium that makes and enforces rules for the properties and its residents. The Respondent, Will Rogers Equestrian Ranch, is an HOA.

Party Wall

As defined in CC&R § 6.2(A), a fence constructed upon the back of any lot that is shared between adjoining properties. Alterations require approval from the adjoining owner and the Committee.

Petitioner

The party who initiates a legal action or petition. In this case, John L. Shields, a homeowner and member of the Respondent association.

Preponderance of the Evidence

The standard of proof required in this civil administrative hearing. It is defined as evidence that is more convincing and has superior weight, making it more probable that a contention is true than not.

Rehearing

A second hearing of a case, granted in this instance because the Petitioner claimed there were errors of law and misconduct by the judge in the first proceeding that deprived him of a fair hearing.

Respondent

The party against whom a petition is filed. In this case, the Will Rogers Equestrian Ranch homeowners’ association.






Blog Post – 17F-H1717034-REL


4 Surprising Lessons From a Homeowner’s Lawsuit Against His HOA

It’s a scenario many homeowners can imagine: a neighbor erects a new wall along the property line without your consent. Your first instinct is to escalate the issue to your Homeowners’ Association (HOA), assuming it’s their job to enforce the community’s rules. This common assumption—that the HOA is the ultimate authority responsible for mediating all disputes between neighbors—is powerful, but is it always correct?

A real-life administrative court case, Shields v. Will Rogers Equestrian Ranch, provides a valuable case study in the delineation of duties within a planned community, revealing that the answer can be a surprising “no.” This case offers critical insights into the true roles and responsibilities of an HOA. Here are the top four counter-intuitive takeaways from this legal decision that every homeowner should understand.

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1. Your HOA Isn’t a Referee for Neighbor-to-Neighbor Agreements

Mr. Shields sued his HOA because it approved a neighbor’s wall extension that he, the adjoining owner, had not approved. He believed this violated the community’s Covenants, Conditions, and Restrictions (CC&Rs), specifically § 6.2(A), which requires approval from the adjoining owner for such changes.

The Administrative Law Judge, however, found the HOA had no legal duty to enforce this particular rule. The responsibility to secure the neighbor’s approval fell solely on the property owner making the change, not the HOA. The judge’s finding on this point was direct and unambiguous:

CC&R § 6.2(A) required that the property owner, Mr. Johnson, obtain the adjoining property owner’s, Petitioner’s, approval before he built the block wall extension. Respondent [the HOA] had no obligation under CC&R § 6.2(A) to obtain or ensure Petitioner approved the block wall extension.

This ruling clarifies that an HOA’s role is not that of a quasi-judicial body for resolving all private disputes; its enforcement powers are limited to the specific duties enumerated in its governing documents. CC&R § 6.2(A) effectively creates a private right of action between neighbors, which the HOA is not a party to. The HOA’s role is to enforce rules that obligate the homeowner to the association, not necessarily to other homeowners.

2. The Architectural Committee’s Job Is Narrower Than You Think

In its defense, the HOA’s board, acting as the Architectural Control Committee, argued that its review was based on a different rule entirely: CC&R § 7.2. The judge agreed, highlighting the Committee’s very narrow scope of responsibility.

According to the case findings, the Committee’s only legal obligation was to determine if the proposed wall was “aesthetically pleasing and consistent” with other properties in the development. Its review under § 7.2 did not require it to confirm whether the neighbor had obtained Mr. Shields’ approval as mandated by the separate rule. This legal structure isolates the two duties, and the homeowner’s error was conflating them. The HOA’s limited aesthetic review reinforces the conclusion from our first lesson: it is not responsible for policing the separate neighbor-approval requirement. An architectural green light is often purely about community harmony, not a verification of compliance with every other covenant.

3. Building First and Asking Permission Later Creates Confusion

The sequence of events in this case was disorderly, which ultimately clouded the legal issues. From the outset, the petitioner himself “vacillated on whether his issue with Respondent was that it improperly approved Mr. Johnson’s proposal… or that it failed to enforce the requirement that Mr. Johnson had to obtain Petitioner’s approval,” foreshadowing the difficulty in proving a specific violation.

The timeline further illustrates the breakdown in process:

October 13, 2016: The neighbor, Mr. Johnson, built the wall extension before seeking any approval.

October 16, 2016: Mr. Shields expressed his disapproval directly to the neighbor.

November 2, 2016: The neighbor submitted his proposal to the HOA for approval—weeks after the wall was already built.

November 2016: The HOA Board verbally approved the wall but astutely “advised him that ‘he will need to seek neighboring property owner’s approval.’”

This retroactive process, combined with a dispute clouded by conflicting testimony—four witnesses claimed they heard Mr. Shields either approve of the wall or fail to object—muddied the waters, making it impossible for the petitioner to meet his burden of proof regarding the HOA’s actions. The messiness of the facts directly contributed to the legal failure.

4. The Burden of Proof Rests Entirely on You

In a legal dispute with an HOA, the “burden of proof” falls on the petitioner. Mr. Shields had to establish his case by a “preponderance of the evidence,” which the court defines simply as “such proof as convinces the trier of fact that the contention is more probably true than not.”

Crucially, he had to prove that the HOA specifically violated a statute or a rule within the CC&Rs. It wasn’t enough to demonstrate that his neighbor violated a rule or that the situation felt unjust. He had to prove the HOA failed to perform a duty for which it was explicitly responsible.

The judge ultimately dismissed the petition because Mr. Shields could not meet this burden. He failed to prove the HOA had a duty to deny the application based on his lack of approval. A subjective sense of unfairness is insufficient to meet the legal standard; a petitioner must prove a direct breach of a specified duty by the association.

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Conclusion: Know Your Rules, Not Just Your Rights

The overarching lesson from the Shields case is that CC&Rs are a legal contract with a precise, and sometimes non-obvious, allocation of responsibilities among the homeowner, their neighbors, and the association itself. The HOA is not an all-powerful enforcer but an organization with a defined, and sometimes surprisingly limited, set of duties. Homeowners, in turn, have their own responsibilities—including, at times, enforcing certain rights directly with their neighbors.

Before escalating your next neighborhood issue, have you read the fine print to see who is truly responsible for what?


Case Participants

Petitioner Side

  • John Shields (petitioner)

Respondent Side

  • Maria R. Kupillas (HOA attorney)
    Law Offices of Farley Choate & Bergin
    Represented Respondent Will Rogers Equestrian Ranch
  • Joe Johnson (neighbor/member)
    Lot owner who built the wall extension; Husband of Sandy Johnson
  • Sandy Johnson (neighbor/witness)
    Wife of Joe Johnson; next-door neighbor to Petitioner; testified in initial hearing
  • Dean Kabanuk (board member/witness)
    Will Rogers Equestrian Ranch Board
    Respondent’s board president; testified in initial hearing
  • Kristi Hancock (board member/witness)
    Will Rogers Equestrian Ranch Board
    Attorney; served as VP (Nov 2016-Nov 2017) and President (since Nov 2017); testified in both hearings
  • Brenda Campbell (property manager/witness)
    Will Rogers Equestrian Ranch
    Respondent’s community manager; testified in initial hearing
  • A.J. Denardo (witness)
    Lives near Petitioner; testified in initial hearing regarding Petitioner's tacit approval

Neutral Parties

  • Diane Mihalsky (ALJ)
    Office of Administrative Hearings
    Issued the initial Administrative Law Judge Decision (October 11, 2017)
  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
    Issued the Administrative Law Judge Decision following rehearing (February 26, 2018)
  • Judy Lowe (ADRE Commissioner)
    Arizona Department of Real Estate
    Granted Petitioner's request for rehearing; decision transmitted to Commissioner
  • Felicia Del Sol (OAH staff)
    Office of Administrative Hearings
    Transmitted the rehearing decision

John Shields vs. Will Rogers Equestrian Ranch

Case Summary

Case ID 17F-H1717034-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-02-26
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John L. Shields Counsel
Respondent Will Rogers Equestrian Ranch Counsel Maria R. Kupillas

Alleged Violations

CC&R § 6.2(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the HOA violated its CC&Rs by approving the wall extension, as the HOA’s approval duties were limited to aesthetic considerations under CC&R § 7.2 and did not extend to enforcing or ensuring adjoining owner approval required by CC&R § 6.2(A).

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent erroneously approved the proposal, as Respondent's duties under CC&R § 7.2 did not require considering adjoining neighbor approval specified in CC&R § 6.2(A).

Key Issues & Findings

Alleged violation of CC&Rs by HOA improperly approving a neighbor's block wall extension without adjoining owner's approval.

Petitioner alleged that the Respondent HOA violated CC&R § 6.2(A) by approving a neighbor's block wall extension that served as a party wall because Petitioner, the adjoining owner, had not approved the wall. Respondent argued their approval duties under CC&R § 7.2 only concerned aesthetics, not ensuring neighbor approval.

Orders: The petition is dismissed and no action is required of Respondent.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • CC&R § 6.2(A)
  • CC&R § 7.2

Analytics Highlights

Topics: HOA, CC&R, Architectural Control Committee, Fence, Party Wall, Rehearing, Burden of Proof
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Audio Overview

Decision Documents

17F-H1717034-REL Decision – 619560.pdf

Uploaded 2025-10-08T06:51:19 (90.8 KB)





Briefing Doc – 17F-H1717034-REL


Briefing Document: Analysis of Administrative Law Judge Decision in Shields v. Will Rogers Equestrian Ranch

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in Case No. 17F-H1717034-REL-RHG, dated February 26, 2018. The central issue was a petition filed by homeowner John L. Shields against the Will Rogers Equestrian Ranch Homeowners’ Association (HOA), alleging the HOA improperly approved a wall extension built by his neighbor, Joe Johnson, without Mr. Shields’ required consent.

The petition was ultimately dismissed. The Administrative Law Judge (ALJ) concluded that the petitioner, Mr. Shields, failed to establish by a preponderance of the evidence that the HOA had violated its Covenants, Conditions, and Restrictions (CC&Rs). The decision rests on a critical distinction between the responsibilities of a homeowner and the responsibilities of the HOA under separate articles of the CC&Rs. The ALJ determined that the obligation to secure an adjoining neighbor’s approval for a wall alteration (under CC&R § 6.2) falls exclusively on the homeowner undertaking the project. In contrast, the HOA’s duty (under CC&R § 7.2) is limited to an aesthetic review of the proposed alteration, which it conducted appropriately. The HOA had no legal obligation to enforce or verify neighbor-to-neighbor approval.

I. Case Overview

Case Name

John L. Shields (Petitioner) vs. Will Rogers Equestrian Ranch (Respondent)

Case Number

17F-H1717034-REL-RHG

Jurisdiction

Office of Administrative Hearings, Phoenix, Arizona

Presiding Judge

Administrative Law Judge Tammy L. Eigenheer

Date of Decision

February 26, 2018

Core Dispute

The petitioner alleged the HOA violated CC&R § 6.2(A) by approving a neighbor’s approximately 5’ x 6’ block wall extension without the petitioner’s consent.

Final Outcome

The petition was dismissed, with no action required of the respondent HOA.

II. Petitioner’s Claim and Arguments

John L. Shields, a homeowner at 20431 E. Bronco Drive within the Will Rogers Equestrian Ranch development, filed a petition against the HOA concerning a wall extension built by his next-door neighbor, Joe Johnson.

Core Allegation: After vacillating on the specifics of his complaint during the hearing, Mr. Shields firmly asserted that his single issue was that the HOA improperly approved Mr. Johnson’s proposal to build a block wall extension and move his gate forward.

Basis of Claim: The petitioner argued that under CC&R § 6.2, the HOA should have withheld its approval because Mr. Johnson had not demonstrated that he had first obtained Mr. Shields’ approval for the wall extension between their properties.

Evidence and Testimony: Mr. Shields denied ever having approved the wall. He submitted a photograph he had taken from his front porch and testified that the block wall extension “was an eyesore.”

III. Respondent’s Position and Evidence

The Will Rogers Equestrian Ranch HOA, represented by board president Kristi Hancock, denied all complaint items and argued its actions were consistent with the governing CC&Rs.

Basis of Approval: The HOA contended that its approval was based solely on the criteria outlined in CC&R § 7.2. The board, acting as the Architectural Control Committee, reviewed Mr. Johnson’s proposal for its aesthetic qualities and consistency with other properties in the development.

Aesthetic Review: Ms. Hancock testified that the board inspected other wall extensions and gates and found Mr. Johnson’s proposal to be “aesthetically pleasing and consistent with the other properties.”

Neighbor Consent Issue: The HOA acknowledged its awareness of Mr. Shields’ objection to the wall after it was built. However, Ms. Hancock testified that the board’s understanding of whether Mr. Shields had approved the wall before construction was unclear. She stated that “at least four witnesses had stated that they heard Petitioner either actually approve of or fail to state an objection to the block wall extension while, in Petitioner’s presence, Mr. Johnson discussed having the block wall extension built.”

Separation of Duties: The HOA’s position was that its duty under § 7.2 was distinct from the homeowner’s duty under § 6.2. The HOA was not responsible for obtaining or verifying neighbor approval.

IV. Chronology of Key Events

1. October 13, 2016 (approx.): Mr. Johnson has the block wall extension built without first obtaining approval from the HOA’s board or committee.

2. October 16, 2016 (approx.): Mr. Shields expresses his disapproval of the newly built wall to Mr. and Mrs. Johnson.

3. November 2, 2016 (approx.): Mr. Johnson retroactively submits his proposal for the wall extension and a plan to move his gate forward to the Architectural Control Committee for approval.

4. November 2016: The HOA’s newly elected board meets as the Committee and verbally approves Mr. Johnson’s wall but advises him that “he will need to seek neighboring property owner’s approval.”

5. January 2017: The board formally approves Mr. Johnson’s proposal for the wall extension and gate move.

6. May 3, 2017 (approx.): Mr. Shields files a single-issue petition with the Arizona Department of Real Estate.

7. September 27, 2017: An initial hearing is held, and Administrative Law Judge Diane Mihalsky dismisses the petition.

8. December 5, 2017: The Real Estate Commissioner grants Mr. Shields’ request for a rehearing based on his claims of legal errors and judicial misconduct.

9. February 5, 2018: A rehearing is held before Administrative Law Judge Tammy L. Eigenheer.

V. Analysis of Covenants, Conditions, and Restrictions (CC&Rs)

The judge’s decision hinged on the distinct and separate functions of two key CC&R sections.

This section governs alterations to shared fences and walls.

Such Party Walls and Fences shall not be altered, or changed in design, color, material or construction from the original installation made by the Developer without [the] approval of the adjoining Owner(s), if any, and the [Architectural Control] Committee.

Interpretation: The ALJ interpreted this section as creating two separate approval requirements for the homeowner making the alteration: one from the adjoining owner and one from the Committee. It does not obligate the Committee to enforce the adjoining owner’s approval.

This section defines the scope and limits of the Architectural Control Committee’s power.

No . . . fences . . . shall be commenced [or] erected . . . until the plans and specifications showing the same shall have been submitted to and approved by the Committee. Approval shall not be unreasonably withheld. However, the Committee shall have the right to refuse to approve any Alteration which is not suitable or desirable in their opinion for aesthetic or other reasons…

Interpretation: The ALJ found that this section limits the Committee’s review to specific criteria, including aesthetics, harmony with surroundings, and effect on neighboring property. It explicitly states that approval “shall not be unreasonably withheld” and does not require the Committee to verify compliance with other CC&Rs or city ordinances.

VI. Judge’s Conclusions of Law and Rationale for Dismissal

The ALJ’s decision to dismiss the petition was based on a clear legal interpretation of the CC&Rs and the petitioner’s failure to meet the burden of proof.

Distinct and Separate Obligations: The core of the ruling is that the CC&Rs create parallel but separate responsibilities.

1. Homeowner’s Responsibility: The duty to obtain an adjoining neighbor’s approval for a shared wall alteration under § 6.2(A) rests solely with the homeowner performing the work (Mr. Johnson).

2. HOA’s Responsibility: The HOA’s duty under § 7.2 is limited to reviewing the project on its aesthetic merits and consistency within the community.

Key Legal Finding: The decision explicitly states the separation of these duties:

Scope of HOA Review: The ALJ affirmed that the HOA’s scope of review was properly limited.

Failure to Meet Burden of Proof: Because the HOA acted within the authority and limitations defined by CC&R § 7.2, the petitioner failed to prove by a preponderance of the evidence that the HOA had violated its governing documents.

Other Responsibilities: The decision also noted that the responsibility for ensuring compliance with City of Queen Creek ordinances (related to the gate move) ultimately rested with Mr. Johnson, not the HOA.

VII. Final Order

Based on the findings of fact and conclusions of law, the Administrative Law Judge ordered that the petition be dismissed.

• No action is required of the Respondent, Will Rogers Equestrian Ranch HOA.

• The decision, issued as a result of a rehearing, is binding on the parties.

• Any appeal must be filed with the superior court within thirty-five days from the date the order was served.


John Shields vs. Will Rogers Equestrian Ranch

Case Summary

Case ID 17F-H1717034-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-02-26
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John L. Shields Counsel
Respondent Will Rogers Equestrian Ranch Counsel Maria R. Kupillas

Alleged Violations

CC&R § 6.2(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the HOA violated its CC&Rs by approving the wall extension, as the HOA’s approval duties were limited to aesthetic considerations under CC&R § 7.2 and did not extend to enforcing or ensuring adjoining owner approval required by CC&R § 6.2(A).

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent erroneously approved the proposal, as Respondent's duties under CC&R § 7.2 did not require considering adjoining neighbor approval specified in CC&R § 6.2(A).

Key Issues & Findings

Alleged violation of CC&Rs by HOA improperly approving a neighbor's block wall extension without adjoining owner's approval.

Petitioner alleged that the Respondent HOA violated CC&R § 6.2(A) by approving a neighbor's block wall extension that served as a party wall because Petitioner, the adjoining owner, had not approved the wall. Respondent argued their approval duties under CC&R § 7.2 only concerned aesthetics, not ensuring neighbor approval.

Orders: The petition is dismissed and no action is required of Respondent.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • CC&R § 6.2(A)
  • CC&R § 7.2

Analytics Highlights

Topics: HOA, CC&R, Architectural Control Committee, Fence, Party Wall, Rehearing, Burden of Proof
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Audio Overview

Decision Documents

17F-H1717034-REL Decision – 619560.pdf

Uploaded 2025-10-08T06:58:02 (90.8 KB)





Briefing Doc – 17F-H1717034-REL


Briefing Document: Analysis of Administrative Law Judge Decision in Shields v. Will Rogers Equestrian Ranch

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in Case No. 17F-H1717034-REL-RHG, dated February 26, 2018. The central issue was a petition filed by homeowner John L. Shields against the Will Rogers Equestrian Ranch Homeowners’ Association (HOA), alleging the HOA improperly approved a wall extension built by his neighbor, Joe Johnson, without Mr. Shields’ required consent.

The petition was ultimately dismissed. The Administrative Law Judge (ALJ) concluded that the petitioner, Mr. Shields, failed to establish by a preponderance of the evidence that the HOA had violated its Covenants, Conditions, and Restrictions (CC&Rs). The decision rests on a critical distinction between the responsibilities of a homeowner and the responsibilities of the HOA under separate articles of the CC&Rs. The ALJ determined that the obligation to secure an adjoining neighbor’s approval for a wall alteration (under CC&R § 6.2) falls exclusively on the homeowner undertaking the project. In contrast, the HOA’s duty (under CC&R § 7.2) is limited to an aesthetic review of the proposed alteration, which it conducted appropriately. The HOA had no legal obligation to enforce or verify neighbor-to-neighbor approval.

I. Case Overview

Case Name

John L. Shields (Petitioner) vs. Will Rogers Equestrian Ranch (Respondent)

Case Number

17F-H1717034-REL-RHG

Jurisdiction

Office of Administrative Hearings, Phoenix, Arizona

Presiding Judge

Administrative Law Judge Tammy L. Eigenheer

Date of Decision

February 26, 2018

Core Dispute

The petitioner alleged the HOA violated CC&R § 6.2(A) by approving a neighbor’s approximately 5’ x 6’ block wall extension without the petitioner’s consent.

Final Outcome

The petition was dismissed, with no action required of the respondent HOA.

II. Petitioner’s Claim and Arguments

John L. Shields, a homeowner at 20431 E. Bronco Drive within the Will Rogers Equestrian Ranch development, filed a petition against the HOA concerning a wall extension built by his next-door neighbor, Joe Johnson.

Core Allegation: After vacillating on the specifics of his complaint during the hearing, Mr. Shields firmly asserted that his single issue was that the HOA improperly approved Mr. Johnson’s proposal to build a block wall extension and move his gate forward.

Basis of Claim: The petitioner argued that under CC&R § 6.2, the HOA should have withheld its approval because Mr. Johnson had not demonstrated that he had first obtained Mr. Shields’ approval for the wall extension between their properties.

Evidence and Testimony: Mr. Shields denied ever having approved the wall. He submitted a photograph he had taken from his front porch and testified that the block wall extension “was an eyesore.”

III. Respondent’s Position and Evidence

The Will Rogers Equestrian Ranch HOA, represented by board president Kristi Hancock, denied all complaint items and argued its actions were consistent with the governing CC&Rs.

Basis of Approval: The HOA contended that its approval was based solely on the criteria outlined in CC&R § 7.2. The board, acting as the Architectural Control Committee, reviewed Mr. Johnson’s proposal for its aesthetic qualities and consistency with other properties in the development.

Aesthetic Review: Ms. Hancock testified that the board inspected other wall extensions and gates and found Mr. Johnson’s proposal to be “aesthetically pleasing and consistent with the other properties.”

Neighbor Consent Issue: The HOA acknowledged its awareness of Mr. Shields’ objection to the wall after it was built. However, Ms. Hancock testified that the board’s understanding of whether Mr. Shields had approved the wall before construction was unclear. She stated that “at least four witnesses had stated that they heard Petitioner either actually approve of or fail to state an objection to the block wall extension while, in Petitioner’s presence, Mr. Johnson discussed having the block wall extension built.”

Separation of Duties: The HOA’s position was that its duty under § 7.2 was distinct from the homeowner’s duty under § 6.2. The HOA was not responsible for obtaining or verifying neighbor approval.

IV. Chronology of Key Events

1. October 13, 2016 (approx.): Mr. Johnson has the block wall extension built without first obtaining approval from the HOA’s board or committee.

2. October 16, 2016 (approx.): Mr. Shields expresses his disapproval of the newly built wall to Mr. and Mrs. Johnson.

3. November 2, 2016 (approx.): Mr. Johnson retroactively submits his proposal for the wall extension and a plan to move his gate forward to the Architectural Control Committee for approval.

4. November 2016: The HOA’s newly elected board meets as the Committee and verbally approves Mr. Johnson’s wall but advises him that “he will need to seek neighboring property owner’s approval.”

5. January 2017: The board formally approves Mr. Johnson’s proposal for the wall extension and gate move.

6. May 3, 2017 (approx.): Mr. Shields files a single-issue petition with the Arizona Department of Real Estate.

7. September 27, 2017: An initial hearing is held, and Administrative Law Judge Diane Mihalsky dismisses the petition.

8. December 5, 2017: The Real Estate Commissioner grants Mr. Shields’ request for a rehearing based on his claims of legal errors and judicial misconduct.

9. February 5, 2018: A rehearing is held before Administrative Law Judge Tammy L. Eigenheer.

V. Analysis of Covenants, Conditions, and Restrictions (CC&Rs)

The judge’s decision hinged on the distinct and separate functions of two key CC&R sections.

This section governs alterations to shared fences and walls.

Such Party Walls and Fences shall not be altered, or changed in design, color, material or construction from the original installation made by the Developer without [the] approval of the adjoining Owner(s), if any, and the [Architectural Control] Committee.

Interpretation: The ALJ interpreted this section as creating two separate approval requirements for the homeowner making the alteration: one from the adjoining owner and one from the Committee. It does not obligate the Committee to enforce the adjoining owner’s approval.

This section defines the scope and limits of the Architectural Control Committee’s power.

No . . . fences . . . shall be commenced [or] erected . . . until the plans and specifications showing the same shall have been submitted to and approved by the Committee. Approval shall not be unreasonably withheld. However, the Committee shall have the right to refuse to approve any Alteration which is not suitable or desirable in their opinion for aesthetic or other reasons…

Interpretation: The ALJ found that this section limits the Committee’s review to specific criteria, including aesthetics, harmony with surroundings, and effect on neighboring property. It explicitly states that approval “shall not be unreasonably withheld” and does not require the Committee to verify compliance with other CC&Rs or city ordinances.

VI. Judge’s Conclusions of Law and Rationale for Dismissal

The ALJ’s decision to dismiss the petition was based on a clear legal interpretation of the CC&Rs and the petitioner’s failure to meet the burden of proof.

Distinct and Separate Obligations: The core of the ruling is that the CC&Rs create parallel but separate responsibilities.

1. Homeowner’s Responsibility: The duty to obtain an adjoining neighbor’s approval for a shared wall alteration under § 6.2(A) rests solely with the homeowner performing the work (Mr. Johnson).

2. HOA’s Responsibility: The HOA’s duty under § 7.2 is limited to reviewing the project on its aesthetic merits and consistency within the community.

Key Legal Finding: The decision explicitly states the separation of these duties:

Scope of HOA Review: The ALJ affirmed that the HOA’s scope of review was properly limited.

Failure to Meet Burden of Proof: Because the HOA acted within the authority and limitations defined by CC&R § 7.2, the petitioner failed to prove by a preponderance of the evidence that the HOA had violated its governing documents.

Other Responsibilities: The decision also noted that the responsibility for ensuring compliance with City of Queen Creek ordinances (related to the gate move) ultimately rested with Mr. Johnson, not the HOA.

VII. Final Order

Based on the findings of fact and conclusions of law, the Administrative Law Judge ordered that the petition be dismissed.

• No action is required of the Respondent, Will Rogers Equestrian Ranch HOA.

• The decision, issued as a result of a rehearing, is binding on the parties.

• Any appeal must be filed with the superior court within thirty-five days from the date the order was served.


John Shields vs. Will Rogers Equestrian Ranch

Case Summary

Case ID 17F-H1717034-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2018-02-26
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John L. Shields Counsel
Respondent Will Rogers Equestrian Ranch Counsel Maria R. Kupillas

Alleged Violations

CC&R § 6.2(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to prove the HOA violated its CC&Rs by approving the wall extension, as the HOA’s approval duties were limited to aesthetic considerations under CC&R § 7.2 and did not extend to enforcing or ensuring adjoining owner approval required by CC&R § 6.2(A).

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent erroneously approved the proposal, as Respondent's duties under CC&R § 7.2 did not require considering adjoining neighbor approval specified in CC&R § 6.2(A).

Key Issues & Findings

Alleged violation of CC&Rs by HOA improperly approving a neighbor's block wall extension without adjoining owner's approval.

Petitioner alleged that the Respondent HOA violated CC&R § 6.2(A) by approving a neighbor's block wall extension that served as a party wall because Petitioner, the adjoining owner, had not approved the wall. Respondent argued their approval duties under CC&R § 7.2 only concerned aesthetics, not ensuring neighbor approval.

Orders: The petition is dismissed and no action is required of Respondent.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • CC&R § 6.2(A)
  • CC&R § 7.2

Analytics Highlights

Topics: HOA, CC&R, Architectural Control Committee, Fence, Party Wall, Rehearing, Burden of Proof
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Audio Overview

Decision Documents

17F-H1717034-REL Decision – 619560.pdf

Uploaded 2025-10-08T07:02:16 (90.8 KB)





Briefing Doc – 17F-H1717034-REL


Briefing Document: Analysis of Administrative Law Judge Decision in Shields v. Will Rogers Equestrian Ranch

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in Case No. 17F-H1717034-REL-RHG, dated February 26, 2018. The central issue was a petition filed by homeowner John L. Shields against the Will Rogers Equestrian Ranch Homeowners’ Association (HOA), alleging the HOA improperly approved a wall extension built by his neighbor, Joe Johnson, without Mr. Shields’ required consent.

The petition was ultimately dismissed. The Administrative Law Judge (ALJ) concluded that the petitioner, Mr. Shields, failed to establish by a preponderance of the evidence that the HOA had violated its Covenants, Conditions, and Restrictions (CC&Rs). The decision rests on a critical distinction between the responsibilities of a homeowner and the responsibilities of the HOA under separate articles of the CC&Rs. The ALJ determined that the obligation to secure an adjoining neighbor’s approval for a wall alteration (under CC&R § 6.2) falls exclusively on the homeowner undertaking the project. In contrast, the HOA’s duty (under CC&R § 7.2) is limited to an aesthetic review of the proposed alteration, which it conducted appropriately. The HOA had no legal obligation to enforce or verify neighbor-to-neighbor approval.

I. Case Overview

Case Name

John L. Shields (Petitioner) vs. Will Rogers Equestrian Ranch (Respondent)

Case Number

17F-H1717034-REL-RHG

Jurisdiction

Office of Administrative Hearings, Phoenix, Arizona

Presiding Judge

Administrative Law Judge Tammy L. Eigenheer

Date of Decision

February 26, 2018

Core Dispute

The petitioner alleged the HOA violated CC&R § 6.2(A) by approving a neighbor’s approximately 5’ x 6’ block wall extension without the petitioner’s consent.

Final Outcome

The petition was dismissed, with no action required of the respondent HOA.

II. Petitioner’s Claim and Arguments

John L. Shields, a homeowner at 20431 E. Bronco Drive within the Will Rogers Equestrian Ranch development, filed a petition against the HOA concerning a wall extension built by his next-door neighbor, Joe Johnson.

Core Allegation: After vacillating on the specifics of his complaint during the hearing, Mr. Shields firmly asserted that his single issue was that the HOA improperly approved Mr. Johnson’s proposal to build a block wall extension and move his gate forward.

Basis of Claim: The petitioner argued that under CC&R § 6.2, the HOA should have withheld its approval because Mr. Johnson had not demonstrated that he had first obtained Mr. Shields’ approval for the wall extension between their properties.

Evidence and Testimony: Mr. Shields denied ever having approved the wall. He submitted a photograph he had taken from his front porch and testified that the block wall extension “was an eyesore.”

III. Respondent’s Position and Evidence

The Will Rogers Equestrian Ranch HOA, represented by board president Kristi Hancock, denied all complaint items and argued its actions were consistent with the governing CC&Rs.

Basis of Approval: The HOA contended that its approval was based solely on the criteria outlined in CC&R § 7.2. The board, acting as the Architectural Control Committee, reviewed Mr. Johnson’s proposal for its aesthetic qualities and consistency with other properties in the development.

Aesthetic Review: Ms. Hancock testified that the board inspected other wall extensions and gates and found Mr. Johnson’s proposal to be “aesthetically pleasing and consistent with the other properties.”

Neighbor Consent Issue: The HOA acknowledged its awareness of Mr. Shields’ objection to the wall after it was built. However, Ms. Hancock testified that the board’s understanding of whether Mr. Shields had approved the wall before construction was unclear. She stated that “at least four witnesses had stated that they heard Petitioner either actually approve of or fail to state an objection to the block wall extension while, in Petitioner’s presence, Mr. Johnson discussed having the block wall extension built.”

Separation of Duties: The HOA’s position was that its duty under § 7.2 was distinct from the homeowner’s duty under § 6.2. The HOA was not responsible for obtaining or verifying neighbor approval.

IV. Chronology of Key Events

1. October 13, 2016 (approx.): Mr. Johnson has the block wall extension built without first obtaining approval from the HOA’s board or committee.

2. October 16, 2016 (approx.): Mr. Shields expresses his disapproval of the newly built wall to Mr. and Mrs. Johnson.

3. November 2, 2016 (approx.): Mr. Johnson retroactively submits his proposal for the wall extension and a plan to move his gate forward to the Architectural Control Committee for approval.

4. November 2016: The HOA’s newly elected board meets as the Committee and verbally approves Mr. Johnson’s wall but advises him that “he will need to seek neighboring property owner’s approval.”

5. January 2017: The board formally approves Mr. Johnson’s proposal for the wall extension and gate move.

6. May 3, 2017 (approx.): Mr. Shields files a single-issue petition with the Arizona Department of Real Estate.

7. September 27, 2017: An initial hearing is held, and Administrative Law Judge Diane Mihalsky dismisses the petition.

8. December 5, 2017: The Real Estate Commissioner grants Mr. Shields’ request for a rehearing based on his claims of legal errors and judicial misconduct.

9. February 5, 2018: A rehearing is held before Administrative Law Judge Tammy L. Eigenheer.

V. Analysis of Covenants, Conditions, and Restrictions (CC&Rs)

The judge’s decision hinged on the distinct and separate functions of two key CC&R sections.

This section governs alterations to shared fences and walls.

Such Party Walls and Fences shall not be altered, or changed in design, color, material or construction from the original installation made by the Developer without [the] approval of the adjoining Owner(s), if any, and the [Architectural Control] Committee.

Interpretation: The ALJ interpreted this section as creating two separate approval requirements for the homeowner making the alteration: one from the adjoining owner and one from the Committee. It does not obligate the Committee to enforce the adjoining owner’s approval.

This section defines the scope and limits of the Architectural Control Committee’s power.

No . . . fences . . . shall be commenced [or] erected . . . until the plans and specifications showing the same shall have been submitted to and approved by the Committee. Approval shall not be unreasonably withheld. However, the Committee shall have the right to refuse to approve any Alteration which is not suitable or desirable in their opinion for aesthetic or other reasons…

Interpretation: The ALJ found that this section limits the Committee’s review to specific criteria, including aesthetics, harmony with surroundings, and effect on neighboring property. It explicitly states that approval “shall not be unreasonably withheld” and does not require the Committee to verify compliance with other CC&Rs or city ordinances.

VI. Judge’s Conclusions of Law and Rationale for Dismissal

The ALJ’s decision to dismiss the petition was based on a clear legal interpretation of the CC&Rs and the petitioner’s failure to meet the burden of proof.

Distinct and Separate Obligations: The core of the ruling is that the CC&Rs create parallel but separate responsibilities.

1. Homeowner’s Responsibility: The duty to obtain an adjoining neighbor’s approval for a shared wall alteration under § 6.2(A) rests solely with the homeowner performing the work (Mr. Johnson).

2. HOA’s Responsibility: The HOA’s duty under § 7.2 is limited to reviewing the project on its aesthetic merits and consistency within the community.

Key Legal Finding: The decision explicitly states the separation of these duties:

Scope of HOA Review: The ALJ affirmed that the HOA’s scope of review was properly limited.

Failure to Meet Burden of Proof: Because the HOA acted within the authority and limitations defined by CC&R § 7.2, the petitioner failed to prove by a preponderance of the evidence that the HOA had violated its governing documents.

Other Responsibilities: The decision also noted that the responsibility for ensuring compliance with City of Queen Creek ordinances (related to the gate move) ultimately rested with Mr. Johnson, not the HOA.

VII. Final Order

Based on the findings of fact and conclusions of law, the Administrative Law Judge ordered that the petition be dismissed.

• No action is required of the Respondent, Will Rogers Equestrian Ranch HOA.

• The decision, issued as a result of a rehearing, is binding on the parties.

• Any appeal must be filed with the superior court within thirty-five days from the date the order was served.