Keith A. Shadden v. Las Brisas Community Association

Case Summary

Case ID 25F-H043-REL
Agency ADRE
Tribunal OAH
Decision Date 2025-07-07
Administrative Law Judge Velva Moses-Thompson
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Keith A. Shadden Counsel
Respondent Las Brisas Community Association Counsel Emily Cooper, Esq.

Alleged Violations

Article 5.10 & Article 5.12 of CC&Rs (Las Brisas Community Association)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to meet the burden of proof showing the HOA used incorrect CC&R sections for the violation concerning reflective material on garage door glass cutouts. The ALJ concluded that the plain meaning of "window" in CC&R Section 5.10 applies to any transparent opening and does not exclude garages.

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent violated its CC&Rs by using incorrect sections for the violation regarding reflective tint on garage door glass cutouts.

Key Issues & Findings

Allegation that Respondent is using incorrect CC&R section (5.10) to create violation for garage door glass cutouts which fall under section 5.12.

Petitioner alleged the HOA misapplied CC&R Section 5.10 (Windows) to enforce a violation regarding reflective tint on garage door glass cutouts, asserting that Section 5.10 was not intended to cover garage doors as they are addressed under Section 5.12.

Orders: Petition dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 32-2199(B)
  • Title 33, Chapter 16
  • A.R.S. §§ 33-1801 to 33-1818
  • A.R.S. § 33-1803
  • 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)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
  • Powell, 211 Ariz. at 557 ¶ 16, 125 P.3d at 377

Analytics Highlights

Topics: HOA, CC&R, Window Restriction, Garage Door, Reflective Material, Planned Communities Act, Burden of Proof, Violation Notice
Additional Citations:

  • A.R.S. § 32-2199(B)
  • Title 33, Chapter 16
  • A.R.S. §§ 33-1801 to 33-1818
  • A.R.S. § 33-1803
  • 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)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
  • Powell, 211 Ariz. at 557 ¶ 16, 125 P.3d at 377

Audio Overview

Decision Documents

25F-H043-REL Decision – 10_TAB H – Denial of Architectural Design hearing request.pdf

Uploaded 2026-01-23T18:19:34 (284.5 KB)

25F-H043-REL Decision – 11_TAB I – Email concerning unable to attend hearing on Architectural Design with HOA Board.pdf

Uploaded 2026-01-23T18:19:39 (517.3 KB)

25F-H043-REL Decision – 1298924.pdf

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25F-H043-REL Decision – 12_TAB J – HOA Board denial Letter of Architectural Design appeal.pdf

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25F-H043-REL Decision – 1303564.pdf

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25F-H043-REL Decision – 1312135.pdf

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25F-H043-REL Decision – 1312136.pdf

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25F-H043-REL Decision – 1314210.pdf

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25F-H043-REL Decision – 1315443.pdf

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25F-H043-REL Decision – 1315444.pdf

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25F-H043-REL Decision – 1316546.pdf

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25F-H043-REL Decision – 1316554.pdf

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25F-H043-REL Decision – 1317444.pdf

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25F-H043-REL Decision – 1317445.pdf

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25F-H043-REL Decision – 1317647.pdf

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25F-H043-REL Decision – 1317648.pdf

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25F-H043-REL Decision – 1325514.pdf

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25F-H043-REL Decision – 1325661.pdf

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25F-H043-REL Decision – 1325928.pdf

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25F-H043-REL Decision – 13_TAB K – Email for HOA Board consideration before rendering Architectural Design Appeal Decision.pdf

Uploaded 2026-01-23T18:20:56 (1963.4 KB)

25F-H043-REL Decision – 14_TAB L – Email to Community Manager with Owner Building Option List for window blinds.pdf

Uploaded 2026-01-23T18:21:00 (162.2 KB)

25F-H043-REL Decision – 15_Table of Content.pdf

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25F-H043-REL Decision – 1_Homeowner Association HOA Dispute Process Petition.pdf

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25F-H043-REL Decision – 2_Statement of Facts and Argument.pdf

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25F-H043-REL Decision – 3_TAB A – Home Build option sheet.pdf

Uploaded 2026-01-23T18:21:19 (391.9 KB)

25F-H043-REL Decision – 4_TAB B – Violation notification from HOA.pdf

Uploaded 2026-01-23T18:21:24 (446.9 KB)

25F-H043-REL Decision – 5_TAB C – Hearing Request and communication with Community Manager.pdf

Uploaded 2026-01-23T18:21:29 (472.4 KB)

25F-H043-REL Decision – 6_TAB D – Las Brisas.3.Declaration of Covenants Conditions Restrictions.pdf

Uploaded 2026-01-23T18:21:33 (175.1 KB)

25F-H043-REL Decision – 7_TAB E – HOA Board Response Letter.pdf

Uploaded 2026-01-23T18:21:36 (5.3 KB)

25F-H043-REL Decision – 8_TAB F – Architectural Design Request.pdf

Uploaded 2026-01-23T18:21:40 (13.8 KB)

25F-H043-REL Decision – 9_TAB G – Architectural Design Request Response Letter.pdf

Uploaded 2026-01-23T18:21:45 (60.7 KB)

25F-H043-REL Decision – Answer – Las Brisas (1).pdf

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25F-H043-REL Decision – Arizona Corporation Commission.pdf

Uploaded 2026-01-23T18:21:54 (149.1 KB)

25F-H043-REL Decision – Filing Fee Receipt.pdf

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25F-H043-REL Decision – Notice of Hearing.pdf

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25F-H043-REL Decision – Notice of Petition.pdf

Uploaded 2026-01-23T18:22:06 (496.6 KB)





Briefing Doc – 25F-H043-REL


Briefing Document: Shadden v. Las Brisas Community Association, Case No. 25F-H043-REL

Executive Summary

This document provides a comprehensive analysis of the legal dispute between homeowner Keith A. Shadden (Petitioner) and the Las Brisas Community Association (Respondent) concerning a violation for reflective material on garage door windows. The case, adjudicated by the Arizona Office of Administrative Hearings, centered on whether the Association correctly applied its Covenants, Conditions, and Restrictions (CC&Rs).

On July 7, 2025, Administrative Law Judge Velva Moses-Thompson issued a decision dismissing Mr. Shadden’s petition. The judge ruled that the Petitioner failed to meet his burden of proof to establish that the Association had violated its governing documents.

The core of the dispute was Mr. Shadden’s allegation that the Association improperly used CC&R Section 5.10 (“Windows”) to cite him for reflective tint on his garage door’s glass cutouts. He argued that the garage door should be governed by Section 5.12 (“Garages and Driveways”). His primary evidence was that the original builder, Taylor Morrison, did not install window treatments on the garage door (a requirement of 5.10), implying the builder did not consider the cutouts to be “windows.”

The Association maintained that the plain language of the CC&Rs prohibits reflective materials on windows, that the glass cutouts are functionally windows, and that this rule is consistently enforced throughout the community. The Judge ultimately agreed with the Association’s interpretation, defining a “window” in its plain meaning as “any transparent opening through which light passes” and noting that Section 5.10 does not explicitly exclude garages.

Case Overview

Case Name

In the Matter of: Keith A. Shadden v. Las Brisas Community Association

Case Number

25F-H043-REL

Arizona Office of Administrative Hearings

Presiding Judge

Velva Moses-Thompson, Administrative Law Judge

Hearing Date

June 16, 2025

Decision Date

July 7, 2025

Petitioner

Keith A. Shadden (representing himself)

Respondent

Las Brisas Community Association, represented by Emily Cooper, Esq.

Core Dispute and Allegations

The central issue of the hearing, as defined in a June 5, 2025 order, was the Petitioner’s allegation that the Respondent was “using incorrect CC&R section (5.10) to create violation for garage door glass cutouts which fall under section 5.12”.

The dispute originated from a violation notice issued to Mr. Shadden on August 19, 2024, for having reflective material on his garage door windows. Subsequent notices with escalating fines were issued on February 13, 2025 (25fine),March21,2025(50 fine), and April 23, 2025 ($100 fine).

Relevant Governing Documents

The case revolved around the interpretation of two specific sections of the Las Brisas Community Association CC&Rs.

Section

Full Text

Article 5.10

Windows

“Within ninety (90) days of occupancy of a Residential Unit each Owner shall install permanent suitable window treatments that are Visible from Neighboring Property. No reflective materials, including, but without limitation, aluminum foil, reflective screens or glass, mirrors or similar type items, shall be installed or placed upon the outside or inside of any windows.”

Article 5.12

Garages and Driveways

“The interior of all garages situated on any lot shall be maintained in a neat and clean condition. Garages shall be used only for the parking of Vehicles and the storage of normal household supplies and materials and shall not be used for or converted to living quarters or recreational activities after the initial construction thereof without the prior written approval of the Architectural Committee. Garage doors shall be left open only as needed for ingress and egress.”

Arguments and Evidence Presented at Hearing

The evidentiary hearing was conducted virtually via Google Meet on June 16, 2025. Both parties presented arguments, testimony, and exhibits.

Petitioner’s Case (Keith A. Shadden)

Mr. Shadden argued that the Association’s application of Section 5.10 to his garage door was incorrect and unreasonable.

Argument from Declarant’s Intent: Mr. Shadden testified that as the original homeowner, he paid the declarant, Taylor Morrison, nearly $1,600 for window treatments on all windows in the home. Because Taylor Morrison did not install any treatments on the garage door’s glass cutouts, he contended this showed the declarant’s intent that these cutouts were not to be considered “windows” under Section 5.10.

Unreasonable Application: He argued that applying the entirety of Section 5.10, including the requirement for window treatments like blinds, to a garage door is an “unrealistic expectation for a homeowner.”

Conflicting Communication: Mr. Shadden presented an email (Exhibit M) from the assistant community manager, K. White, which stated, “you do not have to install window treatment you can leave the windows without the treatments or you may install window treatments.” He argued this showed the Association itself did not apply the full scope of Section 5.10 to the garage.

Testimony on “Window” Definition: Under cross-examination, Mr. Shadden offered several definitions of a window, including “something you look through.” He eventually conceded that the glass cutouts meet a common-sense understanding of a window but maintained his position based on the specific context of the CC&Rs.

Respondent’s Case (Las Brisas Community Association)

The Association, represented by Emily Cooper, Esq., with testimony from Community Manager Jamie Cryblskey, argued its actions were proper and consistent.

Plain Language Interpretation: The Association asserted that the governing documents, including the CC&Rs and Design Guidelines, have “clear and plain language” that expressly prohibits reflective materials on windows.

Consistent Enforcement: Ms. Cryblskey testified that the rule against reflective tint is enforced consistently across all 1,321 lots in the community. She noted that at the time of the hearing, one or two other homeowners had active violations for the same issue and were being treated in the same manner.

Definition of “Window”: The Association argued that a “garage window is a window.” Ms. Cryblskey testified that she personally considers the glass inserts in a garage door to be windows.

Adherence to Due Process: The Association outlined the procedural history, noting Mr. Shadden was provided a hearing before the Board of Directors on October 15, 2024. After his dispute was denied, he was required to submit an architectural application, which was also denied. His subsequent appeal of that denial was heard and denied by the board on December 17, 2024.

Compliance Status: During opening statements, Ms. Cooper noted that Mr. Shadden had since installed a charcoal tint, which is permissible, rendering the petition moot. During testimony, Mr. Shadden stated he had applied black masking tape. Ms. Cryblskey confirmed that as of her last inspection on June 12, 2025, the reflective material was removed and the lot was in compliance.

Final Decision and Legal Conclusions

The Administrative Law Judge issued a final decision on July 7, 2025, dismissing Mr. Shadden’s petition.

Burden of Proof: The decision established that the Petitioner, Mr. Shadden, bore the burden to prove by a preponderance of the evidence that the Respondent had violated its CC&Rs.

Legal Interpretation: The judge’s central conclusion addressed the definition of “window.”

Final Ruling: The judge found that Mr. Shadden failed to meet his evidentiary burden.

Order: The recommended order stated, “IT IS ORDERED that Keith A. Shadden’s petition against Respondent Las Brisas Community Association is dismissed.” The decision is binding unless a party files for a rehearing within 30 days of the order.






Study Guide – 25F-H043-REL


{ “case”: { “docket_no”: “25F-H043-REL”, “case_title”: “Keith A. Shadden v. Las Brisas Community Association”, “decision_date”: “2025-07-07”, “alj_name”: “Velva Moses-Thompson”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “If I file a petition against my HOA, who is responsible for proving the violation occurred?”, “short_answer”: “The homeowner (Petitioner) bears the burden of proof.”, “detailed_answer”: “The homeowner filing the dispute must prove that the HOA violated the governing documents. It is not automatically the HOA’s job to prove they were right; the petitioner must first establish the violation.”, “alj_quote”: “Petitioner bears the burden of proof to establish that Respondent violated its CC&Rs by a preponderance of the evidence.”, “legal_basis”: “A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A) and (B)(1)”, “topic_tags”: [ “burden of proof”, “legal standards”, “procedure” ] }, { “question”: “How much evidence do I need to win a hearing against my HOA?”, “short_answer”: “You need a ‘preponderance of the evidence,’ meaning your claim is more likely true than not.”, “detailed_answer”: “The standard is not ‘beyond a reasonable doubt’ (like in criminal cases). It is a ‘preponderance of the evidence,’ which means the evidence must show that the homeowner’s argument is more probably true than the HOA’s.”, “alj_quote”: ““A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.””, “legal_basis”: “Morris K. Udall, Arizona Law of Evidence § 5”, “topic_tags”: [ “evidence”, “legal standards”, “definitions” ] }, { “question”: “Can the HOA apply ‘Window’ restrictions (like tint bans) to glass cutouts in my garage door?”, “short_answer”: “Yes, if the cutouts function as windows (allow visibility) and the homeowner fails to prove the specific garage section overrides the window section.”, “detailed_answer”: “In this case, the ALJ dismissed the homeowner’s claim that the HOA used the ‘incorrect’ CC&R section by applying window rules to garage door glass. The ALJ noted it was undisputed that one could see through the cutouts.”, “alj_quote”: “It was undisputed that there are glass door cut outs on Petitioner’s garage door. Petitioner admitted during hearing that a person can see through the glass door cut outs… Petitioner has failed to meet its burden to establish that Respondent used incorrect sections of the CC&Rs when it issued its VIOLATION NOTICE.”, “legal_basis”: “CC&Rs Section 5.10 vs 5.12”, “topic_tags”: [ “architectural control”, “garage doors”, “windows”, “interpretation” ] }, { “question”: “Does the HOA have to prove anything during the hearing?”, “short_answer”: “Yes, if the HOA asserts any ‘affirmative defenses,’ they must prove them.”, “detailed_answer”: “While the homeowner has the initial burden to prove the violation, if the HOA claims a specific legal defense justifies their actions, they carry the burden of proof for that specific defense.”, “alj_quote”: “Respondent bears the burden to establish affirmative defenses by the same evidentiary standard.”, “legal_basis”: “A.A.C. R2-19-119(B)(2)”, “topic_tags”: [ “affirmative defense”, “burden of proof”, “procedure” ] }, { “question”: “Can I argue that a restriction doesn’t apply because the builder didn’t install the item (like blinds) originally?”, “short_answer”: “That argument may fail if the text of the CC&Rs explicitly restricts the item in question.”, “detailed_answer”: “The homeowner argued that because the builder didn’t put blinds on the garage door, the ‘Window’ section (requiring treatments and banning reflective tint) shouldn’t apply. The ALJ rejected this argument and dismissed the petition.”, “alj_quote”: “Petitioner contended that because Taylor Morrison did not place window treatment on the garage door cut outs, Taylor Morrison did intend for Section 5.10 of the CC&Rs to apply to garage doors… Petitioner has failed to meet its burden to establish that Respondent used incorrect sections of the CC&Rs”, “legal_basis”: “Preponderance of Evidence”, “topic_tags”: [ “builder intent”, “interpretation”, “architectural restrictions” ] }, { “question”: “What agency handles hearings regarding HOA disputes in Arizona?”, “short_answer”: “The Arizona Department of Real Estate (ADRE) receives petitions, which are heard by the Office of Administrative Hearings (OAH).”, “detailed_answer”: “State law authorizes the Department of Real Estate to receive petitions from association members regarding violations of planned community documents.”, “alj_quote”: “The Arizona Department of Real Estate (hereinafter “the Department”) is authorized by statute to receive and to decide Petitions for Hearings from members of homeowners’ associations… concerning violations of planned community documents”, “legal_basis”: “A.R.S. § 32-2199(B)”, “topic_tags”: [ “jurisdiction”, “ADRE”, “OAH” ] } ] }






Blog Post – 25F-H043-REL


{ “case”: { “docket_no”: “25F-H043-REL”, “case_title”: “Keith A. Shadden v. Las Brisas Community Association”, “decision_date”: “2025-07-07”, “alj_name”: “Velva Moses-Thompson”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “If I file a petition against my HOA, who is responsible for proving the violation occurred?”, “short_answer”: “The homeowner (Petitioner) bears the burden of proof.”, “detailed_answer”: “The homeowner filing the dispute must prove that the HOA violated the governing documents. It is not automatically the HOA’s job to prove they were right; the petitioner must first establish the violation.”, “alj_quote”: “Petitioner bears the burden of proof to establish that Respondent violated its CC&Rs by a preponderance of the evidence.”, “legal_basis”: “A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A) and (B)(1)”, “topic_tags”: [ “burden of proof”, “legal standards”, “procedure” ] }, { “question”: “How much evidence do I need to win a hearing against my HOA?”, “short_answer”: “You need a ‘preponderance of the evidence,’ meaning your claim is more likely true than not.”, “detailed_answer”: “The standard is not ‘beyond a reasonable doubt’ (like in criminal cases). It is a ‘preponderance of the evidence,’ which means the evidence must show that the homeowner’s argument is more probably true than the HOA’s.”, “alj_quote”: ““A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.””, “legal_basis”: “Morris K. Udall, Arizona Law of Evidence § 5”, “topic_tags”: [ “evidence”, “legal standards”, “definitions” ] }, { “question”: “Can the HOA apply ‘Window’ restrictions (like tint bans) to glass cutouts in my garage door?”, “short_answer”: “Yes, if the cutouts function as windows (allow visibility) and the homeowner fails to prove the specific garage section overrides the window section.”, “detailed_answer”: “In this case, the ALJ dismissed the homeowner’s claim that the HOA used the ‘incorrect’ CC&R section by applying window rules to garage door glass. The ALJ noted it was undisputed that one could see through the cutouts.”, “alj_quote”: “It was undisputed that there are glass door cut outs on Petitioner’s garage door. Petitioner admitted during hearing that a person can see through the glass door cut outs… Petitioner has failed to meet its burden to establish that Respondent used incorrect sections of the CC&Rs when it issued its VIOLATION NOTICE.”, “legal_basis”: “CC&Rs Section 5.10 vs 5.12”, “topic_tags”: [ “architectural control”, “garage doors”, “windows”, “interpretation” ] }, { “question”: “Does the HOA have to prove anything during the hearing?”, “short_answer”: “Yes, if the HOA asserts any ‘affirmative defenses,’ they must prove them.”, “detailed_answer”: “While the homeowner has the initial burden to prove the violation, if the HOA claims a specific legal defense justifies their actions, they carry the burden of proof for that specific defense.”, “alj_quote”: “Respondent bears the burden to establish affirmative defenses by the same evidentiary standard.”, “legal_basis”: “A.A.C. R2-19-119(B)(2)”, “topic_tags”: [ “affirmative defense”, “burden of proof”, “procedure” ] }, { “question”: “Can I argue that a restriction doesn’t apply because the builder didn’t install the item (like blinds) originally?”, “short_answer”: “That argument may fail if the text of the CC&Rs explicitly restricts the item in question.”, “detailed_answer”: “The homeowner argued that because the builder didn’t put blinds on the garage door, the ‘Window’ section (requiring treatments and banning reflective tint) shouldn’t apply. The ALJ rejected this argument and dismissed the petition.”, “alj_quote”: “Petitioner contended that because Taylor Morrison did not place window treatment on the garage door cut outs, Taylor Morrison did intend for Section 5.10 of the CC&Rs to apply to garage doors… Petitioner has failed to meet its burden to establish that Respondent used incorrect sections of the CC&Rs”, “legal_basis”: “Preponderance of Evidence”, “topic_tags”: [ “builder intent”, “interpretation”, “architectural restrictions” ] }, { “question”: “What agency handles hearings regarding HOA disputes in Arizona?”, “short_answer”: “The Arizona Department of Real Estate (ADRE) receives petitions, which are heard by the Office of Administrative Hearings (OAH).”, “detailed_answer”: “State law authorizes the Department of Real Estate to receive petitions from association members regarding violations of planned community documents.”, “alj_quote”: “The Arizona Department of Real Estate (hereinafter “the Department”) is authorized by statute to receive and to decide Petitions for Hearings from members of homeowners’ associations… concerning violations of planned community documents”, “legal_basis”: “A.R.S. § 32-2199(B)”, “topic_tags”: [ “jurisdiction”, “ADRE”, “OAH” ] } ] }


Case Participants

Petitioner Side

  • Keith A. Shadden (petitioner)
    Homeowner of Lot #1-175; appeared pro se
  • Donna M. Shadden (petitioner)
    Co-owner of the property

Respondent Side

  • Emily E. Cooper (HOA attorney)
    CHDB Law LLP
    Appeared at hearing
  • Kyle Banfield (HOA attorney)
    CHDB Law LLP
    Attended hearing
  • Suzanne Hilborn (legal assistant)
    CHDB Law LLP
    Signed proofs of service
  • Jaime Cryblskey (property manager)
    City Property Management Company
    Community Manager; testified at hearing
  • Makayla White (property manager)
    City Property Management Company
    Community Assistant
  • Erica Golditch (property manager)
    City Property Management Company
    Observer at hearing
  • Lauren Nabulsi (board member)
    Las Brisas Community Association
    President
  • Dakota Ball (board member)
    Las Brisas Community Association
    Treasurer; asked question during October hearing
  • Terrance Thomas (board member)
    Las Brisas Community Association
    Vice-President
  • Frank Grigsby (board member)
    Las Brisas Community Association
    Secretary
  • Timothy J. Hansell (board member)
    Las Brisas Community Association
    Director

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    Office of Administrative Hearings
    Presiding Administrative Law Judge
  • Susan Nicolson (commissioner)
    Arizona Department of Real Estate
  • Gabe Osborn (agency staff)
    Arizona Department of Real Estate
    Filed Notice of Hearing
  • Vivian Nunez (agency staff)
    Arizona Department of Real Estate
    HOA Dispute Process
  • Chandni Bhakta (mediator)
    Arizona Department of Real Estate
    ADRE Ombudsman

Other Participants

  • Barry Merklin (witness)
    Taylor Morrison
    Sales Associate listed on purchase agreement
  • Karla Paulsen (unknown)
    Taylor Morrison
    Authorized Officer listed on purchase agreement
  • G. Thomas Hennessy (board member)
    Taylor Morrison/Arizona, Inc.
    Declarant Vice President (2010)
  • Lynne M. Dugan (board member)
    Taylor Morrison/Arizona, Inc.
    Director (2010)
  • Leah Grogan (board member)
    Las Brisas Community Association
    Secretary/Treasurer (2010)
  • Amanda Shaw (unknown)
    Las Brisas Community Association
    Resigned Statutory Agent

Sharon M. Maiden v. Val Vista Lakes Community Association

Case Summary

Case ID 25F-H030-REL
Agency ADRE
Tribunal OAH
Decision Date 2025-06-02
Administrative Law Judge Velva Moses-Thompson
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Sharon Maiden Counsel
Respondent Val Vista Lakes Community Association Counsel Josh Bolen, Esq.

Alleged Violations

Article IV, Sections 2 and 3 of the Association’s Bylaws
Arizona Revised Statutes § 33-1804(A)

Outcome Summary

The Petitioner's petition is denied, as she failed to establish by a preponderance of the evidence that the Respondent HOA violated A.R.S. § 33-1804 (Open Meeting Law) or selectively enforced Article IV, Sections 2 and 3 of the Bylaws regarding term limits.

Why this result: Petitioner failed to meet her burden of proof on both issues. The closed board meeting was authorized for discussing legal advice, and the HOA's interpretation of the term limit provision aligned with the amendment's purpose to prevent Board members from serving long terms.

Key Issues & Findings

Selective enforcement of Bylaws regarding term limits.

Petitioner alleged Respondent selectively enforced the 2021 Bylaws amendment concerning term limits by retroactively applying the two-term limit to disqualify her 2024 candidacy.

Orders: Petition denied. Petitioner failed to establish a violation of Article IV, Sections 2 and 3 of the Bylaws.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.A.C. R2-19-119(B)(2)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Failure to hold an open meeting to decide candidacy disqualification.

Petitioner alleged Respondent violated open meeting laws by holding a closed executive session vote on October 11, 2024, to disqualify her candidacy.

Orders: Petition denied. Petitioner failed to establish a violation of A.R.S. § 33-1804(A).

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • A.A.C. R2-19-119(B)(2)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Arpaio v. Steinle, 201 Ariz. 353, 355 ¶ 5, 35 P.3d 114, 116 (App. 2001)

Analytics Highlights

Topics: HOA, Bylaws, Term Limits, Open Meeting Law, Selective Enforcement, ADR
Additional Citations:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1804(A)
  • 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)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Arpaio v. Steinle, 201 Ariz. 353, 355 ¶ 5, 35 P.3d 114, 116 (App. 2001)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Audio Overview

Decision Documents

25F-H030-REL Decision – 1272425.pdf

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25F-H030-REL Decision – 1272426.pdf

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25F-H030-REL Decision – 1282372.pdf

Uploaded 2026-01-23T18:17:12 (60.5 KB)

25F-H030-REL Decision – 1282375.pdf

Uploaded 2026-01-23T18:17:15 (9.1 KB)

25F-H030-REL Decision – 1284492.pdf

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25F-H030-REL Decision – 1288176.pdf

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25F-H030-REL Decision – 1288177.pdf

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25F-H030-REL Decision – 1293820.pdf

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25F-H030-REL Decision – 1313134.pdf

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Briefing Doc – 25F-H030-REL


Administrative Hearing Briefing:Maiden v. Val Vista Lakes Community Association

Executive Summary

This document provides a comprehensive analysis of the administrative hearing case Sharon M. Maiden v. Val Vista Lakes Community Association (No. 25F-H030-REL), adjudicated by the Arizona Office of Administrative Hearings. The petitioner, Sharon Maiden, a former board member, alleged that the association selectively enforced its bylaws to disqualify her from running for the board and violated Arizona’s open meeting laws by making this decision in a closed executive session.

The central conflict revolved around the interpretation of a 2021 bylaw amendment that shortened board member term limits. The petitioner argued for a prospective application, which would reset the term-limit clock for sitting board members, while the respondent association argued for an interpretation that counted prior service.

On June 2, 2025, Administrative Law Judge Velva Moses-Thompson issued a decision denying the petition in its entirety. The judge concluded that the association’s board acted within the bounds of Arizona statute (A.R.S. § 33-1804(A)) by holding a closed session to consider legal advice. Furthermore, the judge found that the petitioner failed to prove a bylaw violation, reasoning that the association’s interpretation was consistent with the membership’s clear intent to shorten, not lengthen, the potential tenure of board members.

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Case Overview

Case Name

Sharon M. Maiden v. Val Vista Lakes Community Association

Case Number

25F-H030-REL

Tribunal

Arizona Office of Administrative Hearings (OAH)

Petitioner

Sharon M. Maiden

Respondent

Val Vista Lakes Community Association

Respondent’s Counsel

Josh Bolen, Esq. (CHDB Law LLP)

Presiding Judge

Velva Moses-Thompson

Petition Allegations

The petition, filed by Sharon Maiden on December 15, 2024, asserted two primary violations by the Val Vista Lakes Community Association:

1. Selective Enforcement of Bylaws: An alleged violation of Article IV, Sections 2 and 3 of the Association’s Bylaws, stemming from the board’s decision to disqualify the petitioner from running for a board position in 2024 based on its interpretation of term limits.

2. Open Meeting Law Violation: An alleged violation of Arizona Revised Statutes (A.R.S.) § 33-1804(A), contending that the board failed to hold an open meeting when it made the binding decision to disqualify her candidacy.

Initially filed as a single-issue petition for which a $500 fee was paid, the OAH ordered on March 12, 2025, that the petitioner must either pay an additional $500 to pursue both issues or select one to proceed with at the hearing.

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Procedural History

January 27, 2025: The Arizona Department of Real Estate refers the petition to the OAH for an administrative hearing.

February 4, 2025: Respondent files a Motion to Strike the Petition, arguing the petitioner improperly disclosed attorney-client privileged communications.

February 11, 2025: Administrative Law Judge Kay A. Abramsohn denies the Motion to Strike. The hearing is continued to March 26, 2025.

March 26, 2025: The first day of the evidentiary hearing is conducted.

April 11, 2025: A further hearing is conducted. At its conclusion, the record is held open to allow for post-hearing briefing.

May 13, 2025: The post-hearing briefing period concludes, and the record is closed.

June 2, 2025: The Administrative Law Judge (ALJ) issues the final decision, denying the petition.

Central Dispute: Interpretation of Bylaw Term Limits

The core of the dispute was the interpretation of Article IV, Section 2 of the association’s bylaws, which was amended in 2021. The amendment’s purpose, as testified by multiple witnesses, was to shorten the length of time directors could serve on the board.

Evolution of the Bylaw

2012 Bylaws: Introduced term limits for the first time, establishing a maximum of three consecutive two-year terms (six years total), followed by a required one-year break.

2021 Bylaws: The membership approved a rewrite that reduced term limits to two consecutive elected two-year terms (four years total), followed by a required two-year break.

Both versions of the bylaw contained the following critical sentence: “Commencing with the first Annual Meeting after the adoption of these Amended and Restated Bylaws, Directors will be subject to term limits as follows.” The meaning of this sentence became the primary point of contention.

Competing Interpretations

Position

Argument Summary

Key Evidence and Testimony

Petitioner’s Position (Prospective Application)

The “Commencing with…” language resets the clock. Terms served before the 2021 amendment should not count toward the new, shorter limits. The association’s sudden shift to a retroactive interpretation was selective and targeted.

William Sutell (Former President): Testified the intent was to “reset the clock for everybody.” His 2022 newsletter stating his “term limit of four years is up” was “ineloquent” and meant to express he was tired of serving.
Douglas Keats (Former Board Member): Stated the intent of the rewrite was to “Go forward.”
Historical Precedent: The association, based on a 2016 legal opinion from Goodman Law Group, had allowed Director Cheryl McCoy to serve nine consecutive years despite the 2012 bylaw’s six-year limit.
Legal Opinions: An opinion from Krupnik & Speas in November 2023 stated the 2021 bylaws were prospective, not retroactive.

Respondent’s Position (Prior Service Counts)

The clear intent of the membership and the bylaw committee was to shorten terms. The petitioner’s interpretation creates a loophole allowing sitting board members to serve for 8 or more years, directly contradicting the amendment’s purpose.

Jill Brown (Bylaw Committee Chair): Testified the committee’s intent was to apply the new limits to sitting directors and there was no discussion of “grandfathering” anyone.
Bryan Patterson (Current President): Testified that the membership voted for two two-year terms “and that’s it.”
Sutell’s 2022 Newsletter: Presented as a direct admission from the former president that the four-year limit applied to him based on his service from 2018-2022.
Drafting Logic: The “Commencing with…” clause is a standard legal provision to prevent a new rule from invalidating a board member’s current term, not to erase their entire service history.

Central Dispute: Alleged Open Meeting Law Violation

The second major issue concerned the board’s decision-making process. On October 11, 2024, the board held a closed executive session where it voted 5-4 to accept the legal opinion of its counsel (CHDB Law) and disqualify Ms. Maiden from the ballot.

Competing Arguments

Position

Argument Summary

Key Evidence and Testimony

Petitioner’s Argument (Violation of A.R.S. § 33-1804(A))

The vote to disqualify a candidate was a final, binding decision that must be made in an open meeting. The closed session was not justified under the narrow exceptions of the statute.

Improper Notice: The meeting notice cited the incorrect statute (for condominiums, not planned communities) and was not properly distributed to all board members.
Lack of Statutory Justification: No attorney was present at the meeting, and there was no pending litigation at that specific moment. The agenda item was to “accept opinion,” not simply “receive advice.”

Respondent’s Argument (Compliance with Law)

The executive session was permissible under A.R.S. § 33-1804(A)(1), which allows closed meetings for the “consideration of… Legal advice from an attorney for the board or the association” and matters concerning “pending or contemplated litigation.”

Contemplated Litigation: Testimony indicated that Ms. Maiden had threatened to file an ADR complaint or lawsuit.
Consideration of Legal Advice: The board was reviewing three separate legal opinions regarding Ms. Maiden’s eligibility.
Petitioner’s Participation: Ms. Maiden was present at the meeting, participated in the vote, and did not object to the session being held in private at that time.

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Administrative Law Judge’s Decision and Rationale

The ALJ denied Ms. Maiden’s petition on both counts, finding that she failed to meet her burden of proof by a preponderance of the evidence.

Ruling on the Open Meeting Law

The ALJ concluded that the board did not violate A.R.S. § 33-1804(A).

Key Rationale: The evidence demonstrated that the board met in executive session “to consider a legal opinion regarding the 2021 Amendment.” This action falls squarely within the statutory exception outlined in A.R.S. § 33-1804(A)(1).

On Disclosure: The statute permits, but does not require, the board to disclose information from such a session after a “final resolution.” As the matter was still being litigated, no final resolution had been reached.

Ruling on the Bylaw Violation

The ALJ concluded that the petitioner failed to establish that the respondent violated Article IV of its bylaws.

Key Rationale: The judge focused on the underlying purpose of the 2021 amendment, which testimony from both sides confirmed was to “prevent Board members from serving for long periods of time.”

Rejection of Petitioner’s Interpretation: The decision noted that the petitioner, along with her witnesses, admitted that their interpretation “would have allowed the then-sitting Board Members the right to serve 6, 8, and potentially 10-year term limits.” The ALJ found this outcome would be contrary to the amendment’s purpose.

Jurisdictional Note: The decision explicitly stated that the “issue of selective enforcement is not within the jurisdiction of the tribunal.” The ruling was based on the interpretation of the bylaw’s text and intent, not on whether it was applied unevenly.

Final Order

“IT IS ORDERED that Petitioners’ petition is denied because she has not established that Respondent’s Board violated A.R.S. § 33-1804 or Article IV, Sections 2 and 3 of the Bylaws.”






Study Guide – 25F-H030-REL


Administrative Hearing Study Guide: Maiden v. Val Vista Lakes Community Association

Short-Answer Quiz

Answer each of the following questions in 2-3 sentences, based on the provided source context.

1. What were the two primary legal issues Sharon Maiden raised in her petition against the Val Vista Lakes Community Association?

2. What was the key phrase in the 2021 bylaws that became the central point of interpretive conflict regarding term limits?

3. According to the hearing testimony, what were the main purposes of the 2021 bylaw committee’s rewrite of the association’s bylaws?

4. Explain the Respondent’s justification for holding a closed executive session on October 11, 2024, to decide on Sharon Maiden’s eligibility.

5. How did the legal opinions from the Goodman Law Group (Ashley Turner) and Krupnik & Spees (Adrien Speed) support the Petitioner’s case?

6. Describe the key piece of evidence the Respondent used involving former board president William (Bill) Sutell to argue against a prospective interpretation of the term limits.

7. What decision did the Board of Directors make during the October 11, 2024, executive session, and what was the final vote count?

8. What procedural issue did Petitioner Douglas Keats identify with the notice for the October 11, 2024, executive session?

9. According to witness Jill Brown, what was the general intent of the bylaw committee and community members regarding the length of board service?

10. What were the final conclusions of the Administrative Law Judge in the June 2, 2025, decision?

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Answer Key

1. Petitioner Sharon Maiden alleged that the Respondent (1) selectively enforced the Bylaws in violation of Article IV, Sections 2 and 3, and (2) failed to hold an open meeting when it decided to disqualify her from running for the Board, in violation of Arizona Revised Statutes (A.R.S.) § 33-1804(A).

2. The central point of conflict was the phrase in Article IV, Section 2: “Commencing with the first Annual Meeting after the adoption of these Amended and Restated Bylaws, Directors will be subject to term limits…” The Petitioner argued this indicated a prospective “reset,” while the Respondent argued it did not erase prior service.

3. Testimony from witnesses like Douglas Keats and William Sutell indicated the rewrite was intended to address multiple issues, not just term limits. Key purposes included establishing secret ballots, eliminating the nominating committee which was seen as counter to the CCNRs, and creating a formal procedure for replacing board members based on vote counts rather than board appointments.

4. The Respondent justified the closed session under A.R.S. § 33-1804(A)(1), which allows for closed meetings to consider legal advice from an attorney. The board was discussing three separate legal opinions regarding Ms. Maiden’s eligibility and also noted that Ms. Maiden had contemplated legal action against the association.

5. The Petitioner argued that these opinions demonstrated a consistent historical interpretation by the association’s own general counsels. Both opinions stated that the term limit language in the 2012 and 2021 bylaws should be interpreted prospectively, meaning terms served prior to the adoption of the new bylaws did not count toward the new limits.

6. The Respondent heavily relied on a November 2022 newsletter message from then-president Bill Sutell. In it, Mr. Sutell stated, “This will be my last president’s message to the community as my term limit of four years is up,” which the Respondent argued was an admission that the term limits were not reset by the 2021 bylaw amendment.

7. The Board of Directors voted to accept the opinion of CHDB Law LLP regarding term limits, which effectively disqualified Sharon Maiden from running in the 2024 election. The motion passed with a vote of 5 to 4.

8. Douglas Keats testified that the email notice for the executive session was not sent to him or two other board members (Christine Rucker and Curtis Weile) at their correct addresses, while it was sent to a former board member. He also noted the notice cited an incorrect statute (A.R.S. § 33-1248 for condominiums) instead of the one for planned communities.

9. Jill Brown, who chaired the bylaw committee, testified that the general consensus of the committee and community members was that they did not want directors serving for long periods. The intent was to shorten the available terms to encourage turnover and prevent directors from serving for “excessive amounts of time.”

10. The Administrative Law Judge denied Sharon Maiden’s petition. The Judge concluded that the Respondent did not violate A.R.S. § 33-1804(A) because the closed meeting to consider legal advice was permissible. Furthermore, the Judge found Maiden failed to prove a violation of the bylaws, stating the purpose of the 2021 amendment was to prevent long service periods, and deemed the issue of selective enforcement to be outside the tribunal’s jurisdiction.

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Essay Questions

Construct detailed responses to the following prompts, synthesizing evidence and arguments from across the source documents. Do not provide answers.

1. Analyze the legal arguments presented by both the Petitioner and Respondent regarding the proper interpretation of A.R.S. § 33-1804 (Arizona’s open meeting law). Discuss the specific actions taken by the board and how each party framed those actions in the context of the statute’s exceptions for closed sessions.

2. Compare and contrast the testimonies of William Sutell and Douglas Keats with that of Jill Brown. How did their recollections and interpretations of the bylaw committee’s intent differ, particularly concerning whether the new term limits should apply prospectively or retroactively to sitting board members?

3. Trace the evolution of the Val Vista Lakes Community Association’s bylaws regarding term limits from 2012 to 2021. Evaluate the arguments concerning “long-standing practice” and “selective enforcement,” referencing the specific cases of board members Cheryl McCoy, William Sutell, and Sharon Maiden.

4. Examine the role of conflicting legal advice in this dispute. Discuss the different opinions offered by the Goodman Law Group, Krupnik & Spees, and CHDB Law LLP, and analyze how the Board of Directors chose to navigate these contradictory recommendations.

5. The Administrative Law Judge’s final decision states that the “issue of selective enforcement is not within the jurisdiction of the tribunal.” Based on the testimony and arguments presented, construct an argument that Sharon Maiden might have made regarding selective enforcement, and explain why the Respondent would have refuted it.

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Glossary of Key Terms and Entities

Term / Entity

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings. In this case, Kay A. Abramsohn and Velva Moses-Thompson served as ALJs.

Arizona Department of Real Estate (Department)

The state agency authorized to receive and decide on petitions from members of homeowners’ associations. It referred this case to the OAH.

Arizona Revised Statutes (A.R.S.)

The codified laws of the state of Arizona. Key statutes in this case include § 33-1804(A) and § 32-2199.

A.R.S. § 33-1804(A)

The Arizona statute concerning open meeting laws for planned community associations. It mandates that meetings be open to members but provides specific, limited exceptions for closed (executive) sessions, such as to discuss legal advice.

Bolen, Josh

An attorney with CHDB Law LLP who served as counsel for the Respondent, Val Vista Lakes Community Association.

Brown, Jill

A witness for the Respondent. She served as the chair of the 2021 bylaw committee and was a current board member at the time of the hearing.

Bylaw Committee

A committee established by the board in 2021 to review and recommend changes to the association’s bylaws. Its members included Jill Brown, William Sutell, and Douglas Keats.

Carpenter Hazelwood (CHDB LAW LLP)

The law firm that represented the Respondent. The Petitioner filed an unsuccessful motion to disqualify the firm.

Covenants, Conditions, and Restrictions. The governing documents for the community. The 2021 bylaw committee sought to address bylaw provisions that were counter to the CCNRs, such as the nominating committee.

Commencing with…

The key phrase in Article IV, Section 2 of the bylaws that was central to the dispute. The Petitioner argued it signaled a prospective application of term limits, while the Respondent disagreed.

Executive Session

A closed meeting of the Board of Directors, permitted under A.R.S. § 33-1804(A) for specific purposes, such as discussing legal advice or pending litigation.

Keats, Douglas

A witness for the Petitioner. He was a former board member who served as secretary of the 2021 bylaw committee.

Maiden, Sharon M.

The Petitioner in the case, a homeowner in Val Vista Lakes and a former member of its Board of Directors who was disqualified from running for a third consecutive term.

Office of Administrative Hearings (OAH / Tribunal)

The independent state agency that conducted the administrative hearing for this case after referral from the Department of Real Estate.

Patterson, Bryan

A witness for the Respondent. He was the HOA President at the time of the hearing and was Vice President when the vote to disqualify the Petitioner occurred.

Petitioner

The party who files a petition initiating a legal action. In this case, Sharon M. Maiden.

Preponderance of the Evidence

The standard of proof in this administrative hearing, defined as evidence that is more likely true than not. The ALJ found the Petitioner failed to meet this burden.

Prospective Interpretation

The argument that a new rule or law applies only “going forward” from its effective date and does not consider service or actions that occurred prior to that date. This was the Petitioner’s central argument.

Respondent

The party against whom a petition is filed. In this case, Val Vista Lakes Community Association.

Retroactive Interpretation

The argument that a new rule or law applies to past events, meaning prior service on the board would count against the newly established term limits. This was the Respondent’s position.

Sutell, William (Bill)

A witness for the Petitioner. He is an attorney, a former board president, and served on the 2021 bylaw committee.

Val Vista Lakes Community Association

The Respondent in the case; a homeowners’ association (HOA) in Gilbert, Arizona.






Blog Post – 25F-H030-REL


5 Surprising Lessons from an HOA War Over a Single Sentence

Introduction: The Butterfly Effect of Bylaws

For many homeowners, the rules set by their homeowners’ association (HOA) can feel arbitrary, buried in dense legal documents. But the precise wording of those governing documents has massive, unforeseen consequences—a legal butterfly effect where a minor change creates a major storm. This dynamic was on full display in the case of Sharon Maiden vs. Val Vista Lakes Community Association, where one seemingly simple sentence sparked a complex, year-long legal dispute.

The case offers a masterclass in the tension between the technical reading of a text versus its clear, underlying intent. It provides surprising insights into law, community governance, and human nature. Here are five key lessons from this HOA war over a single sentence.

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1. One Sentence, Two Meanings, and a Mountain of Legal Bills

A 2021 bylaw amendment, designed to reduce board member term limits, lit the fuse for the central conflict. The entire dispute hinged on the interpretation of one introductory phrase, demonstrating just how much can ride on a few words.

The critical sentence from Article IV, Section 2 of the 2021 Bylaws reads:

“Commencing with the first Annual Meeting after the adoption of these Amended and Restated Bylaws, Directors will be subject to term limits as follows.”

This single sentence gave rise to two completely opposite interpretations:

The “Reset” Theory (Petitioner’s view): Proponents argued this language meant the term limit clock reset for all sitting board members. Under this view, their prior years of service didn’t count toward the new, shorter limit. This interpretation seemed solid, even supported by a formal legal opinion from the association’s previous general counsel, attorney Adrien Spees.

The “Look-Back” Theory (Respondent’s view): The association argued the phrase was merely a legal formality to prevent sitting members from being disqualified mid-term. They contended that a board member’s prior service absolutely still counted toward the new limit.

The fact that this ambiguity was enough to fuel a formal administrative hearing shows the high stakes of precise legal drafting. What’s truly surprising is how a standard legal phrase like “Commencing with…” could be interpreted so diametrically as to potentially erase years of board service from the term-limit calculation.

2. The Architect of the Rule Became Its Most Complicated Case

One of the most fascinating aspects of the case involved the testimony of Bill Sutell, the former Board President. Mr. Sutell was in charge when the 2021 bylaw changes were drafted and approved, and he testified in support of the “reset” theory, which would have allowed him and other members to serve longer.

However, the strongest piece of evidence used against his position came from his own hand. In a 2022 newsletter to the community, Mr. Sutell had written:

“This will be my last president’s message to the community as my term limit of four years is up.”

When questioned, he explained the statement was “ineloquent.” He testified he was tired and had a “self-imposed term limit” because he “didn’t want to be a career board member.” This created a paradox where the rule’s architect argued for one interpretation in court while his own public statement seemed to support the opposing view. As community governance analysts, we see a crucial lesson here: for HOA volunteers, informal communications like a newsletter can be scrutinized with the same intensity as a legal document—a trap many well-meaning leaders are unprepared for.

3. Why a “Correct” Interpretation Can Still Be Wrong

The petitioner’s side came to the hearing with what seemed like very strong evidence. They had testimony about the bylaw committee’s intent and presented a formal legal opinion from attorney Adrien Spees that appeared to settle the matter:

“This amendment is prospective not retroactive. The Term limits only apply to directors elected beginning the first annual meeting following November 9th, 2021. Thus, a director who has served for several years before November 9th, 2021 will still be eligible to serve two consecutive terms after November 9th, 2021.”

This seems clear-cut. However, the argument that ultimately won focused not on what the words said, but on what they would do. The fatal blow to the “reset” theory came not from the respondent’s lawyers, but from the petitioner’s own key witnesses. During testimony, both Sutell and another witness, Douglas Keats, admitted that their interpretation would create a massive loophole, allowing sitting board members “the right to serve 6, 8, and potentially 10-year term limits.” This admission was critical. The Administrative Law Judge rejected an interpretation—even one supported by a legal opinion—because it led to an “absurd result” that directly contradicted the stated purpose of the rule, which was to shorten term limits, not accidentally lengthen them for a select few.

4. The Peril of a Closed-Door Meeting

The second major issue was the claim that the board violated Arizona’s open meeting laws. The vote to disqualify Sharon Maiden from the 2024 ballot was not taken in public. Instead, it happened during a closed executive session while she, a sitting board member, was present.

The board justified the closed-door meeting by stating they were discussing legal advice and contemplated litigation, a valid exception under A.R.S. § 33-1804. However, the ALJ’s final decision highlighted a crucial detail:

“Petitioner was a member of the Board at the time of the meeting and did not object to the Board voting on whether Article IV, Section 2 of Respondent’s Bylaws permitted Petitioner to run for the board…”

This offers a stark lesson. A person’s failure to object to a process in the moment can significantly weaken their ability to challenge it later. It’s easy to see why someone might stay silent: they may be intimidated, unsure of the rules, or simply not realize the procedural gravity of their silence. This surprising takeaway underscores that understanding the rules of order as they are happening is critical, because silence can be interpreted as consent.

5. The “Why” Trumped the “What”

The story concluded when the Administrative Law Judge denied the petitioner’s case on both counts. In the face of ambiguous text and competing legal opinions, the judge focused on the fundamental purpose of the 2021 bylaw amendment. The final decision stated:

“…the preponderance of the evidence presented at hearing shows that the purpose of the 2021 amendment was to prevent Board members for serving on the Board for long periods of time.”

In this legal gray area, the underlying intent—the “why” behind the rule—proved more powerful than the technical arguments about the “what.” The judge determined that an interpretation creating 10-year term limits could not possibly align with the members’ vote to prevent people from serving for long periods. The surprising lesson is that even when the text is debatable, the spirit of a rule can become the most decisive factor in its application.

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Conclusion: Are You Sure You Know What Your Rules Mean?

The Val Vista Lakes case is a powerful reminder that the words in bylaws are not just suggestions; they have real-world power to shape communities, define rights, and launch costly legal battles. Bylaws are “living documents” in the sense that they have a daily impact, but they are dangerously “dead documents” if members don’t understand them. The consequences are not just financial. At the hearing, former president Bill Sutell gave a poignant final statement explaining his departure from the community he had worked so hard to serve: “I sold my home that this was more than I needed in my retirement.”

This case is a cautionary tale about the human cost of ambiguity. It leaves every HOA member with a final, thought-provoking challenge: When was the last time you read your community’s governing documents, and are you willing to actively question ambiguity and push for clarity before a conflict arises?


Case Participants

Petitioner Side

  • Sharon M. Maiden (petitioner)
    Val Vista Lakes Community Association
    Former board member/candidate
  • William Sutel (witness)
    Val Vista Lakes Community Association
    Former board president; bylaw committee member
  • Douglas Keats (witness)
    Val Vista Lakes Community Association
    Board member; bylaw committee member; requested subpoena for him
  • Jeremy Whitaker (petitioner)
    Val Vista Lakes Community Association
    Filed ADR complaint

Respondent Side

  • Josh Bolen (HOA attorney)
    CHDB Law LLP
    Counsel for Val Vista Lakes Community Association; requested subpoena for him
  • Jill Brown (board member)
    Val Vista Lakes Community Association
    Bylaw committee chair; respondent witness
  • Bryan Patterson (board president)
    Val Vista Lakes Community Association
    Respondent witness; Also listed as subpoenaed witness
  • Chuck Oldham (HOA attorney)
    CHDB Law LLP
  • Mel McDonald (board president)
    Val Vista Lakes Community Association
    Requested subpoena; board member
  • Vicki Goslin (attorney staff)
    CHDB Law LLP

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    OAH
  • Susan Nicolson (Commissioner)
    ADRE
  • Kay A. Abramsohn (ALJ)
    OAH
  • Ashley Turner (attorney)
    Goodman Law Group
    Wrote 2016 legal opinion; Also listed as subpoenaed witness
  • Jessica Misto (attorney)
    Provided legal review/opinion
  • Adrienne Speed (attorney)
    Cartik and Speed
    General counsel who wrote 2023 opinion

Other Participants

  • Diana Ebertshauser (witness)
    Requested subpoena; candidate
  • Brodie Hurtado (witness)
    Requested subpoena; candidate
  • Timothy Hedrick (witness)
    Requested subpoena
  • Christine Rucker (board member)
    Val Vista Lakes Community Association
    Requested subpoena
  • Curtis Weile (board member)
    Val Vista Lakes Community Association
    Requested subpoena
  • Cheryl McCoy (former board president)
    Val Vista Lakes Community Association
  • Brian Solomon (former board member)
    Val Vista Lakes Community Association
  • Dustin Snow (former director)
    Val Vista Lakes Community Association
  • Wendy Rhodess (bylaw committee member)
    Val Vista Lakes Community Association
  • Jonathan Everhouser (attorney)
    CHDB Law LLP
    Bylaw committee member
  • Laura Henry (property manager)
    First Service Residential
    General Manager
  • Leslie Johnson (former director)
    Val Vista Lakes Community Association
  • John Walls (former board member)
    Val Vista Lakes Community Association
    Community member

Keystone Owners Association V. Bernadette M. Bennett

Case Summary

Case ID 24F-H031-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-12-09
Administrative Law Judge Velva Moses-Thompson
Outcome full
Filing Fees Refunded $1,500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Keystone Owners Association Counsel Erica L. Mortenson
Respondent Bernadette M. Bennett Counsel Thomas A. Walcott

Alleged Violations

Mountain Park Association CC&Rs Art. IV, Sec. 2; Keystone CC&Rs Art. V, Sec. 5.19; Rules (35% Frontage Limit)

Outcome Summary

The Petitioner (HOA) prevailed. The Respondent (Homeowner) was found in violation of Governing Documents for installing an unapproved driveway extension that exceeded 35% of the total yard frontage area. Respondent was ordered to pay the Petitioner the $1,500.00 filing fee and comply with all Governing Documents henceforth. No civil penalty was levied.

Why this result: Respondent failed to obtain prior written approval for the driveway alteration and failed to prove the affirmative defense of laches.

Key Issues & Findings

Unauthorized Driveway Extension Exceeding 35% of Total Yard Frontage Area

Petitioner alleged Respondent violated CC&Rs by installing a driveway extension exceeding 35% of the total yard frontage area without prior written approval. The ALJ found by a preponderance of the evidence that the violation occurred and the Respondent failed to establish the affirmative defense of laches.

Orders: Respondent ordered to pay Petitioner $1,500.00 for the filing fee and comply henceforth with the Governing Documents.

Filing fee: $1,500.00, Fee refunded: No

Disposition: petitioner_win

Cited:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • A.R.S. § 32-2199.02
  • A.R.S. § 41-1092.09
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Westburne Supply, Inc. v. Diversified Design and Construction, Inc., 170 Ariz. 598, 600, 826 P.2d 1224, 1226 (Ct. App. 1992)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
  • Flynn v. Rogers, 172 Ariz. 62 (1992)

Analytics Highlights

Topics: HOA, ARC, Driveway, Frontage Area, CC&Rs, Laches
Additional Citations:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • A.R.S. § 32-2199.02
  • A.R.S. § 41-1092.09
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Westburne Supply, Inc. v. Diversified Design and Construction, Inc., 170 Ariz. 598, 600, 826 P.2d 1224, 1226 (Ct. App. 1992)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
  • Flynn v. Rogers, 172 Ariz. 62 (1992)

Video Overview

Audio Overview

Decision Documents

24F-H031-REL Decision – 1159036.pdf

Uploaded 2026-01-23T18:04:53 (52.8 KB)

24F-H031-REL Decision – 1180542.pdf

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24F-H031-REL Decision – 1180545.pdf

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24F-H031-REL Decision – 1198622.pdf

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24F-H031-REL Decision – 1198623.pdf

Uploaded 2026-01-23T18:05:09 (7.6 KB)

24F-H031-REL Decision – 1225107.pdf

Uploaded 2026-01-23T18:05:13 (52.6 KB)

24F-H031-REL Decision – 1227639.pdf

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24F-H031-REL Decision – 1227642.pdf

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24F-H031-REL Decision – 1230660.pdf

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24F-H031-REL Decision – 1241815.pdf

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24F-H031-REL Decision – 1250037.pdf

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Questions

Question

Can a sub-association enforce the rules and CC&Rs of the master association?

Short Answer

Yes, if the master association has assigned those enforcement rights to the sub-association.

Detailed Answer

A sub-association (like a specific neighborhood HOA within a larger master planned community) generally enforces its own documents. However, this decision clarifies that a sub-association may be authorized to enforce the master association's governing documents if there is a specific assignment agreement executing that transfer of authority.

Alj Quote

The Governing Documents authorize Petitioner to enforce the Governing Documents, as further memorialized by an executed Assignment Agreement by and between Mountain Park Association and Keystone Owners Association signed on August 16, 2023.

Legal Basis

Assignment Agreement / Governing Documents

Topic Tags

  • jurisdiction
  • sub-associations
  • master association
  • enforcement authority

Question

If I extend my driveway without approval, does the HOA have to prove I didn't get permission, or do I have to prove I did?

Short Answer

The absence of written evidence granting approval can be used to establish a violation.

Detailed Answer

While the HOA bears the initial burden of proof for the violation, the lack of testimonial or written evidence showing that the homeowner received approval helps establish that the modification was unauthorized.

Alj Quote

However, there was no testimonial or written evidence presented to establish that Respondent was granted approval to install a driveway that exceeded 35% of the total yard frontage area.

Legal Basis

Burden of Proof

Topic Tags

  • architectural approval
  • evidence
  • driveways
  • modifications

Question

What is the 'burden of proof' for an HOA to win a violation hearing?

Short Answer

The HOA must prove the violation by a 'preponderance of the evidence'.

Detailed Answer

The HOA does not need to prove a violation 'beyond a reasonable doubt' (the criminal standard). They must only show that their contention is 'more probably true than not' or carries superior evidentiary weight.

Alj Quote

Petitioner bears the burden of proof to establish that Respondent violated CC&R § 7.9 by a preponderance of the evidence… 'A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.'

Legal Basis

A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A)

Topic Tags

  • legal standards
  • evidence
  • hearing procedures

Question

Can I use the defense that the HOA waited too long to enforce the rule (laches)?

Short Answer

Yes, but you bear the burden of proving that the delay was unreasonable and caused you prejudice.

Detailed Answer

Laches is an affirmative defense. It is not enough to simply show a delay; the homeowner must prove by a preponderance of the evidence that the delay was unreasonable and that it resulted in sufficient prejudice to deny the HOA's relief.

Alj Quote

Laches is an affirmative defense, and Respondent bears the burden of establishing the defense by a preponderance of the evidence… Respondent has not established by a preponderance of the evidence that there was unreasonable delay that has resulted in prejudice to Respondent sufficient to deny the relief Petitioner seeks…

Legal Basis

A.C.C. R2-19-119(B)(2); Flynn v. Rogers

Topic Tags

  • defenses
  • laches
  • enforcement delay

Question

If I lose the hearing, can the judge make me pay the HOA's filing fees?

Short Answer

Yes, the Administrative Law Judge can order the losing homeowner to reimburse the HOA's filing fee.

Detailed Answer

In this decision, the judge ordered the Respondent (homeowner) to pay the Petitioner's (HOA) filing fee of $1,500.00 directly to the Petitioner within 30 days.

Alj Quote

IT IS FURTHER ORDERED that Respondent pay Petitioner its filing fee of $1,500.00, to be paid directly to Petitioner within thirty (30) days of this Order.

Legal Basis

Administrative Order

Topic Tags

  • fees
  • costs
  • penalties

Question

How do judges interpret the meaning of restrictive covenants (CC&Rs)?

Short Answer

They are interpreted as a whole, looking at the underlying purpose of the document.

Detailed Answer

Legal interpretation does not isolate single phrases but looks at the document in its entirety to understand the intent of the parties and the purpose of the restrictions.

Alj Quote

Restrictive covenants must be construed as a whole and interpreted in view of their underlying purposes, giving effect to all provisions contained therein.

Legal Basis

Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs.

Topic Tags

  • legal interpretation
  • CC&Rs
  • covenants

Question

Can the judge issue a civil penalty (fine) in addition to ordering me to fix the violation?

Short Answer

Yes, the judge has the authority to levy a civil penalty, though they may choose not to.

Detailed Answer

Under Arizona statute A.R.S. § 32-2199.02, the administrative law judge has the discretion to order compliance and also levy a civil penalty for each violation. In this specific case, the judge found no civil penalty was appropriate, but the authority exists.

Alj Quote

The administrative law judge may order any party to abide by the statute, condominium documents, community documents or contract provision at issue and may levy a civil penalty on the basis of each violation.

Legal Basis

A.R.S. § 32-2199.02

Topic Tags

  • civil penalties
  • fines
  • statutory authority

Case

Docket No
24F-H031-REL
Case Title
Keystone Owners Association vs. Bernadette M. Bennett
Decision Date
2024-12-09
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Questions

Question

Can a sub-association enforce the rules and CC&Rs of the master association?

Short Answer

Yes, if the master association has assigned those enforcement rights to the sub-association.

Detailed Answer

A sub-association (like a specific neighborhood HOA within a larger master planned community) generally enforces its own documents. However, this decision clarifies that a sub-association may be authorized to enforce the master association's governing documents if there is a specific assignment agreement executing that transfer of authority.

Alj Quote

The Governing Documents authorize Petitioner to enforce the Governing Documents, as further memorialized by an executed Assignment Agreement by and between Mountain Park Association and Keystone Owners Association signed on August 16, 2023.

Legal Basis

Assignment Agreement / Governing Documents

Topic Tags

  • jurisdiction
  • sub-associations
  • master association
  • enforcement authority

Question

If I extend my driveway without approval, does the HOA have to prove I didn't get permission, or do I have to prove I did?

Short Answer

The absence of written evidence granting approval can be used to establish a violation.

Detailed Answer

While the HOA bears the initial burden of proof for the violation, the lack of testimonial or written evidence showing that the homeowner received approval helps establish that the modification was unauthorized.

Alj Quote

However, there was no testimonial or written evidence presented to establish that Respondent was granted approval to install a driveway that exceeded 35% of the total yard frontage area.

Legal Basis

Burden of Proof

Topic Tags

  • architectural approval
  • evidence
  • driveways
  • modifications

Question

What is the 'burden of proof' for an HOA to win a violation hearing?

Short Answer

The HOA must prove the violation by a 'preponderance of the evidence'.

Detailed Answer

The HOA does not need to prove a violation 'beyond a reasonable doubt' (the criminal standard). They must only show that their contention is 'more probably true than not' or carries superior evidentiary weight.

Alj Quote

Petitioner bears the burden of proof to establish that Respondent violated CC&R § 7.9 by a preponderance of the evidence… 'A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.'

Legal Basis

A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A)

Topic Tags

  • legal standards
  • evidence
  • hearing procedures

Question

Can I use the defense that the HOA waited too long to enforce the rule (laches)?

Short Answer

Yes, but you bear the burden of proving that the delay was unreasonable and caused you prejudice.

Detailed Answer

Laches is an affirmative defense. It is not enough to simply show a delay; the homeowner must prove by a preponderance of the evidence that the delay was unreasonable and that it resulted in sufficient prejudice to deny the HOA's relief.

Alj Quote

Laches is an affirmative defense, and Respondent bears the burden of establishing the defense by a preponderance of the evidence… Respondent has not established by a preponderance of the evidence that there was unreasonable delay that has resulted in prejudice to Respondent sufficient to deny the relief Petitioner seeks…

Legal Basis

A.C.C. R2-19-119(B)(2); Flynn v. Rogers

Topic Tags

  • defenses
  • laches
  • enforcement delay

Question

If I lose the hearing, can the judge make me pay the HOA's filing fees?

Short Answer

Yes, the Administrative Law Judge can order the losing homeowner to reimburse the HOA's filing fee.

Detailed Answer

In this decision, the judge ordered the Respondent (homeowner) to pay the Petitioner's (HOA) filing fee of $1,500.00 directly to the Petitioner within 30 days.

Alj Quote

IT IS FURTHER ORDERED that Respondent pay Petitioner its filing fee of $1,500.00, to be paid directly to Petitioner within thirty (30) days of this Order.

Legal Basis

Administrative Order

Topic Tags

  • fees
  • costs
  • penalties

Question

How do judges interpret the meaning of restrictive covenants (CC&Rs)?

Short Answer

They are interpreted as a whole, looking at the underlying purpose of the document.

Detailed Answer

Legal interpretation does not isolate single phrases but looks at the document in its entirety to understand the intent of the parties and the purpose of the restrictions.

Alj Quote

Restrictive covenants must be construed as a whole and interpreted in view of their underlying purposes, giving effect to all provisions contained therein.

Legal Basis

Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs.

Topic Tags

  • legal interpretation
  • CC&Rs
  • covenants

Question

Can the judge issue a civil penalty (fine) in addition to ordering me to fix the violation?

Short Answer

Yes, the judge has the authority to levy a civil penalty, though they may choose not to.

Detailed Answer

Under Arizona statute A.R.S. § 32-2199.02, the administrative law judge has the discretion to order compliance and also levy a civil penalty for each violation. In this specific case, the judge found no civil penalty was appropriate, but the authority exists.

Alj Quote

The administrative law judge may order any party to abide by the statute, condominium documents, community documents or contract provision at issue and may levy a civil penalty on the basis of each violation.

Legal Basis

A.R.S. § 32-2199.02

Topic Tags

  • civil penalties
  • fines
  • statutory authority

Case

Docket No
24F-H031-REL
Case Title
Keystone Owners Association vs. Bernadette M. Bennett
Decision Date
2024-12-09
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Erica L. Mortenson (attorney)
    Goodman Law Group
    HOA attorney
  • Harry Whitel (board member/witness)
    Keystone Owners Association
    Secretary of the Board
  • Tim Seyfarth (board member/president)
    Keystone Owners Association
    Board President
  • Glenn Steinman (board member)
    Keystone Owners Association
    Board Vice President
  • Debbie Burch (board member)
    Keystone Owners Association
    Board Treasurer
  • Cherry Collins (board member)
    Keystone Owners Association
    Member at large; Architectural Advisory Committee member
  • Joe Getti (ARC member/former board member)
    Keystone Owners Association
    Architectural Advisory Committee member
  • Mary Hamilton (ARC member)
    Keystone Owners Association
    Architectural Advisory Committee member
  • Dan (attorney/staff)
    Goodman Law Group

Respondent Side

  • Bernadette M. Bennett (respondent)
    Lot Owner
  • Thomas A. Walcott (attorney)
    Provident Lawyers
    Respondent attorney
  • Noah Alvarado (staff)
    Staff/assistant for Respondent's Counsel
  • Christopher J. Charles (attorney/staff)
    Provident Lawyers

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    OAH
    Administrative Law Judge
  • Amy Haley (ALJ)
    OAH
    Administrative Law Judge (prior to VMT)
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • Isabella (property manager)
    Vision Management
    Keystone Property Manager who was asked for documents
  • Annette Wthbon (property management agent)
    City Management
    Former Property Management Agent
  • Carla Garvin (property management agent)
    City Management
    Former Property Management Agent

Anthony Payson v. The Foothills Homeowners Association #1

Case Summary

Case ID 23F-H041-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-05-01
Administrative Law Judge Velva Moses-Thompson
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Anthony Payson Counsel
Respondent The Foothills Homeowners Association #1 Counsel Sean K. Mohnihan

Alleged Violations

CC&R Section 5.4

Outcome Summary

The petition was dismissed after the Administrative Law Judge concluded that the Respondent HOA did not violate CC&R Section 5.4, finding that this section applies to use restrictions on individual Lots and Members, not the Association itself.

Why this result: The ALJ found that Petitioner failed to meet the burden of proof to establish the Respondent HOA violated CC&R Section 5.4 because the HOA does not own or operate the nuisance-causing television, and the CC&R section governs restrictions on lot Owners/Members, not the Association. OAH jurisdiction is limited to finding the governing document or statute violated by the respondent.

Key Issues & Findings

HOA's alleged failure to enforce nuisance provision (CC&R Section 5.4) regarding neighbor's outdoor television.

Petitioner alleged that the Respondent HOA failed to perform its duty to enforce CC&R Section 5.4 by refusing to seek removal of a neighbor's large, outdoor television that created noise disturbances and was deemed a nuisance.

Orders: The petition is dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. § 32-2199(B)
  • ARIZ. REV. STAT. §32- 2199.02(A)
  • CC&R Section 5.4

Analytics Highlights

Topics: Homeowners Association, CC&R, Nuisance, Enforcement, Jurisdiction, Outdoor TV
Additional Citations:

  • ARIZ. REV. STAT. § 32-2199(B)
  • ARIZ. REV. STAT. §32- 2199.02(A)
  • ARIZ. REV. STAT. § 33-1803
  • ARIZ. REV. STAT. § 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)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)

Video Overview

Audio Overview

https://open.spotify.com/episode/74bT2mijNKJ5SUal3ovDor

Decision Documents

23F-H041-REL Decision – 1047496.pdf

Uploaded 2026-01-23T17:55:58 (57.5 KB)

23F-H041-REL Decision – 1053240.pdf

Uploaded 2026-01-23T17:56:01 (98.4 KB)





Study Guide – 23F-H041-REL


{ “case”: { “docket_no”: “23F-H041-REL”, “case_title”: “In the Matter of Anthony Payson vs The Foothills Homeowners Association #1”, “decision_date”: “2023-05-01”, “alj_name”: “Velva Moses-Thompson”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Can I use the ADRE administrative hearing process to force my HOA to enforce CC&R rules against a neighbor?”, “short_answer”: “Generally no, if the specific rule applies to member conduct rather than Association conduct.”, “detailed_answer”: “The Administrative Law Judge (ALJ) clarified that the dispute process is for determining if the Respondent (the HOA) violated a statute or governing document. If a CC&R provision restricts how a ‘lot’ may be used, a violation of that rule is a breach by the member (the neighbor), not the Association. Therefore, the HOA cannot be found guilty of violating a rule that governs homeowner behavior.”, “alj_quote”: “These provisions refer to what members may and may not do within the Association. Therefore, any breach of this Article would be a breach by a Member, not the Association. Petitioner failed to establish that Respondent violated CC&R Section 5.4.”, “legal_basis”: “CC&R Section 5.4; OAH Jurisdiction”, “topic_tags”: [ “enforcement”, “jurisdiction”, “neighbor disputes” ] }, { “question”: “Does the Office of Administrative Hearings (OAH) have jurisdiction to decide if my HOA was negligent or violated common law duties?”, “short_answer”: “No, the OAH jurisdiction is strictly limited to violations of statutes and governing documents.”, “detailed_answer”: “The tribunal does not have the authority to hear claims based on common law, such as negligence or general failure to perform a duty, unless it is a specific violation of the statutes or the community documents tailored to the Association’s conduct.”, “alj_quote”: “To the extent that Petitioner alleged that Respondent may have violated common law, or any other laws, the OAH lacks jurisdiction to make such a determination.”, “legal_basis”: “ARIZ. REV. STAT. § 32-2199.01”, “topic_tags”: [ “jurisdiction”, “common law”, “negligence” ] }, { “question”: “What remedies or penalties can I request from the administrative judge if I win my case against the HOA?”, “short_answer”: “Relief is limited to a finding of violation, an order to comply, return of filing fees, and civil penalties.”, “detailed_answer”: “The administrative process cannot award damages for things like pain, suffering, or lost property value. The remedies are strictly defined by statute: finding a violation occurred, ordering the HOA to abide by the provision, returning the petitioner’s filing fee, and levying a civil penalty.”, “alj_quote”: “Petitioner’s relief in this venue is limited to e is limited to a finding that the governing document or statute at issue has been violated by the respondent, an order that Respondent abide by the provision in the future, and to have the filing fee returned to the petitioner and a civil penalty levied against Respondent.”, “legal_basis”: “Ariz. Rev. Stat. §32- 2199.02(A)”, “topic_tags”: [ “remedies”, “penalties”, “civil penalty” ] }, { “question”: “Who is responsible for proving that a violation occurred in an HOA dispute hearing?”, “short_answer”: “The Petitioner (the homeowner filing the complaint) bears the burden of proof.”, “detailed_answer”: “The homeowner bringing the case must provide sufficient evidence to prove their claims. It is not the HOA’s job to disprove the claims initially; the burden lies with the person filing the petition.”, “alj_quote”: “Petitioner bears the burden of proof to establish that Respondent violated on its CC&Rs by a preponderance of the evidence.”, “legal_basis”: “A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A)”, “topic_tags”: [ “burden of proof”, “evidence”, “legal standard” ] }, { “question”: “What is the ‘preponderance of the evidence’ standard used in these hearings?”, “short_answer”: “It means the claim is more probable than not to be true.”, “detailed_answer”: “This legal standard requires that the evidence presented must convince the judge that the petitioner’s argument is more likely true than the opposing side’s argument. It is described as the ‘greater weight of the evidence.'”, “alj_quote”: ““A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.””, “legal_basis”: “Morris K. Udall, Arizona Law of Evidence”, “topic_tags”: [ “legal standard”, “definitions”, “evidence” ] }, { “question”: “How are vague or ambiguous rules in the CC&Rs interpreted by the judge?”, “short_answer”: “They are construed to give effect to the intent of the parties and the underlying purpose of the document.”, “detailed_answer”: “When interpreting restrictive covenants, the judge looks at the document as a whole. If the covenant is unambiguous, it is enforced exactly as written to match the intent.”, “alj_quote”: ““Restrictive covenants must be construed as a whole and interpreted in view of their underlying purposes, giving effect to all provisions contained therein.””, “legal_basis”: “Powell v. Washburn, 211 Ariz. 553”, “topic_tags”: [ “interpretation”, “CC&Rs”, “legal principles” ] } ] }






Blog Post – 23F-H041-REL


{ “case”: { “docket_no”: “23F-H041-REL”, “case_title”: “In the Matter of Anthony Payson vs The Foothills Homeowners Association #1”, “decision_date”: “2023-05-01”, “alj_name”: “Velva Moses-Thompson”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Can I use the ADRE administrative hearing process to force my HOA to enforce CC&R rules against a neighbor?”, “short_answer”: “Generally no, if the specific rule applies to member conduct rather than Association conduct.”, “detailed_answer”: “The Administrative Law Judge (ALJ) clarified that the dispute process is for determining if the Respondent (the HOA) violated a statute or governing document. If a CC&R provision restricts how a ‘lot’ may be used, a violation of that rule is a breach by the member (the neighbor), not the Association. Therefore, the HOA cannot be found guilty of violating a rule that governs homeowner behavior.”, “alj_quote”: “These provisions refer to what members may and may not do within the Association. Therefore, any breach of this Article would be a breach by a Member, not the Association. Petitioner failed to establish that Respondent violated CC&R Section 5.4.”, “legal_basis”: “CC&R Section 5.4; OAH Jurisdiction”, “topic_tags”: [ “enforcement”, “jurisdiction”, “neighbor disputes” ] }, { “question”: “Does the Office of Administrative Hearings (OAH) have jurisdiction to decide if my HOA was negligent or violated common law duties?”, “short_answer”: “No, the OAH jurisdiction is strictly limited to violations of statutes and governing documents.”, “detailed_answer”: “The tribunal does not have the authority to hear claims based on common law, such as negligence or general failure to perform a duty, unless it is a specific violation of the statutes or the community documents tailored to the Association’s conduct.”, “alj_quote”: “To the extent that Petitioner alleged that Respondent may have violated common law, or any other laws, the OAH lacks jurisdiction to make such a determination.”, “legal_basis”: “ARIZ. REV. STAT. § 32-2199.01”, “topic_tags”: [ “jurisdiction”, “common law”, “negligence” ] }, { “question”: “What remedies or penalties can I request from the administrative judge if I win my case against the HOA?”, “short_answer”: “Relief is limited to a finding of violation, an order to comply, return of filing fees, and civil penalties.”, “detailed_answer”: “The administrative process cannot award damages for things like pain, suffering, or lost property value. The remedies are strictly defined by statute: finding a violation occurred, ordering the HOA to abide by the provision, returning the petitioner’s filing fee, and levying a civil penalty.”, “alj_quote”: “Petitioner’s relief in this venue is limited to e is limited to a finding that the governing document or statute at issue has been violated by the respondent, an order that Respondent abide by the provision in the future, and to have the filing fee returned to the petitioner and a civil penalty levied against Respondent.”, “legal_basis”: “Ariz. Rev. Stat. §32- 2199.02(A)”, “topic_tags”: [ “remedies”, “penalties”, “civil penalty” ] }, { “question”: “Who is responsible for proving that a violation occurred in an HOA dispute hearing?”, “short_answer”: “The Petitioner (the homeowner filing the complaint) bears the burden of proof.”, “detailed_answer”: “The homeowner bringing the case must provide sufficient evidence to prove their claims. It is not the HOA’s job to disprove the claims initially; the burden lies with the person filing the petition.”, “alj_quote”: “Petitioner bears the burden of proof to establish that Respondent violated on its CC&Rs by a preponderance of the evidence.”, “legal_basis”: “A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A)”, “topic_tags”: [ “burden of proof”, “evidence”, “legal standard” ] }, { “question”: “What is the ‘preponderance of the evidence’ standard used in these hearings?”, “short_answer”: “It means the claim is more probable than not to be true.”, “detailed_answer”: “This legal standard requires that the evidence presented must convince the judge that the petitioner’s argument is more likely true than the opposing side’s argument. It is described as the ‘greater weight of the evidence.'”, “alj_quote”: ““A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.””, “legal_basis”: “Morris K. Udall, Arizona Law of Evidence”, “topic_tags”: [ “legal standard”, “definitions”, “evidence” ] }, { “question”: “How are vague or ambiguous rules in the CC&Rs interpreted by the judge?”, “short_answer”: “They are construed to give effect to the intent of the parties and the underlying purpose of the document.”, “detailed_answer”: “When interpreting restrictive covenants, the judge looks at the document as a whole. If the covenant is unambiguous, it is enforced exactly as written to match the intent.”, “alj_quote”: ““Restrictive covenants must be construed as a whole and interpreted in view of their underlying purposes, giving effect to all provisions contained therein.””, “legal_basis”: “Powell v. Washburn, 211 Ariz. 553”, “topic_tags”: [ “interpretation”, “CC&Rs”, “legal principles” ] } ] }


Case Participants

Petitioner Side

  • Anthony Payson (petitioner)
    Homeowner

Respondent Side

  • Sean K. Mohnihan (HOA attorney)
    Smith & Wamsley, PLLC
    Appeared for Respondent The Foothills Homeowners Association #1
  • Jason E Smith (attorney)
    Smith & Wamsley, PLLC
    Listed with counsel
  • Gabron (board member)
    The Foothills Homeowners Association #1
    Board representative/potential witness
  • Linda Armo (board member)
    The Foothills Homeowners Association #1
    Board representative/potential witness
  • Philip Brown (former HOA attorney)
    Previously represented the HOA; wrote a letter to Petitioner

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    OAH
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • Barry Callahan (neighbor)
    Alleged violator of CC&Rs, neighbor to Petitioner

Sam & Pipper O’ Shaughnessy Stangl v. Sabino Vista Townhouse

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

Case Summary

Case ID 22F-H2221009-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2022-04-25
Administrative Law Judge Velva Moses-Thompson
Outcome full
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Sam & Pipper O' Shaughnessy Stangl Counsel
Respondent Sabino Vista Townhouse Association Counsel Nathan Tennyson

Alleged Violations

Article VI of the CC&Rs

Outcome Summary

The Administrative Law Judge deemed Petitioners the prevailing party. Respondent HOA violated Article VI of the CC&Rs by failing to maintain and remove rubbish from the natural desert area within the Common Area up to the exterior building lines, as the Board's determination not to maintain the area lacked proper authority without a CC&R amendment. The Respondent was ordered to comply with the CC&Rs and refund the Petitioners' filing fee.

Key Issues & Findings

HOA maintenance obligations for common area up to exterior building lines

Petitioners alleged the HOA failed to maintain and otherwise manage all property up to the exterior building lines and patio enclosures, specifically a natural desert area within the Common Area. The ALJ found that the CC&Rs require the Association to maintain and remove all rubbish within its property up to the exterior building lines, and the Board lacked the authority to refuse maintenance of the natural desert area without amending the CC&Rs.

Orders: Respondent is ordered to comply with the requirements of Article VI of the CC&Rs going forward and must pay Petitioners their filing fee of $500.00 within thirty (30) days.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • Article VI of the CC&Rs
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Analytics Highlights

Topics: HOA Maintenance, CC&R Interpretation, Common Area Maintenance, Filing Fee Refund, Prevailing Party
Additional Citations:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • 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)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Video Overview

Audio Overview

Decision Documents

22F-H2221009-REL-RHG Decision – 959583.pdf

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22F-H2221009-REL-RHG Decision – 964651.pdf

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22F-H2221009-REL-RHG Decision – 964655.pdf

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22F-H2221009-REL-RHG Decision – ../22F-H2221009-REL/927714.pdf

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22F-H2221009-REL-RHG Decision – ../22F-H2221009-REL/927747.pdf

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Briefing Doc – 22F-H2221009-REL-RHG


Stangl v. Sabino Vista Townhouse Association: A Dispute Over Common Area Maintenance

Executive Summary

This briefing document synthesizes the key facts, arguments, and legal decisions in the administrative case of Sam & Pipper O’ Shaughnessy Stangl versus the Sabino Vista Townhouse Association. The central conflict revolves around the Association’s legal obligation, as defined by its Covenants, Conditions, and Restrictions (CC&Rs), to maintain a common area behind the Petitioners’ property.

The Petitioners alleged that the Association violated Article 6 of its CC&Rs by failing to maintain this area for over two decades, resulting in the accumulation of rubbish and the creation of a habitat for pests. The Association countered that the area in question was designated “natural desert” to serve as a buffer, and that maintaining it was not required and would be cost-prohibitive.

An initial hearing in November 2021 resulted in a decision in favor of the Petitioners. The Association was granted a rehearing, which took place in April 2022. Despite new arguments from the Association regarding budget constraints, historical precedent, and alleged interference by the Petitioners, the Administrative Law Judge (ALJ) upheld the original decision.

The final ruling on April 25, 2022, found that the language of CC&R Article 6 is unambiguous and requires the Association to maintain “all property up to the exterior building lines.” The ALJ concluded that the Board of Directors does not have the authority to unilaterally designate a common area as “unmaintained” without formally amending the CC&Rs. Consequently, the Association was ordered to comply with Article 6 and reimburse the Petitioners’ filing fee.

Case Overview

Case Name

Sam & Pipper O’ Shaughnessy Stangl, Petitioners, vs. Sabino Vista Townhouse Association, Respondent.

Case Numbers

22F-H2221009-REL (Initial Hearing)
22F-H2221009-REL-RHG (Rehearing)

Adjudicating Body

Arizona Office of Administrative Hearings

Administrative Law Judge

Velva Moses-Thompson

Key Dates

Petition Filed: August 6, 2021
Initial Hearing: November 8, 2021
Initial Decision: November 29, 2021
Rehearing: April 4, 2022
Final Decision: April 25, 2022

The Central Allegation: Violation of CC&R Article 6

The dispute is founded on the interpretation of Article 6 of the Sabino Vista Townhouse Association’s CC&Rs concerning “Common Maintenance.”

Key Provisions of Article 6:

Maintenance Obligation: “The Association, or its duly authorized representative, shall maintain and otherwise manage all property up to the exterior building lines and patio enclosures including but not limited to the landscaping… roofs, common elements, decorative walls, drainage… and be responsible for the rubbish removal of all areas within the common properties.”

Standard of Care: “The Board of Directors of the Association shall use a reasonably high standard of care in providing for the repair, management and maintenance of said property, so that said townhouse project will reflect high pride of ownership.”

Petitioners’ Core Claim: Filed on August 6, 2021, the petition alleged that the Association violated Article 6 by failing to maintain the property behind their townhome unit. They asserted this neglect had persisted for the approximately 24 years they had lived there, leading to overgrowth and pest infestations.

The First Hearing and Decision (November 2021)

Summary of Arguments

Petitioners (Sam & Pipper O’ Shaughnessy Stangl):

◦ Alleged observing only 12 hours of landscaping work in their immediate back area over 24 years.

◦ Claimed the accumulated rubbish and overgrowth served as a habitat for pests, specifically mentioning “a pack rat for rattlesnakes.”

◦ Submitted a photograph of a rattlesnake skin found in their backyard as evidence.

Respondent (Sabino Vista Townhouse Association):

◦ Testimony was provided by Charles Taylor Ostermeyer, secretary of the Board of Directors.

◦ Argued the area in question is a “natural desert area and underbrush” that begins 30 to 40 feet behind the homes.

◦ Initially claimed the Board had adopted a rule limiting maintenance to just 4 feet behind residences, citing Board meeting minutes. However, when pressed by the ALJ, Ostermeyer conceded that believing a formal rule was adopted “would be conjecture on my part.”

◦ Asserted it would be too costly to clear the entire region.

◦ Contended that the decision not to maintain the open desert area was a valid exercise of the “business judgment rule” applicable to non-profit organizations.

November 29, 2021 Decision

The ALJ, Velva Moses-Thompson, ruled in favor of the Petitioners.

Finding: The preponderance of the evidence showed the Respondent failed to maintain the property as required by the unambiguous language of Article 6.

Reasoning: The Respondent provided “no evidence of an Amendment to Article VI” and “no evidence of a rule properly adopted by the Board that would limit the common area to be maintained.”

Order: The Petitioners were deemed the prevailing party, and the Association was ordered to reimburse their $500 filing fee and comply with Article 6 going forward.

The Rehearing and Final Decision (April 2022)

The Association’s request for a rehearing was granted, with the new hearing held on April 4, 2022. The Association was represented by Nathan Tennyson, Esq., and presented testimony from John Polasi, a Board member and Chairman of the Landscape Committee.

Rehearing Testimony and Arguments

Petitioner Arguments (Sam O’ Shaughnessy Stangl)

Respondent Arguments (John Polasi, HOA Board)

Core Issue is Deflection: Argued the Association’s narrative was a “deflection from the main issue.” Stated the HOA focused on irrelevant topics to circumvent the court’s correct original ruling.

Area is a “Natural Buffer”: The unmaintained area has existed since 1974 and serves as a natural buffer from Tanque Verde Creek, keeping wildlife out and preventing hikers/bikers from wandering into the neighborhood.

Tree Trimming Incident: Claimed the HOA falsely accused him of “singlehandedly” stopping all tree trimming. Clarified a December 2021 interaction with a contractor (Leon’s Tree Service) lasted only 30 seconds, where he refused permission to cut three shade branches in his private front courtyard.

Petitioner Hindrance: Alleged the Petitioners actively hindered tree trimming in December 2021 by refusing the contractor entry into their courtyard and blocking their driveway with an SUV to prevent the trimming of a low-hanging branch.

Pest Infestations: Maintained that pests are a significant problem, citing a recent rattlesnake sighting on his birthday (March 21) and his personal removal of “252 packrats in the last three years.”

Pest Control is Managed: Stated the HOA contracts “Mr. Packrat” to inspect the entire property quarterly. Polasi testified he had been chairman for a year and had “never heard of a single pack rider or rattlesnake anywhere.”

Misuse of Common Area: Dismissed accusations of misusing the common area as “pure deflection.” He stated his use (grilling, sitting outdoors) was adjudicated in court 18 years prior and found to be in compliance with CC&Rs.

Petitioner Misuse of Common Area: Accused the Petitioners of violating CC&Rs by placing personal items (barbecue, smoker, tables, chairs) in the common area and cutting a hole in their patio wall for water and electric lines.

Developer’s Intent: Cited a statement from Dale Chastine, the original developer, asserting the CC&Rs were written to “strictly forbid any unfettered wild growth” and require all common areas to be maintained in the same manner.

Board Authority and Historical Precedent: Cited 2020 Board Minutes that formally designated the area “35 ft to the south of southern homeowner rear wall” as “unmaintained natural desert landscape.” Referenced 1999 minutes indicating a 4-foot maintenance rule was previously in place.

New Issues: Attempted to introduce new evidence regarding a “complete drainage channel that… is now buried under debris and soil,” but the ALJ did not admit it as it was a new allegation not in the original petition.

Budgetary Constraints: Argued that maintaining the entire two-to-four-acre area would be excessively expensive. He noted the HOA had recently spent $15,000 on front-area tree trimming and $10,000 on tree repairs, and had other costs like a new pool pump.

April 25, 2022 Final Decision

The ALJ again ruled in favor of the Petitioners, affirming the initial decision.

Core Conclusion: “Although the Board determined that it would not maintain the natural desert, the Board does not have authority under its CC&Rs to refuse to maintain any of the area of its property up to the exterior building lines.”

Legal Reasoning: The CC&Rs are unambiguous and require the Association to maintain and remove rubbish from all property within its boundaries, including the area designated as “natural desert.”

Path Forward for HOA: The ALJ explicitly stated, “If the Association does not want to maintain any area within its property up to the exterior building lines, the Association should amend its CC&Rs.”

Final Order: The order from the November 29, 2021 decision was reiterated: Petitioners were deemed the prevailing party, the Respondent was ordered to pay the $500 filing fee, and the Respondent was directed to comply with Article VI of the CC&Rs.






Study Guide – 22F-H2221009-REL-RHG


Stangl v. Sabino Vista Townhouse Association: A Case Study Guide

This study guide provides a comprehensive review of the administrative case between homeowners Sam & Pipper O’ Shaughnessy Stangl and the Sabino Vista Townhouse Association. It includes a short-answer quiz with a corresponding answer key, a set of essay questions for deeper analysis, and a glossary of key terms found within the case documents.

——————————————————————————–

Short Answer Quiz

Instructions: Answer the following questions in 2-3 sentences, using only information provided in the source documents.

1. What was the central violation alleged by the Petitioners in their August 6, 2021, petition?

2. According to Article 6 of the CC&Rs, what is the Sabino Vista Townhouse Association’s responsibility regarding property maintenance?

3. In the first hearing on November 8, 2021, what was the Respondent’s primary argument for not maintaining the area behind the Petitioners’ home?

4. What was the outcome of the first Administrative Law Judge Decision issued on November 29, 2021?

5. Who testified for the Respondent at the April 4, 2022, rehearing, and what were his roles within the Association?

6. What two historical documents did the Respondent present at the rehearing to support its maintenance policy for the area in question?

7. Describe the Respondent’s accusation against the Petitioners regarding the tree trimming service in December 2021.

8. What strategic reasons did the Respondent’s witness, John Polasi, give for leaving the desert area unmaintained?

9. In the final decision of April 25, 2022, why did the Administrative Law Judge rule against the Association despite its evidence of a board-approved maintenance plan?

10. What specific orders were issued to the Respondent in the final court decision?

——————————————————————————–

Answer Key

1. The Petitioners alleged that the Sabino Vista Townhouse Association violated Article 6 of its Covenants, Conditions, and Restrictions (CC&Rs). Specifically, they claimed the Association failed to maintain and otherwise manage all property up to the exterior lines and patio enclosures, focusing on the unkempt two-acre area behind their townhome.

2. Article 6 requires the Association to “maintain and otherwise manage all property up to the exterior building lines and patio enclosures.” This includes landscaping, common elements, and rubbish removal, and mandates that the Board of Directors use a “reasonably high standard of care” so the project reflects a high pride of ownership.

3. In the first hearing, the Respondent argued that it had applied the “business judgment rule” applicable to non-profit organizations. The Association contended it would be too costly to clear out the entire region, which it described as an open desert area with many trees and weeds.

4. The Administrative Law Judge (ALJ) found the Petitioners to be the prevailing party. The ALJ ordered the Respondent to comply with Article 6 of the CC&Rs going forward and to pay the Petitioners their filing fee of $500.00.

5. John Polasi testified for the Respondent at the rehearing. He was identified as a member of the Respondent’s Board of Directors and the Chairman of the Landscaping Committee.

6. The Respondent presented minutes from a Board Meeting in February 1999, which stated that only 4 feet behind residences were maintained, with the remainder left natural. They also presented minutes from a 2020 Board Meeting that revised this policy, designating an area 35 feet from the southern homeowner walls as the maintenance boundary.

7. The Respondent alleged that the Petitioners interfered with and prevented a tree trimming project conducted by Leon’s Tree Service. The witness claimed the Petitioners refused entry into their front patio to trim overhanging limbs and moved a vehicle into their driveway to block the work.

8. John Polasi testified that the unmaintained desert area serves as a “natural buffer.” He stated it keeps animals from the adjacent Tanque Verde Creek area from coming onto homeowner property and also prevents bikers and hikers from wandering into the neighborhood.

9. The ALJ ruled that although the Board had determined it would not maintain the natural desert area, the Board does not have the authority under its CC&Rs to refuse maintenance. The judge concluded that the CC&Rs require the Association to maintain all property up to the exterior lines and that if the Association wishes to change this, it must formally amend its CC&Rs.

10. The final order deemed the Petitioners the prevailing party and directed the Respondent to pay the Petitioners’ $500.00 filing fee within thirty days. It further ordered the Respondent to comply with the requirements of Article VI of the CC&Rs going forward.

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Essay Questions

Instructions: The following questions are designed for essay-length responses to encourage a deeper analysis of the case. Answers are not provided.

1. Analyze the legal reasoning of the Administrative Law Judge in both the initial and final decisions. Why was Article 6 of the CC&Rs consistently interpreted as unambiguous, and how did this interpretation override the Respondent’s “business judgment” defense and subsequent board resolutions?

2. Compare and contrast the evidence and arguments presented by the Respondent in the first hearing versus the rehearing. How did the Association’s defense strategy evolve, and what new evidence did it introduce in the second hearing?

3. Discuss the concept of “preponderance of the evidence” as defined in the case documents. Using specific examples from the testimony and exhibits, explain how the Petitioners met this burden of proof and why the Respondent’s affirmative defenses failed to meet the same standard in both hearings.

4. Examine the tension between a homeowners’ association’s governing documents (like CC&Rs) and the operational decisions made by its Board of Directors. How does this case illustrate the limits of a Board’s authority to interpret or modify its responsibilities without formally amending the core documents?

5. Evaluate the various pieces of evidence introduced during the rehearing, such as the Board Minutes from 1999 and 2020, the letter from Leon’s Tree Service, and the attempted introduction of the developer’s affidavit. What role did each piece of evidence play in shaping the arguments, and why was some evidence given more weight or deemed inadmissible by the judge?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings, makes findings of fact, and issues decisions and orders. In this case, the ALJ was Velva Moses-Thompson.

Affidavit

A written statement confirmed by oath or affirmation, for use as evidence in court. An affidavit from the original developer, Dale Chastain, was presented but not admitted into evidence.

Affirmative Defense

A defense in which the defendant introduces evidence that, if found to be credible, will negate liability, even if it is proven that the defendant committed the alleged acts.

Arizona Dept. of Real Estate

The state agency authorized by statute to receive and decide Petitions for Hearings from members of homeowners’ associations in Arizona.

Business Judgment Rule

A legal principle that grants directors of a corporation (or non-profit association) immunity from liability for losses incurred in corporate transactions if the directors acted in good faith. This was used as a defense by the Respondent in the first hearing.

Covenants, Conditions, and Restrictions. These are the governing legal documents that set up the rules for a planned community or subdivision. The interpretation of Article 6 of the CC&Rs was the central issue of the case.

Common Area

Property in a planned community that is owned by the homeowners’ association and intended for the use and enjoyment of all members. The dispute centered on the maintenance of a common area behind the Petitioners’ home.

Conjecture

An opinion or conclusion formed on the basis of incomplete information. A witness for the Respondent admitted his belief about a maintenance rule was “conjecture.”

Evidentiary Hearing

A formal proceeding where parties present evidence and testimony before a judge to resolve a disputed issue.

Homeowners’ Association (HOA)

An organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents. In this case, the Sabino Vista Townhouse Association.

Office of Administrative Hearings

An independent state agency in Arizona where evidentiary hearings are conducted by Administrative Law Judges.

Petitioners

The party that files a petition to initiate a legal proceeding. In this case, Sam & Pipper O’ Shaughnessy Stangl.

Preponderance of the Evidence

The standard of proof in most civil cases, defined as “such proof as convinces the trier of fact that the contention is more probably true than not.” The Petitioners had the burden of proving their case by this standard.

Rehearing

A second hearing of a case, granted upon request, to reconsider the original decision. The April 4, 2022, hearing was a rehearing, treated as a “complete and new hearing.”

Respondent

The party against whom a petition is filed. In this case, the Sabino Vista Townhouse Association.

Restrictive Covenant

A provision in a deed or other legal document that limits the use of real property. The court noted that unambiguous restrictive covenants are enforced to give effect to the intent of the parties.

Riparian Area

An area of land adjacent to a river or stream. The Respondent’s witness described the community as being in a riparian area next to Tanque Verde Creek.






Blog Post – 22F-H2221009-REL-RHG


He Sued His HOA Over Landscaping and Won. They Demanded a Do-Over. He Won Again. Here Are the Lessons.

Introduction: The David vs. Goliath Tale of a Homeowner and His HOA

For many homeowners, dealing with a Homeowners Association (HOA) can feel like a constant struggle. Disputes over rules, maintenance, and responsibilities are common frustrations. But what happens when a homeowner believes their HOA is fundamentally failing to uphold its end of the bargain?

This is the story of Sam O’ Shaughnessy Stangl, a homeowner who took his HOA to court over its failure to maintain a common area behind his home. The outcome was surprising enough: he won. But when the HOA was granted a complete “do-over” hearing to re-argue the case from scratch, he won a second time.

This case, Stangl vs. Sabino Vista Townhouse Association, offers a powerful case study in the hierarchy of governing documents and the legal principle of plain language in contract law. Here are the surprising and powerful lessons from the repeated legal victory that every homeowner should know.

1. An HOA Board Vote Can’t Override Its Own Founding Documents

The HOA’s core defense was that its Board of Directors had made a decision to leave the area behind the homes as an “unmaintained natural desert.” This argument, however, proved legally insufficient across two separate hearings.

In the first hearing, board secretary Charles Taylor Ostermeyer testified that the board had decided to limit maintenance. However, when pressed by the judge, he admitted that claiming this decision was a formal “rule” would be “conjecture on my part.” For the rehearing, the association presented board member John Polaski, who formalized the argument, claiming the unmaintained area served as a “natural buffer.” To support this, they presented minutes from a 2020 board meeting, arguing that the board’s decision recorded in those minutes effectively created a new policy for that common area.

In both instances, the Administrative Law Judge delivered a decisive counter-ruling. The judge found that the association’s primary governing documents—the Covenants, Conditions, and Restrictions (CC&Rs)—were the superior legal authority. A simple board vote recorded in meeting minutes could not nullify the binding requirements of the CC&Rs. The judge’s final order from the rehearing was unequivocal:

Although the Board determined that it would not maintain the natural desert, the Board does not have authority under its CC&Rs to refuse to maintain any of the area of its property up to the exterior building lines. … If the Association does not want to maintain any area within its property up to the exterior building lines, the Association should amend its CC&Rs.

This is a critical lesson for every homeowner. The CC&Rs function as a legally binding contract between the association and its members. A simple board resolution, a new rule, or a long-standing “tradition” cannot legally contradict the foundational covenants.

2. When the Contract is Clear, “All” Simply Means All

The entire case ultimately hinged on a single sentence in Article VI of the Sabino Vista Townhouse Association CC&Rs. This piece of text was so clear and powerful that the judge cited it as the deciding factor in both the original hearing and the rehearing. The language stated:

“The Association, or its duly authorized representative, shall maintain and otherwise manage all property up to the exterior building lines and patio enclosures including but not limited to the landscaping…”

The HOA attempted to argue around this plain language. Its representatives claimed that maintaining the entire area was too costly, that it had been unmaintained since the community was built in 1974, and that it was a “riparian area” (land adjacent to a river or stream) that should be left wild.

In both hearings, the judge rejected these arguments. The word “all” was not open to interpretation. The language of the CC&Rs was unambiguous and therefore had to be enforced as it was written. This illustrates a fundamental legal principle: when contract language is clear, arguments about convenience, cost, or past practice often fail when pitted against the plain text of a governing legal document.

3. Facts are Stubborn, Even in a “Complete New Hearing”

In a highly unusual procedural twist, after losing the first hearing in November 2021, the HOA was granted a “re-hearing” in April 2022. This was not an appeal, which reviews an original decision for errors, but a complete strategic reset. The judge explained its legal significance:

“And this is a re-hearing. So it is a complete and new hearing. … as if the first hearing didn’t happen.”

The HOA used this second chance to launch a new strategy. While the first hearing’s defense centered on cost and a vague, unwritten policy, the second hearing featured a new witness and a new, two-pronged approach: formalizing the “natural buffer” argument and adding an ad hominem strategy that attempted to portray Mr. Stangl as an uncooperative resident who had personally interfered with tree trimming.

But while the HOA’s tactics shifted, the central fact of the case could not be changed. The text of the CC&Rs was the same in April 2022 as it was in November 2021. The final outcome was identical to the first. The judge once again ruled in favor of the homeowner, ordering the HOA to comply with its own CC&Rs and to reimburse Mr. Stangl’s $500 filing fee.

This demonstrates a key legal reality: while procedural tactics can create new opportunities for argument, they cannot alter the foundational text of a contract. The HOA’s strategy shifted, but the CC&Rs—the central fact of the case—remained immutable.

Conclusion: A Final Takeaway for Every Homeowner

The case of Stangl vs. Sabino Vista Townhouse Association offers three profound takeaways for homeowners: the CC&Rs are supreme over board decisions, the plain language of those documents is incredibly powerful, and a fact-based argument is resilient. It serves as a potent reminder that an association’s governing documents are not just suggestions—they are enforceable contracts.

The next time you question an HOA policy, will you stop at their latest newsletter, or will you go back to the source?


Case Participants

Petitioner Side

  • Sam O' Shaughnessy Stangl (petitioner)
  • Pipper O' Shaughnessy Stangl (petitioner)
  • Dale Chastain (witness)
    Original developer, provided affidavit/statement
  • Lisa Chastain (witness)
    Witness who signed affidavit

Respondent Side

  • Blake R. Johnson (HOA attorney)
    The Brown Law Group, PLLC
    Appeared at initial hearing
  • Nathan Tennyson (HOA attorney)
    The Brown Law Group, PLLC
    Appeared at rehearing
  • Charles Taylor Ostermeyer (board member)
    Sabino Vista Townhouse Association
    Secretary; witness at initial hearing
  • John Polasi (board member)
    Sabino Vista Townhouse Association
    Chairman of Landscaping Committee; witness at rehearing
  • Leon (contractor/witness)
    Leon's Tree Service
    Hired by Respondent

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    OAH
  • Louis Dettorre (Commissioner)
    ADRE
  • AHansen (ADRE staff)
    ADRE
  • djones (ADRE staff)
    ADRE
  • DGardner (ADRE staff)
    ADRE
  • vnunez (ADRE staff)
    ADRE
  • c. serrano (admin staff)
    Transmitted order
  • Miranda Alvarez (admin staff)
    Transmitted order

Other Participants

  • Barbara Barski (property manager)
    Former manager, referenced in testimony

Sam & Pipper O’ Shaughnessy Stangl v. Sabino Vista Townhouse

Case Summary

Case ID 22F-H2221009-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2022-04-25
Administrative Law Judge Velva Moses-Thompson
Outcome full
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Sam & Pipper O' Shaughnessy Stangl Counsel
Respondent Sabino Vista Townhouse Association Counsel Nathan Tennyson

Alleged Violations

Article VI of the CC&Rs

Outcome Summary

The Administrative Law Judge deemed Petitioners the prevailing party. Respondent HOA violated Article VI of the CC&Rs by failing to maintain and remove rubbish from the natural desert area within the Common Area up to the exterior building lines, as the Board's determination not to maintain the area lacked proper authority without a CC&R amendment. The Respondent was ordered to comply with the CC&Rs and refund the Petitioners' filing fee.

Key Issues & Findings

HOA maintenance obligations for common area up to exterior building lines

Petitioners alleged the HOA failed to maintain and otherwise manage all property up to the exterior building lines and patio enclosures, specifically a natural desert area within the Common Area. The ALJ found that the CC&Rs require the Association to maintain and remove all rubbish within its property up to the exterior building lines, and the Board lacked the authority to refuse maintenance of the natural desert area without amending the CC&Rs.

Orders: Respondent is ordered to comply with the requirements of Article VI of the CC&Rs going forward and must pay Petitioners their filing fee of $500.00 within thirty (30) days.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • Article VI of the CC&Rs
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Analytics Highlights

Topics: HOA Maintenance, CC&R Interpretation, Common Area Maintenance, Filing Fee Refund, Prevailing Party
Additional Citations:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • 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)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Video Overview

Audio Overview

Decision Documents

22F-H2221009-REL Decision – 927714.pdf

Uploaded 2025-10-09T03:38:04 (95.3 KB)

22F-H2221009-REL Decision – 927747.pdf

Uploaded 2025-10-09T03:38:04 (37.5 KB)





Briefing Doc – 22F-H2221009-REL


Stangl v. Sabino Vista Townhouse Association: A Dispute Over Common Area Maintenance

Executive Summary

This briefing document synthesizes the key facts, arguments, and legal decisions in the administrative case of Sam & Pipper O’ Shaughnessy Stangl versus the Sabino Vista Townhouse Association. The central conflict revolves around the Association’s legal obligation, as defined by its Covenants, Conditions, and Restrictions (CC&Rs), to maintain a common area behind the Petitioners’ property.

The Petitioners alleged that the Association violated Article 6 of its CC&Rs by failing to maintain this area for over two decades, resulting in the accumulation of rubbish and the creation of a habitat for pests. The Association countered that the area in question was designated “natural desert” to serve as a buffer, and that maintaining it was not required and would be cost-prohibitive.

An initial hearing in November 2021 resulted in a decision in favor of the Petitioners. The Association was granted a rehearing, which took place in April 2022. Despite new arguments from the Association regarding budget constraints, historical precedent, and alleged interference by the Petitioners, the Administrative Law Judge (ALJ) upheld the original decision.

The final ruling on April 25, 2022, found that the language of CC&R Article 6 is unambiguous and requires the Association to maintain “all property up to the exterior building lines.” The ALJ concluded that the Board of Directors does not have the authority to unilaterally designate a common area as “unmaintained” without formally amending the CC&Rs. Consequently, the Association was ordered to comply with Article 6 and reimburse the Petitioners’ filing fee.

Case Overview

Case Name

Sam & Pipper O’ Shaughnessy Stangl, Petitioners, vs. Sabino Vista Townhouse Association, Respondent.

Case Numbers

22F-H2221009-REL (Initial Hearing)
22F-H2221009-REL-RHG (Rehearing)

Adjudicating Body

Arizona Office of Administrative Hearings

Administrative Law Judge

Velva Moses-Thompson

Key Dates

Petition Filed: August 6, 2021
Initial Hearing: November 8, 2021
Initial Decision: November 29, 2021
Rehearing: April 4, 2022
Final Decision: April 25, 2022

The Central Allegation: Violation of CC&R Article 6

The dispute is founded on the interpretation of Article 6 of the Sabino Vista Townhouse Association’s CC&Rs concerning “Common Maintenance.”

Key Provisions of Article 6:

Maintenance Obligation: “The Association, or its duly authorized representative, shall maintain and otherwise manage all property up to the exterior building lines and patio enclosures including but not limited to the landscaping… roofs, common elements, decorative walls, drainage… and be responsible for the rubbish removal of all areas within the common properties.”

Standard of Care: “The Board of Directors of the Association shall use a reasonably high standard of care in providing for the repair, management and maintenance of said property, so that said townhouse project will reflect high pride of ownership.”

Petitioners’ Core Claim: Filed on August 6, 2021, the petition alleged that the Association violated Article 6 by failing to maintain the property behind their townhome unit. They asserted this neglect had persisted for the approximately 24 years they had lived there, leading to overgrowth and pest infestations.

The First Hearing and Decision (November 2021)

Summary of Arguments

Petitioners (Sam & Pipper O’ Shaughnessy Stangl):

◦ Alleged observing only 12 hours of landscaping work in their immediate back area over 24 years.

◦ Claimed the accumulated rubbish and overgrowth served as a habitat for pests, specifically mentioning “a pack rat for rattlesnakes.”

◦ Submitted a photograph of a rattlesnake skin found in their backyard as evidence.

Respondent (Sabino Vista Townhouse Association):

◦ Testimony was provided by Charles Taylor Ostermeyer, secretary of the Board of Directors.

◦ Argued the area in question is a “natural desert area and underbrush” that begins 30 to 40 feet behind the homes.

◦ Initially claimed the Board had adopted a rule limiting maintenance to just 4 feet behind residences, citing Board meeting minutes. However, when pressed by the ALJ, Ostermeyer conceded that believing a formal rule was adopted “would be conjecture on my part.”

◦ Asserted it would be too costly to clear the entire region.

◦ Contended that the decision not to maintain the open desert area was a valid exercise of the “business judgment rule” applicable to non-profit organizations.

November 29, 2021 Decision

The ALJ, Velva Moses-Thompson, ruled in favor of the Petitioners.

Finding: The preponderance of the evidence showed the Respondent failed to maintain the property as required by the unambiguous language of Article 6.

Reasoning: The Respondent provided “no evidence of an Amendment to Article VI” and “no evidence of a rule properly adopted by the Board that would limit the common area to be maintained.”

Order: The Petitioners were deemed the prevailing party, and the Association was ordered to reimburse their $500 filing fee and comply with Article 6 going forward.

The Rehearing and Final Decision (April 2022)

The Association’s request for a rehearing was granted, with the new hearing held on April 4, 2022. The Association was represented by Nathan Tennyson, Esq., and presented testimony from John Polasi, a Board member and Chairman of the Landscape Committee.

Rehearing Testimony and Arguments

Petitioner Arguments (Sam O’ Shaughnessy Stangl)

Respondent Arguments (John Polasi, HOA Board)

Core Issue is Deflection: Argued the Association’s narrative was a “deflection from the main issue.” Stated the HOA focused on irrelevant topics to circumvent the court’s correct original ruling.

Area is a “Natural Buffer”: The unmaintained area has existed since 1974 and serves as a natural buffer from Tanque Verde Creek, keeping wildlife out and preventing hikers/bikers from wandering into the neighborhood.

Tree Trimming Incident: Claimed the HOA falsely accused him of “singlehandedly” stopping all tree trimming. Clarified a December 2021 interaction with a contractor (Leon’s Tree Service) lasted only 30 seconds, where he refused permission to cut three shade branches in his private front courtyard.

Petitioner Hindrance: Alleged the Petitioners actively hindered tree trimming in December 2021 by refusing the contractor entry into their courtyard and blocking their driveway with an SUV to prevent the trimming of a low-hanging branch.

Pest Infestations: Maintained that pests are a significant problem, citing a recent rattlesnake sighting on his birthday (March 21) and his personal removal of “252 packrats in the last three years.”

Pest Control is Managed: Stated the HOA contracts “Mr. Packrat” to inspect the entire property quarterly. Polasi testified he had been chairman for a year and had “never heard of a single pack rider or rattlesnake anywhere.”

Misuse of Common Area: Dismissed accusations of misusing the common area as “pure deflection.” He stated his use (grilling, sitting outdoors) was adjudicated in court 18 years prior and found to be in compliance with CC&Rs.

Petitioner Misuse of Common Area: Accused the Petitioners of violating CC&Rs by placing personal items (barbecue, smoker, tables, chairs) in the common area and cutting a hole in their patio wall for water and electric lines.

Developer’s Intent: Cited a statement from Dale Chastine, the original developer, asserting the CC&Rs were written to “strictly forbid any unfettered wild growth” and require all common areas to be maintained in the same manner.

Board Authority and Historical Precedent: Cited 2020 Board Minutes that formally designated the area “35 ft to the south of southern homeowner rear wall” as “unmaintained natural desert landscape.” Referenced 1999 minutes indicating a 4-foot maintenance rule was previously in place.

New Issues: Attempted to introduce new evidence regarding a “complete drainage channel that… is now buried under debris and soil,” but the ALJ did not admit it as it was a new allegation not in the original petition.

Budgetary Constraints: Argued that maintaining the entire two-to-four-acre area would be excessively expensive. He noted the HOA had recently spent $15,000 on front-area tree trimming and $10,000 on tree repairs, and had other costs like a new pool pump.

April 25, 2022 Final Decision

The ALJ again ruled in favor of the Petitioners, affirming the initial decision.

Core Conclusion: “Although the Board determined that it would not maintain the natural desert, the Board does not have authority under its CC&Rs to refuse to maintain any of the area of its property up to the exterior building lines.”

Legal Reasoning: The CC&Rs are unambiguous and require the Association to maintain and remove rubbish from all property within its boundaries, including the area designated as “natural desert.”

Path Forward for HOA: The ALJ explicitly stated, “If the Association does not want to maintain any area within its property up to the exterior building lines, the Association should amend its CC&Rs.”

Final Order: The order from the November 29, 2021 decision was reiterated: Petitioners were deemed the prevailing party, the Respondent was ordered to pay the $500 filing fee, and the Respondent was directed to comply with Article VI of the CC&Rs.






Study Guide – 22F-H2221009-REL


Stangl v. Sabino Vista Townhouse Association: A Case Study Guide

This study guide provides a comprehensive review of the administrative case between homeowners Sam & Pipper O’ Shaughnessy Stangl and the Sabino Vista Townhouse Association. It includes a short-answer quiz with a corresponding answer key, a set of essay questions for deeper analysis, and a glossary of key terms found within the case documents.

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Short Answer Quiz

Instructions: Answer the following questions in 2-3 sentences, using only information provided in the source documents.

1. What was the central violation alleged by the Petitioners in their August 6, 2021, petition?

2. According to Article 6 of the CC&Rs, what is the Sabino Vista Townhouse Association’s responsibility regarding property maintenance?

3. In the first hearing on November 8, 2021, what was the Respondent’s primary argument for not maintaining the area behind the Petitioners’ home?

4. What was the outcome of the first Administrative Law Judge Decision issued on November 29, 2021?

5. Who testified for the Respondent at the April 4, 2022, rehearing, and what were his roles within the Association?

6. What two historical documents did the Respondent present at the rehearing to support its maintenance policy for the area in question?

7. Describe the Respondent’s accusation against the Petitioners regarding the tree trimming service in December 2021.

8. What strategic reasons did the Respondent’s witness, John Polasi, give for leaving the desert area unmaintained?

9. In the final decision of April 25, 2022, why did the Administrative Law Judge rule against the Association despite its evidence of a board-approved maintenance plan?

10. What specific orders were issued to the Respondent in the final court decision?

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Answer Key

1. The Petitioners alleged that the Sabino Vista Townhouse Association violated Article 6 of its Covenants, Conditions, and Restrictions (CC&Rs). Specifically, they claimed the Association failed to maintain and otherwise manage all property up to the exterior lines and patio enclosures, focusing on the unkempt two-acre area behind their townhome.

2. Article 6 requires the Association to “maintain and otherwise manage all property up to the exterior building lines and patio enclosures.” This includes landscaping, common elements, and rubbish removal, and mandates that the Board of Directors use a “reasonably high standard of care” so the project reflects a high pride of ownership.

3. In the first hearing, the Respondent argued that it had applied the “business judgment rule” applicable to non-profit organizations. The Association contended it would be too costly to clear out the entire region, which it described as an open desert area with many trees and weeds.

4. The Administrative Law Judge (ALJ) found the Petitioners to be the prevailing party. The ALJ ordered the Respondent to comply with Article 6 of the CC&Rs going forward and to pay the Petitioners their filing fee of $500.00.

5. John Polasi testified for the Respondent at the rehearing. He was identified as a member of the Respondent’s Board of Directors and the Chairman of the Landscaping Committee.

6. The Respondent presented minutes from a Board Meeting in February 1999, which stated that only 4 feet behind residences were maintained, with the remainder left natural. They also presented minutes from a 2020 Board Meeting that revised this policy, designating an area 35 feet from the southern homeowner walls as the maintenance boundary.

7. The Respondent alleged that the Petitioners interfered with and prevented a tree trimming project conducted by Leon’s Tree Service. The witness claimed the Petitioners refused entry into their front patio to trim overhanging limbs and moved a vehicle into their driveway to block the work.

8. John Polasi testified that the unmaintained desert area serves as a “natural buffer.” He stated it keeps animals from the adjacent Tanque Verde Creek area from coming onto homeowner property and also prevents bikers and hikers from wandering into the neighborhood.

9. The ALJ ruled that although the Board had determined it would not maintain the natural desert area, the Board does not have the authority under its CC&Rs to refuse maintenance. The judge concluded that the CC&Rs require the Association to maintain all property up to the exterior lines and that if the Association wishes to change this, it must formally amend its CC&Rs.

10. The final order deemed the Petitioners the prevailing party and directed the Respondent to pay the Petitioners’ $500.00 filing fee within thirty days. It further ordered the Respondent to comply with the requirements of Article VI of the CC&Rs going forward.

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Essay Questions

Instructions: The following questions are designed for essay-length responses to encourage a deeper analysis of the case. Answers are not provided.

1. Analyze the legal reasoning of the Administrative Law Judge in both the initial and final decisions. Why was Article 6 of the CC&Rs consistently interpreted as unambiguous, and how did this interpretation override the Respondent’s “business judgment” defense and subsequent board resolutions?

2. Compare and contrast the evidence and arguments presented by the Respondent in the first hearing versus the rehearing. How did the Association’s defense strategy evolve, and what new evidence did it introduce in the second hearing?

3. Discuss the concept of “preponderance of the evidence” as defined in the case documents. Using specific examples from the testimony and exhibits, explain how the Petitioners met this burden of proof and why the Respondent’s affirmative defenses failed to meet the same standard in both hearings.

4. Examine the tension between a homeowners’ association’s governing documents (like CC&Rs) and the operational decisions made by its Board of Directors. How does this case illustrate the limits of a Board’s authority to interpret or modify its responsibilities without formally amending the core documents?

5. Evaluate the various pieces of evidence introduced during the rehearing, such as the Board Minutes from 1999 and 2020, the letter from Leon’s Tree Service, and the attempted introduction of the developer’s affidavit. What role did each piece of evidence play in shaping the arguments, and why was some evidence given more weight or deemed inadmissible by the judge?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings, makes findings of fact, and issues decisions and orders. In this case, the ALJ was Velva Moses-Thompson.

Affidavit

A written statement confirmed by oath or affirmation, for use as evidence in court. An affidavit from the original developer, Dale Chastain, was presented but not admitted into evidence.

Affirmative Defense

A defense in which the defendant introduces evidence that, if found to be credible, will negate liability, even if it is proven that the defendant committed the alleged acts.

Arizona Dept. of Real Estate

The state agency authorized by statute to receive and decide Petitions for Hearings from members of homeowners’ associations in Arizona.

Business Judgment Rule

A legal principle that grants directors of a corporation (or non-profit association) immunity from liability for losses incurred in corporate transactions if the directors acted in good faith. This was used as a defense by the Respondent in the first hearing.

Covenants, Conditions, and Restrictions. These are the governing legal documents that set up the rules for a planned community or subdivision. The interpretation of Article 6 of the CC&Rs was the central issue of the case.

Common Area

Property in a planned community that is owned by the homeowners’ association and intended for the use and enjoyment of all members. The dispute centered on the maintenance of a common area behind the Petitioners’ home.

Conjecture

An opinion or conclusion formed on the basis of incomplete information. A witness for the Respondent admitted his belief about a maintenance rule was “conjecture.”

Evidentiary Hearing

A formal proceeding where parties present evidence and testimony before a judge to resolve a disputed issue.

Homeowners’ Association (HOA)

An organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents. In this case, the Sabino Vista Townhouse Association.

Office of Administrative Hearings

An independent state agency in Arizona where evidentiary hearings are conducted by Administrative Law Judges.

Petitioners

The party that files a petition to initiate a legal proceeding. In this case, Sam & Pipper O’ Shaughnessy Stangl.

Preponderance of the Evidence

The standard of proof in most civil cases, defined as “such proof as convinces the trier of fact that the contention is more probably true than not.” The Petitioners had the burden of proving their case by this standard.

Rehearing

A second hearing of a case, granted upon request, to reconsider the original decision. The April 4, 2022, hearing was a rehearing, treated as a “complete and new hearing.”

Respondent

The party against whom a petition is filed. In this case, the Sabino Vista Townhouse Association.

Restrictive Covenant

A provision in a deed or other legal document that limits the use of real property. The court noted that unambiguous restrictive covenants are enforced to give effect to the intent of the parties.

Riparian Area

An area of land adjacent to a river or stream. The Respondent’s witness described the community as being in a riparian area next to Tanque Verde Creek.






Blog Post – 22F-H2221009-REL


He Sued His HOA Over Landscaping and Won. They Demanded a Do-Over. He Won Again. Here Are the Lessons.

Introduction: The David vs. Goliath Tale of a Homeowner and His HOA

For many homeowners, dealing with a Homeowners Association (HOA) can feel like a constant struggle. Disputes over rules, maintenance, and responsibilities are common frustrations. But what happens when a homeowner believes their HOA is fundamentally failing to uphold its end of the bargain?

This is the story of Sam O’ Shaughnessy Stangl, a homeowner who took his HOA to court over its failure to maintain a common area behind his home. The outcome was surprising enough: he won. But when the HOA was granted a complete “do-over” hearing to re-argue the case from scratch, he won a second time.

This case, Stangl vs. Sabino Vista Townhouse Association, offers a powerful case study in the hierarchy of governing documents and the legal principle of plain language in contract law. Here are the surprising and powerful lessons from the repeated legal victory that every homeowner should know.

1. An HOA Board Vote Can’t Override Its Own Founding Documents

The HOA’s core defense was that its Board of Directors had made a decision to leave the area behind the homes as an “unmaintained natural desert.” This argument, however, proved legally insufficient across two separate hearings.

In the first hearing, board secretary Charles Taylor Ostermeyer testified that the board had decided to limit maintenance. However, when pressed by the judge, he admitted that claiming this decision was a formal “rule” would be “conjecture on my part.” For the rehearing, the association presented board member John Polaski, who formalized the argument, claiming the unmaintained area served as a “natural buffer.” To support this, they presented minutes from a 2020 board meeting, arguing that the board’s decision recorded in those minutes effectively created a new policy for that common area.

In both instances, the Administrative Law Judge delivered a decisive counter-ruling. The judge found that the association’s primary governing documents—the Covenants, Conditions, and Restrictions (CC&Rs)—were the superior legal authority. A simple board vote recorded in meeting minutes could not nullify the binding requirements of the CC&Rs. The judge’s final order from the rehearing was unequivocal:

Although the Board determined that it would not maintain the natural desert, the Board does not have authority under its CC&Rs to refuse to maintain any of the area of its property up to the exterior building lines. … If the Association does not want to maintain any area within its property up to the exterior building lines, the Association should amend its CC&Rs.

This is a critical lesson for every homeowner. The CC&Rs function as a legally binding contract between the association and its members. A simple board resolution, a new rule, or a long-standing “tradition” cannot legally contradict the foundational covenants.

2. When the Contract is Clear, “All” Simply Means All

The entire case ultimately hinged on a single sentence in Article VI of the Sabino Vista Townhouse Association CC&Rs. This piece of text was so clear and powerful that the judge cited it as the deciding factor in both the original hearing and the rehearing. The language stated:

“The Association, or its duly authorized representative, shall maintain and otherwise manage all property up to the exterior building lines and patio enclosures including but not limited to the landscaping…”

The HOA attempted to argue around this plain language. Its representatives claimed that maintaining the entire area was too costly, that it had been unmaintained since the community was built in 1974, and that it was a “riparian area” (land adjacent to a river or stream) that should be left wild.

In both hearings, the judge rejected these arguments. The word “all” was not open to interpretation. The language of the CC&Rs was unambiguous and therefore had to be enforced as it was written. This illustrates a fundamental legal principle: when contract language is clear, arguments about convenience, cost, or past practice often fail when pitted against the plain text of a governing legal document.

3. Facts are Stubborn, Even in a “Complete New Hearing”

In a highly unusual procedural twist, after losing the first hearing in November 2021, the HOA was granted a “re-hearing” in April 2022. This was not an appeal, which reviews an original decision for errors, but a complete strategic reset. The judge explained its legal significance:

“And this is a re-hearing. So it is a complete and new hearing. … as if the first hearing didn’t happen.”

The HOA used this second chance to launch a new strategy. While the first hearing’s defense centered on cost and a vague, unwritten policy, the second hearing featured a new witness and a new, two-pronged approach: formalizing the “natural buffer” argument and adding an ad hominem strategy that attempted to portray Mr. Stangl as an uncooperative resident who had personally interfered with tree trimming.

But while the HOA’s tactics shifted, the central fact of the case could not be changed. The text of the CC&Rs was the same in April 2022 as it was in November 2021. The final outcome was identical to the first. The judge once again ruled in favor of the homeowner, ordering the HOA to comply with its own CC&Rs and to reimburse Mr. Stangl’s $500 filing fee.

This demonstrates a key legal reality: while procedural tactics can create new opportunities for argument, they cannot alter the foundational text of a contract. The HOA’s strategy shifted, but the CC&Rs—the central fact of the case—remained immutable.

Conclusion: A Final Takeaway for Every Homeowner

The case of Stangl vs. Sabino Vista Townhouse Association offers three profound takeaways for homeowners: the CC&Rs are supreme over board decisions, the plain language of those documents is incredibly powerful, and a fact-based argument is resilient. It serves as a potent reminder that an association’s governing documents are not just suggestions—they are enforceable contracts.

The next time you question an HOA policy, will you stop at their latest newsletter, or will you go back to the source?


Case Participants

Petitioner Side

  • Sam O' Shaughnessy Stangl (petitioner)
  • Pipper O' Shaughnessy Stangl (petitioner)
  • Dale Chastine (developer/witness)
    Original developer who provided an affidavit supporting petitioners
  • Lisa Chastine (witness)
    Signed father's affidavit as a witness

Respondent Side

  • Blake R. Johnson (HOA attorney)
    The Brown Law Group, PLLC
  • Nathan Tennyson (HOA attorney)
    The Brown Law Group, PLLC
    Appeared for rehearing; also referred to as Nathan Henderson in transcript
  • Charles Taylor Ostermeyer (board member)
    Sabino Vista Townhouse Association
    Secretary of Board; testified at original hearing
  • John Polasi (board member)
    Sabino Vista Townhouse Association
    Chairman of the Landscaping Committee; testified at rehearing
  • Leon (contractor)
    Leon's Tree Service
    Tree trimmer hired by HOA; provided a signed statement/testimony

Neutral Parties

  • Velva Moses-Thompson (ALJ)
  • Louis Dettorre (Commissioner)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
    Email recipient
  • djones (ADRE staff)
    Arizona Department of Real Estate
    Email recipient
  • DGardner (ADRE staff)
    Arizona Department of Real Estate
    Email recipient
  • vnunez (ADRE staff)
    Arizona Department of Real Estate
    Email recipient
  • c. serrano (clerk)
    Transmitted order
  • Miranda Alvarez (clerk)
    Transmitted order

Other Participants

  • Barbara Barski (property manager)
    Former manager of the association

Laura B Ganer v. Vincenz Homeowners Association

Case Summary

Case ID 20F-H2020060-REL
Agency ADRE
Tribunal OAH
Decision Date 2020-09-16
Administrative Law Judge Velva Moses-Thompson
Outcome total_loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Laura B Ganer Counsel
Respondent Vincenz Homeowners Association Counsel Mark B. Sahl, Esq.

Alleged Violations

VHA CC&Rs Article 10 § 11, Article 7 § 3, and Article 12 § 2

Outcome Summary

The petition was dismissed because the Petitioner failed to prove that the Respondent HOA violated its CC&Rs (Article 7 § 3, Article 10 § 10.11, and Article 12 § 2) when adopting the new parking policy.

Why this result: Petitioner failed to meet the burden of proof to establish that Respondent violated its CC&Rs by a preponderance of the evidence.

Key Issues & Findings

Challenge to new HOA parking policy adoption

Petitioner alleged the VHA's new parking policy was unreasonable and improperly adopted without an amendment, violating specific CC&R sections.

Orders: The petition is dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. § 32-2199(B)
  • ARIZ. REV. STAT. § 32-2199.01(A)
  • ARIZ. REV. STAT. § 33-1803
  • ARIZ. REV. STAT. § 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)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Analytics Highlights

Topics: Parking Policy, CC&Rs, Board Authority, Burden of Proof, Dismissal
Additional Citations:

  • ARIZ. REV. STAT. § 32-2199(B)
  • ARIZ. REV. STAT. § 32-2199.01(A)
  • ARIZ. REV. STAT. § 33-1803
  • ARIZ. REV. STAT. § 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)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Video Overview

Audio Overview

Decision Documents

20F-H2020060-REL Decision – 822882.pdf

Uploaded 2026-01-23T17:33:39 (108.6 KB)





Briefing Doc – 20F-H2020060-REL


Briefing Document: Ganer v. Vincenz Homeowners Association (Case No. 20F-H2020060-REL)

Executive Summary

This document provides an analysis of the Administrative Law Judge Decision in the case of Laura B. Ganer vs. the Vincenz Homeowners Association (VHA), case number 20F-H2020060-REL. The central dispute concerned a new on-street parking policy adopted by the VHA Board in 2020. The petitioner, Ms. Ganer, alleged this policy violated multiple articles of the VHA’s Covenants, Conditions, and Restrictions (CC&Rs).

The Administrative Law Judge, Velva Moses-Thompson, ultimately dismissed the petition. The court concluded that the VHA Board acted within the explicit authority granted to it by the community’s governing documents, specifically CC&R Article 10, § 10.11.1, which empowers the Board to designate parking areas. The judge found that the petitioner failed to meet the burden of proof—a “preponderance of the evidence”—to establish that the VHA had violated its CC&Rs. The decision affirmed the Board’s right to establish rules and regulations for parking as outlined in the CC&Rs without requiring a full membership vote for an amendment.

Background of the Dispute

The case originated from a single-issue petition filed by homeowner Laura B. Ganer with the Arizona Department of Real Estate on or about May 20, 2020. The petition alleged that the Vincenz Homeowners Association violated its governing documents by adopting a new parking policy.

Parties:

Petitioner: Laura B. Ganer, a property owner within the VHA.

Respondent: Vincenz Homeowners Association (VHA).

Catalyst: The VHA Board of Directors adopted a new on-street parking policy in 2020.

Alleged Violations: The petition claimed the new policy violated VHA CC&R Article 10, Section 11; Article 7, Section 3; and Article 12, Section 2.

Legal Forum: The matter was referred to the Office of Administrative Hearings (OAH) for an evidentiary hearing, which took place on August 27, 2020.

The Contested 2020 Parking Policy

The policy adopted by the VHA Board resolved to allow on-street parking for specific vehicles in designated areas, provided the parking complied with associated rules.

Allowed Vehicles: Private passenger automobiles and pickup trucks that do not exceed one ton in capacity.

Designated Parking Areas:

1. Immediately in front of a Lot, for vehicles associated with the owner, resident, or their guests, or with the lot owner’s consent.

2. Immediately in front of any Common Area park within the Association.

3. Along any public street within the Association that does not border a Lot (e.g., in front of a Common Area tract).

Core Legal Arguments and Cited CC&Rs

The dispute centered on whether the VHA Board had the authority to enact the new parking policy or if doing so violated the foundational CC&Rs.

Petitioner’s Position (Laura B. Ganer)

Ms. Ganer argued that the new policy fundamentally contradicted the intent and letter of the CC&Rs.

Violation of Article 10: She asserted that the original intention of CC&R Article 10, Section 10.11.1 was to limit parking within the VHA.

Violation of Article 7: She contended the policy violates Article 7, Section 3, because it is “unreasonable” by allowing parking “virtually everywhere” within the community.

Implicit Amendment: The new policy was so expansive that it effectively constituted an amendment to the CC&Rs, which would require the procedure outlined in Article 12, Section 2 (a 67% member vote), not just a Board resolution.

Respondent’s Position (Vincenz HOA)

The VHA argued that its actions were a proper exercise of the authority explicitly granted to the Board in the CC&Rs.

Authority from Article 10: VHA contended that CC&R Article 10, § 10.11.1 expressly allows the Board to create parking rules by permitting parking “within areas designated for such purpose by the Board.”

Inapplicability of Article 7: The Association argued that Article 7, Section 3, which governs general “Association Rules,” did not apply because the parking policy was adopted under the specific authority of Article 10.

No Amendment Required: VHA maintained that since Article 10 grants the Board the power to adopt parking rules and regulations, an amendment to the CC&Rs under Article 12, Section 2 was not necessary.

Jurisdictional Argument: VHA also argued that the petition should be dismissed because Ms. Ganer failed to allege or provide facts that the VHA itself had improperly parked a vehicle in violation of the CC&Rs.

Relevant Articles from VHA CC&Rs

Article

Section

Provision Text

Article 10

§ 10.11.1

“Vehicles. No private passenger automobiles or pickup trucks shall be parked upon the Property or any roadway adjacent thereto except within a garage, in a private driveway appurtenant to a Dwelling Unit, or within areas designated for such purpose by the Board.”

Article 10

§ 10.11.2

Governs restrictions on other vehicles like RVs, boats, and commercial vehicles, but allows the Board to designate areas and rules for them.

Article 7

“By a majority vote of the Board, the Association may… adopt, amend and repeal the Association Rules. The Association Rules shall be reasonable… and shall not be inconsistent with this Declaration…”

Article 12

“Except as otherwise provided in this Declaration, this Declaration may be amended only by the affirmative vote (in person or by proxy) or written consent of: (a) Members holding not less than sixty-seven percent (67%) of all Class A votes…”

Administrative Law Judge’s Findings and Decision

The Administrative Law Judge’s decision, issued on September 16, 2020, was based on a direct interpretation of the VHA’s governing documents and the evidence presented.

Legal Standard and Burden of Proof

• The petitioner, Ms. Ganer, bore the burden of proving her allegations by a “preponderance of the evidence,” defined as evidence that is more probably true than not.

• In Arizona, unambiguous restrictive covenants are enforced to give effect to the intent of the parties, and they must be construed as a whole.

Conclusions of Law

1. Interpretation of Article 10: The judge found that CC&R Article 10, Section 10.11.1 unambiguously forbids parking except in specified locations, including “in an area that has… been designated for parking by the Board.”

2. Board Authority: The court concluded that the VHA’s adoption of the parking policy was a valid exercise of the authority explicitly granted to the Board by Article 10.11.1 to designate such parking areas.

3. Failure to Meet Burden of Proof: Ms. Ganer failed to establish that the VHA violated any of the cited articles. The judge noted that Ganer did not even allege that the VHA itself had improperly parked a vehicle.

4. Overall Finding: The decision states, “Upon consideration of all of the evidence presented in this matter, the Administrative Law Judge concludes that VHA did not violate CC&R Article 7 § 3, Article 10 § 10.11, and CC&R Article 12 § 2 when it adopted the parking policy.”

Final Order

“IT IS ORDERED, the petition is dismissed.”

The decision is binding on the parties unless a rehearing is requested with the Commissioner of the Department of Real Estate within 30 days of the service of the order.






Study Guide – 20F-H2020060-REL


Study Guide: Ganer v. Vincenz Homeowners Association

This guide provides a detailed review of the administrative law case Laura B. Ganer v. Vincenz Homeowners Association, Case No. 20F-H2020060-REL. It is designed to test comprehension of the facts, legal arguments, and final decision as presented in the source documents.

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Quiz: Short-Answer Questions

Instructions: Please answer the following questions in two to three complete sentences, using only information provided in the case decision.

1. Who were the petitioner and the respondent in this case, and what was their relationship within the community?

2. What specific action did the Vincenz Homeowners Association (VHA) take in 2020 that initiated this legal dispute?

3. List the three specific articles of the VHA’s Covenants, Conditions, and Restrictions (CC&Rs) that petitioner Laura Ganer alleged were violated.

4. According to VHA’s CC&R Article 10 § 10.11.1, under what three conditions are private passenger automobiles and pickup trucks permitted to be parked?

5. What was Ms. Ganer’s primary argument for why the VHA’s new parking policy was “unreasonable” as defined under Article 7 § 3?

6. Upon what grounds did the VHA argue that the petition should be dismissed, relating to the petitioner’s specific allegations?

7. Explain the legal standard of “preponderance of the evidence” as defined in the Administrative Law Judge’s decision.

8. How did the VHA defend its adoption of the new parking policy without obtaining the 67% member vote required for amendments under Article 12 § 2?

9. What was the core reason the Administrative Law Judge concluded that Ms. Ganer failed to prove a violation of CC&R Article 10 § 10.11.1?

10. What was the final order issued by the Administrative Law Judge in this case?

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Answer Key

1. The petitioner was Laura B. Ganer, a property owner. The respondent was the Vincenz Homeowners Association (VHA). Ganer owned property within the planned community governed by the VHA.

2. In 2020, the VHA’s Board of Directors adopted a new parking policy that formally allowed on-street parking for certain vehicles in designated areas, such as in front of lots and common areas. This new policy prompted Ms. Ganer to file her petition.

3. Ms. Ganer alleged that the VHA violated Article 10, section 11; Article 7, section 3; and Article 12, section 2 of its Covenants, Conditions, and Restrictions.

4. CC&R Article 10 § 10.11.1 permits these vehicles to be parked within a garage, in a private driveway appurtenant to a Dwelling Unit, or within areas designated for such purpose by the Board.

5. Ms. Ganer argued that the new policy was unreasonable because it allows for parking virtually everywhere within the VHA. She asserted that the original intention of the CC&Rs was to limit parking, not expand it so broadly.

6. The VHA argued for dismissal because Ms. Ganer did not contend, nor provide facts to establish, that the VHA had actually parked an automobile or pickup truck in any prohibited area. The VHA stated the Office of Administrative Hearings only had jurisdiction over alleged violations, not the mere adoption of a policy.

7. “Preponderance of the evidence” is defined as proof that convinces the trier of fact that a contention is more probably true than not. It is described as the greater weight of evidence that is sufficient to incline a fair and impartial mind to one side of an issue over the other.

8. The VHA contended that an amendment was not required to adopt the parking policy. It argued that CC&R Article 10 § 10.11.1 already granted the Board the specific authority to designate parking rules and regulations.

9. The Judge concluded that Ms. Ganer failed to prove a violation because she did not allege that the VHA had actually parked a vehicle in a prohibited area. The Judge noted that the covenant forbids parking in a roadway or garage unless it is in an area designated by the Board.

10. The final order was that the petition is dismissed. This means the judge ruled in favor of the respondent, Vincenz Homeowners Association, and against the petitioner, Laura Ganer.

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Essay Questions

Instructions: The following questions are designed to encourage deeper analysis of the case. Formulate a detailed essay response for each prompt, drawing evidence and arguments directly from the provided legal decision.

1. Analyze the conflicting interpretations of CC&R Article 10 § 10.11.1 presented by Laura Ganer and the Vincenz Homeowners Association. How did the Administrative Law Judge resolve this conflict, and what does this reveal about the judicial interpretation of restrictive covenants?

2. Discuss the legal concept of “burden of proof” as it applied in this case. Explain who held the burden, what the standard was, and why the petitioner ultimately failed to meet it according to the Judge’s findings.

3. Examine the VHA’s argument that CC&R Article 7 § 3 (regarding the adoption of “Association Rules”) was not applicable to its creation of the new parking policy. Based on the text, what is the distinction between a board-designated rule under Article 10 and a formal “Association Rule” under Article 7?

4. Evaluate the petitioner’s claim that the new parking policy constituted an amendment to the Declaration, thereby violating CC&R Article 12 § 2, which requires a 67% member vote. Why was this argument unsuccessful, and what does the decision imply about the scope of a homeowner association board’s power?

5. Using the facts of the case, explain the procedural journey of a homeowner’s dispute within a planned community in Arizona, from the initial filing to the final administrative order.

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An official who presides over hearings at an administrative agency (in this case, the Office of Administrative Hearings) and makes legal decisions. The ALJ in this matter was Velva Moses-Thompson.

Allowed Vehicles

A term from the VHA’s 2020 parking policy defining the types of vehicles permitted for on-street parking: private passenger automobiles and pickup trucks not exceeding one ton in capacity.

Burden of Proof

The legal obligation of a party in a dispute to provide sufficient evidence to prove their claim. In this case, the petitioner bore the burden of proof.

An acronym for Covenants, Conditions, and Restrictions. These are the governing legal documents that set out the rules for a planned community or homeowners association.

Common Area

Land within a planned community owned by the association for the shared use and enjoyment of its members, such as a park.

Department

Refers to the Arizona Department of Real Estate, the state agency that received the initial petition from Ms. Ganer.

Notice of Hearing

A formal document issued by a legal body that sets the date, time, and location for a hearing and outlines the issues to be discussed. In this case, it was issued on July 1, 2020.

An acronym for the Office of Administrative Hearings, the state office where the evidentiary hearing for this case was held.

Petition

The formal written application filed by a party (the petitioner) to a legal body, initiating a case. Ms. Ganer filed her petition with the Department on or about May 20, 2020.

Petitioner

The party who initiates a lawsuit or files a petition seeking a legal remedy. In this case, Laura B. Ganer.

Planned Community

A real estate development that includes common property and is governed by a homeowners’ association, with rules established by CC&Rs.

Preponderance of the Evidence

The evidentiary standard required to win a civil case, defined as proof that a contention is “more probably true than not.” It is a lower standard than “beyond a reasonable doubt.”

Restrictive Covenant

A provision in a deed or CC&R that limits the use of real property. In Arizona, if unambiguous, such covenants are enforced to give effect to the intent of the parties.

Respondent

The party against whom a petition is filed or who is responding to a lawsuit. In this case, the Vincenz Homeowners Association.






Blog Post – 20F-H2020060-REL


3 Surprising Lessons from One Homeowner’s Fight Against Her HOA’s New Parking Rules

For millions of homeowners, the relationship with their Homeowners Association (HOA) is often defined by a single, persistent source of frustration: parking rules. Whether it’s restrictions on street parking, rules about commercial vehicles, or limits on guest parking, these regulations are a frequent flashpoint for community disputes. We tend to think of these fights as homeowners pushing back against ever-tightening restrictions.

But what happens when the script is flipped? In a fascinating legal case from Arizona, a homeowner named Laura Ganer took her HOA to court not because the rules were too strict, but because the board enacted a new, more permissive parking policy. She believed the board had overstepped its authority by allowing on-street parking that had previously been forbidden.

The resulting decision from the Administrative Law Judge provides a masterclass in HOA governance. It peels back the layers of community documents to reveal how power is delegated and exercised. The outcome holds several surprising lessons for any homeowner who thinks they understand the rules of their community.

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1. The Devil in the Details: How a “Restriction” Became a Permission Slip

At the heart of Ms. Ganer’s case was her belief that the community’s founding documents—the Covenants, Conditions, and Restrictions (CC&Rs)—were written to severely limit on-street parking. She pointed to what seemed like a clear and unambiguous rule in the Vincenz Homeowners Association (VHA) governing documents.

The rule, found in VHA CC&R Article 10 § 10.11.1, begins with a strong prohibition:

“No private passenger automobiles or pickup trucks shall be parked upon the Property or any roadway adjacent thereto except within a garage, in a private driveway appurtenant to a Dwelling Unit, or within areas designated for such purpose by the Board.”

For many residents, the rule’s intent seemed clear: keep cars in garages and driveways. The critical turn, however, lay not in the prohibition but in the exceptions that followed. The power was vested in a single, potent phrase authorizing the Board to act: “…or within areas designated for such purpose by the Board.” This clause, tucked at the end of the sentence, transformed a restrictive rule into a grant of discretionary power. The judge found this language gave the VHA Board explicit authority to create its new policy. This is a classic example of how governing documents are drafted to provide operational flexibility, allowing a future board to adapt to changing community needs without undergoing the arduous process of a full membership vote to amend the CC&Rs. The Board wasn’t breaking the rules; it was using a specific power granted to it all along.

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2. A Board Rule Isn’t a Bylaw Amendment (And Why It Matters)

Ms. Ganer raised two additional legal arguments. First, she contended that such a fundamental change to the community’s parking landscape was effectively an amendment to the CC&Rs. If it were an amendment, it would have required a community-wide vote and approval of “not less than sixty-seven percent (67%) of all Class A votes,” as stipulated in Article 12 § 2.

The VHA countered, and the judge agreed, that the Board was not amending the CC&Rs. Instead, it was exercising a power the document had already granted it in Article 10: the power to “designate” parking areas. Because the mechanism for the board to act was already in the foundational document, no amendment—and therefore no membership vote—was necessary.

Critically, Ms. Ganer also alleged a violation of Article 7 § 3 of the CC&Rs, which states that any “Association Rules shall be reasonable.” The VHA’s response to this claim was a deft legal maneuver. It argued that Article 7 § 3 did not apply because the Board didn’t adopt the parking policy under its general authority to make rules; it acted under the specific authority granted in Article 10. This distinction is vital in HOA governance, as it illustrates how a specific grant of power can sometimes bypass the general requirements that apply to other board actions.

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3. An Opinion Isn’t Proof: The Heavy Burden on the Homeowner

Ms. Ganer’s claim that the new policy was “unreasonable” because it allowed “parking virtually everywhere” was her attempt to prove a violation of Article 7 § 3. To an outside observer, this might seem like a fair point. But in a legal setting, a personal feeling of unreasonableness is not evidence.

The Administrative Law Judge noted that as the petitioner, Ms. Ganer had the “burden of proof” to show the HOA violated the CC&Rs “by a preponderance of the evidence.” This legal standard requires convincing proof, not just a strong opinion. The court document provides a clear definition:

“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.”

Ultimately, the judge concluded that Ms. Ganer failed to meet this burden. Her assertion that the rule was unreasonable could not overcome the VHA’s argument that it had acted within the specific authority granted by Article 10. She did not provide convincing evidence of a violation, and the judge found in favor of the HOA, dismissing her petition entirely.

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Conclusion: The Ultimate Authority Is in the Fine Print

This case serves as a powerful lesson in HOA law, illustrating a key principle of document hierarchy. The ultimate authority is not what seems fair or what was historically done, but the exact wording in the community’s governing documents. A specific grant of authority will almost always override arguments based on general principles.

Here, the specific power to “designate” parking areas in Article 10 trumped both the general procedural requirement for a 67% vote for amendments in Article 12 and the general principle that rules must be “reasonable” under Article 7. Ms. Ganer’s challenge failed because the Board’s actions, while contrary to her expectations, were perfectly aligned with the powers the CC&Rs had given it from the start.

This case is a powerful reminder to read the fine print. When was the last time you read your community’s governing documents, and what powers might you be surprised to find your board already has?


Case Participants

Petitioner Side

  • Laura B Ganer (petitioner)
    Appeared on behalf of herself.

Respondent Side

  • Mark B. Sahl (HOA attorney)
    Vincenz Homeowners Association

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    OAH
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • Nicole Payne (recipient)
    Received transmission of the decision via US Mail.

Laura B Ganer v. Vincenz Homeowners Association

Case Summary

Case ID 20F-H2020060-REL
Agency ADRE
Tribunal OAH
Decision Date 2020-09-16
Administrative Law Judge Velva Moses-Thompson
Outcome total_loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Laura B Ganer Counsel
Respondent Vincenz Homeowners Association Counsel Mark B. Sahl, Esq.

Alleged Violations

VHA CC&Rs Article 10 § 11, Article 7 § 3, and Article 12 § 2

Outcome Summary

The petition was dismissed because the Petitioner failed to prove that the Respondent HOA violated its CC&Rs (Article 7 § 3, Article 10 § 10.11, and Article 12 § 2) when adopting the new parking policy.

Why this result: Petitioner failed to meet the burden of proof to establish that Respondent violated its CC&Rs by a preponderance of the evidence.

Key Issues & Findings

Challenge to new HOA parking policy adoption

Petitioner alleged the VHA's new parking policy was unreasonable and improperly adopted without an amendment, violating specific CC&R sections.

Orders: The petition is dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. § 32-2199(B)
  • ARIZ. REV. STAT. § 32-2199.01(A)
  • ARIZ. REV. STAT. § 33-1803
  • ARIZ. REV. STAT. § 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)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Analytics Highlights

Topics: Parking Policy, CC&Rs, Board Authority, Burden of Proof, Dismissal
Additional Citations:

  • ARIZ. REV. STAT. § 32-2199(B)
  • ARIZ. REV. STAT. § 32-2199.01(A)
  • ARIZ. REV. STAT. § 33-1803
  • ARIZ. REV. STAT. § 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)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Video Overview

Audio Overview

Decision Documents

20F-H2020060-REL Decision – 822882.pdf

Uploaded 2025-10-09T03:35:27 (108.6 KB)





Briefing Doc – 20F-H2020060-REL


Briefing Document: Ganer v. Vincenz Homeowners Association (Case No. 20F-H2020060-REL)

Executive Summary

This document provides an analysis of the Administrative Law Judge Decision in the case of Laura B. Ganer vs. the Vincenz Homeowners Association (VHA), case number 20F-H2020060-REL. The central dispute concerned a new on-street parking policy adopted by the VHA Board in 2020. The petitioner, Ms. Ganer, alleged this policy violated multiple articles of the VHA’s Covenants, Conditions, and Restrictions (CC&Rs).

The Administrative Law Judge, Velva Moses-Thompson, ultimately dismissed the petition. The court concluded that the VHA Board acted within the explicit authority granted to it by the community’s governing documents, specifically CC&R Article 10, § 10.11.1, which empowers the Board to designate parking areas. The judge found that the petitioner failed to meet the burden of proof—a “preponderance of the evidence”—to establish that the VHA had violated its CC&Rs. The decision affirmed the Board’s right to establish rules and regulations for parking as outlined in the CC&Rs without requiring a full membership vote for an amendment.

Background of the Dispute

The case originated from a single-issue petition filed by homeowner Laura B. Ganer with the Arizona Department of Real Estate on or about May 20, 2020. The petition alleged that the Vincenz Homeowners Association violated its governing documents by adopting a new parking policy.

Parties:

Petitioner: Laura B. Ganer, a property owner within the VHA.

Respondent: Vincenz Homeowners Association (VHA).

Catalyst: The VHA Board of Directors adopted a new on-street parking policy in 2020.

Alleged Violations: The petition claimed the new policy violated VHA CC&R Article 10, Section 11; Article 7, Section 3; and Article 12, Section 2.

Legal Forum: The matter was referred to the Office of Administrative Hearings (OAH) for an evidentiary hearing, which took place on August 27, 2020.

The Contested 2020 Parking Policy

The policy adopted by the VHA Board resolved to allow on-street parking for specific vehicles in designated areas, provided the parking complied with associated rules.

Allowed Vehicles: Private passenger automobiles and pickup trucks that do not exceed one ton in capacity.

Designated Parking Areas:

1. Immediately in front of a Lot, for vehicles associated with the owner, resident, or their guests, or with the lot owner’s consent.

2. Immediately in front of any Common Area park within the Association.

3. Along any public street within the Association that does not border a Lot (e.g., in front of a Common Area tract).

Core Legal Arguments and Cited CC&Rs

The dispute centered on whether the VHA Board had the authority to enact the new parking policy or if doing so violated the foundational CC&Rs.

Petitioner’s Position (Laura B. Ganer)

Ms. Ganer argued that the new policy fundamentally contradicted the intent and letter of the CC&Rs.

Violation of Article 10: She asserted that the original intention of CC&R Article 10, Section 10.11.1 was to limit parking within the VHA.

Violation of Article 7: She contended the policy violates Article 7, Section 3, because it is “unreasonable” by allowing parking “virtually everywhere” within the community.

Implicit Amendment: The new policy was so expansive that it effectively constituted an amendment to the CC&Rs, which would require the procedure outlined in Article 12, Section 2 (a 67% member vote), not just a Board resolution.

Respondent’s Position (Vincenz HOA)

The VHA argued that its actions were a proper exercise of the authority explicitly granted to the Board in the CC&Rs.

Authority from Article 10: VHA contended that CC&R Article 10, § 10.11.1 expressly allows the Board to create parking rules by permitting parking “within areas designated for such purpose by the Board.”

Inapplicability of Article 7: The Association argued that Article 7, Section 3, which governs general “Association Rules,” did not apply because the parking policy was adopted under the specific authority of Article 10.

No Amendment Required: VHA maintained that since Article 10 grants the Board the power to adopt parking rules and regulations, an amendment to the CC&Rs under Article 12, Section 2 was not necessary.

Jurisdictional Argument: VHA also argued that the petition should be dismissed because Ms. Ganer failed to allege or provide facts that the VHA itself had improperly parked a vehicle in violation of the CC&Rs.

Relevant Articles from VHA CC&Rs

Article

Section

Provision Text

Article 10

§ 10.11.1

“Vehicles. No private passenger automobiles or pickup trucks shall be parked upon the Property or any roadway adjacent thereto except within a garage, in a private driveway appurtenant to a Dwelling Unit, or within areas designated for such purpose by the Board.”

Article 10

§ 10.11.2

Governs restrictions on other vehicles like RVs, boats, and commercial vehicles, but allows the Board to designate areas and rules for them.

Article 7

“By a majority vote of the Board, the Association may… adopt, amend and repeal the Association Rules. The Association Rules shall be reasonable… and shall not be inconsistent with this Declaration…”

Article 12

“Except as otherwise provided in this Declaration, this Declaration may be amended only by the affirmative vote (in person or by proxy) or written consent of: (a) Members holding not less than sixty-seven percent (67%) of all Class A votes…”

Administrative Law Judge’s Findings and Decision

The Administrative Law Judge’s decision, issued on September 16, 2020, was based on a direct interpretation of the VHA’s governing documents and the evidence presented.

Legal Standard and Burden of Proof

• The petitioner, Ms. Ganer, bore the burden of proving her allegations by a “preponderance of the evidence,” defined as evidence that is more probably true than not.

• In Arizona, unambiguous restrictive covenants are enforced to give effect to the intent of the parties, and they must be construed as a whole.

Conclusions of Law

1. Interpretation of Article 10: The judge found that CC&R Article 10, Section 10.11.1 unambiguously forbids parking except in specified locations, including “in an area that has… been designated for parking by the Board.”

2. Board Authority: The court concluded that the VHA’s adoption of the parking policy was a valid exercise of the authority explicitly granted to the Board by Article 10.11.1 to designate such parking areas.

3. Failure to Meet Burden of Proof: Ms. Ganer failed to establish that the VHA violated any of the cited articles. The judge noted that Ganer did not even allege that the VHA itself had improperly parked a vehicle.

4. Overall Finding: The decision states, “Upon consideration of all of the evidence presented in this matter, the Administrative Law Judge concludes that VHA did not violate CC&R Article 7 § 3, Article 10 § 10.11, and CC&R Article 12 § 2 when it adopted the parking policy.”

Final Order

“IT IS ORDERED, the petition is dismissed.”

The decision is binding on the parties unless a rehearing is requested with the Commissioner of the Department of Real Estate within 30 days of the service of the order.






Study Guide – 20F-H2020060-REL


Study Guide: Ganer v. Vincenz Homeowners Association

This guide provides a detailed review of the administrative law case Laura B. Ganer v. Vincenz Homeowners Association, Case No. 20F-H2020060-REL. It is designed to test comprehension of the facts, legal arguments, and final decision as presented in the source documents.

——————————————————————————–

Quiz: Short-Answer Questions

Instructions: Please answer the following questions in two to three complete sentences, using only information provided in the case decision.

1. Who were the petitioner and the respondent in this case, and what was their relationship within the community?

2. What specific action did the Vincenz Homeowners Association (VHA) take in 2020 that initiated this legal dispute?

3. List the three specific articles of the VHA’s Covenants, Conditions, and Restrictions (CC&Rs) that petitioner Laura Ganer alleged were violated.

4. According to VHA’s CC&R Article 10 § 10.11.1, under what three conditions are private passenger automobiles and pickup trucks permitted to be parked?

5. What was Ms. Ganer’s primary argument for why the VHA’s new parking policy was “unreasonable” as defined under Article 7 § 3?

6. Upon what grounds did the VHA argue that the petition should be dismissed, relating to the petitioner’s specific allegations?

7. Explain the legal standard of “preponderance of the evidence” as defined in the Administrative Law Judge’s decision.

8. How did the VHA defend its adoption of the new parking policy without obtaining the 67% member vote required for amendments under Article 12 § 2?

9. What was the core reason the Administrative Law Judge concluded that Ms. Ganer failed to prove a violation of CC&R Article 10 § 10.11.1?

10. What was the final order issued by the Administrative Law Judge in this case?

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Answer Key

1. The petitioner was Laura B. Ganer, a property owner. The respondent was the Vincenz Homeowners Association (VHA). Ganer owned property within the planned community governed by the VHA.

2. In 2020, the VHA’s Board of Directors adopted a new parking policy that formally allowed on-street parking for certain vehicles in designated areas, such as in front of lots and common areas. This new policy prompted Ms. Ganer to file her petition.

3. Ms. Ganer alleged that the VHA violated Article 10, section 11; Article 7, section 3; and Article 12, section 2 of its Covenants, Conditions, and Restrictions.

4. CC&R Article 10 § 10.11.1 permits these vehicles to be parked within a garage, in a private driveway appurtenant to a Dwelling Unit, or within areas designated for such purpose by the Board.

5. Ms. Ganer argued that the new policy was unreasonable because it allows for parking virtually everywhere within the VHA. She asserted that the original intention of the CC&Rs was to limit parking, not expand it so broadly.

6. The VHA argued for dismissal because Ms. Ganer did not contend, nor provide facts to establish, that the VHA had actually parked an automobile or pickup truck in any prohibited area. The VHA stated the Office of Administrative Hearings only had jurisdiction over alleged violations, not the mere adoption of a policy.

7. “Preponderance of the evidence” is defined as proof that convinces the trier of fact that a contention is more probably true than not. It is described as the greater weight of evidence that is sufficient to incline a fair and impartial mind to one side of an issue over the other.

8. The VHA contended that an amendment was not required to adopt the parking policy. It argued that CC&R Article 10 § 10.11.1 already granted the Board the specific authority to designate parking rules and regulations.

9. The Judge concluded that Ms. Ganer failed to prove a violation because she did not allege that the VHA had actually parked a vehicle in a prohibited area. The Judge noted that the covenant forbids parking in a roadway or garage unless it is in an area designated by the Board.

10. The final order was that the petition is dismissed. This means the judge ruled in favor of the respondent, Vincenz Homeowners Association, and against the petitioner, Laura Ganer.

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Essay Questions

Instructions: The following questions are designed to encourage deeper analysis of the case. Formulate a detailed essay response for each prompt, drawing evidence and arguments directly from the provided legal decision.

1. Analyze the conflicting interpretations of CC&R Article 10 § 10.11.1 presented by Laura Ganer and the Vincenz Homeowners Association. How did the Administrative Law Judge resolve this conflict, and what does this reveal about the judicial interpretation of restrictive covenants?

2. Discuss the legal concept of “burden of proof” as it applied in this case. Explain who held the burden, what the standard was, and why the petitioner ultimately failed to meet it according to the Judge’s findings.

3. Examine the VHA’s argument that CC&R Article 7 § 3 (regarding the adoption of “Association Rules”) was not applicable to its creation of the new parking policy. Based on the text, what is the distinction between a board-designated rule under Article 10 and a formal “Association Rule” under Article 7?

4. Evaluate the petitioner’s claim that the new parking policy constituted an amendment to the Declaration, thereby violating CC&R Article 12 § 2, which requires a 67% member vote. Why was this argument unsuccessful, and what does the decision imply about the scope of a homeowner association board’s power?

5. Using the facts of the case, explain the procedural journey of a homeowner’s dispute within a planned community in Arizona, from the initial filing to the final administrative order.

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An official who presides over hearings at an administrative agency (in this case, the Office of Administrative Hearings) and makes legal decisions. The ALJ in this matter was Velva Moses-Thompson.

Allowed Vehicles

A term from the VHA’s 2020 parking policy defining the types of vehicles permitted for on-street parking: private passenger automobiles and pickup trucks not exceeding one ton in capacity.

Burden of Proof

The legal obligation of a party in a dispute to provide sufficient evidence to prove their claim. In this case, the petitioner bore the burden of proof.

An acronym for Covenants, Conditions, and Restrictions. These are the governing legal documents that set out the rules for a planned community or homeowners association.

Common Area

Land within a planned community owned by the association for the shared use and enjoyment of its members, such as a park.

Department

Refers to the Arizona Department of Real Estate, the state agency that received the initial petition from Ms. Ganer.

Notice of Hearing

A formal document issued by a legal body that sets the date, time, and location for a hearing and outlines the issues to be discussed. In this case, it was issued on July 1, 2020.

An acronym for the Office of Administrative Hearings, the state office where the evidentiary hearing for this case was held.

Petition

The formal written application filed by a party (the petitioner) to a legal body, initiating a case. Ms. Ganer filed her petition with the Department on or about May 20, 2020.

Petitioner

The party who initiates a lawsuit or files a petition seeking a legal remedy. In this case, Laura B. Ganer.

Planned Community

A real estate development that includes common property and is governed by a homeowners’ association, with rules established by CC&Rs.

Preponderance of the Evidence

The evidentiary standard required to win a civil case, defined as proof that a contention is “more probably true than not.” It is a lower standard than “beyond a reasonable doubt.”

Restrictive Covenant

A provision in a deed or CC&R that limits the use of real property. In Arizona, if unambiguous, such covenants are enforced to give effect to the intent of the parties.

Respondent

The party against whom a petition is filed or who is responding to a lawsuit. In this case, the Vincenz Homeowners Association.






Blog Post – 20F-H2020060-REL


3 Surprising Lessons from One Homeowner’s Fight Against Her HOA’s New Parking Rules

For millions of homeowners, the relationship with their Homeowners Association (HOA) is often defined by a single, persistent source of frustration: parking rules. Whether it’s restrictions on street parking, rules about commercial vehicles, or limits on guest parking, these regulations are a frequent flashpoint for community disputes. We tend to think of these fights as homeowners pushing back against ever-tightening restrictions.

But what happens when the script is flipped? In a fascinating legal case from Arizona, a homeowner named Laura Ganer took her HOA to court not because the rules were too strict, but because the board enacted a new, more permissive parking policy. She believed the board had overstepped its authority by allowing on-street parking that had previously been forbidden.

The resulting decision from the Administrative Law Judge provides a masterclass in HOA governance. It peels back the layers of community documents to reveal how power is delegated and exercised. The outcome holds several surprising lessons for any homeowner who thinks they understand the rules of their community.

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1. The Devil in the Details: How a “Restriction” Became a Permission Slip

At the heart of Ms. Ganer’s case was her belief that the community’s founding documents—the Covenants, Conditions, and Restrictions (CC&Rs)—were written to severely limit on-street parking. She pointed to what seemed like a clear and unambiguous rule in the Vincenz Homeowners Association (VHA) governing documents.

The rule, found in VHA CC&R Article 10 § 10.11.1, begins with a strong prohibition:

“No private passenger automobiles or pickup trucks shall be parked upon the Property or any roadway adjacent thereto except within a garage, in a private driveway appurtenant to a Dwelling Unit, or within areas designated for such purpose by the Board.”

For many residents, the rule’s intent seemed clear: keep cars in garages and driveways. The critical turn, however, lay not in the prohibition but in the exceptions that followed. The power was vested in a single, potent phrase authorizing the Board to act: “…or within areas designated for such purpose by the Board.” This clause, tucked at the end of the sentence, transformed a restrictive rule into a grant of discretionary power. The judge found this language gave the VHA Board explicit authority to create its new policy. This is a classic example of how governing documents are drafted to provide operational flexibility, allowing a future board to adapt to changing community needs without undergoing the arduous process of a full membership vote to amend the CC&Rs. The Board wasn’t breaking the rules; it was using a specific power granted to it all along.

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2. A Board Rule Isn’t a Bylaw Amendment (And Why It Matters)

Ms. Ganer raised two additional legal arguments. First, she contended that such a fundamental change to the community’s parking landscape was effectively an amendment to the CC&Rs. If it were an amendment, it would have required a community-wide vote and approval of “not less than sixty-seven percent (67%) of all Class A votes,” as stipulated in Article 12 § 2.

The VHA countered, and the judge agreed, that the Board was not amending the CC&Rs. Instead, it was exercising a power the document had already granted it in Article 10: the power to “designate” parking areas. Because the mechanism for the board to act was already in the foundational document, no amendment—and therefore no membership vote—was necessary.

Critically, Ms. Ganer also alleged a violation of Article 7 § 3 of the CC&Rs, which states that any “Association Rules shall be reasonable.” The VHA’s response to this claim was a deft legal maneuver. It argued that Article 7 § 3 did not apply because the Board didn’t adopt the parking policy under its general authority to make rules; it acted under the specific authority granted in Article 10. This distinction is vital in HOA governance, as it illustrates how a specific grant of power can sometimes bypass the general requirements that apply to other board actions.

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3. An Opinion Isn’t Proof: The Heavy Burden on the Homeowner

Ms. Ganer’s claim that the new policy was “unreasonable” because it allowed “parking virtually everywhere” was her attempt to prove a violation of Article 7 § 3. To an outside observer, this might seem like a fair point. But in a legal setting, a personal feeling of unreasonableness is not evidence.

The Administrative Law Judge noted that as the petitioner, Ms. Ganer had the “burden of proof” to show the HOA violated the CC&Rs “by a preponderance of the evidence.” This legal standard requires convincing proof, not just a strong opinion. The court document provides a clear definition:

“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.”

Ultimately, the judge concluded that Ms. Ganer failed to meet this burden. Her assertion that the rule was unreasonable could not overcome the VHA’s argument that it had acted within the specific authority granted by Article 10. She did not provide convincing evidence of a violation, and the judge found in favor of the HOA, dismissing her petition entirely.

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Conclusion: The Ultimate Authority Is in the Fine Print

This case serves as a powerful lesson in HOA law, illustrating a key principle of document hierarchy. The ultimate authority is not what seems fair or what was historically done, but the exact wording in the community’s governing documents. A specific grant of authority will almost always override arguments based on general principles.

Here, the specific power to “designate” parking areas in Article 10 trumped both the general procedural requirement for a 67% vote for amendments in Article 12 and the general principle that rules must be “reasonable” under Article 7. Ms. Ganer’s challenge failed because the Board’s actions, while contrary to her expectations, were perfectly aligned with the powers the CC&Rs had given it from the start.

This case is a powerful reminder to read the fine print. When was the last time you read your community’s governing documents, and what powers might you be surprised to find your board already has?


Case Participants

Petitioner Side

  • Laura B Ganer (petitioner)
    Appeared on behalf of herself.

Respondent Side

  • Mark B. Sahl (HOA attorney)
    Vincenz Homeowners Association

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    OAH
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • Nicole Payne (recipient)
    Received transmission of the decision via US Mail.

John A Sellers v. Rancho Madera Condominium 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-H1918010-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2019-05-10
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John A Sellers Counsel
Respondent Rancho Madera Condominium Association Counsel Edward D. O'Brien, Edith I. Rudder

Alleged Violations

CC&Rs § 3.10, 3.10.2, 3.10.4

Outcome Summary

The Administrative Law Judge dismissed the petition following a rehearing, concluding that the Petitioner failed to meet the burden of proof by establishing that the Respondent HOA violated its CC&Rs. The governing documents grant the HOA the right, but not the obligation, to enforce maintenance duties specifically assigned to Unit Owners concerning the drainage easement.

Why this result: Petitioner failed to establish by a preponderance of the evidence that the Respondent violated the CC&Rs because the HOA was found to have a right to enforce maintenance of the drainage easement, but not a mandatory obligation to do so under the terms of the CC&Rs.

Key Issues & Findings

HOA failure to enforce unit owner maintenance obligations regarding stormwater drainage easement

Petitioner alleged that the Respondent HOA violated the CC&Rs by failing to enforce unit owner responsibility to keep the stormwater drainage area free of obstructions like vegetation and fencing materials, potentially causing a risk of flooding to his unit.

Orders: The petition was dismissed. The Administrative Law Judge determined that the CC&Rs assign Unit Owners the responsibility to clear the drainage area and grant the HOA the right, but not an obligation, to enforce this maintenance.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Analytics Highlights

Topics: HOA, CC&Rs, Drainage Easement, Enforcement Obligation, Condominium Unit Owner
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Video Overview

Audio Overview

Decision Documents

19F-H1918010-REL-RHG Decision – 706533.pdf

Uploaded 2026-01-23T17:26:28 (42.2 KB)

19F-H1918010-REL-RHG Decision – 707530.pdf

Uploaded 2026-01-23T17:26:34 (111.5 KB)

19F-H1918010-REL-RHG Decision – ../19F-H1918010-REL/667122.pdf

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19F-H1918010-REL-RHG Decision – ../19F-H1918010-REL/678371.pdf

Uploaded 2026-01-23T17:26:40 (129.5 KB)





Briefing Doc – 19F-H1918010-REL-RHG


Dispute Analysis: Sellers vs. Rancho Madera Condominium Association

Executive Summary

This briefing document synthesizes the legal proceedings and outcomes of a dispute between homeowner John A. Sellers (Petitioner) and the Rancho Madera Condominium Association (Respondent). The core of the conflict was Mr. Sellers’ allegation that the Association violated its Covenants, Conditions, and Restrictions (CC&Rs) by failing to compel other homeowners to remove vegetation and fencing from a common stormwater drainage channel, thereby creating a flood risk to his property, Unit 12.

The case was adjudicated by the Arizona Office of Administrative Hearings (OAH) in a process that included an initial hearing, a decision, a granted request for rehearing, and a final binding decision. In both instances, the Administrative Law Judge ruled against the Petitioner.

The initial decision, issued in December 2018, concluded that Mr. Sellers failed to provide sufficient evidence that the materials in the channel actually impeded water flow or posed an unreasonable flood risk. The ruling highlighted that the channel had functioned as intended since 2012 without any flooding incidents. Following a rehearing in April 2019, the second and final decision in May 2019 reinforced this conclusion. It further clarified a crucial distinction in the CC&Rs: while the Association possesses the right to enforce maintenance rules upon homeowners, the governing documents do not impose an explicit obligation to do so proactively before any damage has occurred. The responsibility for maintaining the drainage area rests with the individual unit owners, and the Association’s primary duty is to repair damages after the fact, billing the responsible owner. The petition was ultimately dismissed.

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I. Case Overview

This case documents a formal complaint filed by a homeowner against his condominium association, which was resolved through the Arizona Department of Real Estate and the Office of Administrative Hearings.

Case Number: 19F-H1918010-REL

Petitioner: John A. Sellers, owner of Unit 12 in Rancho Madera

Respondent: Rancho Madera Condominium Association, a 46-unit development in Cave Creek, Arizona.

Venue: Arizona Office of Administrative Hearings (OAH)

Key Chronology of Events

Aug 23, 2018

Petitioner files a single-issue petition with the Arizona Department of Real Estate.

Oct 23, 2018

An OAH order vacates the initial hearing after the Petitioner indicates a wish to withdraw the petition.

Nov 5, 2018

The first evidentiary hearing convenes, indicating the withdrawal was rescinded.

Dec 12, 2018

The first evidentiary hearing concludes.

Dec 26, 2018

Administrative Law Judge Diane Mihalsky issues a decision denying the petition.

Feb 1, 2019

Petitioner files a Rehearing Request with the Commissioner of the Department of Real Estate.

Feb 22, 2019

The Commissioner grants the Rehearing Request.

Apr 15, 2019

The rehearing convenes and concludes before Administrative Law Judge Tammy L. Eigenheer.

May 7, 2019

OAH issues an order striking a supplemental, post-hearing filing by the Petitioner from the record.

May 10, 2019

Judge Eigenheer issues a final Administrative Law Judge Decision, again dismissing the petition.

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II. Petitioner’s Core Allegation

Mr. Sellers’ petition was based on a single issue: the alleged violation of Section 3.10 of the Association’s CC&Rs.

The Violation: The Petitioner claimed the Association failed in its duty to require owners of “Drainage Easement Units” to remove obstructions from a shared stormwater channel.

The Obstructions: The materials of concern included “large succulents, shrubs, and cacti” growing in the drainage area’s rip-rap, as well as chicken wire that at least one owner had installed to contain a pet.

The Perceived Risk: Mr. Sellers testified that these items “could catch storm debris and cause the drainage channel to become clogged,” leading to a risk of flooding for his Unit 12. He submitted videos of heavy rains and flooding in other parts of Cave Creek as evidence of the potential danger.

Financial Impact Claim: The Petitioner was undergoing a contentious divorce, and Unit 12, as a community asset, was for sale under a court order. He asserted that the unresolved drainage issue and his required disclosure of the dispute had reduced the unit’s market price by $40,000.

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III. Respondent’s Position and Actions

The Rancho Madera Condominium Association, represented by its President, Jeffrey Kaplan, denied any violation of the CC&Rs and presented a multi-faceted defense.

Lack of Historical Precedent: Mr. Kaplan, an owner since 2012, testified that water had never entered the property from the east, and Unit 12 had never sustained any damage from flooding. This held true even during a “100-year storm in 2014.” After a significant rainstorm in August 2018, he personally inspected the drainage easement and “did not see any water in it.”

Origin of Vegetation: Mr. Kaplan stated that the builder had originally planted the vegetation in the drainage easement that was shown in the Petitioner’s photographic evidence.

Proactive Communication: To address the Petitioner’s concerns, the Board instructed its management company to act. Letters were sent to the relevant homeowners on April 18, 2018, and July 19, 2018, reminding them of their responsibility to keep the easement free of obstructions.

Jurisdictional Confirmation: Mr. Kaplan contacted officials from the Maricopa County Flood Control District and the Town of Cave Creek. Both agencies confirmed the drainage area was not on any official floodplain map, and therefore, the Association was “solely responsible” for its maintenance and enforcement.

Contradictory Evidence: The Association submitted a June 22, 2018 email from the Petitioner’s wife, Debborah Sellers, which directly contradicted the Petitioner’s claims. She wrote, “There has never been any issue with the storm drain behind our house and it is not a major disclosure item… Stop making something out of nothing.” She also referred to his claims as “nonsense.”

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IV. Analysis of Governing CC&Rs

The dispute centered on the interpretation of specific sections of the Rancho Madera CC&Rs. The judges in both hearings analyzed these sections to determine the respective duties of the homeowners and the Association.

Section

Provision Summary

Key Language

Establishes a perpetual “Drainage Easement” over the eastern five feet of Units 9 through 18 for stormwater conveyance.

“…for the purpose of constructing, maintaining, repairing and replacing a drainage channel…”

3.10.2

Assigns the primary maintenance duty to the individual unit owners within the easement area.

“Each Unit Owner of a Drainage Easement Unit shall keep his Drainage Easement Area Free of weeds and other debris so that the stormwater can flow freely… No Improvement… shall be… allowed to grow… that may… impede the flow of water…”

3.10.4

Defines the Association’s role in the event of damage resulting from a unit owner’s failure to maintain the easement.

“If the failure of one Unit Owner to maintain his Drainage Easement Area… results in damage… the Association shall repair or replace such damage… and the cost… shall be paid by the Unit Owner that caused the damage…”

13.1.1

Grants the Association the power to enforce the CC&Rs.

“The Association shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants…”

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V. Administrative Law Judge Decisions and Rationale

The Petitioner’s case was heard twice and denied both times, with the second decision providing a definitive interpretation of the Association’s duties under the CC&Rs.

Initial Decision (December 26, 2018)

Presiding Judge: Diane Mihalsky

Conclusion: The Petitioner failed to meet his burden of proof “by a preponderance of the evidence.”

Rationale: The judge found a critical failure in the Petitioner’s evidence. While he successfully “established that there are some plants and chicken wire in the stormwater drainage canal,” he “did not establish that the plants or chicken wire impede the flow of water.” The Respondent, in contrast, successfully established that the channel had always “functioned as intended” and that “Unit 12 has never flooded.” The judge concluded there was “no unreasonable risk that Unit 12 will flood.”

Order: The petition was denied.

Rehearing and Final Decision (May 10, 2019)

Presiding Judge: Tammy L. Eigenheer

Context: The rehearing was granted based on the Petitioner’s claims of procedural irregularities and legal errors in the first hearing.

Petitioner’s Refined Argument: During the rehearing, the Petitioner argued that the Association’s right to enforce the CC&Rs (under Section 13.1.1) becomes an obligation when safety and property values are affected.

Conclusion: The petition was dismissed.

Rationale: The final decision hinged on a strict interpretation of the CC&Rs. The judge determined that the documents create a clear hierarchy of responsibility:

1. Unit Owners: Bear the primary responsibility for keeping the easement clear (Section 3.10.2).

2. The Association: Has a responsibility to act only after damage occurs due to an owner’s failure, at which point it must repair the damage and bill the responsible owner (Section 3.10.4).

Final Legal Interpretation: The judge concluded, “While Respondent has the right to enforce the requirements that the Unit Owners keep the Drainage Easement Area clear, nothing in the CC&Rs provides that Respondent has an obligation to do so.” The petition was dismissed because the Petitioner could not prove the Association had violated any actual obligation laid out in the governing documents. This decision was issued as final and binding on the parties.






Study Guide – 19F-H1918010-REL-RHG


Study Guide: Case No. 19F-H1918010-REL, Sellers v. Rancho Madera Condominium Association

This guide provides a detailed review of the administrative legal proceedings between Petitioner John A. Sellers and Respondent Rancho Madera Condominium Association. It is designed to assess comprehension of the case’s facts, legal arguments, and procedural history.

Short-Answer Quiz

Answer each question in 2-3 sentences based on the information provided in the source documents.

1. What was the central allegation John A. Sellers filed against the Rancho Madera Condominium Association on August 23, 2018?

2. Identify the specific sections of the Covenants, Conditions, and Restrictions (CC&Rs) that were central to the dispute.

3. Who is responsible for maintaining the Drainage Easement Area according to CC&R § 3.10.2?

4. What actions did the Association’s management company take in response to the Petitioner’s concerns?

5. What was the testimony of Jeffrey Kaplan, the Association’s President, regarding the history of flooding at Rancho Madera?

6. Why did the Commissioner of the Department of Real Estate grant the Petitioner’s request for a rehearing?

7. What was the procedural outcome of Petitioner Sellers’ attempt to submit supplemental arguments after the April 15, 2019, rehearing?

8. How did Administrative Law Judge Tammy L. Eigenheer distinguish between a “right to enforce” and an “obligation to enforce” in her final decision?

9. What evidence did the Petitioner present to support his claim that the drainage channel was at risk of clogging?

10. What was the final ruling in the Administrative Law Judge Decision dated May 10, 2019?

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Answer Key

1. Petitioner John A. Sellers alleged that the Association had violated its CC&Rs, specifically § 3.10, by failing to require condominium owners to remove vegetation and fencing materials from the stormwater channel. Sellers claimed this failure created a risk of flooding for his unit.

2. The central CC&R sections were § 3.10, which establishes the stormwater drainage easement; § 3.10.2, which outlines the maintenance responsibilities of Unit Owners; § 3.10.4, which details the Association’s role in repairing damages; and § 13.1.1, which grants the Association the right to enforce the CC&Rs.

3. According to CC&R § 3.10.2, each individual Unit Owner of a Drainage Easement Unit is responsible for keeping their respective Drainage Easement Area free of weeds and other debris. The text explicitly states that no improvements, including plants, should be allowed that might impede the flow of water.

4. To address the Petitioner’s concerns, the Association’s management company sent letters to the owners of the Drainage Easement Units on April 18, 2018, and July 19, 2018. These letters reminded the owners of their responsibility to keep the easement area clear of obstructions and debris.

5. Jeffrey Kaplan testified that he bought one of the first units in 2012 and that water has never entered Rancho Madera from the east. He specifically noted that no flooding occurred even during the 100-year storm in 2014, and that after a significant rainstorm in August 2018, he inspected the easement and saw no water in it.

6. The Commissioner granted the Rehearing Request “for the reasons outlined in the Petitioners’ Rehearing Request.” The request itself alleged irregularity in the proceedings, newly discovered evidence, errors in the admission of evidence, and that the original decision was arbitrary, capricious, or contrary to law.

7. After the rehearing concluded, the Petitioner submitted supplemental authority and argument. The Respondent argued this filing was untimely, and Administrative Law Judge Tammy L. Eigenheer ordered the filing to be stricken from the record and closed the record on May 7, 2019.

8. Judge Eigenheer’s decision concluded that while the Association has the right to enforce the CC&Rs under § 13.1.1, nothing in the documents creates an obligation for it to proactively do so regarding maintenance. The only obligation specified is to repair damage after it occurs, with the cost being billed to the responsible unit owner.

9. The Petitioner provided photographs showing large succulents, shrubs, and cacti growing in the rip rap of the Drainage Easement Area. He also showed at least one instance where chicken wire had been placed across the channel to contain a pet, testifying that these items could catch storm debris and cause a clog.

10. The final ruling, issued on May 10, 2019, was that the Petitioner failed to establish by a preponderance of the evidence that the Respondent violated Section 3.10 of the CC&Rs. Therefore, the petition was dismissed, and no action was required of the Respondent.

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Essay Questions

Construct detailed essay responses to the following prompts, drawing exclusively from the provided source documents to support your analysis.

1. Trace the complete procedural history of case No. 19F-H1918010-REL from the initial petition to the final order. Detail the key dates, presiding judges, significant filings, and the outcome of each stage of the proceedings.

2. Analyze the legal reasoning used by the Administrative Law Judges in both the initial decision (December 26, 2018) and the rehearing decision (May 10, 2019). Compare and contrast their interpretations of the CC&Rs and the standard of “preponderance of the evidence.”

3. Evaluate the evidence and arguments presented by both the Petitioner, John A. Sellers, and the Respondent, represented by Jeffrey Kaplan. What were the strengths and weaknesses of each party’s case as detailed in the hearing summaries?

4. Discuss the roles and responsibilities of the Unit Owners versus the Condominium Association as defined by CC&R Sections 3.10, 3.10.2, 3.10.4, and 13.1.1. How did the interpretation of these sections ultimately determine the outcome of the case?

5. Examine the external factors mentioned in the hearings, such as the Petitioner’s divorce, the market value of his unit, and communications with the Maricopa County Flood Control District. How did the Administrative Law Judge address these issues and determine their relevance (or irrelevance) to the central legal question?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings at the Office of Administrative Hearings. In this case, Diane Mihalsky presided over the initial hearing and Tammy L. Eigenheer presided over the rehearing.

CC&Rs (Covenants, Conditions, and Restrictions)

The governing legal documents that set forth the rules for the Rancho Madera condominium development.

Common Elements

Areas within the condominium development designed for common use, such as areas for stormwater conveyance mentioned in the CC&Rs.

Drainage Easement Area

The eastern five feet of Units 9 through 18, over which a perpetual non-exclusive drainage easement was created for the purpose of stormwater drainage.

Drainage Improvements

The drainage channel constructed within the Drainage Easement Area, which may consist of decomposed granite, rip rap (large stones), or concrete.

Office of Administrative Hearings (OAH)

An independent state agency in Arizona that conducts evidentiary hearings for other state agencies, such as the Department of Real Estate.

Petitioner

The party who files a petition initiating a legal case. In this matter, the Petitioner is John A. Sellers.

Preponderance of the Evidence

The standard of proof in this administrative hearing. It is defined as evidence that is sufficient to incline a fair and impartial mind to one side of an issue rather than the other, making the contention more probably true than not.

Respondent

The party against whom a petition is filed. In this matter, the Respondent is the Rancho Madera Condominium Association.

Restrictive Covenant

A provision in a deed or other legal document that limits the use of a property. The CC&Rs in this case are a form of restrictive covenant.

Unit Owner

An individual who owns a condominium unit within the development and is a member of the owners’ association.






Blog Post – 19F-H1918010-REL-RHG


I Read an Entire HOA Lawsuit. Here Are 4 Shocking Lessons About Power, Rules, and Reality.

The Anatomy of a Neighborhood War

Living under a Homeowner’s Association (HOA) often means navigating a complex world of rules, regulations, and neighborhood politics. For most, disagreements are minor annoyances. But sometimes, a seemingly small issue can escalate into a full-blown legal war.

This is the story of one homeowner’s single-minded crusade against his HOA over a stormwater drainage channel he believed was a serious flooding risk. After filing a formal petition, the dispute escalated into a multi-stage legal battle that spanned nearly a year. The official court documents reveal that even after a judge ruled decisively against him, the homeowner doubled down, demanding a rare rehearing.

A deep dive into this protracted case reveals a fascinating and cautionary tale. The legal reasoning that ultimately settled the matter highlights several surprising lessons that apply to anyone living in a planned community.

1. Proving a Rule Was Broken Isn’t the Same as Proving Harm

The initial hearing, held before Administrative Law Judge Diane Mihalsky in late 2018, centered on a seemingly straightforward argument from the petitioner, John Sellers. He pointed out that his neighbors had placed plants—including large succulents, shrubs, and cacti—as well as chicken wire in a stormwater drainage channel. This, he argued, was a clear violation of the community’s Covenants, Conditions, and Restrictions (CC&Rs), which stated that no improvement “shall be constructed, installed or allowed to grow… that may… impede the flow of water.”

But in her December 26, 2018 decision, the judge ruled against him. While Sellers successfully proved the obstructions existed, he failed to meet the legal burden of proof that they actually “impede the flow of water.” His claim was defeated by testimony from the HOA President, Jeffrey Kaplan, who stated that the unit had never sustained any flood damage, not even during a “100-year storm in 2014.”

The lesson from this first round is stark: in this legal context, simply pointing out a technical rule break was not enough. The petitioner had to prove that the violation was causing a tangible, negative impact. Without evidence of actual harm or impeded water flow, the theoretical risk was insufficient to win the case.

2. An HOA’s “Right” to Enforce Is Not an “Obligation”

After losing the first round on a question of evidence, Sellers’ argument evolved. He requested a rehearing, which was granted, and the case landed before a new judge, Tammy L. Eigenheer, in the spring of 2019. This shifted the legal focus from physical proof of impeded water flow to a more fundamental question of the HOA’s duties.

Sellers argued that because safety and property values were at stake, the association had a duty to enforce the CC&Rs and compel his neighbors to clear the drainage channel. He contended that at a certain point, an organization’s “right” to act becomes an “obligation.”

The judge’s final decision on May 10, 2019, was clear, absolute, and is where the most powerful lesson of the entire case lies.

“While Respondent has the right to enforce the requirements that the Unit Owners keep the Drainage Easement Area clear, nothing in the CC&Rs provides that Respondent has an obligation to do so.”

This distinction is critical for any homeowner. An HOA can possess the legal power to act but may not be legally compelled to use it. According to the judge’s interpretation, the governing documents placed the responsibility for keeping the channel clear on the individual unit owners. The association’s only stated obligation was to repair damage after it happened, with the cost being billed back to the responsible party.

3. Outside Conflicts Can Cast a Long Shadow

Legal disputes are rarely just about the facts of the case. During the initial hearing, it was revealed that the petitioner was going through a “contentious divorce” and that the condo unit at the center of the dispute was a community asset being sold by the court.

The most dramatic evidence, however, came from an email written by the petitioner’s own wife, Debborah Sellers. The email, submitted as evidence by the HOA, directly undermined his claims about the severity of the drainage issue.

“There has never been any issue with the storm drain behind our house and it is not a major disclosure item… Stop making something out of nothing. AND I HOPE YOU AREN[’]T FREAKING POTENTIAL BUYERS AND OTHER REALTORS WITH THIS NONSENSE.”

In her decision, Judge Mihalsky officially stated that the divorce was “not relevant” to the technical question of whether the HOA violated the CC&Rs. However, she immediately added that the situation “cast a long shadow over his administrative complaint,” suggesting that the personal context, and especially the damaging email, severely harmed the petitioner’s credibility.

4. Writing Letters Isn’t the Same as Being Heard

Throughout the dispute, the petitioner made his concerns known by writing “many letters” to the HOA president. He was persistent in his written communications, attempting to force the issue onto the association’s radar.

Yet, this effort was contrasted with a notable lack of direct participation. According to the testimony of HOA President Kaplan during the first hearing, Sellers “never attended any of Respondent’s noticed Board meetings” where his concerns could have been discussed among the board members.

The HOA’s response to his letters was limited; it sent two general reminder letters to all residents in the affected area but did not take direct enforcement action against any specific homeowner. The practical takeaway is that to effect change or be taken seriously in an HOA dispute, visibility and participation are critical. Writing letters is a start, but attending official meetings to present a case in person can be a more effective strategy for ensuring an issue is formally addressed.

A Cautionary Tale for Any Homeowner

What began as a seemingly straightforward complaint about drainage and rule enforcement devolved into a legal battle that consumed nearly a year, involving two multi-day hearings before two different administrative law judges. The petitioner lost his case on the evidence, then lost it again on the law.

It serves as a potent cautionary tale, demonstrating that in the world of HOA disputes, the obvious path is not always the winning one. It leaves every homeowner with a final, thought-provoking question to ponder: When you see a problem in your community, how do you decide if a fight is worth the cost—not just in money, but in time, credibility, and peace?


Case Participants

Petitioner Side

  • John A Sellers (petitioner)
    Appeared on his own behalf

Respondent Side

  • Edward D. O'Brien (respondent attorney)
    Carpenter, Hazlewood, Delgado & Bolen, PLC/LLP
  • Edith I. Rudder (respondent attorney)
    Carpenter, Hazlewood, Delgado & Bolen, PLC/LLP
  • Jeffrey Kaplan (board president/witness)
    Rancho Madera Condominium Association
    President of Respondent, testified

Neutral Parties

  • Diane Mihalsky (ALJ)
    Office of Administrative Hearings
    ALJ for initial proceedings
  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
    ALJ for rehearing proceedings
  • Judy Lowe (commissioner (ADRE))
    Arizona Department of Real Estate
  • LDettorre (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • djones (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • DGardner (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • ncano (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • c. serrano (clerk)
    Office of Administrative Hearings
    Transmittal/filing clerk
  • F. Del Sol (clerk)
    Office of Administrative Hearings
    Transmittal/filing clerk

Other Participants

  • Debborah Sellers (witness/spouse)
    Petitioner's wife, testimony via email submitted by Respondent

John A Sellers v. Rancho Madera Condominium 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-H1918010-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2019-05-10
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John A Sellers Counsel
Respondent Rancho Madera Condominium Association Counsel Edward D. O'Brien, Edith I. Rudder

Alleged Violations

CC&Rs § 3.10, 3.10.2, 3.10.4

Outcome Summary

The Administrative Law Judge dismissed the petition following a rehearing, concluding that the Petitioner failed to meet the burden of proof by establishing that the Respondent HOA violated its CC&Rs. The governing documents grant the HOA the right, but not the obligation, to enforce maintenance duties specifically assigned to Unit Owners concerning the drainage easement.

Why this result: Petitioner failed to establish by a preponderance of the evidence that the Respondent violated the CC&Rs because the HOA was found to have a right to enforce maintenance of the drainage easement, but not a mandatory obligation to do so under the terms of the CC&Rs.

Key Issues & Findings

HOA failure to enforce unit owner maintenance obligations regarding stormwater drainage easement

Petitioner alleged that the Respondent HOA violated the CC&Rs by failing to enforce unit owner responsibility to keep the stormwater drainage area free of obstructions like vegetation and fencing materials, potentially causing a risk of flooding to his unit.

Orders: The petition was dismissed. The Administrative Law Judge determined that the CC&Rs assign Unit Owners the responsibility to clear the drainage area and grant the HOA the right, but not an obligation, to enforce this maintenance.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 32-2199.01
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Analytics Highlights

Topics: HOA, CC&Rs, Drainage Easement, Enforcement Obligation, Condominium Unit Owner
Additional Citations:

  • A.R.S. § 32-2199.01
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Video Overview

Audio Overview

Decision Documents

19F-H1918010-REL-RHG Decision – 706533.pdf

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19F-H1918010-REL-RHG Decision – 707530.pdf

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19F-H1918010-REL-RHG Decision – ../19F-H1918010-REL/667122.pdf

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19F-H1918010-REL-RHG Decision – ../19F-H1918010-REL/678371.pdf

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Briefing Doc – 19F-H1918010-REL-RHG


Dispute Analysis: Sellers vs. Rancho Madera Condominium Association

Executive Summary

This briefing document synthesizes the legal proceedings and outcomes of a dispute between homeowner John A. Sellers (Petitioner) and the Rancho Madera Condominium Association (Respondent). The core of the conflict was Mr. Sellers’ allegation that the Association violated its Covenants, Conditions, and Restrictions (CC&Rs) by failing to compel other homeowners to remove vegetation and fencing from a common stormwater drainage channel, thereby creating a flood risk to his property, Unit 12.

The case was adjudicated by the Arizona Office of Administrative Hearings (OAH) in a process that included an initial hearing, a decision, a granted request for rehearing, and a final binding decision. In both instances, the Administrative Law Judge ruled against the Petitioner.

The initial decision, issued in December 2018, concluded that Mr. Sellers failed to provide sufficient evidence that the materials in the channel actually impeded water flow or posed an unreasonable flood risk. The ruling highlighted that the channel had functioned as intended since 2012 without any flooding incidents. Following a rehearing in April 2019, the second and final decision in May 2019 reinforced this conclusion. It further clarified a crucial distinction in the CC&Rs: while the Association possesses the right to enforce maintenance rules upon homeowners, the governing documents do not impose an explicit obligation to do so proactively before any damage has occurred. The responsibility for maintaining the drainage area rests with the individual unit owners, and the Association’s primary duty is to repair damages after the fact, billing the responsible owner. The petition was ultimately dismissed.

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I. Case Overview

This case documents a formal complaint filed by a homeowner against his condominium association, which was resolved through the Arizona Department of Real Estate and the Office of Administrative Hearings.

Case Number: 19F-H1918010-REL

Petitioner: John A. Sellers, owner of Unit 12 in Rancho Madera

Respondent: Rancho Madera Condominium Association, a 46-unit development in Cave Creek, Arizona.

Venue: Arizona Office of Administrative Hearings (OAH)

Key Chronology of Events

Aug 23, 2018

Petitioner files a single-issue petition with the Arizona Department of Real Estate.

Oct 23, 2018

An OAH order vacates the initial hearing after the Petitioner indicates a wish to withdraw the petition.

Nov 5, 2018

The first evidentiary hearing convenes, indicating the withdrawal was rescinded.

Dec 12, 2018

The first evidentiary hearing concludes.

Dec 26, 2018

Administrative Law Judge Diane Mihalsky issues a decision denying the petition.

Feb 1, 2019

Petitioner files a Rehearing Request with the Commissioner of the Department of Real Estate.

Feb 22, 2019

The Commissioner grants the Rehearing Request.

Apr 15, 2019

The rehearing convenes and concludes before Administrative Law Judge Tammy L. Eigenheer.

May 7, 2019

OAH issues an order striking a supplemental, post-hearing filing by the Petitioner from the record.

May 10, 2019

Judge Eigenheer issues a final Administrative Law Judge Decision, again dismissing the petition.

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II. Petitioner’s Core Allegation

Mr. Sellers’ petition was based on a single issue: the alleged violation of Section 3.10 of the Association’s CC&Rs.

The Violation: The Petitioner claimed the Association failed in its duty to require owners of “Drainage Easement Units” to remove obstructions from a shared stormwater channel.

The Obstructions: The materials of concern included “large succulents, shrubs, and cacti” growing in the drainage area’s rip-rap, as well as chicken wire that at least one owner had installed to contain a pet.

The Perceived Risk: Mr. Sellers testified that these items “could catch storm debris and cause the drainage channel to become clogged,” leading to a risk of flooding for his Unit 12. He submitted videos of heavy rains and flooding in other parts of Cave Creek as evidence of the potential danger.

Financial Impact Claim: The Petitioner was undergoing a contentious divorce, and Unit 12, as a community asset, was for sale under a court order. He asserted that the unresolved drainage issue and his required disclosure of the dispute had reduced the unit’s market price by $40,000.

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III. Respondent’s Position and Actions

The Rancho Madera Condominium Association, represented by its President, Jeffrey Kaplan, denied any violation of the CC&Rs and presented a multi-faceted defense.

Lack of Historical Precedent: Mr. Kaplan, an owner since 2012, testified that water had never entered the property from the east, and Unit 12 had never sustained any damage from flooding. This held true even during a “100-year storm in 2014.” After a significant rainstorm in August 2018, he personally inspected the drainage easement and “did not see any water in it.”

Origin of Vegetation: Mr. Kaplan stated that the builder had originally planted the vegetation in the drainage easement that was shown in the Petitioner’s photographic evidence.

Proactive Communication: To address the Petitioner’s concerns, the Board instructed its management company to act. Letters were sent to the relevant homeowners on April 18, 2018, and July 19, 2018, reminding them of their responsibility to keep the easement free of obstructions.

Jurisdictional Confirmation: Mr. Kaplan contacted officials from the Maricopa County Flood Control District and the Town of Cave Creek. Both agencies confirmed the drainage area was not on any official floodplain map, and therefore, the Association was “solely responsible” for its maintenance and enforcement.

Contradictory Evidence: The Association submitted a June 22, 2018 email from the Petitioner’s wife, Debborah Sellers, which directly contradicted the Petitioner’s claims. She wrote, “There has never been any issue with the storm drain behind our house and it is not a major disclosure item… Stop making something out of nothing.” She also referred to his claims as “nonsense.”

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IV. Analysis of Governing CC&Rs

The dispute centered on the interpretation of specific sections of the Rancho Madera CC&Rs. The judges in both hearings analyzed these sections to determine the respective duties of the homeowners and the Association.

Section

Provision Summary

Key Language

Establishes a perpetual “Drainage Easement” over the eastern five feet of Units 9 through 18 for stormwater conveyance.

“…for the purpose of constructing, maintaining, repairing and replacing a drainage channel…”

3.10.2

Assigns the primary maintenance duty to the individual unit owners within the easement area.

“Each Unit Owner of a Drainage Easement Unit shall keep his Drainage Easement Area Free of weeds and other debris so that the stormwater can flow freely… No Improvement… shall be… allowed to grow… that may… impede the flow of water…”

3.10.4

Defines the Association’s role in the event of damage resulting from a unit owner’s failure to maintain the easement.

“If the failure of one Unit Owner to maintain his Drainage Easement Area… results in damage… the Association shall repair or replace such damage… and the cost… shall be paid by the Unit Owner that caused the damage…”

13.1.1

Grants the Association the power to enforce the CC&Rs.

“The Association shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants…”

——————————————————————————–

V. Administrative Law Judge Decisions and Rationale

The Petitioner’s case was heard twice and denied both times, with the second decision providing a definitive interpretation of the Association’s duties under the CC&Rs.

Initial Decision (December 26, 2018)

Presiding Judge: Diane Mihalsky

Conclusion: The Petitioner failed to meet his burden of proof “by a preponderance of the evidence.”

Rationale: The judge found a critical failure in the Petitioner’s evidence. While he successfully “established that there are some plants and chicken wire in the stormwater drainage canal,” he “did not establish that the plants or chicken wire impede the flow of water.” The Respondent, in contrast, successfully established that the channel had always “functioned as intended” and that “Unit 12 has never flooded.” The judge concluded there was “no unreasonable risk that Unit 12 will flood.”

Order: The petition was denied.

Rehearing and Final Decision (May 10, 2019)

Presiding Judge: Tammy L. Eigenheer

Context: The rehearing was granted based on the Petitioner’s claims of procedural irregularities and legal errors in the first hearing.

Petitioner’s Refined Argument: During the rehearing, the Petitioner argued that the Association’s right to enforce the CC&Rs (under Section 13.1.1) becomes an obligation when safety and property values are affected.

Conclusion: The petition was dismissed.

Rationale: The final decision hinged on a strict interpretation of the CC&Rs. The judge determined that the documents create a clear hierarchy of responsibility:

1. Unit Owners: Bear the primary responsibility for keeping the easement clear (Section 3.10.2).

2. The Association: Has a responsibility to act only after damage occurs due to an owner’s failure, at which point it must repair the damage and bill the responsible owner (Section 3.10.4).

Final Legal Interpretation: The judge concluded, “While Respondent has the right to enforce the requirements that the Unit Owners keep the Drainage Easement Area clear, nothing in the CC&Rs provides that Respondent has an obligation to do so.” The petition was dismissed because the Petitioner could not prove the Association had violated any actual obligation laid out in the governing documents. This decision was issued as final and binding on the parties.






Study Guide – 19F-H1918010-REL-RHG


Study Guide: Case No. 19F-H1918010-REL, Sellers v. Rancho Madera Condominium Association

This guide provides a detailed review of the administrative legal proceedings between Petitioner John A. Sellers and Respondent Rancho Madera Condominium Association. It is designed to assess comprehension of the case’s facts, legal arguments, and procedural history.

Short-Answer Quiz

Answer each question in 2-3 sentences based on the information provided in the source documents.

1. What was the central allegation John A. Sellers filed against the Rancho Madera Condominium Association on August 23, 2018?

2. Identify the specific sections of the Covenants, Conditions, and Restrictions (CC&Rs) that were central to the dispute.

3. Who is responsible for maintaining the Drainage Easement Area according to CC&R § 3.10.2?

4. What actions did the Association’s management company take in response to the Petitioner’s concerns?

5. What was the testimony of Jeffrey Kaplan, the Association’s President, regarding the history of flooding at Rancho Madera?

6. Why did the Commissioner of the Department of Real Estate grant the Petitioner’s request for a rehearing?

7. What was the procedural outcome of Petitioner Sellers’ attempt to submit supplemental arguments after the April 15, 2019, rehearing?

8. How did Administrative Law Judge Tammy L. Eigenheer distinguish between a “right to enforce” and an “obligation to enforce” in her final decision?

9. What evidence did the Petitioner present to support his claim that the drainage channel was at risk of clogging?

10. What was the final ruling in the Administrative Law Judge Decision dated May 10, 2019?

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Answer Key

1. Petitioner John A. Sellers alleged that the Association had violated its CC&Rs, specifically § 3.10, by failing to require condominium owners to remove vegetation and fencing materials from the stormwater channel. Sellers claimed this failure created a risk of flooding for his unit.

2. The central CC&R sections were § 3.10, which establishes the stormwater drainage easement; § 3.10.2, which outlines the maintenance responsibilities of Unit Owners; § 3.10.4, which details the Association’s role in repairing damages; and § 13.1.1, which grants the Association the right to enforce the CC&Rs.

3. According to CC&R § 3.10.2, each individual Unit Owner of a Drainage Easement Unit is responsible for keeping their respective Drainage Easement Area free of weeds and other debris. The text explicitly states that no improvements, including plants, should be allowed that might impede the flow of water.

4. To address the Petitioner’s concerns, the Association’s management company sent letters to the owners of the Drainage Easement Units on April 18, 2018, and July 19, 2018. These letters reminded the owners of their responsibility to keep the easement area clear of obstructions and debris.

5. Jeffrey Kaplan testified that he bought one of the first units in 2012 and that water has never entered Rancho Madera from the east. He specifically noted that no flooding occurred even during the 100-year storm in 2014, and that after a significant rainstorm in August 2018, he inspected the easement and saw no water in it.

6. The Commissioner granted the Rehearing Request “for the reasons outlined in the Petitioners’ Rehearing Request.” The request itself alleged irregularity in the proceedings, newly discovered evidence, errors in the admission of evidence, and that the original decision was arbitrary, capricious, or contrary to law.

7. After the rehearing concluded, the Petitioner submitted supplemental authority and argument. The Respondent argued this filing was untimely, and Administrative Law Judge Tammy L. Eigenheer ordered the filing to be stricken from the record and closed the record on May 7, 2019.

8. Judge Eigenheer’s decision concluded that while the Association has the right to enforce the CC&Rs under § 13.1.1, nothing in the documents creates an obligation for it to proactively do so regarding maintenance. The only obligation specified is to repair damage after it occurs, with the cost being billed to the responsible unit owner.

9. The Petitioner provided photographs showing large succulents, shrubs, and cacti growing in the rip rap of the Drainage Easement Area. He also showed at least one instance where chicken wire had been placed across the channel to contain a pet, testifying that these items could catch storm debris and cause a clog.

10. The final ruling, issued on May 10, 2019, was that the Petitioner failed to establish by a preponderance of the evidence that the Respondent violated Section 3.10 of the CC&Rs. Therefore, the petition was dismissed, and no action was required of the Respondent.

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Essay Questions

Construct detailed essay responses to the following prompts, drawing exclusively from the provided source documents to support your analysis.

1. Trace the complete procedural history of case No. 19F-H1918010-REL from the initial petition to the final order. Detail the key dates, presiding judges, significant filings, and the outcome of each stage of the proceedings.

2. Analyze the legal reasoning used by the Administrative Law Judges in both the initial decision (December 26, 2018) and the rehearing decision (May 10, 2019). Compare and contrast their interpretations of the CC&Rs and the standard of “preponderance of the evidence.”

3. Evaluate the evidence and arguments presented by both the Petitioner, John A. Sellers, and the Respondent, represented by Jeffrey Kaplan. What were the strengths and weaknesses of each party’s case as detailed in the hearing summaries?

4. Discuss the roles and responsibilities of the Unit Owners versus the Condominium Association as defined by CC&R Sections 3.10, 3.10.2, 3.10.4, and 13.1.1. How did the interpretation of these sections ultimately determine the outcome of the case?

5. Examine the external factors mentioned in the hearings, such as the Petitioner’s divorce, the market value of his unit, and communications with the Maricopa County Flood Control District. How did the Administrative Law Judge address these issues and determine their relevance (or irrelevance) to the central legal question?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings at the Office of Administrative Hearings. In this case, Diane Mihalsky presided over the initial hearing and Tammy L. Eigenheer presided over the rehearing.

CC&Rs (Covenants, Conditions, and Restrictions)

The governing legal documents that set forth the rules for the Rancho Madera condominium development.

Common Elements

Areas within the condominium development designed for common use, such as areas for stormwater conveyance mentioned in the CC&Rs.

Drainage Easement Area

The eastern five feet of Units 9 through 18, over which a perpetual non-exclusive drainage easement was created for the purpose of stormwater drainage.

Drainage Improvements

The drainage channel constructed within the Drainage Easement Area, which may consist of decomposed granite, rip rap (large stones), or concrete.

Office of Administrative Hearings (OAH)

An independent state agency in Arizona that conducts evidentiary hearings for other state agencies, such as the Department of Real Estate.

Petitioner

The party who files a petition initiating a legal case. In this matter, the Petitioner is John A. Sellers.

Preponderance of the Evidence

The standard of proof in this administrative hearing. It is defined as evidence that is sufficient to incline a fair and impartial mind to one side of an issue rather than the other, making the contention more probably true than not.

Respondent

The party against whom a petition is filed. In this matter, the Respondent is the Rancho Madera Condominium Association.

Restrictive Covenant

A provision in a deed or other legal document that limits the use of a property. The CC&Rs in this case are a form of restrictive covenant.

Unit Owner

An individual who owns a condominium unit within the development and is a member of the owners’ association.






Blog Post – 19F-H1918010-REL-RHG


I Read an Entire HOA Lawsuit. Here Are 4 Shocking Lessons About Power, Rules, and Reality.

The Anatomy of a Neighborhood War

Living under a Homeowner’s Association (HOA) often means navigating a complex world of rules, regulations, and neighborhood politics. For most, disagreements are minor annoyances. But sometimes, a seemingly small issue can escalate into a full-blown legal war.

This is the story of one homeowner’s single-minded crusade against his HOA over a stormwater drainage channel he believed was a serious flooding risk. After filing a formal petition, the dispute escalated into a multi-stage legal battle that spanned nearly a year. The official court documents reveal that even after a judge ruled decisively against him, the homeowner doubled down, demanding a rare rehearing.

A deep dive into this protracted case reveals a fascinating and cautionary tale. The legal reasoning that ultimately settled the matter highlights several surprising lessons that apply to anyone living in a planned community.

1. Proving a Rule Was Broken Isn’t the Same as Proving Harm

The initial hearing, held before Administrative Law Judge Diane Mihalsky in late 2018, centered on a seemingly straightforward argument from the petitioner, John Sellers. He pointed out that his neighbors had placed plants—including large succulents, shrubs, and cacti—as well as chicken wire in a stormwater drainage channel. This, he argued, was a clear violation of the community’s Covenants, Conditions, and Restrictions (CC&Rs), which stated that no improvement “shall be constructed, installed or allowed to grow… that may… impede the flow of water.”

But in her December 26, 2018 decision, the judge ruled against him. While Sellers successfully proved the obstructions existed, he failed to meet the legal burden of proof that they actually “impede the flow of water.” His claim was defeated by testimony from the HOA President, Jeffrey Kaplan, who stated that the unit had never sustained any flood damage, not even during a “100-year storm in 2014.”

The lesson from this first round is stark: in this legal context, simply pointing out a technical rule break was not enough. The petitioner had to prove that the violation was causing a tangible, negative impact. Without evidence of actual harm or impeded water flow, the theoretical risk was insufficient to win the case.

2. An HOA’s “Right” to Enforce Is Not an “Obligation”

After losing the first round on a question of evidence, Sellers’ argument evolved. He requested a rehearing, which was granted, and the case landed before a new judge, Tammy L. Eigenheer, in the spring of 2019. This shifted the legal focus from physical proof of impeded water flow to a more fundamental question of the HOA’s duties.

Sellers argued that because safety and property values were at stake, the association had a duty to enforce the CC&Rs and compel his neighbors to clear the drainage channel. He contended that at a certain point, an organization’s “right” to act becomes an “obligation.”

The judge’s final decision on May 10, 2019, was clear, absolute, and is where the most powerful lesson of the entire case lies.

“While Respondent has the right to enforce the requirements that the Unit Owners keep the Drainage Easement Area clear, nothing in the CC&Rs provides that Respondent has an obligation to do so.”

This distinction is critical for any homeowner. An HOA can possess the legal power to act but may not be legally compelled to use it. According to the judge’s interpretation, the governing documents placed the responsibility for keeping the channel clear on the individual unit owners. The association’s only stated obligation was to repair damage after it happened, with the cost being billed back to the responsible party.

3. Outside Conflicts Can Cast a Long Shadow

Legal disputes are rarely just about the facts of the case. During the initial hearing, it was revealed that the petitioner was going through a “contentious divorce” and that the condo unit at the center of the dispute was a community asset being sold by the court.

The most dramatic evidence, however, came from an email written by the petitioner’s own wife, Debborah Sellers. The email, submitted as evidence by the HOA, directly undermined his claims about the severity of the drainage issue.

“There has never been any issue with the storm drain behind our house and it is not a major disclosure item… Stop making something out of nothing. AND I HOPE YOU AREN[’]T FREAKING POTENTIAL BUYERS AND OTHER REALTORS WITH THIS NONSENSE.”

In her decision, Judge Mihalsky officially stated that the divorce was “not relevant” to the technical question of whether the HOA violated the CC&Rs. However, she immediately added that the situation “cast a long shadow over his administrative complaint,” suggesting that the personal context, and especially the damaging email, severely harmed the petitioner’s credibility.

4. Writing Letters Isn’t the Same as Being Heard

Throughout the dispute, the petitioner made his concerns known by writing “many letters” to the HOA president. He was persistent in his written communications, attempting to force the issue onto the association’s radar.

Yet, this effort was contrasted with a notable lack of direct participation. According to the testimony of HOA President Kaplan during the first hearing, Sellers “never attended any of Respondent’s noticed Board meetings” where his concerns could have been discussed among the board members.

The HOA’s response to his letters was limited; it sent two general reminder letters to all residents in the affected area but did not take direct enforcement action against any specific homeowner. The practical takeaway is that to effect change or be taken seriously in an HOA dispute, visibility and participation are critical. Writing letters is a start, but attending official meetings to present a case in person can be a more effective strategy for ensuring an issue is formally addressed.

A Cautionary Tale for Any Homeowner

What began as a seemingly straightforward complaint about drainage and rule enforcement devolved into a legal battle that consumed nearly a year, involving two multi-day hearings before two different administrative law judges. The petitioner lost his case on the evidence, then lost it again on the law.

It serves as a potent cautionary tale, demonstrating that in the world of HOA disputes, the obvious path is not always the winning one. It leaves every homeowner with a final, thought-provoking question to ponder: When you see a problem in your community, how do you decide if a fight is worth the cost—not just in money, but in time, credibility, and peace?


Case Participants

Petitioner Side

  • John A Sellers (petitioner)
    Appeared on his own behalf

Respondent Side

  • Edward D. O'Brien (respondent attorney)
    Carpenter, Hazlewood, Delgado & Bolen, PLC/LLP
  • Edith I. Rudder (respondent attorney)
    Carpenter, Hazlewood, Delgado & Bolen, PLC/LLP
  • Jeffrey Kaplan (board president/witness)
    Rancho Madera Condominium Association
    President of Respondent, testified

Neutral Parties

  • Diane Mihalsky (ALJ)
    Office of Administrative Hearings
    ALJ for initial proceedings
  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
    ALJ for rehearing proceedings
  • Judy Lowe (commissioner (ADRE))
    Arizona Department of Real Estate
  • LDettorre (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • djones (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • DGardner (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • ncano (ADRE staff)
    Arizona Department of Real Estate
    Recipient of official orders
  • c. serrano (clerk)
    Office of Administrative Hearings
    Transmittal/filing clerk
  • F. Del Sol (clerk)
    Office of Administrative Hearings
    Transmittal/filing clerk

Other Participants

  • Debborah Sellers (witness/spouse)
    Petitioner's wife, testimony via email submitted by Respondent