Case Summary
| Case ID | 25F-H005-REL |
|---|---|
| Agency | Arizona Department of Real Estate |
| Tribunal | — |
| Decision Date | 2024-12-16 |
| Administrative Law Judge | NR |
| Outcome | Petitioner's petition granted. |
| Filing Fees Refunded | — |
| Civil Penalties | — |
Parties & Counsel
| Petitioner | Cross Creek Ranch Community Association | Counsel | — |
|---|---|---|---|
| Respondent | Turquoise Textures, LLC | Counsel | — |
Alleged Violations
No violations listed
Video Overview
Audio Overview
Decision Documents
25F-H005-REL Decision – 1246254.pdf
25F-H005-REL Decision – 1252576.pdf
25F-H005-REL Decision – 1252586.pdf
Briefing Document: Cross Creek Ranch Community Association vs. Turquoise Textures, LLC
Executive Summary
This briefing document synthesizes the proceedings and outcome of the case Cross Creek Ranch Community Association vs. Turquoise Textures, LLC (No. 25F-H005-REL), heard by the Arizona Office of Administrative Hearings (OAH). The central dispute involved the unauthorized clear-cutting of approximately 30 old-growth trees and native vegetation from a lot owned by William D. Durham, principal of Turquoise Textures, LLC.
The Administrative Law Judge (ALJ), Nicole Robinson, ultimately ruled in favor of the Petitioner, the Cross Creek Ranch Community Association (HOA). The decision found that Mr. Durham violated the community’s Covenants, Conditions, and Restrictions (CC&Rs) and Design Guidelines. While Mr. Durham’s primary defense was to blame his general contractor, the ALJ’s decision was based on credible testimony from the contractor implicating Mr. Durham, a documented pattern of non-compliance by Mr. Durham, and his own admission that the lot was cleared in violation of his approved plans.
The HOA sought a court order compelling Mr. Durham to plant 30 trees, 10-12 feet in height, by March 15, 2025. The final OAH order granted the HOA’s petition, requiring Mr. Durham to comply with the governing documents and reimburse the association’s $500 filing fee.
Case Overview
Parties Involved
Name / Entity
Key Role/Witness For
Petitioner
Cross Creek Ranch Community Association
Homeowners’ Association alleging violation of governing documents.
Respondent
Turquoise Textures, LLC (William D. Durham)
Property owner accused of violating governing documents.
Adjudicator
Nicole Robinson
Administrative Law Judge, Office of Administrative Hearings.
Witness
Greg Chambers
Petitioner; HOA Board Member.
Witness
Steve Germaine
Petitioner; Member of Architectural Review Committee (ARC), former ARC Chair.
Witness
Daniel Donahghue
Petitioner; Current ARC Chair and Board Member.
Witness
Jeffrey Penchina
Petitioner; Member of the ARC.
Witness
Timothy Smith
Petitioner; General Contractor hired by William Durham.
Core Allegation and Relief Sought
The HOA filed a petition on July 16, 2024, alleging that in September 2023, the Respondent clear-cut his lot of 20-30 old-growth trees (Junipers and Pinions) and native vegetation. This action was in direct violation of his ARC-approved plans, which were contingent on those plantings remaining in place. The HOA contended this violated:
• CC&Rs Article 3, Section 3.1.3: Pertaining to architectural approval and control.
• CC&Rs Article 7, Section 7.5: Pertaining to improper maintenance and use of lots.
The HOA argued that the clear-cutting was done to improve Mr. Durham’s view and detrimentally affected the community’s appearance and value. The specific relief requested was an order compelling Mr. Durham to plant 30 trees (10 to 12 feet in size) and replace additional vegetation by March 15, 2025.
Chronology of Key Events
• April 18, 2021: Prior to purchasing the lot, William Durham meets with ARC member Steve Germaine and is informed via a follow-up email that “The ARC does not approve the removal of trees… solely for the purpose of preserving or improving a view.”
• May 3, 2021: William Durham purchases Lot 62 in Cross Creek Ranch.
• July 7, 2022: Mr. Durham receives permission from the ARC to remove four specific dead trees.
• July 9, 2022: Mr. Germaine observes Mr. Durham removing more than the four approved dead trees and instructs him to stop.
• June 7, 2023: The ARC approves Mr. Durham’s residential and landscape plans, which show the preservation of existing trees and vegetation in the “transitional area.”
• August 29, 2023: A pre-construction meeting is held with Mr. Durham, his General Contractor (GC) Timothy Smith, and ARC members. ARC member Jeffrey Penchina testified that Mr. Durham personally assured him no trees outside the construction envelope would be removed.
• September 2023: Over approximately three days, Mr. Smith’s company clear-cuts the lot of 30+ old-growth trees and shrubs.
• October 2023: Following the discovery of the clearing, the ARC sends a letter to Mr. Durham to cease construction.
• October 6, 2023: Mr. Durham files a complaint with the Arizona Registrar of Contractors (ROC) against Tim Smith, blaming him for the tree removal.
• February 9, 2024: Mr. Durham transfers the property title to Turquoise Textures, LLC.
• July 16, 2024: The HOA files its petition with the Arizona Department of Real Estate.
• October 15, 2024: Mr. Durham submits a revised landscape plan to the HOA.
• November 4, 2024: The HOA responds to the plan, requiring 10-12 foot trees for remediation.
• November 11, 2024: Mr. Durham sends a detailed email responding to the HOA’s requirements.
• November 26, 2024: The OAH hearing is conducted virtually.
• December 16, 2024: The ALJ issues a final decision granting the HOA’s petition. A separate minute entry notes that documents filed by Mr. Durham after the hearing record closed would not be considered.
Key Testimony and Arguments
Petitioner’s Case (Cross Creek Ranch HOA)
The HOA presented a case built on documented warnings, contractual obligations, and direct eyewitness testimony.
• Established Pattern of Non-Compliance: Witness Steve Germaine testified that he warned Mr. Durham about the rules regarding tree removal for views even before the lot was purchased in April 2021. He further testified to the incident on July 9, 2022, where he witnessed Mr. Durham cutting down live trees without authorization, beyond the four dead trees he had permission for.
• Violation of Approved Plans: Daniel Donahghue and Jeffrey Penchina testified that during the pre-construction meeting on August 29, 2023, the rules were clearly explained. Mr. Penchina stated, “he assured me that nothing outside of the construction envelope would be removed.” The approved plans, entered as evidence, explicitly showed the preservation of the natural landscape in the transitional area.
• Direct Culpability via GC Testimony: The general contractor, Timothy Smith, provided critical testimony directly contradicting Mr. Durham’s defense.
◦ Mr. Smith stated that Mr. Durham directed the clear-cutting: “he started to point out at trees that were in disturbing the… surrounding views… I let him know, well, now we’re going outside of the construction envelope. And he said he doesn’t really care.”
◦ He testified that Mr. Durham was on-site during the three-day clearing process and that the business relationship fractured later over non-payment for subsequent work, not over the tree removal.
Respondent’s Defense (William D. Durham)
Mr. Durham admitted the plans were violated but placed all blame on his general contractor and portrayed the HOA as a hostile and unresponsive entity.
• Blame Assigned to General Contractor: Mr. Durham’s central argument was that his GC acted against instructions. He stated, “I was forced to have a GC that I didn’t need, and the GC insisted on doing all the initial work… He ignored all the directives from Mark and from me.” He testified that he “absolutely not” directed Mr. Smith to clear the land and claimed to be out of town for most of the clearing.
• Allegations of HOA Harassment and Inefficiency: Mr. Durham repeatedly described the HOA as slow, uncooperative, and corrupt.
◦ He claimed he was trying to remediate the issue but the HOA was “very very very slow to ever get back to me.”
◦ He accused the HOA of “moving the goalposts” by demanding 10-12 foot trees, a requirement he said was never mentioned until the hearing.
◦ He testified he was facing over “$40,000 in fines” and was being harassed by specific members. He stated, “There’s a degree of corruption and cronyism in this HOA that is deeply disturbing.”
• Proactive Remediation Efforts: Mr. Durham asserted he had been proactive, submitting a new landscape plan with 32 plants. He testified, “all I need is their input back that’s helpful to resolve everything.” He repeatedly requested a single liaison from the ARC to facilitate faster solutions.
Administrative Law Judge’s Decision
The ALJ’s decision, issued December 16, 2024, was a conclusive victory for the Petitioner.
Findings of Fact
The ALJ established a clear factual record that supported the HOA’s position, highlighting:
• The pre-purchase warning to Mr. Durham in April 2021 regarding tree removal.
• The unauthorized removal of viable trees in July 2022.
• The September 2023 clear-cutting incident, which the judge factually concluded occurred at Mr. Durham’s direction. Finding #15 states: “Mr. Smith, the general contractor, cleared Lot 64 of approximately 30 plus trees and shrubs that were not included in the approved plans per Respondent’s instruction.”
Conclusions of Law
Based on the evidence, the ALJ made the following legal conclusions:
• The Petitioner (HOA) successfully met its burden of proving by a preponderance of the evidence that the Respondent violated the governing documents.
• The ALJ identified a clear “pattern” of behavior, noting Mr. Durham began “failing to heed the ARC’s directions in July 2022.”
• Critically, the judge determined that even without the GC’s testimony, Mr. Durham’s own admission was sufficient for a finding of violation: “Respondent admitted what happened to his Lot was not a part of the approved plan and, hence, was a violation of Petitioner’s CC&Rs and Design Guidelines.”
Final Order
The OAH issued the following orders:
1. IT IS ORDERED that Petitioner’s petition be granted.
2. IT IS FURTHER ORDERED that Respondent reimburse Petitioner’s filing fee of $500.00.
3. IT IS FURTHER ORDERED that Respondent shall henceforth comply with the provisions of the governing documents.
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25F-H005-REL
5 sources
These sources document a legal dispute and administrative hearing between the Cross Creek Ranch Community Association and homeowner William Durham, operating as Turquoise Textures LLC. The association alleged that Durham violated community governing documents by clear-cutting approximately 30 protected old-growth trees to improve his property’s view, contradicting his approved landscape plans. While Durham blamed his general contractor for the unauthorized removal, testimony from the contractor and association members suggested Durham directed the clearing personally. The Office of Administrative Hearings ultimately ruled in favor of the association, finding Durham in violation of the CC&Rs and Design Guidelines. Consequently, the court ordered Durham to reimburse filing fees and mandated future compliance with community standards, which included a demand for the replanting of mature trees by March 2025.
No emoji found
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25F-H005-REL
5 sources
These sources document a legal dispute and administrative hearing between the Cross Creek Ranch Community Association and homeowner William Durham, operating as Turquoise Textures LLC. The association alleged that Durham violated community governing documents by clear-cutting approximately 30 protected old-growth trees to improve his property’s view, contradicting his approved landscape plans. While Durham blamed his general contractor for the unauthorized removal, testimony from the contractor and association members suggested Durham directed the clearing personally. The Office of Administrative Hearings ultimately ruled in favor of the association, finding Durham in violation of the CC&Rs and Design Guidelines. Consequently, the court ordered Durham to reimburse filing fees and mandated future compliance with community standards, which included a demand for the replanting of mature trees by March 2025.
Case Participants
Petitioner Side
- John Kalinich (Representative)
Cross Creek Ranch Community Association
Acted as representative for the petitioner - Gregory J. Chambers (Board Member / Witness)
Cross Creek Ranch Community Association - Daniel Kevin Donahue (Board Member and ARC Chair / Witness)
Cross Creek Ranch Community Association
Also spelled Donahghue in the transcript - Steven Matthew Jermaine (ARC Member / Witness)
Cross Creek Ranch Community Association
Also spelled Germaine in the transcript - Jeffrey Penchina (ARC Member / Witness)
Cross Creek Ranch Community Association
Also spelled Panchina in the transcript - Timothy Cody Smith (General Contractor / Witness)
Smith & Sons Construction
Hired by the respondent, but appeared as a witness for the petitioner
Respondent Side
- William D. Durham (Principal / Owner)
Turquoise Textures, LLC
Respondent who cleared the lot
Neutral Parties
- Nicole Robinson (Administrative Law Judge)
Office of Administrative Hearings - Susan Nicolson (Commissioner)
Arizona Department of Real Estate