Lawrence Stewart v. Canyon Gate Condominium Association, Inc.

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

Case Summary

Case ID 18F-H1818052-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2019-01-17
Administrative Law Judge Thomas Shedden
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Lawrence M. Stewart Counsel
Respondent Canyon Gate Condominium Association, Inc. Counsel Nicolas C. S. Nogami, Esq.

Alleged Violations

Bylaws section 5.4

Outcome Summary

The Administrative Law Judge dismissed the petition filed by homeowner Lawrence M. Stewart against Canyon Gate Condominium Association, Inc., finding that the Petitioner failed to prove the Association violated its Bylaws concerning good faith in denying his request for a variance.

Why this result: The Petitioner failed to meet the burden of proof, as Bylaws Section 5.4 was determined to be a shield protecting the Board from liability rather than a provision imposing a duty of good faith that could be violated by denying a variance.

Key Issues & Findings

Alleged failure of the HOA Board to act in good faith when denying a variance request

Petitioner alleged the Board failed to act in good faith when denying his request for a variance to changes he made, and asserted bias and unfair treatment. The ALJ concluded that Section 5.4 acts as a shield from liability for Board members, not a duty imposed upon them, and Petitioner failed to meet the burden of proof.

Orders: Petitioner Lawrence M. Stewart's petition is dismissed. Respondent is deemed to be the prevailing party in this matter.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
  • ARIZ. ADMIN. CODE § R2-19-119
  • McNally v. Sun Lakes Homeowners Ass’n #1, Inc., 241 Ariz. 1, 382 P.3d 1216 (2016 App.)
  • Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)
  • ARIZ. REV. STAT. section 32-2199.02(B)

Analytics Highlights

Topics: HOA governance, bylaw violation, good faith, variance denial, board liability
Additional Citations:

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

Video Overview

Audio Overview

Decision Documents

18F-H1818052-REL-RHG Decision – 683622.pdf

Uploaded 2025-10-09T03:33:04 (95.5 KB)

18F-H1818052-REL-RHG Decision – 694095.pdf

Uploaded 2025-10-09T03:33:04 (90.8 KB)

18F-H1818052-REL-RHG Decision – ../18F-H1818052-REL/660026.pdf

Uploaded 2026-01-20T13:47:49 (91.5 KB)

18F-H1818052-REL-RHG Decision – ../18F-H1818052-REL/720468.pdf

Uploaded 2026-01-20T13:47:51 (103.5 KB)





Briefing Doc – 18F-H1818052-REL-RHG


Briefing Document: Stewart v. Canyon Gate Condominium Association, Inc.

Executive Summary

This document synthesizes the findings and conclusions from an administrative legal case involving Petitioner Lawrence M. Stewart and Respondent Canyon Gate Condominium Association, Inc. The core of the dispute revolves around Mr. Stewart’s unauthorized modifications to a common area, for which the Association’s Board of Directors denied a retroactive variance. Mr. Stewart alleged the Board violated its bylaws by acting in bad faith, that a specific Board member was biased against him, and that he was subjected to unfair treatment compared to other homeowners.

The Administrative Law Judge, in both an initial hearing and a subsequent rehearing, consistently ruled against Mr. Stewart. The judge determined that the specific bylaw cited (Section 5.4) was an indemnification clause that shields the Board from liability and does not impose a duty of action. Crucially, Mr. Stewart failed to meet the legal burden of proving his claims by a “preponderance of the evidence.” The Board’s rationale for the denial—to avoid setting a precedent, or “opening a Pandora’s Box”—was deemed a reasonable position for a condominium association. Evidence presented to support claims of bias and unequal treatment was found to be insufficient or not probative. Ultimately, Mr. Stewart’s petition was dismissed in its entirety.

Case Overview

This matter, designated as No. 18F-H1818052-REL, was adjudicated by the Office of Administrative Hearings under the authority of the Arizona Department of Real Estate. The case centered on a petition filed by Mr. Stewart on May 21, 2018, alleging a violation of the Association’s Bylaws by the Board of Directors.

Parties Involved

Name / Entity

Representation

Petitioner

Lawrence M. Stewart

On his own behalf

Respondent

Canyon Gate Condominium Association, Inc.

Mark K. Sahl, Esq. & Nichols C. S. Nogami, Esq.

Administrative Law Judge Thomas Shedden

Case Chronology

November 15, 2017: The Association’s counsel informs Mr. Stewart in a letter that he is in violation of section 5.1 of the CC&Rs for making unapproved changes to a common/limited common area.

Post-November 15, 2017: Mr. Stewart, then a member of the Board, requests a variance for the changes.

December 27, 2017: The Association’s attorney sends a letter stating an understanding that Mr. Stewart had recused himself and that the other two Board members (Sandra Fernandez and David Larson) had required the area to be restored.

January 4, 2018: Mr. Stewart writes to the other Board members, refuting that he had agreed to recuse himself and requesting a formal meeting to consider his variance request.

February 18, 2018: At a Board meeting, Mr. Stewart resigns from the Board. The remaining two members vote to deny his variance request and require him to restore the area to its original condition.

May 21, 2018: Mr. Stewart files his petition with the Arizona Department of Real Estate.

September 6, 2018: The initial administrative hearing is conducted.

September 14, 2018: The Administrative Law Judge (ALJ) issues a decision dismissing Mr. Stewart’s petition.

January 2, 2019: A rehearing is conducted.

January 17, 2019: The ALJ issues a final decision following the rehearing, again dismissing the petition.

Petitioner’s Central Allegations

Mr. Stewart’s case rested on four primary claims against the Association’s Board.

1. Violation of Bylaws Section 5.4

The formal petition alleged a violation of Association Bylaws Article V, Section 5.4 (Liability), which states in part:

“So long as he/she has acted in good faith on the basis of information actually possessed, neither the Board nor any member of the Board nor any officer of the ASSOCIATION shall be liable to the ASSOCIATION, any OWNER, or to any other party for any damage, loss, or prejudice suffered or claimed on account of: (i) the approval or disapproval of any plans, drawings, or specifications, whether or not defective…or (v) any act or failure to act by the ASSOCIATION, or Board.”

Mr. Stewart cited this section because it was the only part of the governing documents he could find that included a “good faith” requirement.

2. Lack of Good Faith by the Board

Mr. Stewart asserted that the Board did not act in good faith when it denied his variance request. He based this claim on several points:

• He resigned from the Board during the February 18, 2018 meeting because he “got the sense ‘right away’ that the other Board members’ minds were made up and that they would not approve his request.”

• He presented unrebutted testimony that the Board members were unwilling to physically look at the changes he had made and only gave a “cursory look” at photographs he provided.

• The Board’s decision appeared to have been made prior to the meeting, as evidenced by the attorney’s December 27, 2017 letter which erroneously stated he had recused himself.

3. Bias of Board Member David Larson

A significant portion of Mr. Stewart’s argument was that Board member David Larson was personally biased against him. The evidence presented to support this included:

Initial Hearing Evidence:

◦ A biography of Mr. Larson prepared by the property manager. When questioned, Mr. Stewart could not identify specific information showing bias but stated the “entire document coupled with the other statements shows a bias.”

◦ Notes from a November 28, 2017 Board meeting where Mr. Larson informed members that enforcement actions (towing, violation notices) would begin immediately and that he was “too busy to talk to people about Board business in driveways.”

Rehearing Evidence:

◦ A letter dated October 3, 2018, from Mr. Larson to Association members urging them not to vote for Mr. Stewart in an upcoming election.

4. Unfair and Unequal Treatment

Mr. Stewart claimed he was treated unfairly because other units in the condominium were also not in conformity with the CC&Rs.

• He presented photos of units he believed were out of compliance.

• He testified that he had verified with the Association that none of these units had received a variance in the last two years.

• However, he acknowledged he did not know if variances had been granted more than two years prior or if the changes had received pre-approval, which would not require a variance.

Respondent’s Position and Legal Arguments

The Canyon Gate Condominium Association, represented by counsel, did not present witnesses but argued on legal grounds.

Inapplicability of Bylaws Section 5.4: The Association’s core argument was that Section 5.4 was not applicable to Mr. Stewart’s complaint. They contended the section is an indemnification clause designed to act as a “shield” to protect Board members from liability when they act in good faith, not a “sword” that imposes an affirmative duty on them that can be violated.

Reasonableness of Board Decision: The Association maintained that the Board’s decision was reasonable. According to Mr. Stewart’s own testimony, the Board’s basis for denial was the fear that granting his variance would “open a Pandora’s Box where other unit owners would request variances.”

Administrative Law Judge’s Rulings and Conclusions

The ALJ’s decisions in both the initial hearing and the rehearing were consistent, ultimately finding in favor of the Respondent.

Legal Framework

Burden of Proof: The ALJ established that Mr. Stewart, as the petitioner, bore the burden of proof. The standard of proof was a “preponderance of the evidence,” defined as evidence with “the most convincing force” that is sufficient “to incline a fair and impartial mind to one side of the issue rather than the other.”

Board’s Duty: The judge noted that while the Bylaws are a contract, the Association, in exercising its authority, must “act reasonably.”

Analysis of Bylaws Section 5.4

• The judge agreed entirely with the Association’s interpretation, concluding that Section 5.4 “does not impose any duty on the Board members, but rather merely shields them from liability if they act in good faith.”

• In the initial hearing, the judge noted Mr. Stewart “appeared to acknowledge that section 5.4 acts as a ‘shield’ and not a ‘sword.'”

• By the rehearing, this was solidified, with the finding that “Mr. Stewart acknowledges that the Association has not violated Bylaws Section 5.4.”

Assessment of ‘Good Faith’ and Bias Claims

• The ALJ concluded that even if Section 5.4 were applicable, Mr. Stewart “has not shown by a preponderance of the evidence that the Board did not act in good faith, that it had a bias against him, or that it treated him unfairly.”

• The judge found the Board’s reasoning for the denial—the “Pandora’s Box” concern—was “not an unreasonable position for the Board of a condominium association.”

• Given this reasoning, the judge stated that “the specifics of the changes Mr. Stewart made would not be germane to the decision,” thereby neutralizing the claim that the Board failed to properly inspect the modifications.

Evaluation of Unfair Treatment Claim

• The evidence of other non-compliant units was deemed “not probative of the issue at hand.”

• The judge reasoned that there was “no evidence to show that they had requested that the Board grant variances,” meaning their situations were not comparable to Mr. Stewart’s, who had made unapproved changes and was subsequently denied a variance.

Final Disposition

Initial Decision (September 14, 2018): IT IS ORDERED that Petitioner Lawrence M. Stewart’s petition is dismissed. This order was subject to a request for rehearing within 30 days.

Rehearing Decision (January 17, 2019): IT IS ORDERED that Petitioner Lawrence M. Stewart’s petition is dismissed. This final order was noted as binding on the parties, with any further appeal requiring judicial review filed with the superior court within 35 days.






Study Guide – 18F-H1818052-REL-RHG


Study Guide: Stewart v. Canyon Gate Condominium Association, Inc.

This guide provides a review of the administrative case Lawrence M. Stewart, Petitioner, vs. Canyon Gate Condominium Association, Inc., Respondent (No. 18F-H1818052-REL), including the initial hearing and a subsequent rehearing.

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Short-Answer Quiz

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

1. What action by Petitioner Lawrence M. Stewart initiated the dispute with the Canyon Gate Condominium Association?

2. What specific provision of the Association Bylaws did Mr. Stewart allege was violated in his petition?

3. Why did Mr. Stewart resign from the Association’s Board during the February 18, 2018 meeting?

4. What was the Board’s stated reason for denying Mr. Stewart’s request for a variance?

5. Explain the legal interpretation of Bylaws Section 5.4 as a “shield” and not a “sword.”

6. List two pieces of evidence Mr. Stewart presented at the initial hearing to support his claim that Board member David Larson was biased against him.

7. What was the legal standard of proof in this case, and which party was required to meet it?

8. How did Mr. Stewart attempt to prove he was being treated unfairly in comparison to other unit owners, and why did the judge find this evidence unconvincing?

9. At the rehearing, what new evidence did Mr. Stewart present regarding Mr. Larson’s alleged bias?

10. What was the final outcome of both the initial administrative hearing and the subsequent rehearing?

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Answer Key

1. Mr. Stewart initiated the dispute by making changes to the common area and/or limited common area around his unit without first receiving permission from the Association. The Association informed him in a letter dated November 15, 2017, that this was a violation of section 5.1 of the CC&Rs.

2. Mr. Stewart alleged in his petition that the Association violated Bylaws Section 5.4. He later acknowledged this section was not technically violated but cited it because it was the only provision in the governing documents he could find that included a “good faith” requirement.

3. Mr. Stewart resigned from the Board because he “got the sense ‘right away’ that the other Board members’ minds were made up” and that they would not approve his request for a variance, regardless of the details.

4. The Board denied Mr. Stewart’s request on the basis that approving it would “open a Pandora’s Box” where other unit owners would then also request variances. The Administrative Law Judge found this was not an unreasonable position for a condominium association board to take.

5. The interpretation of Section 5.4 is that it acts as a “shield” to protect, or indemnify, Board members from liability for damages, loss, or prejudice, provided they have acted in good faith. It is not a “sword” that imposes an affirmative duty on the Board that Mr. Stewart could use to compel a certain action or claim a violation.

6. At the initial hearing, Mr. Stewart presented two of the following: (1) a biography of Mr. Larson; (2) notes from a November 28, 2017 meeting where Mr. Larson stated that enforcement actions would begin immediately; and (3) a letter from the Association’s attorney that erroneously stated Mr. Stewart had recused himself, suggesting the matter was decided without him.

7. The standard of proof was a “preponderance of the evidence.” The burden of proof rested entirely on the petitioner, Mr. Stewart, to show that the Association had acted improperly.

8. Mr. Stewart presented testimony and photos of other units that he believed were not in conformity with the CC&Rs. The judge found this evidence was not probative because Mr. Stewart provided no evidence that those owners had requested and been denied variances, and he acknowledged he did not know if they had received variances more than two years prior or had received preapproval.

9. At the rehearing, Mr. Stewart entered into evidence an October 3, 2018 letter from Mr. Larson to the Association’s members. In this letter, Mr. Larson urged the members not to vote for Mr. Stewart in an upcoming election.

10. In both the initial decision (September 14, 2018) and the decision following the rehearing (January 17, 2019), the Administrative Law Judge ordered that Mr. Stewart’s petition be dismissed. The Respondent, Canyon Gate Condominium Association, Inc., was deemed the prevailing party in the matter.

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Essay Questions

Instructions: The following questions are designed for a more in-depth analysis of the case. Formulate a comprehensive response for each prompt, citing specific facts and legal conclusions from the case documents.

1. Analyze the Administrative Law Judge’s reasoning for concluding that Bylaws Section 5.4 was not applicable to Mr. Stewart’s petition. How did Mr. Stewart’s own testimony during the legal proceedings support this conclusion?

2. Discuss the concept of “preponderance of the evidence” as defined in the case documents. Evaluate the evidence Mr. Stewart presented across both hearings and explain why the judge found it insufficient to meet this standard regarding his claims of bias, bad faith, and unfair treatment.

3. Examine the Canyon Gate Board’s justification for denying the variance request (the “Pandora’s Box” argument). Based on the legal principles cited in the decisions, why was this considered a reasonable position for a condominium association board to take, and why did it render the specifics of Mr. Stewart’s changes non-germane?

4. Trace the procedural timeline of this case from the Association’s initial notice of violation on November 15, 2017, to the final binding order issued on January 17, 2019. Identify the key events, arguments, and decisions at each stage of the administrative process.

5. Mr. Stewart argued that he was treated unfairly because other units were also out of compliance with the CC&Rs. Deconstruct this argument and explain why the judge dismissed this line of reasoning as not being probative to the issue at hand in both the initial hearing and the rehearing.

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The official (Thomas Shedden) who presides over hearings at the Office of Administrative Hearings and issues a decision on the matter.

Association

The Canyon Gate Condominium Association, Inc., the entity responsible for enforcing the Bylaws and CC&Rs. In this case, it is the Respondent.

The governing body of the Association, which at the time of the variance request included Lawrence M. Stewart, Sandra Fernandez, and David Larson.

Burden of Proof

The obligation to prove one’s assertion. In this case, the burden of proof was on the Petitioner, Mr. Stewart.

Bylaws

A contract between the Association and its members. The parties are required to comply with its terms, and the Association must act reasonably in exercising its authority under them.

Covenants, Conditions, and Restrictions. Mr. Stewart was found to be in violation of section 5.1 of the CC&Rs for making unapproved changes.

Common Area / Limited Common Area

The property around a condominium unit that is shared or has restricted use. Mr. Stewart made unauthorized changes to this area.

Good Faith

A standard of conduct mentioned in Bylaws Section 5.4. It protects Board members from liability so long as they act in good faith based on information they possess. Mr. Stewart claimed the Board failed to meet this standard.

Indemnification

The act of compensating for loss or damage. Bylaws Article V, which contains Section 5.4, pertains to indemnification.

Petitioner

The party who files a petition initiating a legal case. In this matter, the petitioner was Lawrence M. Stewart.

Preponderance of the Evidence

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

Rehearing

A second hearing granted in a legal matter. A rehearing was conducted on January 2, 2019, after which the judge issued a final, binding order.

Respondent

The party against whom a petition is filed. In this matter, the respondent was Canyon Gate Condominium Association, Inc.

Variance

An official exception or deviation from a rule. Mr. Stewart requested a variance to allow the unapproved changes he had made, which the Board denied.






Blog Post – 18F-H1818052-REL-RHG


A Homeowner Sued His HOA and Lost—The Surprising Reasons Why Might Save You Thousands

Introduction: The Perennial Battle Between Homeowner and HOA

For many homeowners, the relationship with their Homeowners’ Association (HOA) can feel like a constant source of friction. From landscaping rules to paint colors, the potential for disputes is endless. But what happens when a homeowner feels so strongly wronged that they take the ultimate step of suing their association? More importantly, what happens when they lose?

This is the story of a homeowner who was also a board member. After making unauthorized changes to his property, he was denied his request for a variance to approve the changes he had already made. Believing the Board had acted in bad faith, he sued the association. His case failed, not on a minor technicality, but due to fundamental misunderstandings of how HOA law and governing documents function.

This outcome highlights a common, and costly, misconception about HOA governance. We will explore the surprising legal realities revealed in the case of Lawrence M. Stewart vs. Canyon Gate Condominium Association, Inc., offering several crucial takeaways for any homeowner before they decide to challenge their HOA.

1. A “Good Faith” Clause Can Be a Shield, Not a Sword

Mr. Stewart based his entire case on the claim that the Board violated Section 5.4 of the bylaws by not acting in “good faith,” as this was the only section in the governing documents he could find that mentioned the phrase.

This is where the case pivots on a crucial legal distinction. The court found that this clause was not intended to impose a duty on the board that a homeowner could sue over (a “sword”). Instead, its function was to protect board members from liability if they acted in good faith (a “shield”). Legally, this is an indemnification clause. Think of it as a form of insurance, designed to protect volunteer board members from being personally sued for making reasonable decisions, not a weapon for homeowners to attack those decisions.

In his testimony, Mr. Stewart even acknowledged this “shield” versus “sword” distinction but proceeded with the argument anyway. The lesson for homeowners is unequivocal: you must understand the precise legal function of a clause within your governing documents, not just its keywords.

2. The “Pandora’s Box” Defense Is a Powerful Argument

The Board’s primary reason for denying Mr. Stewart’s variance request was its fear that approval “would open a Pandora’s Box where other unit owners would request variances.” While a homeowner might hear “Pandora’s Box” and think it’s a lazy excuse, the court viewed it as the board performing its fundamental duty.

The judge stated this reasoning “was not an unreasonable position for the Board of a condominium association.” This validation is incredibly impactful because it shifts the focus from the merits of one homeowner’s request to the Board’s overarching fiduciary duty to uphold the rules consistently for the entire community. It shows that an HOA’s duty to maintain consistent enforcement and avoid setting a messy precedent is a legally sound basis for a decision, making the specific details of one homeowner’s changes irrelevant.

3. Being on the Board Won’t Give You a Pass

In a surprising twist, Mr. Stewart was a member of the HOA Board at the very time he made the unauthorized changes and requested the variance. This created a clear conflict of interest and ultimately did not help his case.

The situation culminated in Mr. Stewart resigning from the Board during the meeting where his request was considered. He stated he resigned because he felt “the other Board members’ minds were made up” and they would not approve his request. This incident serves as a stark reminder: holding a position on the board does not grant special privileges or exceptions to the rules. In fact, it can complicate personal matters and highlight a direct conflict between a board member’s duties to the association and their personal interests.

4. “Whataboutism” Is Not a Legal Strategy

Like many homeowners in a dispute, Mr. Stewart argued that he was being treated unfairly because other units in the community were also out of compliance with the CC&Rs. This is a common defense, but its legal failure in this case is a masterclass in what courts actually require for proof.

Mr. Stewart’s effort was commendable but legally insufficient. He presented photos of other non-conforming units and even “verified with the Association that none of these units had received a variance in the last two years.” However, his evidence collapsed under cross-examination when he “acknowledged… he did not know if any of these units had received variances more than two years ago or whether preapproval for the changes had been granted.”

The judge dismissed his evidence entirely. This transforms the lesson from a simple “don’t point fingers” to a much more sophisticated legal principle: to prove selective enforcement, you must prove others in the identical procedural situation were treated differently, and incomplete evidence is no evidence at all.

5. The Burden of Proof Is Everything

Perhaps the most stunning fact from the case is that the Association “presented no witnesses” at either the initial hearing or the subsequent rehearing. They won the case without putting a single person on the stand to testify.

They could do this because the legal system placed the “burden of proof” squarely on Mr. Stewart. As the petitioner, it was his job to prove his claims of bad faith, bias, and unfair treatment by a “preponderance of the evidence.” The Association didn’t have to prove it acted in good faith; Mr. Stewart had to prove it acted in bad faith. He failed to meet this standard. In other words, he had to prove that his claims were more likely to be true than not—even if only by a 51% to 49% margin.

The court document formally defines this legal standard as:

The greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.

In a legal dispute with your HOA, the case is not about who is morally right or wrong. It’s about who can meet their required burden of proof with convincing, relevant evidence.

Conclusion: Know the Rules Before You Fight the Rulers

The case of Lawrence M. Stewart is a cautionary tale that every homeowner should internalize. His failed lawsuit, which likely became a five-figure mistake when factoring in legal fees for both sides, underscores that HOA governing documents are a binding contract. Challenging the Board requires more than a sense of unfairness. It demands a precise, evidence-backed legal argument that aligns with the specific terms of that contract and the applicable legal standards.

Before you declare war on your HOA, ask yourself: are you prepared to prove your case with irrefutable evidence, or are you just banking on a feeling of being wronged?


Case Participants

Petitioner Side

  • Lawrence M. Stewart (petitioner)
    Also served as a Board member for Respondent until resigning during the variance request consideration.

Respondent Side

  • Mark K. Sahl (attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
    Represented Respondent in the initial hearing.
  • Nicolas C. S. Nogami (attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
    Represented Respondent in both the initial hearing (listed as 'Nichols C. S. Nogami') and the rehearing.
  • Sandra Fernandez (board member)
    Canyon Gate Condominium Association, Inc.
    Voted to deny Petitioner's variance request.
  • David Larson (board member)
    Canyon Gate Condominium Association, Inc.
    Voted to deny Petitioner's variance request; Petitioner alleged he was biased.

Neutral Parties

  • Thomas Shedden (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (commissioner)
    Arizona Department of Real Estate
    Recipient of the decision copies.
  • F. Del Sol (administrative staff)
    Office of Administrative Hearings
    Signed the transmission of the decision copies.

Jeff Lion vs. Riggs Ranch Meadows Homeowners Association

Case Summary

Case ID 18F-H1817009-REL
Agency ADRE
Tribunal OAH
Decision Date 2018-01-10
Administrative Law Judge Thomas Shedden
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Jeff Lion Counsel
Respondent Riggs Ranch Meadows Homeowners Association Counsel Nathan Tennyson

Alleged Violations

Article 8 of the Respondent’s CC&Rs

Outcome Summary

The Petitioner's petition was dismissed because he failed to appear or provide an authorized representative at the scheduled hearing, resulting in the Respondent being deemed the prevailing party.

Why this result: Petitioner failed to appear at the hearing scheduled at his request and failed to provide an authorized representative (as appearances are considered the practice of law under Arizona Supreme Court Rule 31).

Key Issues & Findings

Violation of CC&Rs

Petitioner Jeff Lion alleged that the Respondent violated Article 8 of the CC&Rs.

Orders: Petitioner Jeff Lion’s petition is dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
  • ARIZ. ADMIN. CODE § R2-19-119
  • Arizona Supreme Court Rule 31
  • ARIZ. REV. STAT. section 32-2199.02(B)
  • ARIZ. REV. STAT. section 32-2199.04
  • ARIZ. REV. STAT. section 41-1092.09

Analytics Highlights

Topics: Dismissal, Failure to Appear, Unauthorized Representation, HOA, CC&R
Additional Citations:

  • ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
  • ARIZ. ADMIN. CODE § R2-19-119
  • Arizona Supreme Court Rule 31
  • ARIZ. REV. STAT. section 32-2199.02(B)
  • ARIZ. REV. STAT. section 32-2199.04
  • ARIZ. REV. STAT. section 41-1092.09

Video Overview

Audio Overview

Decision Documents

18F-H1817009-REL Decision – 611264.pdf

Uploaded 2026-01-23T17:21:53 (69.6 KB)





Briefing Doc – 18F-H1817009-REL


Briefing Document: Lion v. Riggs Ranch Meadows HOA (Case No. 18F-H1817009-REL)

Executive Summary

This document summarizes the Administrative Law Judge Decision in the case of Jeff Lion (Petitioner) versus Riggs Ranch Meadows Homeowners Association (Respondent). The Petitioner’s case, which alleged a violation of the Respondent’s CC&Rs, was dismissed due to the Petitioner’s failure to appear at the scheduled hearing on January 9, 2018.

The hearing had been rescheduled to this date at the Petitioner’s own request. On the day of the hearing, two witnesses for Mr. Lion appeared but were informed by the tribunal that they could not legally represent him as they were not licensed attorneys, a requirement under Arizona Supreme Court Rule 31. Because no authorized representative for the Petitioner was present, no evidence could be presented to support the claim. Consequently, Administrative Law Judge Thomas Shedden dismissed the petition and designated the Riggs Ranch Meadows Homeowners Association as the prevailing party.

Case Background and Procedural History

The matter originated from a petition filed by Jeff Lion against the Riggs Ranch Meadows Homeowners Association.

Initial Allegation: Mr. Lion alleged that the Respondent violated Article 8 of its Covenants, Conditions, and Restrictions (CC&Rs).

Notice of Hearing: On October 2, 2017, the Arizona Department of Real Estate issued a Notice of Hearing, initially scheduling the matter for November 29, 2017, at the Office of Administrative Hearings in Phoenix.

Continuance: Mr. Lion filed a Motion to Continue the hearing, which was rescheduled for 9:00 a.m. on January 9, 2018, without objection from the Respondent.

Analysis of the January 9, 2018 Hearing

The proceedings on the rescheduled hearing date were pivotal to the case’s outcome.

Petitioner’s Failure to Appear: Mr. Jeff Lion, the Petitioner, did not appear at the hearing at its scheduled time.

Attempted Representation by Non-Attorneys: Two witnesses named by Mr. Lion were present. They informed the tribunal that Mr. Lion would not be appearing and that they intended to represent him.

Tribunal’s Ruling on Representation: The tribunal advised the witnesses that they were legally prohibited from representing Mr. Lion. Citing Arizona Supreme Court Rule 31, the judge clarified that appearances at the Office of Administrative Hearings constitute the practice of law and require representation by an attorney licensed in Arizona. The witnesses confirmed they did not hold such licenses.

Consequences of Non-Appearance: As there was no authorized representative present for the Petitioner, no evidence was taken. The judge noted that the hearing had been continued to that specific date at Mr. Lion’s request and proceeded to vacate the matter based on his failure to appear.

Legal Findings and Conclusions of Law

The Administrative Law Judge’s decision was grounded in established legal principles and procedural rules.

Jurisdiction: The Arizona Department of Real Estate was confirmed to have authority over the matter pursuant to ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11.

Burden of Proof: The decision reiterated that the party asserting a claim—in this case, Mr. Lion—carries the burden of proof. The standard required was a “preponderance of the evidence,” which is defined as evidence with “the most convincing force” sufficient to “incline a fair and impartial mind to one side of the issue rather than the other.”

Core Rationale for Dismissal: The central conclusion of law was that Mr. Lion failed to meet his burden of proof. By not appearing at the hearing he had requested, and by not securing authorized legal representation, he “failed to present any evidence in support of his petition.”

Final Order and Implications

The decision, issued on January 10, 2018, formally concluded the administrative hearing process with a definitive outcome.

Dismissal of Petition: The Administrative Law Judge ordered that “Petitioner Jeff Lion’s petition is dismissed.”

Prevailing Party: The Respondent, Riggs Ranch Meadows Homeowners Association, was officially deemed the prevailing party in the matter.

Post-Decision Options: The order is binding on the parties unless a rehearing is granted. A request for rehearing must be filed with the Commissioner of the Department of Real Estate within 30 days of the service of the order, as stipulated by ARIZ. REV. STAT. § 32-2199.04 and § 41-1092.09.

Key Parties and Representatives

Name/Entity

Contact/Representation Information

Petitioner

Jeff Lion

PO Box 1350, Selma, CA 93662

Respondent

Riggs Ranch Meadows Homeowners Association

Represented by Nathan Tennyson, Esq.

Respondent’s Counsel

Nathan Tennyson, Esq.

BROWN/OLCOTT, PLLC, 373 S. Main Ave., Tucson, AZ 85701

Administrative Law Judge

Thomas Shedden

Office of Administrative Hearings

Overseeing Body

Arizona Department of Real Estate

Commissioner: Judy Lowe






Study Guide – 18F-H1817009-REL


Study Guide for Administrative Law Judge Decision: Lion v. Riggs Ranch Meadows HOA

This study guide provides a review of the Administrative Law Judge Decision in the case of Jeff Lion v. Riggs Ranch Meadows Homeowners Association, Case No. 18F-H1817009-REL. It includes a short-answer quiz, an answer key, suggested essay questions, and a glossary of key terms found within the document.

——————————————————————————–

Short-Answer Quiz

Instructions: Answer the following questions in two to three sentences, based entirely on the provided legal decision.

1. Who were the petitioner and respondent in this matter, and what was the petitioner’s central allegation?

2. Why was the administrative hearing held on January 9, 2018, instead of the originally scheduled date?

3. Describe the events that occurred at the scheduled hearing time on January 9, 2018.

4. What specific rule was cited by the tribunal to prevent the petitioner’s witnesses from representing him?

5. What is the standard of proof for this matter, and which party had the burden of proof?

6. According to the decision, what was the direct consequence of the petitioner’s failure to have an authorized representative present at the hearing?

7. How does the legal document define the term “preponderance of the evidence”?

8. What was the final order issued by the Administrative Law Judge?

9. Who was identified as the “prevailing party” and why?

10. What option was available to the parties if they disagreed with the judge’s order?

——————————————————————————–

Answer Key

1. The petitioner was Jeff Lion, and the respondent was the Riggs Ranch Meadows Homeowners Association. Mr. Lion alleged that the respondent had violated Article 8 of its CC&Rs.

2. The hearing was originally set for November 29, 2017. It was rescheduled to January 9, 2018, because the petitioner, Mr. Lion, filed a Motion to Continue, to which the respondent did not object.

3. On January 9, 2018, the petitioner, Jeff Lion, did not appear for the hearing. Two witnesses appeared on his behalf and stated their intention to represent him, but they were not permitted to do so.

4. The tribunal cited Arizona Supreme Court Rule 31, which governs the practice of law. Since the witnesses were not licensed attorneys in Arizona, they were not legally permitted to represent Mr. Lion at the hearing.

5. The standard of proof is a “preponderance of the evidence.” The party asserting the claim, in this case, the petitioner Jeff Lion, had the burden of proof.

6. Because no authorized representative was present for Mr. Lion, no evidence was taken in support of his petition. This failure to present evidence was a key factor in the case’s dismissal.

7. The document defines “preponderance of the evidence” by quoting Black’s Law Dictionary as: “The greater weight of the evidence…that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

8. The final order was that Petitioner Jeff Lion’s petition is dismissed. The decision was issued on January 10, 2018.

9. The Respondent, Riggs Ranch Meadows Homeowners Association, was deemed the prevailing party. This was because Mr. Lion failed to present any evidence in support of his petition, leading to its dismissal.

10. The parties could request a rehearing pursuant to ARIZ. REV. STAT. section 32-2199.04. The request had to be filed with the Commissioner of the Department of Real Estate within 30 days of the service of the order.

——————————————————————————–

Suggested Essay Questions

Instructions: The following questions are designed for longer, essay-style responses to explore the procedural and legal principles of the case more deeply.

1. Analyze the significance of Arizona Supreme Court Rule 31 in the outcome of this case. How does the principle that appearances at administrative hearings constitute the “practice of law” affect how individuals can pursue claims?

2. Discuss the interrelated concepts of “burden of proof” and “standard of proof” as they apply to this case. Explain why Jeff Lion’s failure to appear made it legally impossible for him to meet the standard of a “preponderance of the evidence.”

3. Evaluate the procedural fairness of the Administrative Law Judge’s decision to dismiss the petition. Consider the timeline of events, including the petitioner’s own request to reschedule the hearing, in your analysis.

4. Based on the “Conclusions of Law” section, construct an argument explaining the logical steps Administrative Law Judge Thomas Shedden took to arrive at the final order of dismissal.

5. Examine the roles of the Arizona Department of Real Estate and the Office of Administrative Hearings as outlined in the document. How do these two entities interact in resolving a dispute initiated by a homeowner against a Homeowners Association?

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An official (Thomas Shedden in this case) who presides over hearings at an administrative agency to resolve disputes.

ARIZ. ADMIN. CODE

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

ARIZ. REV. STAT.

The Arizona Revised Statutes, which are the laws passed by the Arizona state legislature. Title 32, Chapter 20, Article 11 is cited as giving the Department of Real Estate authority.

Burden of Proof

The legal obligation of a party in a dispute to provide sufficient evidence to support their claim. In this case, the petitioner (Mr. Lion) had the burden of proof.

Covenants, Conditions, and Restrictions. These are rules governing a planned community or homeowners association. Mr. Lion alleged a violation of Article 8 of the Respondent’s CC&Rs.

Motion to Continue

A formal request made by a party to an administrative tribunal or court to postpone a scheduled hearing to a later date.

Office of Administrative Hearings (OAH)

The state agency where the hearing took place, which conducts hearings for other state agencies.

Petitioner

The party who files a petition or brings a legal action against another party. In this case, Jeff Lion.

Practice of Law

The act of representing others in legal proceedings. The decision states that appearances at the OAH are considered the practice of law and are restricted to licensed attorneys under Arizona Supreme Court Rule 31.

Preponderance of the Evidence

The standard of proof in this case. It is met when the evidence presented is more convincing and has greater weight than the evidence offered in opposition, inclining a fair mind to one side of the issue.

Prevailing Party

The party who wins a legal case or dispute. The Riggs Ranch Meadows Homeowners Association was deemed the prevailing party.

Rehearing

A second hearing of a case to re-examine the issues and the decision. The parties had 30 days to file a request for a rehearing.

Respondent

The party against whom a petition is filed. In this case, the Riggs Ranch Meadows Homeowners Association.

Tribunal

A body established to settle certain types of dispute. In this context, it refers to the Administrative Law Judge presiding over the hearing.






Blog Post – 18F-H1817009-REL


How One Homeowner Lost His Case Against His HOA Before It Even Began

Introduction: The David vs. Goliath Story You Haven’t Heard

Disputes with a Homeowners Association (HOA) are a common source of frustration. It often feels like a David vs. Goliath battle, pitting an individual against a structured organization with rules and resources. When faced with what they believe is an unfair application of those rules, some homeowners decide to fight back.

This was the situation for Jeff Lion, who filed a petition against his HOA, Riggs Ranch Meadows, alleging a violation of Article 8 of its Covenants, Conditions, and Restrictions (CC&Rs). But this story didn’t end with a dramatic debate over property rights. Instead, it was over before it started, derailed by a simple but fatal procedural misstep. This case offers three critical lessons for anyone considering a formal dispute, revealing how understanding the basic rules of the game is far more important than just believing you have a good argument.

——————————————————————————–

1. The Most Important Step is Showing Up

The central, decisive event of the case was a stunning failure in participation: the petitioner, Jeff Lion, did not appear at the hearing on January 9, 2018. The ultimate procedural irony? This was the exact hearing date that he himself had requested.

The contrast on that day could not have been starker. While Mr. Lion was a no-show for the fight he started, the HOA—the “Goliath” in this story—arrived fully prepared, represented by its attorney, Nathan Tennyson, Esq. The judge’s decision was swift and absolute. Because Mr. Lion did not appear, no evidence was taken, and his petition was dismissed entirely.

This outcome is rooted in a core legal principle known as the “burden of proof.” Simply put, the person making a claim is responsible for presenting evidence to support it. As the one who filed the petition, it was Mr. Lion’s job to prove his case. By failing to appear, he presented zero evidence and could not possibly meet this fundamental burden. The merits of his specific complaint about Article 8 were never even heard, all because of a self-inflicted failure to participate in the process he initiated on the day he chose.

——————————————————————————–

2. Not Just Anyone Can Speak for You in Court

In a surprising turn, while Mr. Lion was absent, his two named witnesses did appear at the hearing. They informed the judge that the petitioner would not be attending and that they intended to represent him in his absence.

The Administrative Law Judge immediately shut down their attempt. The reason highlights a crucial rule that trips up many non-lawyers: the witnesses were not licensed attorneys, and the law strictly forbids such representation. Appearances at these administrative hearings are legally considered “the practice of law.”

The court’s decision was based on an unambiguous rule, which it cited in its legal conclusions:

Appearances at the Office of Administrative Hearings are considered to be the practice of law. See Arizona Supreme Court Rule 31.

This is a counter-intuitive lesson for many. You might assume a trusted friend, family member, or knowledgeable witness could speak on your behalf. This case demonstrates that the legal system has rigid rules about who is authorized to provide representation. Good intentions and a willingness to help are not enough to grant someone the legal authority to act as your advocate in a formal hearing.

——————————————————————————–

3. “Winning” is About Tipping the Scale of Evidence

In administrative hearings, the standard for winning is called “a preponderance of the evidence.” This doesn’t mean proving your case beyond all doubt. Think of it like a scale. “Preponderance of the evidence” simply means you have to provide enough evidence to make the scale tip, even just slightly, in your favor.

The formal definition clarifies this concept of relative weight:

The greater weight of the evidence… sufficient to incline a fair and impartial mind to one side of the issue rather than the other.

Applying this standard to Mr. Lion’s case makes the outcome painfully clear. Since he failed to appear and no evidence was taken on his behalf, the “weight” of his evidence was zero. It was therefore impossible for him to tip the scale, no matter how strong his case might have been in theory. Because he presented nothing, Riggs Ranch Meadows was deemed the “prevailing party” by default. This demonstrates how the legal system is a structured process focused on evidence presented according to rules, not just on feelings or the theoretical rightness of a claim.

——————————————————————————–

Conclusion: The Rules of the Game Matter

The case of Jeff Lion provides a masterclass in legal procedure. The three key lessons are simple but absolute: you must show up to your own hearing, especially one you scheduled; only licensed attorneys can legally represent you; and you must present evidence to meet your burden of proof.

This case wasn’t ultimately about CC&Rs or neighborhood rules; it was about procedure. It serves as a stark reminder that before entering any formal dispute, the first question to ask isn’t “Am I right?” but “Do I understand the rules?”


Case Participants

Petitioner Side

  • Jeff Lion (petitioner)

Respondent Side

  • Nathan Tennyson (respondent attorney)
    BROWN/OLCOTT, PLLC

Neutral Parties

  • Thomas Shedden (ALJ)
  • Judy Lowe (ADRE Commissioner)
    Arizona Department of Real Estate
  • Felicia Del Sol (ADRE transmission signatory)
  • LDettorre (ADRE recipient)
    Arizona Department of Real Estate
  • AHansen (ADRE recipient)
    Arizona Department of Real Estate
  • djones (ADRE recipient)
    Arizona Department of Real Estate
  • DGardner (ADRE recipient)
    Arizona Department of Real Estate
  • ncano (ADRE recipient)
    Arizona Department of Real Estate

Jeff Lion vs. Riggs Ranch Meadows Homeowners Association

Case Summary

Case ID 18F-H1817009-REL
Agency ADRE
Tribunal OAH
Decision Date 2018-01-10
Administrative Law Judge Thomas Shedden
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Jeff Lion Counsel
Respondent Riggs Ranch Meadows Homeowners Association Counsel Nathan Tennyson

Alleged Violations

Article 8 of the Respondent’s CC&Rs

Outcome Summary

The Petitioner's petition was dismissed because he failed to appear or provide an authorized representative at the scheduled hearing, resulting in the Respondent being deemed the prevailing party.

Why this result: Petitioner failed to appear at the hearing scheduled at his request and failed to provide an authorized representative (as appearances are considered the practice of law under Arizona Supreme Court Rule 31).

Key Issues & Findings

Violation of CC&Rs

Petitioner Jeff Lion alleged that the Respondent violated Article 8 of the CC&Rs.

Orders: Petitioner Jeff Lion’s petition is dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
  • ARIZ. ADMIN. CODE § R2-19-119
  • Arizona Supreme Court Rule 31
  • ARIZ. REV. STAT. section 32-2199.02(B)
  • ARIZ. REV. STAT. section 32-2199.04
  • ARIZ. REV. STAT. section 41-1092.09

Analytics Highlights

Topics: Dismissal, Failure to Appear, Unauthorized Representation, HOA, CC&R
Additional Citations:

  • ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11
  • ARIZ. ADMIN. CODE § R2-19-119
  • Arizona Supreme Court Rule 31
  • ARIZ. REV. STAT. section 32-2199.02(B)
  • ARIZ. REV. STAT. section 32-2199.04
  • ARIZ. REV. STAT. section 41-1092.09

Video Overview

Audio Overview

Decision Documents

18F-H1817009-REL Decision – 611264.pdf

Uploaded 2025-10-09T03:32:07 (69.6 KB)





Briefing Doc – 18F-H1817009-REL


Briefing Document: Lion v. Riggs Ranch Meadows HOA (Case No. 18F-H1817009-REL)

Executive Summary

This document summarizes the Administrative Law Judge Decision in the case of Jeff Lion (Petitioner) versus Riggs Ranch Meadows Homeowners Association (Respondent). The Petitioner’s case, which alleged a violation of the Respondent’s CC&Rs, was dismissed due to the Petitioner’s failure to appear at the scheduled hearing on January 9, 2018.

The hearing had been rescheduled to this date at the Petitioner’s own request. On the day of the hearing, two witnesses for Mr. Lion appeared but were informed by the tribunal that they could not legally represent him as they were not licensed attorneys, a requirement under Arizona Supreme Court Rule 31. Because no authorized representative for the Petitioner was present, no evidence could be presented to support the claim. Consequently, Administrative Law Judge Thomas Shedden dismissed the petition and designated the Riggs Ranch Meadows Homeowners Association as the prevailing party.

Case Background and Procedural History

The matter originated from a petition filed by Jeff Lion against the Riggs Ranch Meadows Homeowners Association.

Initial Allegation: Mr. Lion alleged that the Respondent violated Article 8 of its Covenants, Conditions, and Restrictions (CC&Rs).

Notice of Hearing: On October 2, 2017, the Arizona Department of Real Estate issued a Notice of Hearing, initially scheduling the matter for November 29, 2017, at the Office of Administrative Hearings in Phoenix.

Continuance: Mr. Lion filed a Motion to Continue the hearing, which was rescheduled for 9:00 a.m. on January 9, 2018, without objection from the Respondent.

Analysis of the January 9, 2018 Hearing

The proceedings on the rescheduled hearing date were pivotal to the case’s outcome.

Petitioner’s Failure to Appear: Mr. Jeff Lion, the Petitioner, did not appear at the hearing at its scheduled time.

Attempted Representation by Non-Attorneys: Two witnesses named by Mr. Lion were present. They informed the tribunal that Mr. Lion would not be appearing and that they intended to represent him.

Tribunal’s Ruling on Representation: The tribunal advised the witnesses that they were legally prohibited from representing Mr. Lion. Citing Arizona Supreme Court Rule 31, the judge clarified that appearances at the Office of Administrative Hearings constitute the practice of law and require representation by an attorney licensed in Arizona. The witnesses confirmed they did not hold such licenses.

Consequences of Non-Appearance: As there was no authorized representative present for the Petitioner, no evidence was taken. The judge noted that the hearing had been continued to that specific date at Mr. Lion’s request and proceeded to vacate the matter based on his failure to appear.

Legal Findings and Conclusions of Law

The Administrative Law Judge’s decision was grounded in established legal principles and procedural rules.

Jurisdiction: The Arizona Department of Real Estate was confirmed to have authority over the matter pursuant to ARIZ. REV. STAT. Title 32, Ch. 20, Art. 11.

Burden of Proof: The decision reiterated that the party asserting a claim—in this case, Mr. Lion—carries the burden of proof. The standard required was a “preponderance of the evidence,” which is defined as evidence with “the most convincing force” sufficient to “incline a fair and impartial mind to one side of the issue rather than the other.”

Core Rationale for Dismissal: The central conclusion of law was that Mr. Lion failed to meet his burden of proof. By not appearing at the hearing he had requested, and by not securing authorized legal representation, he “failed to present any evidence in support of his petition.”

Final Order and Implications

The decision, issued on January 10, 2018, formally concluded the administrative hearing process with a definitive outcome.

Dismissal of Petition: The Administrative Law Judge ordered that “Petitioner Jeff Lion’s petition is dismissed.”

Prevailing Party: The Respondent, Riggs Ranch Meadows Homeowners Association, was officially deemed the prevailing party in the matter.

Post-Decision Options: The order is binding on the parties unless a rehearing is granted. A request for rehearing must be filed with the Commissioner of the Department of Real Estate within 30 days of the service of the order, as stipulated by ARIZ. REV. STAT. § 32-2199.04 and § 41-1092.09.

Key Parties and Representatives

Name/Entity

Contact/Representation Information

Petitioner

Jeff Lion

PO Box 1350, Selma, CA 93662

Respondent

Riggs Ranch Meadows Homeowners Association

Represented by Nathan Tennyson, Esq.

Respondent’s Counsel

Nathan Tennyson, Esq.

BROWN/OLCOTT, PLLC, 373 S. Main Ave., Tucson, AZ 85701

Administrative Law Judge

Thomas Shedden

Office of Administrative Hearings

Overseeing Body

Arizona Department of Real Estate

Commissioner: Judy Lowe






Study Guide – 18F-H1817009-REL


Study Guide for Administrative Law Judge Decision: Lion v. Riggs Ranch Meadows HOA

This study guide provides a review of the Administrative Law Judge Decision in the case of Jeff Lion v. Riggs Ranch Meadows Homeowners Association, Case No. 18F-H1817009-REL. It includes a short-answer quiz, an answer key, suggested essay questions, and a glossary of key terms found within the document.

——————————————————————————–

Short-Answer Quiz

Instructions: Answer the following questions in two to three sentences, based entirely on the provided legal decision.

1. Who were the petitioner and respondent in this matter, and what was the petitioner’s central allegation?

2. Why was the administrative hearing held on January 9, 2018, instead of the originally scheduled date?

3. Describe the events that occurred at the scheduled hearing time on January 9, 2018.

4. What specific rule was cited by the tribunal to prevent the petitioner’s witnesses from representing him?

5. What is the standard of proof for this matter, and which party had the burden of proof?

6. According to the decision, what was the direct consequence of the petitioner’s failure to have an authorized representative present at the hearing?

7. How does the legal document define the term “preponderance of the evidence”?

8. What was the final order issued by the Administrative Law Judge?

9. Who was identified as the “prevailing party” and why?

10. What option was available to the parties if they disagreed with the judge’s order?

——————————————————————————–

Answer Key

1. The petitioner was Jeff Lion, and the respondent was the Riggs Ranch Meadows Homeowners Association. Mr. Lion alleged that the respondent had violated Article 8 of its CC&Rs.

2. The hearing was originally set for November 29, 2017. It was rescheduled to January 9, 2018, because the petitioner, Mr. Lion, filed a Motion to Continue, to which the respondent did not object.

3. On January 9, 2018, the petitioner, Jeff Lion, did not appear for the hearing. Two witnesses appeared on his behalf and stated their intention to represent him, but they were not permitted to do so.

4. The tribunal cited Arizona Supreme Court Rule 31, which governs the practice of law. Since the witnesses were not licensed attorneys in Arizona, they were not legally permitted to represent Mr. Lion at the hearing.

5. The standard of proof is a “preponderance of the evidence.” The party asserting the claim, in this case, the petitioner Jeff Lion, had the burden of proof.

6. Because no authorized representative was present for Mr. Lion, no evidence was taken in support of his petition. This failure to present evidence was a key factor in the case’s dismissal.

7. The document defines “preponderance of the evidence” by quoting Black’s Law Dictionary as: “The greater weight of the evidence…that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

8. The final order was that Petitioner Jeff Lion’s petition is dismissed. The decision was issued on January 10, 2018.

9. The Respondent, Riggs Ranch Meadows Homeowners Association, was deemed the prevailing party. This was because Mr. Lion failed to present any evidence in support of his petition, leading to its dismissal.

10. The parties could request a rehearing pursuant to ARIZ. REV. STAT. section 32-2199.04. The request had to be filed with the Commissioner of the Department of Real Estate within 30 days of the service of the order.

——————————————————————————–

Suggested Essay Questions

Instructions: The following questions are designed for longer, essay-style responses to explore the procedural and legal principles of the case more deeply.

1. Analyze the significance of Arizona Supreme Court Rule 31 in the outcome of this case. How does the principle that appearances at administrative hearings constitute the “practice of law” affect how individuals can pursue claims?

2. Discuss the interrelated concepts of “burden of proof” and “standard of proof” as they apply to this case. Explain why Jeff Lion’s failure to appear made it legally impossible for him to meet the standard of a “preponderance of the evidence.”

3. Evaluate the procedural fairness of the Administrative Law Judge’s decision to dismiss the petition. Consider the timeline of events, including the petitioner’s own request to reschedule the hearing, in your analysis.

4. Based on the “Conclusions of Law” section, construct an argument explaining the logical steps Administrative Law Judge Thomas Shedden took to arrive at the final order of dismissal.

5. Examine the roles of the Arizona Department of Real Estate and the Office of Administrative Hearings as outlined in the document. How do these two entities interact in resolving a dispute initiated by a homeowner against a Homeowners Association?

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An official (Thomas Shedden in this case) who presides over hearings at an administrative agency to resolve disputes.

ARIZ. ADMIN. CODE

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

ARIZ. REV. STAT.

The Arizona Revised Statutes, which are the laws passed by the Arizona state legislature. Title 32, Chapter 20, Article 11 is cited as giving the Department of Real Estate authority.

Burden of Proof

The legal obligation of a party in a dispute to provide sufficient evidence to support their claim. In this case, the petitioner (Mr. Lion) had the burden of proof.

Covenants, Conditions, and Restrictions. These are rules governing a planned community or homeowners association. Mr. Lion alleged a violation of Article 8 of the Respondent’s CC&Rs.

Motion to Continue

A formal request made by a party to an administrative tribunal or court to postpone a scheduled hearing to a later date.

Office of Administrative Hearings (OAH)

The state agency where the hearing took place, which conducts hearings for other state agencies.

Petitioner

The party who files a petition or brings a legal action against another party. In this case, Jeff Lion.

Practice of Law

The act of representing others in legal proceedings. The decision states that appearances at the OAH are considered the practice of law and are restricted to licensed attorneys under Arizona Supreme Court Rule 31.

Preponderance of the Evidence

The standard of proof in this case. It is met when the evidence presented is more convincing and has greater weight than the evidence offered in opposition, inclining a fair mind to one side of the issue.

Prevailing Party

The party who wins a legal case or dispute. The Riggs Ranch Meadows Homeowners Association was deemed the prevailing party.

Rehearing

A second hearing of a case to re-examine the issues and the decision. The parties had 30 days to file a request for a rehearing.

Respondent

The party against whom a petition is filed. In this case, the Riggs Ranch Meadows Homeowners Association.

Tribunal

A body established to settle certain types of dispute. In this context, it refers to the Administrative Law Judge presiding over the hearing.






Blog Post – 18F-H1817009-REL


How One Homeowner Lost His Case Against His HOA Before It Even Began

Introduction: The David vs. Goliath Story You Haven’t Heard

Disputes with a Homeowners Association (HOA) are a common source of frustration. It often feels like a David vs. Goliath battle, pitting an individual against a structured organization with rules and resources. When faced with what they believe is an unfair application of those rules, some homeowners decide to fight back.

This was the situation for Jeff Lion, who filed a petition against his HOA, Riggs Ranch Meadows, alleging a violation of Article 8 of its Covenants, Conditions, and Restrictions (CC&Rs). But this story didn’t end with a dramatic debate over property rights. Instead, it was over before it started, derailed by a simple but fatal procedural misstep. This case offers three critical lessons for anyone considering a formal dispute, revealing how understanding the basic rules of the game is far more important than just believing you have a good argument.

——————————————————————————–

1. The Most Important Step is Showing Up

The central, decisive event of the case was a stunning failure in participation: the petitioner, Jeff Lion, did not appear at the hearing on January 9, 2018. The ultimate procedural irony? This was the exact hearing date that he himself had requested.

The contrast on that day could not have been starker. While Mr. Lion was a no-show for the fight he started, the HOA—the “Goliath” in this story—arrived fully prepared, represented by its attorney, Nathan Tennyson, Esq. The judge’s decision was swift and absolute. Because Mr. Lion did not appear, no evidence was taken, and his petition was dismissed entirely.

This outcome is rooted in a core legal principle known as the “burden of proof.” Simply put, the person making a claim is responsible for presenting evidence to support it. As the one who filed the petition, it was Mr. Lion’s job to prove his case. By failing to appear, he presented zero evidence and could not possibly meet this fundamental burden. The merits of his specific complaint about Article 8 were never even heard, all because of a self-inflicted failure to participate in the process he initiated on the day he chose.

——————————————————————————–

2. Not Just Anyone Can Speak for You in Court

In a surprising turn, while Mr. Lion was absent, his two named witnesses did appear at the hearing. They informed the judge that the petitioner would not be attending and that they intended to represent him in his absence.

The Administrative Law Judge immediately shut down their attempt. The reason highlights a crucial rule that trips up many non-lawyers: the witnesses were not licensed attorneys, and the law strictly forbids such representation. Appearances at these administrative hearings are legally considered “the practice of law.”

The court’s decision was based on an unambiguous rule, which it cited in its legal conclusions:

Appearances at the Office of Administrative Hearings are considered to be the practice of law. See Arizona Supreme Court Rule 31.

This is a counter-intuitive lesson for many. You might assume a trusted friend, family member, or knowledgeable witness could speak on your behalf. This case demonstrates that the legal system has rigid rules about who is authorized to provide representation. Good intentions and a willingness to help are not enough to grant someone the legal authority to act as your advocate in a formal hearing.

——————————————————————————–

3. “Winning” is About Tipping the Scale of Evidence

In administrative hearings, the standard for winning is called “a preponderance of the evidence.” This doesn’t mean proving your case beyond all doubt. Think of it like a scale. “Preponderance of the evidence” simply means you have to provide enough evidence to make the scale tip, even just slightly, in your favor.

The formal definition clarifies this concept of relative weight:

The greater weight of the evidence… sufficient to incline a fair and impartial mind to one side of the issue rather than the other.

Applying this standard to Mr. Lion’s case makes the outcome painfully clear. Since he failed to appear and no evidence was taken on his behalf, the “weight” of his evidence was zero. It was therefore impossible for him to tip the scale, no matter how strong his case might have been in theory. Because he presented nothing, Riggs Ranch Meadows was deemed the “prevailing party” by default. This demonstrates how the legal system is a structured process focused on evidence presented according to rules, not just on feelings or the theoretical rightness of a claim.

——————————————————————————–

Conclusion: The Rules of the Game Matter

The case of Jeff Lion provides a masterclass in legal procedure. The three key lessons are simple but absolute: you must show up to your own hearing, especially one you scheduled; only licensed attorneys can legally represent you; and you must present evidence to meet your burden of proof.

This case wasn’t ultimately about CC&Rs or neighborhood rules; it was about procedure. It serves as a stark reminder that before entering any formal dispute, the first question to ask isn’t “Am I right?” but “Do I understand the rules?”


Case Participants

Petitioner Side

  • Jeff Lion (petitioner)

Respondent Side

  • Nathan Tennyson (respondent attorney)
    BROWN/OLCOTT, PLLC

Neutral Parties

  • Thomas Shedden (ALJ)
  • Judy Lowe (ADRE Commissioner)
    Arizona Department of Real Estate
  • Felicia Del Sol (ADRE transmission signatory)
  • LDettorre (ADRE recipient)
    Arizona Department of Real Estate
  • AHansen (ADRE recipient)
    Arizona Department of Real Estate
  • djones (ADRE recipient)
    Arizona Department of Real Estate
  • DGardner (ADRE recipient)
    Arizona Department of Real Estate
  • ncano (ADRE recipient)
    Arizona Department of Real Estate