Joyce H Monsanto vs. Four Seasons at the Manor Homeowners Association

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

Case Summary

Case ID 19F-H1919053-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2019-11-18
Administrative Law Judge Diane Mihalsky
Outcome The ALJ denied the petition, concluding that the HOA's architectural guideline limiting homeowners to one flagpole per lot, while permitting the display of both the U.S. flag and a military flag (Marine Corps flag) on that single pole, constitutes a reasonable rule under A.R.S. § 33-1808(B). The ALJ also found the Board complied with the 45-day requirement for a written appeal decision under CC&R § 7.9 by memorializing the denial in the draft meeting minutes posted by December 4, 2018,,.
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Joyce H Monsanto Counsel
Respondent Four Seasons at the Manor Homeowners Association Counsel Mark K. Sahl, Esq.

Alleged Violations

A.R.S. § 33-1808; CC&R § 7.9

Outcome Summary

The ALJ denied the petition, concluding that the HOA's architectural guideline limiting homeowners to one flagpole per lot, while permitting the display of both the U.S. flag and a military flag (Marine Corps flag) on that single pole, constitutes a reasonable rule under A.R.S. § 33-1808(B). The ALJ also found the Board complied with the 45-day requirement for a written appeal decision under CC&R § 7.9 by memorializing the denial in the draft meeting minutes posted by December 4, 2018,,.

Why this result: The Petitioner failed to meet her burden of proof on both statutory and CC&R violations,.

Key Issues & Findings

HOA's denial of application to install two flagpoles for US and military flags, and alleged failure to follow CC&R appeal process.

Petitioner challenged the HOA's denial of her request to install two flagpoles, arguing the restriction violated A.R.S. § 33-1808 (flag statute) and that the Board failed to provide a written decision on her appeal within 45 days as required by CC&R § 7.9, which she argued meant the request was deemed approved. The ALJ found the single flagpole restriction reasonable under A.R.S. § 33-1808(B) since both flags could be flown from one pole, and determined the Board satisfied the CC&R § 7.9 requirement by posting the decision in the meeting minutes within 45 days,.

Orders: Petitioner's petition is denied, as she failed to establish that the Respondent's Board should not have denied her application under A.R.S. § 33-1808 or CC&R § 7. The Board can properly find Petitioner in violation of Architectural Guidelines and order her to remove one of her two flagpoles.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1808
  • CC&R § 7.9
  • A.R.S. § 33-1803
  • A.R.S. § 32-2199(B)

Analytics Highlights

Topics: Flag display, Architectural Guidelines, CC&Rs, Statutory compliance, Planned Communities Act, Rehearing
Additional Citations:

  • A.R.S. § 33-1808
  • CC&R § 7.9
  • A.R.S. § 33-1803
  • A.R.S. § 32-2199(B)
  • 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)
  • CC&R § 7

Video Overview

Audio Overview

Decision Documents

19F-H1919053-REL-RHG Decision – 749213.pdf

Uploaded 2026-01-23T17:29:16 (163.6 KB)

19F-H1919053-REL-RHG Decision – 753595.pdf

Uploaded 2026-01-23T17:29:19 (163.3 KB)

Briefing Document: Monsanto v. Four Seasons at the Manor HOA

Executive Summary

This document synthesizes the findings and legal reasoning from the Amended Administrative Law Judge Decision in the case of Joyce H. Monsanto versus the Four Seasons at the Manor Homeowners Association (HOA). The central conflict revolves around the HOA’s denial of Ms. Monsanto’s request to install two separate flagpoles on her home to display the United States flag and the United States Marine Corps flag. The petitioner alleged this denial violated Arizona state law and the HOA’s own governing documents.

The Administrative Law Judge (ALJ) ultimately denied the petitioner’s claim, ruling in favor of the HOA. The decision established two critical points: first, that the HOA’s rule limiting homeowners to a single flagpole is a “reasonable” regulation on the “placement and manner of display” explicitly permitted under Arizona statute A.R.S. § 33-1808(B), and does not constitute a prohibition of flag display. Second, the HOA was found to have complied with its own appeal process as outlined in its Covenants, Conditions, and Restrictions (CC&Rs). The ALJ concluded that an oral denial at a board meeting, later documented in publicly posted meeting minutes, satisfied the CC&R’s requirement to “render its written decision” within a 45-day timeframe. The ruling affirms an HOA’s authority to enforce uniform aesthetic standards, provided they are reasonable and applied according to the association’s governing documents.

Case Background and Procedural History

The case was brought before the Arizona Office of Administrative Hearings (OAH) following a petition filed by homeowner Joyce H. Monsanto (“Petitioner”) against her HOA, Four Seasons at the Manor Homeowners Association (“Respondent”).

Initial Petition: On March 6, 2019, the Petitioner filed a petition with the Arizona Department of Real Estate, alleging the HOA violated state law (A.R.S. § 33-1803) and its CC&Rs (§ 7.9) by refusing to approve her request for two flagpoles.

First Hearing: An evidentiary hearing was held on May 30, 2019, after which the ALJ found that the Petitioner had not proven any violation by the HOA.

Rehearing: The Commissioner of the Department of Real Estate granted the Petitioner’s request for a rehearing on August 22, 2019. This rehearing took place on October 21, 2019.

Amended Decision: On November 18, 2019, ALJ Diane Mihalsky issued an Amended Administrative Law Judge Decision, again denying the Petitioner’s petition and affirming the previous findings. The amendment was issued to correct a typographical error and clarify the parties’ appeal rights.

The Core Dispute: A Request for Two Flagpoles

The petitioner, whose husband and two sons have long careers in the U.S. Marines and Coast Guard, sought to display both the U.S. flag and the U.S. Marine Corps flag on her home.

The Application: On August 31, 2018, she submitted a Design Review Application to install two 6-foot-long flagpoles on the exterior wall of her house, flanking her front door.

The Rationale: The Petitioner stated her desire for two separate poles was for aesthetic reasons, believing the display would look better. She also expressed concern that a single, larger flagpole installed in her front yard would obstruct the view from her front window.

The Denial: On September 22, 2018, the HOA’s Architectural Committee issued a written Notice of Disapproval, citing the Architectural Guidelines which permit only one flagpole per lot.

The Appeal: On October 1, 2018, the Petitioner submitted a written appeal to the HOA Board, arguing the denial was unreasonable, that the guidelines were not uniformly enforced, and that the board could grant a waiver under CC&R § 7.6.

Governing Rules and Statutes

The case decision rested on the interpretation of Arizona state law and the HOA’s specific governing documents.

Arizona Revised Statute § 33-1808

This statute governs the right of homeowners to display certain flags.

Protection of Display: Subsection A states that an association “shall not prohibit the outdoor… display” of the American flag or a military flag, among others.

Right to Regulate: Subsection B grants associations the authority to “adopt reasonable rules and regulations regarding the placement and manner of display.” It explicitly allows rules that “regulate the location and size of flagpoles,” “limit the member to displaying no more than two flags at once,” and limit flagpole height, while not prohibiting their installation.

HOA Architectural Guidelines

The community’s rules regarding flagpoles evolved but consistently maintained a key restriction.

Original Guideline (May 24, 2016): “Poles must not exceed 12’ in height, and only one flagpole is permitted per Lot.”

Amended Guideline (November 8, 2018): The board increased the maximum pole height to 20′ and added rules for nighttime illumination and inclement weather, but explicitly “did not change the limit of one flagpole per lot.”

HOA CC&Rs (Covenants, Conditions, and Restrictions)

The procedural requirements for architectural review and appeals were central to the Petitioner’s claim.

Section 7.8 (Board Approval): Pertaining to initial applications, this section requires the Board to provide the owner with a “written response within sixty (60) days,” otherwise the request is deemed approved.

Section 7.9 (Appeal): Pertaining to appeals, this section requires the Board to consult with the Architectural Committee and “render its written decision” within 45 days. A failure by the Board to render a decision in this period “shall be deemed approval.” This section does not contain the same explicit language as § 7.8 requiring the response be provided to the owner.

Analysis of the Appeal Process and Conflicting Testimonies

A significant portion of the dispute centered on the events of the November 8, 2018, HOA Board meeting, where the Petitioner’s appeal was to be considered. The accounts of what transpired at this meeting were contradictory.

Petitioner’s Testimony (Joyce H. Monsanto)

Respondent’s Testimony (Anthony Nunziato, Board President)

Consultation

The board did not consult the Architectural Committee.

The board consulted with the Architectural Committee before the meeting.

Decision

The board did not consider or make any decision on her appeal.

The board considered the appeal and made a decision.

Notification

She was never told her appeal was denied at the meeting.

He was certain the board verbally informed the Petitioner that her appeal was denied at the meeting.

On December 4, 2018, draft minutes from the November 8 meeting were posted on the HOA’s website. The Petitioner acknowledged seeing them. These minutes included the following entry:

“[Petitioner’s] last request was for a waiver that would allow her to have two flagpoles on her property (one to fly the American flag and the other to fly the Marine flag). The Board rejected this request since our CC&Rs allow for the flying of both flags on a single flagpole.”

The Petitioner argued that these publicly posted draft minutes, which were not sent directly to her, did not constitute a valid written denial of her appeal under the CC&Rs.

Administrative Law Judge’s Decision and Rationale

The ALJ’s decision methodically rejected each of the Petitioner’s claims, relying on witness credibility, statutory interpretation, and contract construction principles.

Credibility Assessment

The ALJ made a clear determination on the conflicting testimonies regarding the November 8 meeting.

• Mr. Nunziato’s testimony that the board made a decision and informed the Petitioner was found to be “credible and supported by the minutes of the meeting.”

• The Petitioner’s testimony that the board made no decision on her appeal was deemed “incredible.”

Ruling on A.R.S. § 33-1808 (State Flag Law)

The ALJ concluded that the HOA’s one-flagpole rule did not violate state law.

• The rule was found to be a “reasonable rule or regulation under A.R.S. § 33-1808(B).”

• Because the Architectural Guidelines allow for flying two flags from a single flagpole up to 20′ long, the HOA was not prohibiting the display of flags, merely regulating the manner.

• The ALJ characterized the core issue as the “Petitioner’s petition is about her choice not to install a single flagpole for her own aesthetic reasons, not Respondent’s unreasonableness or lack of patriotism.”

Ruling on CC&R § 7.9 (Appeal Process)

The ALJ found that the HOA had followed the procedure required by its own CC&Rs.

Consultation: Based on Mr. Nunziato’s credible testimony, the board fulfilled its duty to consult with the Architectural Committee.

“Render a Decision”: The board “rendered a decision on her appeal at the November 8, 2018 board meeting” when it orally reached a decision.

“Written Decision”: The board created a “writing memorializing its decision” by documenting it in the meeting minutes. Because the Petitioner saw these minutes on December 4, 2018, this action occurred within the 45-day window following her October 1, 2018 appeal.

No Delivery Requirement: The ALJ applied the “negative implication cannon of contract construction.” By comparing CC&R § 7.9 (appeals) with § 7.8 (initial applications), the judge noted that § 7.9 lacks the explicit requirement to provide the written decision to the owner. Therefore, posting the minutes was sufficient, and the Petitioner’s request was not “deemed approved.”

Final Order

Based on these findings, the ALJ issued a final, binding order.

IT IS ORDERED that the Petitioners’ petition is denied because she has not established that the Respondent’s Board should not have denied her application to install two flagpoles on her property.

The decision concludes with a notice informing the parties that the order is binding and that any appeal must be filed with the superior court within 35 days from the date of service.

Study Guide: Monsanto v. Four Seasons at the Manor HOA

This study guide provides a detailed review of the legal case Joyce H. Monsanto v. Four Seasons at the Manor Homeowners Association, Case No. 19F-H1919053-REL-RHG, as detailed in the Amended Administrative Law Judge Decision dated November 18, 2019. The guide includes a short-answer quiz, a corresponding answer key, suggested essay questions, and a comprehensive glossary of terms to facilitate a thorough understanding of the case’s facts, arguments, and legal conclusions.

Short-Answer Quiz

Answer the following questions in 2-3 complete sentences, based entirely on the information provided in the case document.

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

2. What specific action did the Petitioner request from the Respondent that initiated this dispute?

3. On what grounds did the Respondent’s Architectural Committee initially deny the Petitioner’s request on September 22, 2018?

4. Identify the key Arizona statute cited in the case and explain its two main provisions regarding flag displays.

5. What was the Petitioner’s primary argument regarding the Respondent’s handling of her appeal under CC&R § 7.9?

6. According to the testimony of Board President Tony Nunziato, how did the Board address the Petitioner’s appeal at the November 8, 2018 meeting?

7. What documentary evidence did the Respondent use to support the claim that a decision on the appeal was made and written down within the required timeframe?

8. Why did the Administrative Law Judge (ALJ) find the Respondent’s one-flagpole rule to be legally permissible?

9. What is the legal standard of proof required for the Petitioner in this case, and did she meet it according to the ALJ?

10. What was the final order issued by the Administrative Law Judge in this case and its practical consequence for the Petitioner?

——————————————————————————–

Answer Key

1. The Petitioner is Joyce H. Monsanto, a homeowner. The Respondent is the Four Seasons at the Manor Homeowners Association (HOA). Ms. Monsanto is a member of the Respondent HOA because she owns a house within its development in Sun City, Arizona.

2. The Petitioner submitted a Design Review Application to install two 6-foot-long flagpoles on the exterior wall of her house. She intended to fly the United States flag from one pole and the United States Marine Corps flag from the other.

3. The Architectural Committee denied the request because the community’s Architectural Guidelines only permitted one flagpole per lot. The written Notice of Disapproval explicitly stated this rule as the reason for the denial.

4. The key statute is A.R.S. § 33-1808. Its first provision, § 33-1808(A), prohibits an HOA from banning the display of the American flag and various military flags. The second provision, § 33-1808(B), allows an HOA to adopt reasonable rules regulating the placement, size, and number of flagpoles, explicitly permitting a limit of one flagpole per property.

5. The Petitioner argued that the Board violated CC&R § 7.9 because it failed to provide her with a formal written decision denying her appeal within the 45-day period. She contended that because she never received a dedicated letter, the request should have been “deemed approved” as stipulated in the CC&R for failure to render a timely decision.

6. Tony Nunziato testified that the Board did consult with the Architectural Committee regarding the appeal before the meeting. He stated with certainty that at the November 8, 2018 meeting, the Board considered the appeal and verbally informed Ms. Monsanto that her request for a waiver was denied.

7. The Respondent presented the draft minutes from the November 8, 2018 Board meeting, which were posted on the HOA’s website on December 4, 2018. These minutes explicitly stated that the Board rejected the Petitioner’s request for a waiver to have two flagpoles, fulfilling the requirement to have a written record of the decision within 45 days of her October 1 appeal.

8. The ALJ found the rule permissible because A.R.S. § 33-1808(B) explicitly grants HOAs the authority to “adopt reasonable rules and regulations” which may “regulate the location and size of flagpoles” and “shall not prohibit the installation of a flagpole.” Since the HOA’s guidelines allowed for one flagpole up to 20 feet long, capable of flying two flags, the judge concluded the rule was reasonable under the statute.

9. The required standard of proof was a “preponderance of the evidence,” meaning the Petitioner had to convince the judge that her contention was more probably true than not. The ALJ concluded that the Petitioner did not meet this burden of proof to establish that the Respondent violated any statute or its own CC&Rs.

10. The final order denied the Petitioner’s petition. The practical consequence is that the HOA’s denial of her application for two flagpoles was upheld, and the Board could therefore properly find her in violation of the Architectural Guidelines and order her to remove one of her two flagpoles.

——————————————————————————–

Suggested Essay Questions

1. Analyze the conflict between A.R.S. § 33-1808(A), which protects a homeowner’s right to display military flags, and § 33-1808(B), which grants HOAs regulatory power. How did the Administrative Law Judge balance these two provisions to reach a conclusion in this case?

2. Discuss the concept of “burden of proof” as it applied to the Petitioner. Detail the specific claims made by Joyce Monsanto and explain why, according to the legal decision, she failed to establish them by a “preponderance of the evidence.”

3. Examine the procedural dispute surrounding CC&R § 7.9. Contrast the Petitioner’s interpretation of a “written decision” with the interpretation ultimately adopted by the Administrative Law Judge, referencing the role of the verbal notification and the meeting minutes.

4. Evaluate the role of testimony and credibility in this administrative hearing. Compare and contrast the testimony provided by Petitioner Joyce Monsanto and Respondent’s Board President Tony Nunziato regarding the events of the November 8, 2018 board meeting, and explain why the judge found Mr. Nunziato’s account more credible.

5. Based on the facts presented, construct an argument that the HOA’s actions, while legally permissible according to the judge, were inconsistent with the patriotic values of its community, which includes many retired military members. Conversely, construct an argument defending the Board’s decision as a necessary and fair application of rules essential for maintaining community standards.

——————————————————————————–

Glossary of Key Terms

Definition in Context

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings, makes findings of fact, and issues legal decisions. In this case, Diane Mihalsky served as the ALJ for the Office of Administrative Hearings.

A.R.S. § 33-1808

An Arizona Revised Statute that governs the display of flags in planned communities. It forbids HOAs from prohibiting certain flags (like the U.S. and military flags) but permits them to establish reasonable rules regarding the number, size, and location of flagpoles.

Architectural Committee

A committee established by the HOA’s CC&Rs responsible for reviewing and approving or disapproving homeowners’ applications for external modifications to their property, such as installing flagpoles.

Architectural Guidelines

The specific rules adopted by the HOA that set forth requirements for property modifications. In this case, the guidelines limited each lot to one flagpole, with a maximum height of 20 feet.

Burden of Proof

The legal obligation of a party in a dispute to provide sufficient evidence to prove their claim. The Petitioner, Joyce Monsanto, bore the burden of proof to show the HOA had violated the law or its own rules.

CC&Rs (Covenants, Conditions, and Restrictions)

The governing legal documents that create the rules for a planned community. The Petitioner alleged the Respondent violated CC&R § 7.9, which outlines the appeal process for disapproved architectural applications.

Declarant

The original developer of a planned community who establishes the initial CC&Rs. In this case, K. Hovnanian was the Declarant for Four Seasons at the Manor.

Homeowners’ Association (HOA)

The governing organization in a planned community responsible for enforcing the CC&Rs and managing common areas. The Respondent, Four Seasons at the Manor Homeowners Association, is an HOA.

Negative Implication

A principle of legal interpretation which holds that the explicit inclusion of one thing implies the intentional exclusion of another. The ALJ used this to argue that because CC&R § 7.9 (appeals) does not specify that a written decision must be sent to the owner, unlike CC&R § 7.8 (initial applications), that requirement should not be read into the appeal rule.

Office of Administrative Hearings (OAH)

An independent Arizona state agency that conducts evidentiary hearings for other state agencies, providing an impartial forum to resolve disputes.

Petitioner

The party who initiates a legal action by filing a petition. In this case, Joyce H. Monsanto is the Petitioner.

Preponderance of the Evidence

The evidentiary standard required in this civil case. It is defined as proof that convinces the trier of fact (the judge) that a contention is “more probably true than not.”

Respondent

The party against whom a petition is filed. In this case, the Four Seasons at the Manor Homeowners Association is the Respondent.

Restrictive Covenant

A legally enforceable rule within the CC&Rs that limits what a homeowner can do with their property. The rule limiting homes to one flagpole is an example of a restrictive covenant.

Waiver

The act of intentionally relinquishing a known right or claim. The Petitioner argued that the HOA board could, and should, have waived the one-flagpole rule for her under CC&R § 7.6.

HOA vs. Military Family: 4 Lessons from a Legal Battle Over a Flagpole

For Joyce Monsanto, a member of a dedicated military family, displaying her patriotism was a matter of pride. Her husband served 25 years in the Marines, and her two sons have spent decades in the Marines and the Coast Guard. Naturally, she wanted to fly both the flag of the United States and the flag of the U.S. Marine Corps at her Arizona home. But when she submitted her plan to her Homeowners Association (HOA), she was met with a firm “no.”

The conflict wasn’t about the flags themselves. The Four Seasons at the Manor HOA had no issue with her displaying both. The dispute centered on how she wanted to display them. It was a disagreement over her vision for a symmetrical, two-pole display versus the HOA’s “one flagpole per lot” rule. This architectural dispute escalated from a simple request into a formal administrative hearing.

Ms. Monsanto’s fight reveals several surprising truths about the power of HOA rules and the specific language written into state law. Her case ultimately failed on two fronts—a substantive challenge to the rule itself, and a procedural challenge to how the HOA handled her appeal. Here’s what every homeowner can learn from each.

1. Your Right to Fly the Flag Has Limits—And They’re Written into Law.

Many homeowners believe the right to fly the American flag is unconditional. However, the legal reality is more nuanced. While Arizona law (A.R.S. § 33-1808) prevents an HOA from outright prohibiting the display of U.S. or military flags, it explicitly allows the association to create “reasonable rules and regulations” for their placement and manner of display.

The statute is specific about what these rules can cover. An HOA can legally regulate the size and location of flagpoles and can limit a homeowner to displaying no more than two flags at once. In this case, the HOA’s architectural guidelines permitted two flags, but only on a single flagpole. The Administrative Law Judge found this “one flagpole per lot” rule was a “reasonable” regulation and therefore perfectly legal. To underscore that the HOA’s stance was not about a lack of patriotism, the judge noted testimony that the HOA president himself “placed 140 small flags on his property” for Memorial Day. The issue was about the uniform enforcement of an architectural rule, not the patriotic display itself.

2. Your Personal Taste Is No Match for the Community Rulebook.

During the hearing, Ms. Monsanto acknowledged that she could fly both of her flags from a single pole as the HOA rules allowed. Her reason for wanting two poles was a matter of personal preference. She testified that she “wanted to install two flagpoles for aesthetic reasons” and also felt that a single pole placed in the middle of her lot would block the view from her front window.

The judge was unmoved by this line of reasoning. In the final decision, the response was direct and unambiguous:

Petitioner’s petition is about her choice not to install a single flagpole for her own aesthetic reasons, not Respondent’s unreasonableness or lack of patriotism.

This is a foundational principle of community association law: homeowners trade a degree of personal autonomy for the perceived benefits of uniform standards and predictable property values. The judge’s decision simply reaffirms that bargain. In the world of planned communities, the established rulebook will almost always outweigh an individual’s personal taste.

3. In HOA Law, the Appeal Isn’t a Re-do—It’s a Different Process.

One of Ms. Monsanto’s key arguments was procedural. She believed her appeal should have been automatically approved because the HOA failed to provide a written decision within the 45-day deadline stipulated in its own rules (CC&R § 7.9). This is where the judge identified a subtle but crucial legal distinction buried in the HOA’s governing documents.

The HOA’s CC&Rs had two different sections for architectural requests:

CC&R § 7.8 (Initial Requests): This section explicitly required the Board to “inform the submitting party of the final decision” with a “written response.”

CC&R § 7.9 (Appeals): This section, however, only required the Board to “render its written decision” within 45 days.

That small difference in wording—”written response” versus “written decision”—was the linchpin of her procedural case. The judge ruled that for an appeal, the HOA was not required to send a personal letter or direct notice to Ms. Monsanto. It only had to create a written record of its decision within the timeframe.

4. A Post on an HOA Website Can Count as an Official “Written Decision.”

The final surprise came down to what constitutes a “written decision” and how the deadline was met. Ms. Monsanto was waiting for a formal letter informing her that her appeal had been denied. She never received one. Her appeal was filed on October 1, 2018, starting a 45-day clock.

The judge found the HOA satisfied its obligation in a two-step process:

1. The Decision: The Board verbally denied her appeal during its public meeting on November 8, 2018. This action, which occurred 38 days after her appeal, fulfilled the requirement to “render its decision” within the 45-day period.

2. The Writing: That decision was then recorded in the draft meeting minutes, which were posted on the Board’s website on December 4, 2018. Ms. Monsanto acknowledged seeing the posted minutes.

The judge ruled that these online minutes satisfied the separate legal requirement for a “writing memorializing its decision.” Even though they weren’t sent directly to her, the publicly posted minutes served as the official record of the timely denial of her appeal, closing the final door on her argument for automatic approval.

Conclusion: Before You Plant Your Flag, Read the Fine Print

Joyce Monsanto’s case is a cautionary tale on two levels. First, it shows that even cherished rights like displaying the flag are subject to reasonable, neutrally-applied community rules. Second, and more critically, it demonstrates that procedural arguments live and die by the most precise definitions in the governing documents. A single word can be the difference between winning an appeal and being ordered to take your flagpole down.

This case came down to the difference between a “written response” and a “written decision”—do you know what the fine print says about your rights in your community?

Case Participants

Petitioner Side

  • Joyce H Monsanto (petitioner)
    Appeared on her own behalf

Respondent Side

  • Mark K. Sahl (HOA attorney)
    Carpenter, Hazlewood, Delgado & Bolen, LLP
  • Anthony Nunziato (board member)
    Four Seasons at the Manor Homeowners Association
    President of the Board of Directors; also referred to as 'Tony'
  • Annette McCraw (property manager)
    Community Manager/Trestle Management (implied)
    Sent Notice of Disapproval on behalf of Respondent
  • Marc Vasquez (HOA representative)
    Addressed Petitioner's claim regarding violation letters at the Board meeting

Neutral Parties

  • Diane Mihalsky (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate

FISH, GREG vs. FLYNN LANE BILTMORE ASSOC, INC.

Case Summary

Case ID 14F-H1414007-BFS
Agency DFBLS
Tribunal OAH
Decision Date 2014-11-24
Administrative Law Judge M. Douglas
Outcome The Tribunal found the Respondent violated CC&R 8(B) by not following the percentage-based assessment method. The Petitioner prevailed and was awarded the filing fee reimbursement.
Filing Fees Refunded $550.00
Civil Penalties $200.00

Parties & Counsel

Petitioner Greg Fish Counsel
Respondent Flynn Lane Biltmore Assoc, Inc. Counsel Craig Armstrong

Alleged Violations

CC&R 8(B)

Outcome Summary

The Tribunal found the Respondent violated CC&R 8(B) by not following the percentage-based assessment method. The Petitioner prevailed and was awarded the filing fee reimbursement.

Key Issues & Findings

Incorrect Assessment Method

Petitioner alleged assessments were billed incorrectly as equal splits among units rather than prorated based on proportionate share of Common Expenses as required by CC&Rs. Respondent admitted to the practice but cited historical precedent.

Orders: Respondent shall fully comply with applicable provisions of its CC&Rs in the future. Respondent shall pay Petitioner filing fee of $550.00. Respondent shall pay civil penalty of $200.00.

Filing fee: $550.00, Fee refunded: Yes, Civil penalty: $200.00

Disposition: petitioner_win

Cited:

  • CC&R 8(B)
  • CC&R 7

Video Overview

Audio Overview

Decision Documents

14F-H1414007-BFS Decision – 416772.pdf

Uploaded 2026-04-24T10:49:37 (51.2 KB)

14F-H1414007-BFS Decision – 418764.pdf

Uploaded 2026-04-24T10:49:40 (107.9 KB)

14F-H1414007-BFS Decision – 423789.pdf

Uploaded 2026-04-24T10:49:44 (58.4 KB)

14F-H1414007-BFS Decision – 416772.pdf

Uploaded 2026-01-25T15:30:35 (51.2 KB)

14F-H1414007-BFS Decision – 418764.pdf

Uploaded 2026-01-25T15:30:36 (107.9 KB)

14F-H1414007-BFS Decision – 423789.pdf

Uploaded 2026-01-25T15:30:36 (58.4 KB)

Administrative Hearing Briefing: Greg Fish vs. Flynn Lane Biltmore Assoc., Inc.

Executive Summary

This briefing document details the administrative adjudication of Case No. 14F-H1414007-BFS between Petitioner Greg Fish and Respondent Flynn Lane Biltmore Assoc., Inc. (Biltmore). The dispute centered on Biltmore's long-standing practice of splitting homeowner assessments equally among all units, which directly contradicted the association’s Covenants, Conditions, and Restrictions (CC&Rs) requiring prorated assessments based on a unit's percentage ownership of common elements.

Following a hearing held on November 4, 2014, Administrative Law Judge (ALJ) M. Douglas found that Biltmore had knowingly violated its governing documents for decades. The ALJ ordered Biltmore to align its future billing practices with the CC&Rs, reimburse the Petitioner’s filing fee, and pay a civil penalty. The decision was certified as the final administrative action on January 8, 2015.


Analysis of Key Themes

1. Conflict Between Governing Documents and Historical Practice

The central conflict in this matter was the discrepancy between the recorded CC&Rs and a 46-year-old "policy" of equalized assessments.

  • The CC&R Mandate: Provision 8(B) explicitly states that each owner's share of common expenses shall be "equal to the said Owner’s undivided percentage ownership of the Common Elements."
  • The Historical Deviation: Since 1968, the association split assessments evenly. Respondent testimony suggested that the original developer and subsequent boards felt the price difference between two- and three-bedroom units (initially 43 cents) was too negligible to warrant the complexity of prorated billing.
2. Knowledge and Intransigence of the Board

Testimony revealed that both past and current management were aware of the CC&R requirements but chose not to act until legal pressure was applied.

  • Managerial Awareness: Former community manager Michael Latz confirmed the Board understood they were not following the CC&Rs but continued the equal-split policy regardless.
  • Member Protest: Petitioner Greg Fish testified that he repeatedly informed the association of the improper billing, but the association remained "intransigent."
  • Recent Board Action: While the new Board (installed November 2013) acknowledged the error, they delayed implementing changes until the 2015 budget, claiming they lacked sufficient time to adjust the 2014 budget.
3. Financial Impact and Overcharging

The improper billing method resulted in quantifiable financial harm to owners of smaller units or those with lower percentage ownership.

  • Assessment Discrepancies: While the original difference was cents, testimony indicated that by 2014, the difference between billing methods amounted to approximately $17.00 per month.
  • Calculated Overcharges: Estimates of the Petitioner's overcharges varied between witnesses:
  • Karen Jackson (Petitioner's Manager): Calculated an overcharge of $1,860.68 over six years.
  • Maureen Watrous (Biltmore Manager): Admitted to an overcharge of $1,198.08 over six years, plus $213.33 for a special assessment, totaling $1,411.41.

Important Quotes and Contextual Significance

Quote Source/Context Significance
"The Association at that time did not feel the difference was great enough to split so they moved forward charging both the 2 and 3 bedrooms equal amounts… This policy has not changed in 46 years." Respondent’s Answer to the Petition Admission that the association knowingly ignored its legal governing documents for nearly half a century for the sake of convenience.
"Mr. Latz stated that he and the Board… understood that Biltmore was not following the CC&Rs for assessments. Mr. Latz testified that despite this knowledge, Biltmore continued to split assessments equally." Findings of Fact (Testimony of Michael Latz) Establishes that the violation was not an oversight but a conscious decision by the association's leadership.
"Mr. Tower testified that he believed that the previous Boards had followed the expressed direction of the community." Findings of Fact (Testimony of Thomas E. Tower) Highlights the association's defense that "community preference" took precedence over statutory and contractual obligations.
"This Tribunal concludes that Biltmore violated the charged provision of Biltmore’s CC&R No. 8(B)." Conclusions of Law The definitive legal finding that historical practice does not supersede recorded CC&Rs.

Summary of Testimony

Witness Role Key Evidence Provided
Michael Latz Former Community Manager Credibly testified that the Board knew they were violating CC&Rs but continued the practice anyway.
Gregory James Fish Petitioner / Owner Testified to his repeated, ignored attempts to bring the association into compliance; noted there are four different unit sizes that should be assessed by square footage.
Karen Jackson Petitioner’s Property Manager Provided an analysis showing the Petitioner was overcharged by $1,860.68 over a six-year period.
Maureen Watrous Current Property Manager Acknowledged the overcharges (calculating them at $1,411.41) and noted the Board finally voted on Nov 1, 2014, to comply starting Jan 2015.
Thomas E. Tower Board President Admitted he knew of the percentage assessment requirement since the 1970s but claimed the RTC mandated equalized assessments when it held units in the 1980s.

Actionable Insights and Final Order

The Administrative Law Judge's decision provides a clear framework for HOA governance and the consequences of non-compliance with governing documents:

  • Governing Document Supremacy: Homeowners' associations cannot rely on "historical policy" or "community preference" to override recorded CC&Rs. Any change to assessment methods must be done through formal amendment of the CC&Rs, not by Board vote or custom.
  • Financial Restitution and Penalties:
  • Compliance: Biltmore was ordered to fully comply with CC&R assessment provisions moving forward.
  • Filing Fee Reimbursement: Biltmore was ordered to pay the Petitioner $550.00 within 30 days.
  • Civil Penalty: The Department imposed a $200.00 civil penalty against the association for the violation.
  • Procedural Finality: The decision became the final administrative action after the Department of Fire, Building and Life Safety failed to take action to reject or modify the ALJ's decision by the December 30, 2014, deadline. Parties seeking further relief must petition for a rehearing or seek review in Superior Court.

Study Guide: Greg Fish v. Flynn Lane Biltmore Assoc, Inc. Legal Case Analysis

This study guide provides a comprehensive analysis of the administrative legal proceedings in the case of Greg Fish v. Flynn Lane Biltmore Assoc, Inc. (Case No. 14F-H1414007-BFS). It examines the conflict between established community practices and the legal requirements of condominium governing documents.


Case Overview and Key Concepts

The case centers on a dispute between a unit owner, Greg Fish, and his condominium association, Flynn Lane Biltmore Assoc, Inc. (Biltmore). The primary conflict involves the methodology used to calculate monthly and special assessments.

Central Legal Issue

The core issue was whether Biltmore violated its Covenants, Conditions, and Restrictions (CC&Rs) by billing assessments equally across all units instead of prorating them based on each unit's proportionate share of common expenses, as expressly required by CC&R No. 8(B).

Historical Context and Arguments
  • The 46-Year Practice: Since 1968, the association had split assessments equally. Originally, the difference between two- and three-bedroom units was only $0.43, which the association at the time deemed negligible. By 2014, this difference had grown to approximately $17.00 per month.
  • The RTC Influence: Testimony indicated that during the 1980s, when the Resolution Trust Corporation (RTC) took possession of several units, it mandated the use of equalized assessments.
  • Board Knowledge: Witnesses testified that the Board of Directors was aware they were not following the CC&Rs but continued the equal-split practice, citing community preference and the difficulty of changing the CC&Rs.
The Administrative Process

The case was heard by the Office of Administrative Hearings under the authority of the Arizona Department of Fire, Building and Life Safety. The Administrative Law Judge (ALJ) presided over a hearing where testimony and evidence were presented, leading to a recommended order that was eventually certified as a final agency action.


Short-Answer Practice Questions

1. Who are the primary parties involved in this matter? The Petitioner is Greg Fish, a residence owner and member of the association. The Respondent is Flynn Lane Biltmore Assoc, Inc., a condominium association located in Phoenix, Arizona.

2. What specific provision of the CC&Rs was the Respondent accused of violating? The Respondent was accused of violating CC&R 8(B), which stipulates that a unit owner's proportionate share of assessments shall be equal to the owner’s undivided percentage ownership of the common elements.

3. What was the Respondent’s primary defense for splitting assessments equally? The Respondent argued that the practice had been in place for 46 years, that the original cost difference was minimal ($0.43), and that the majority of unit owners preferred the equalized assessment method.

4. According to the testimony of Maureen Watrous, how much was Greg Fish overcharged over the last two years of regular and special assessments? Ms. Watrous calculated the total overcharge for the last two years to be $1,411.41 ($1,198.08 for regular assessments and $213.33 for a special assessment).

5. What is the standard of proof required in this administrative hearing? The standard of proof is a "preponderance of the evidence," meaning the evidence must persuade the finder of fact that the claim is more likely true than not.

6. What were the specific terms of the ALJ’s Recommended Order? The ALJ ordered Biltmore to:

  • Fully comply with its CC&Rs in the future.
  • Pay the Petitioner’s filing fee of $550.00.
  • Pay a civil penalty of $200.00 to the Department.

Essay Prompts for Deeper Exploration

1. The Supremacy of Governing Documents vs. Historical Practice

Discuss the legal tension between a homeowners' association’s long-standing historical practices and its recorded CC&Rs. In the case of Biltmore, the association knowingly ignored its CC&Rs for over four decades because the "policy had not changed in 46 years." Analyze why the ALJ found the association in violation despite the longevity of the practice and the alleged preference of the majority of the community.

2. Evidence and Witness Credibility in Administrative Hearings

Evaluate the role of witness testimony in establishing the "preponderance of the evidence." Compare the testimony of Michael Latz, the former community manager, with that of Thomas E. Tower, the Board President. How did their admissions regarding the Board's knowledge of the CC&Rs impact the ALJ’s findings of fact and subsequent conclusions of law?

3. The Financial Implications of Assessment Methodologies

Examine the financial impact of the two assessment methods discussed in the case (equal split vs. percentage ownership). Use the data provided by Karen Jackson and Maureen Watrous regarding Mr. Fish's overcharges to explain how a seemingly small monthly discrepancy can result in significant financial liability for an association over time.


Glossary of Important Terms

Term Definition
Administrative Law Judge (ALJ) A presiding officer who conducts hearings and issues decisions for administrative agencies.
A.R.S. § 41-2198.01 The Arizona Revised Statute that permits homeowners or associations to file petitions regarding violations of planned community documents.
CC&Rs Covenants, Conditions, and Restrictions; the legal documents that govern a common interest development.
Common Elements Portions of a condominium or planned community owned by all owners or the association, rather than an individual unit owner.
Motion to Strike A legal request to remove certain portions of a record or pleading.
Petitioner The party who initiates a legal action or petition (in this case, Greg Fish).
Preponderance of the Evidence The standard of proof in most civil and administrative cases; it means a proposition is "more likely true than not."
Prorated Divided or distributed proportionately according to a specific factor (in this case, square footage or percentage of ownership).
Respondent The party against whom a legal action or petition is filed (in this case, Flynn Lane Biltmore Assoc, Inc.).
RTC (Resolution Trust Corporation) A government-owned asset management company that, according to testimony, mandated equalized assessments at Biltmore during the 1980s.
Special Assessment A one-time fee charged to unit owners for unforeseen expenses or specific projects outside the regular budget.

The 46-Year Mistake: Why "We’ve Always Done It This Way" Failed in Greg Fish vs. Biltmore Assoc.

Can a homeowners association legally ignore its own recorded CC&Rs for nearly half a century simply because "it’s always been done that way"? In the administrative case of Greg Fish vs. Flynn Lane Biltmore Assoc, Inc., the Office of Administrative Hearings (OAH) dismantled the myth that community tradition can override recorded property law. This case serves as a stark warning: when a Board’s fiduciary duty to follow the law clashes with administrative convenience, the law—and the homeowners it protects—will eventually prevail.

The Core Conflict: Square Footage vs. Per-Capita Billing

At the heart of the dispute was a fundamental breach of the association's governing documents regarding how monthly assessments were calculated. For 46 years, the association chose "fairness" through equality, rather than the "legality" of pro-rata distribution.

  • The Provision (CC&R 8-B): The recorded documents explicitly mandate that each unit owner’s proportionate share of common expenses must be based on that owner’s "undivided percentage ownership of the Common Elements." In short, assessments must be pro-rata based on square footage.
  • The Practice: Since 1968, the association utilized an "equalized billing" method, splitting assessments evenly across all units regardless of size.
  • The Compounding Error: When the community was developed, the developer noted that the assessment difference between two- and three-bedroom units was a mere 43 cents. Deciding this was negligible, they opted for equal billing. By 2014, however, this administrative shortcut had ballooned into a $17.00 per month discrepancy—a significant financial burden for owners of smaller units.
Testimonial Breakdown: Admissions of Non-Compliance

The hearing revealed a pattern of "knowing non-compliance," where Board members and managers were fully aware of the breach but relied on community inertia to maintain the status quo.

Michael Latz (The "Smoking Gun" Admission) As the former community manager, Mr. Latz provided the most damaging testimony. He admitted that both he and the Board of Directors understood that the association was not following the CC&Rs for assessments. Despite this knowledge, they continued the equal-split method, even as Latz privately harbored concerns that certain unit owners were being forced to pay more than their legal share.

Greg Fish (The Persistent Petitioner) An owner since 2002, Mr. Fish testified to a decade-long struggle against Board "intransigence." He highlighted that while the developer’s original math only considered two unit types, the community actually consists of four distinct unit sizes. Despite his repeated formal protests that the association was in violation of the law, his concerns were ignored until legal action was initiated.

Maureen Watrous (The Transitionary Manager) The current manager acknowledged that the association had been billing incorrectly for decades, including a 2013 special assessment. Notably, she testified that the Board only began taking concrete steps to create a compliant, percentage-based budget for 2015 after Mr. Fish filed his petition.

Thomas Tower (The "Community Preference" Defense) The Board President, an owner since 1976, admitted he had been aware of the pro-rata assessment requirement since the 1970s. He defended the Board’s inaction by claiming they were following the "expressed direction of the community." He also cited a belief—unsupported by recorded amendments—that the equalized method had been mandated by the Resolution Trust Corporation (RTC) during a 1980s receivership period.

The Financial Toll: Calculating the Overcharges

The hearing established the exact cost of the association's failure to follow its own rules. By comparing the analysis of the Petitioner’s representative and the Association’s own manager, the scale of the error over time became undeniable.

Financial Impact Analysis

Source Timeframe Estimated Overcharge
Karen Jackson (Petitioner's Rep) 6 Years $1,860.68
Maureen Watrous (Assoc. Manager) 6 Years $1,198.08
Maureen Watrous (Assoc. Manager) 2 Years $1,411.41*

\Includes a specific $213.33 overcharge from a 2013 special assessment.*

The Administrative Law Judge's Decision

Administrative Law Judge M. Douglas applied the "Preponderance of the Evidence" standard, determining that the Petitioner’s claims were more likely true than not. Given the Association’s own admissions of known non-compliance, the Judge ruled that the Association had violated CC&R 8(B).

Recommended Order: "It is ORDERED that Petitioner be deemed the prevailing party in this matter. It is further ORDERED that Biltmore shall fully comply with the applicable provisions of its CC&Rs in the future. It is further ORDERED that Biltmore shall pay Petitioner his filing fee of $550.00… and pay a civil penalty in the amount of $200.00 to the Department."

Conclusion: Key Takeaways for HOA Boards and Members

The Fish vs. Biltmore case stands as a landmark example of why "tradition" is no defense for a breach of fiduciary duty.

  1. CC&Rs Are Not Suggestions: Recorded governing documents are legally binding contracts. No matter how much time has passed—even 46 years—the Board is the steward of these rules and must follow them until they are formally amended.
  2. Fiduciary Duty Trumps Community Consensus: A Board’s duty is to the law and the recorded documents, not the "preferred direction" of a majority of neighbors. If a community wants to change an assessment method, they must pass a formal amendment, not simply vote to ignore the current rules.
  3. The Cost of Inaction Compounds: What began as a 43-cent oversight became a $17.00-per-month violation. Boards that ignore "small" discrepancies risk substantial legal and financial exposure as those errors grow over decades.
  4. OAH is a Powerful Tool for Redress: This case proves that the Office of Administrative Hearings provides a viable, structured venue for homeowners to hold their associations accountable for violations without the prohibitive costs of Superior Court.

Post-Script: This decision was officially certified as the final administrative decision of the Department of Fire, Building and Life Safety on January 8, 2015, by Acting Director Lewis D. Kowal, after the Department took no action to modify the Administrative Law Judge's recommendation.

Case Participants

Petitioner Side

  • Greg Fish (petitioner)
    Flynn Lane Biltmore Assoc, Inc. (Member)
    Also referred to as Gregory James Fish
  • Karen Jackson (witness)
    Property manager for Mr. Fish

Respondent Side

  • Philip Brown (attorney)
    Brown Alcott, PLLC
  • Craig Armstrong (attorney)
    Brown Alcott, PLLC / Brown-Olcott, PLLC / The Brown Law Group, PLLC
  • Maureen Watrous (witness)
    Flynn Lane Biltmore Assoc, Inc.
    Property manager for Biltmore
  • Thomas E. Tower (witness)
    Flynn Lane Biltmore Assoc, Inc.
    Board President

Neutral Parties

  • M. Douglas (ALJ)
    Office of Administrative Hearings
  • Gene Palma (Agency Director)
    Department of Fire, Building and Life Safety
  • Joni Cage (Agency Staff)
    Department of Fire, Building and Life Safety
    c/o for Gene Palma
  • Cruz Serrano (scribe)
    Signatory on mailing list
  • Michael Latz (witness)
    Previous community manager for Biltmore
  • Lewis D. Kowal (Acting Director)
    Office of Administrative Hearings
    Certified the ALJ Decision
  • Rosella J. Rodriguez (scribe)
    Signatory on mailing list for The Brown Law Group