Latest AZ Superior Court holding supports OAH homeowner petition that raised CAI unconstitutionality challenges to OAH adjudications of HOA disputes
(See OAH: 07F-H067029-BFS)
After 2 years of litigation, Nancy Waugaman wins her legal battle that sustains AZ Office of Administrative Hearings (OAH) findings of board error that was based on CAI attorney advice.
Waugaman’s interpretation of Section 11.02 is preferable for either of two reasons. First, the Association’s interpretation renders meaningless the phrase “total voting power” or, at minimum, construes it to mean “votes cost by those present.” That reading is unsupported by both the plain language of the statute and the Association’s actions taken prior to October 16, 2006. Second, even if Section 11.02 were to be held ambiguous, the relevant Restatement provision urges Waugaman’s position. See Restatement (Third) of Property §6.17 cmt. b (2000).
(Maricopa County Superior Court, CV 2008-027251 Ruling of July 31, 2009).
One would think that those expert HOA attorneys, Carrie Smith of the Carpenter Hazelwood law firm, would know the law better. However, understanding that they will do everything to win for their HOA clients, no matter how frivolous, it is not surprising. They undoubtedly believe that the homeowner will eventually go away because of the personal costs to him, while the HOA spends the members’ assessments on frivolous suits. Congratulations to Nancy Waugaman for going the distance!
The attorneys for this Petition were Carrie and Jason Smith of the Carpenter Hazelwood law firm, the same attorneys involved in the constitutionality appeal of that case (LC2007-000598, decided October 2, 2008) as applied solely to the Troon Village HOA: “Thus, the legislature’s delegation of authority to the Department violates the separation of powers doctrine,” and in the Merrit v. Phoenix Townhouse OAH case (No. 08F-H089004-BFS, August 4, 2008) that resulted in the Superior Court declaring OAH as unconstitutional violation of a separation of powers as applied to all HOAs in Arizona (LC 2008-000740, October 23, 2008). The Merrit HOA argument was based on Judge Downie’s ruling in the Waugaman superior court appeal. (Disgracefully, the Merrit case was a default decision with nobody coming to defend the statute, including DFBLS, the Attorney General, who did an about face in the case, and the Legislature).
The persistent role of the Carpenter Hazelwood law firm in pursuing these unconstitutionality challenges raised the question of who were they fighting for? The two separate HOAs? Or, all the HOAs in Arizona? This objective of “all HOAs” reflects the interests of the CAI national lobbying trade group: that of keeping constitutional protections away from homeowners in HOAs.
For the complete document, and the appointment of these CAI attorneys as Judge Pro Tems, see Waugaman-Carpenter.
