Case Summary
| Case ID | 11F-H1112006-BFS, 11F-H1112010-BFS, 12F-H121001-BFS |
|---|---|
| Agency | Department of Fire, Building and Life Safety |
| Tribunal | OAH |
| Decision Date | 2012-04-30 |
| Administrative Law Judge | M. Douglas |
| Outcome | partial |
| Filing Fees Refunded | $1,650.00 |
| Civil Penalties | $600.00 |
Parties & Counsel
| Petitioner | Allen R. Tobin | Counsel | — |
|---|---|---|---|
| Respondent | Sunland Village Community Association | Counsel | Jason E. Smith, Esq.; Lindsey O’Conner, Esq. |
Alleged Violations
Article V, Section 7
Article XII, Section 2
Article VI (D)(7)
Outcome Summary
The homeowner prevailed on claims regarding the lack of quorum for a Board meeting and unauthorized legal expenditures. The HOA prevailed on the claim that the homeowner violated notice requirements for bylaw amendments.
Why this result: The homeowner lost one issue because he failed to provide the required advance written notice for bylaw amendments presented at the annual meeting.
Key Issues & Findings
Lack of Quorum at Board Meeting
Petitioner alleged a minority of the Board met without a quorum to invalidate actions taken at the annual meeting. The ALJ found that three members did not constitute a quorum.
Orders: Sunland ordered to comply with Article V, Section 7 of Bylaws; pay $550 filing fee to Tobin; pay $200 civil penalty.
Filing fee: $550.00, Fee refunded: Yes, Civil penalty: $200.00
Disposition: petitioner_win
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Failure to Provide Notice of Bylaw Amendments
Sunland (as Petitioner in consolidated Docket 11F-H1112010-BFS) alleged Tobin violated bylaws by proposing amendments at the annual meeting without required notice. ALJ found Tobin violated the notice requirement.
Orders: Tobin ordered to pay Sunland's $550 filing fee and a $200 civil penalty.
Filing fee: $550.00, Fee refunded: No, Civil penalty: $200.00
Disposition: petitioner_loss
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- 10
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Unauthorized Legal Expenditures
Petitioner alleged Association funds were used for legal fees without Board approval. ALJ found manager and three directors met with attorney without Board direction or reporting costs to the full Board.
Orders: Sunland ordered to comply with Policy Manual Article VI (D)(7); pay $550 filing fee to Tobin; pay $200 civil penalty.
Filing fee: $550.00, Fee refunded: Yes, Civil penalty: $200.00
Disposition: petitioner_win
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Decision Documents
11F-H1112006-BFS Decision – 292297.pdf
11F-H1112006-BFS Decision – 295402.pdf
**Case Summary: Tobin v. Sunland Village Community Association**
**Docket Nos:** 11F-H1112006-BFS, 11F-H1112010-BFS, 12F-H121001-BFS
**Forum:** Arizona Office of Administrative Hearings / Dept. of Fire, Building and Life Safety
**Date of Final Certification:** June 15, 2012
**Overview**
This proceeding consolidated three administrative disputes between homeowner Allen R. Tobin and the Sunland Village Community Association regarding governance violations, specifically concerning Bylaw amendments, Board quorum requirements, and unauthorized legal expenditures.
**Proceedings and Legal Arguments**
**1. Improper Board Meeting (Docket No. 11F-H1112006-BFS)**
* **Petitioner:** Allen R. Tobin.
* **Issue:** Tobin alleged that a minority of the Board of Directors met on February 11, 2011, to conduct business without a quorum. The meeting was held to address complaints regarding the annual meeting, and the attendees declared actions taken at that annual meeting null and void.
* **Key Legal Point:** Article V, Section 7 of the Bylaws requires a majority of directors (four of the six serving members) to constitute a quorum to take lawful action. Only three directors were present.
* **Decision:** The Administrative Law Judge (ALJ) found that the Association violated the Bylaws by conducting business and declaring amendments void without a quorum.
* **Outcome:** **Tobin prevailed.** Sunland was ordered to comply with quorum bylaws, reimburse Tobin’s $550 filing fee, and pay a $200 civil penalty.
**2. Improper Bylaw Amendments (Docket No. 11F-H1112010-BFS)**
* **Petitioner:** Sunland Village Community Association.
* **Issue:** Sunland alleged that Tobin violated the Bylaws during the January 12, 2011, annual meeting by making motions to amend the Bylaws from the floor without prior notice.
* **Key Legal Point:** Article XII, Section 2 of the Bylaws requires that notice of proposed amendments be given to members in the same manner as notice of the annual meeting (at least 10 days in advance). Tobin admitted he provided no written notice.
* **Decision:** The ALJ rejected Tobin's argument that the floor vote waived the notice requirement. The ALJ ruled that Tobin violated Article XII, Section 2 by presenting motions without required notice.
* **Outcome:** **Sunland prevailed.** Tobin was ordered to reimburse Sunland’s $550 filing fee and pay a $200 civil penalty.
**3. Unauthorized Legal Expenditures (Docket No. 12F-H121001-BFS)**
* **Petitioner:** Allen R. Tobin.
* **Issue:** Tobin alleged that the Association manager and three Board members incurred legal fees without Board direction or knowledge.
* **Key Legal Point:** Article VI (D)(7) of the Policy Manual requires that all contact with the law firm be at the Board's direction and that detailed billings be provided to all Board members. The manager and a minority of directors met with counsel without informing the full Board.
* **Decision:** The ALJ found Sunland violated the Policy Manual because the legal expenses were incurred without the direction or consent of a quorum of the Board.
* **Outcome:** **Tobin prevailed.** Sunland was ordered to comply with the Policy Manual, reimburse Tobin’s $550 filing fee, and pay a $200 civil penalty.
**Final Decision**
The ALJ’s decisions were certified as final on June 15, 2012, after the Department of Fire, Building and Life Safety took no action to reject or modify them within the statutory period.
Case Participants
Petitioner Side
- Allen R. Tobin (petitioner)
Sunland Village Community Association
Homeowner and Board Member; appeared on his own behalf - Linda Wagner (witness)
Sunland Village Community Association
Board member; testified she was not informed of legal meetings - Verworst (board member)
Sunland Village Community Association
Board member not present at Feb 11 meeting
Respondent Side
- Jason E. Smith (HOA attorney)
Carpenter, Hazlewood, Delgado & Wood, PLC
Attorney for Sunland - Lindsey O’Conner (HOA attorney)
Carpenter, Hazlewood, Delgado & Wood, PLC
Attorney for Sunland - Gordon Clark (property manager)
Sunland Village Community Association
Full time employee-manager; witness - Richard Gaffney (board member)
Sunland Village Community Association
Board Member present at Feb 11 meeting - Kathrine J. Lovitt (board member)
Sunland Village Community Association
Vice President; referred to as Kitty Lovitt - Jack Cummins (board member)
Sunland Village Community Association
Board Member present at Feb 11 meeting - Erwin Paulson (homeowner)
Sunland Village Community Association
Member who filed written objection to Tobin's motions - Scott Carpenter (HOA attorney)
Carpenter, Hazlewood, Delgado & Wood, PLC
Attorney paid from Association funds - Penny Gaffney (party (civil suit))
Named in civil action filed by Tobin - Marriane Clark (party (civil suit))
Named in civil action filed by Tobin - Robert Lovitt (party (civil suit))
Named in civil action filed by Tobin - Karin Cummins (party (civil suit))
Named in civil action filed by Tobin
Neutral Parties
- M. Douglas (ALJ)
Office of Administrative Hearings
Administrative Law Judge - Gene Palma (agency director)
Department of Fire, Building and Life Safety
Director - Cliff J. Vanell (agency director)
Office of Administrative Hearings
Director who certified the decision - Beth Soliere (agency staff)
Department of Fire, Building and Life Safety
Recipient of transmitted decision