Briefing Document: Satterlee v. Green Valley Country Club Vistas II POA

Executive Summary

This briefing document analyzes the administrative legal proceedings in the case of Thomas Satterlee versus the Green Valley Country Club Vistas II Property Owners Association (POA). The central issue was a successful jurisdictional challenge by the Respondent POA, leading to the dismissal of petitions filed by Mr. Satterlee.

The Administrative Law Judge (ALJ) and the Arizona Department of Real Estate Commissioner concluded that they lacked subject matter jurisdiction because the Respondent POA does not meet the statutory definition of a “planned community” under Arizona Revised Statutes (A.R.S.) § 33-1802(4). This definition requires an association to own and operate real estate or hold an easement or covenant to maintain roadways. Both parties agreed that the Respondent POA did not meet these criteria.

The Petitioner’s arguments—that jurisdiction should be inferred from a prior case and from the Respondent’s own community documents—were rejected. The ALJ’s decision emphasized the legal principle that subject matter jurisdiction is dictated by statute, cannot be waived by parties, and cannot be conferred by estoppel or prior administrative oversight. The petitions were ultimately dismissed with prejudice, with the Petitioner retaining the right to pursue action in a court of competent jurisdiction.

Case Overview

This matter involves consolidated petitions brought before the Arizona Office of Administrative Hearings (OAH) and finalized by the Arizona Department of Real Estate.

Parties and Legal Representation

Representation

Petitioner

Thomas Satterlee

Represented himself

Respondent

Green Valley Country Club Vistas II Property Owners Association

Represented by James Robles, Esq.

Adjudicator

Administrative Law Judge Suzanne Marwil

Office of Administrative Hearings

Final Authority

Commissioner Judy Lowe

Department of Real Estate

Note: The Petitioner argued that Mr. Robles was not authorized to represent the Respondent. The ALJ determined that the filing of a Notice of Appearance was sufficient for the proceeding and that concerns over the propriety of the representation could be addressed in another forum.

Case Identification

Identifier

Details

Consolidated OAH Numbers

17F-H1716022-REL & 17F-H1716018-REL

Consolidated Dept. of Real Estate Docket Numbers

17F-H1716022-REL & 17F-H1716018-REL

Consolidated Dept. of Real Estate Case Numbers

HO 17-16/022 & HO 17-16/018

Key Dates

• March 15, 2017: Respondent files a motion to vacate, challenging subject matter jurisdiction.

• June 27, 2017: Oral argument held on the jurisdictional motion.

• July 6, 2017: ALJ Suzanne Marwil issues a decision recommending dismissal.

• July 7, 2017: Commissioner Judy Lowe issues a Final Order adopting the ALJ’s decision.

Jurisdictional Challenge and Arguments

The case pivoted from a substantive hearing to a dispositive oral argument focused exclusively on the OAH’s authority to hear the dispute.

Respondent’s Motion to Vacate

On March 15, 2017, the Respondent moved to vacate the proceedings, asserting that the OAH lacked subject matter jurisdiction. The core of this argument was that the Green Valley Country Club Vistas II POA did not qualify as a “planned community” under the definition provided in A.R.S. § 33-1802(4). The statute requires such a community’s association to either own and operate real estate or hold a roadway easement or covenant.

During the oral argument on June 27, 2017, a critical fact was established: both the Petitioner and the Respondent agreed that the association did not currently own or operate real estate or possess a roadway easement or covenant.

Petitioner’s Arguments for Jurisdiction

Despite agreeing with the central fact, the Petitioner urged the OAH to exercise jurisdiction based on two main arguments:

1. Prior Precedent: A former Administrative Law Judge, Douglas, had previously exercised jurisdiction over a petition filed by Mr. Satterlee against the same Respondent in docket number 15F-H1515008-BFS.

2. Community Documents: The Respondent’s own community documents contemplate being bound by the laws governing planned communities, which, the Petitioner argued, should confer jurisdiction upon the OAH.

Administrative Law Judge’s Decision and Rationale

ALJ Suzanne Marwil’s decision methodically dismantled the Petitioner’s arguments and affirmed that jurisdiction was statutorily barred.

Statutory Interpretation of “Planned Community”

The decision centered on the plain language of A.R.S. § 33-1802(4).

• The Definition: The statute defines a “planned community” as a development where an association of owners owns and operates real estate or holds an easement or covenant to maintain roadways for the purpose of managing or improving the property.

• Statutory History: The statute was amended in 2014. The ALJ noted that prior to the amendment, the definition only required ownership of real estate. However, the Respondent association failed to meet the definition under either the pre- or post-2014 versions of the law.

• Rejection of Flexible Interpretation: The ALJ rejected the Petitioner’s invitation to use the statute’s introductory phrase, “unless the context otherwise requires,” to expand the definition. Citing the appellate case Sunrise Desert Vistas v. Salas, the decision states that this phrase does not permit a court or agency to “disregard the language of a statute or the legislative intent embodied by that language.” Interpreting the statute to require ownership and operation of real property is “neither mechanical nor rigid” but simply an application of its plain meaning.

Rejection of Estoppel and Prior Case Jurisdiction

The ALJ addressed the Petitioner’s argument regarding the prior case and the non-waivable nature of subject matter jurisdiction.

• Analysis of Prior Decision: Upon reviewing the earlier decision by Judge Douglas (15F-1515008-BFS), ALJ Marwil found that while it contained “standard boilerplate language regarding jurisdiction,” the issue of subject matter jurisdiction was never raised by any party and, therefore, was not considered by the judge.

• Jurisdiction Cannot Be Waived: The decision strongly affirms a core legal doctrine: a lack of subject matter jurisdiction is a fatal flaw that cannot be waived by the parties or overlooked. The ALJ states, “Administrative decisions that reach beyond an agency’s statutory power are void.”

• Jurisdiction Cannot Be Conferred by Estoppel: Citing legal precedent (Swichtenberg v. Jack Brimer), the decision clarifies that jurisdiction cannot be conferred upon a court or agency by the estoppel of a party. The fact that the Respondent may have previously submitted to OAH jurisdiction does not grant the OAH authority where none exists by statute. As stated in the decision, “the statutes, not the parties, lay out the boundaries of administrative jurisdiction.”

Final Disposition and Order

Based on the finding that the OAH lacked jurisdiction, the following actions were taken:

• Recommendation: That the consolidated petitions be dismissed with prejudice.

• Petitioner’s Recourse: The decision explicitly noted that the Petitioner “remains free, however, to file an action in a court of competent jurisdiction as specified by Respondent’s community documents.”

• Effective Date: The order would become effective 40 days after certification by the Director of the OAH.

• Adoption of Decision: Pursuant to A.R.S. § 41-1092.08, Commissioner Judy Lowe adopted the ALJ’s decision in full.

• Final Action: The Commissioner accepted the recommendation and ordered that the petitions be dismissed with prejudice. This order constituted a final administrative action and was effective immediately.

• Further Action: The Final Order specified that it was binding unless a party requested a rehearing within 30 days. It also informed the parties of their right to appeal by filing a complaint for judicial review, noting that the order would not be stayed unless a stay was granted by the reviewing court.