Case Summary
| Case ID | 13F-H1313002-BFS |
|---|---|
| Agency | DFBLS |
| Tribunal | OAH |
| Decision Date | 2013-06-27 |
| Administrative Law Judge | M. Douglas |
| Outcome | yes |
| Filing Fees Refunded | $550.00 |
| Civil Penalties | $200.00 |
Parties & Counsel
| Petitioner | Randall C. and Lori M. Hack Family Trust | Counsel | — |
|---|---|---|---|
| Respondent | The Ranch at Prescott HOA | Counsel | D. Reid Garrey |
Alleged Violations
A.R.S. § 33-1808(F)
Outcome Summary
The Administrative Law Judge found that the HOA violated A.R.S. § 33-1808(F) by prohibiting industry standard wooden sign frames and requiring metal 'H' frames. The statute precludes regulations on 'for sale' signs other than size and commercial production. The Petitioners were deemed the prevailing party.
Key Issues & Findings
Requirement of specific sign frames
Petitioners argued that the HOA violated A.R.S. § 33-1808(F) by requiring the use of specific metal 'H' sign frames. The HOA argued the rule was for aesthetics and safety.
Orders: HOA ordered to comply with A.R.S. § 33-1808(F); HOA ordered to pay Petitioner's filing fee of $550.00; HOA ordered to pay a civil penalty of $200.00.
Filing fee: $550.00, Fee refunded: Yes, Civil penalty: $200.00
Disposition: petitioner_win
Decision Documents
13F-H1313002-BFS Decision – 346760.pdf
13F-H1313002-BFS Decision – 351822.pdf
**Case Summary: Randall C. and Lori M. Hack Family Trust v. The Ranch at Prescott HOA**
**Case No.** 13F-H1313002-BFS
**Venue:** Arizona Office of Administrative Hearings
**Date of Hearing:** June 17, 2013
**Overview**
This case involved a dispute between property owners (Petitioners) and their homeowners’ association (Respondent or "The Ranch") regarding the regulation of real estate sign frames. The Administrative Law Judge (ALJ) ruled in favor of the Petitioners, determining that the HOA’s strict requirement for specific sign frames violated Arizona state law.
**Key Facts and Proceedings**
The Petitioners listed their property for sale using a standard white wooden "L" type sign frame installed by their realtor. In January 2013, the Ranch issued a violation letter to the Petitioners, citing a 2012 rule that required the use of metal "H" sign frames provided by the HOA. The Petitioners refused to change the frame and filed a petition with the Department of Fire, Building and Life Safety, alleging the HOA was violating A.R.S. § 33-1808(F).
**Main Arguments**
* **Petitioners’ Position:** The Petitioners argued that A.R.S. § 33-1808(F) broadly prohibits HOAs from regulating for-sale signs, except for requiring they be commercially produced and of industry standard size. They contended their "L" frame was an industry standard and that the HOA’s attempt to regulate the *frame* itself was an illegal restriction. They also noted the HOA applied the rule inconsistently, waiving requirements for a developer-owned section ("Unit 8").
* **Respondent’s Position:** The HOA argued the rule was implemented for aesthetics and safety, specifically to prevent neglected or fallen signs. They asserted that because the statute did not explicitly mention "sign frames," the HOA retained the authority to regulate them. The HOA claimed they had received legal counsel supporting this interpretation.
**Legal Analysis and Decision**
ALJ M. Douglas rejected the HOA’s arguments, establishing the following legal conclusions:
1. **Burden of Proof:** The Petitioners met the burden of proof by a preponderance of the evidence.
2. **Statutory Interpretation:** The ALJ ruled that A.R.S. § 33-1808(F) allows HOAs to impose *only* two restrictions on real estate signs: they must be (1) standard size and (2) commercially produced. The statute provides that an association "shall not prohibit in any way other than as is specifically authorized… or otherwise regulate" such signs.
3. **Preclusion of Additional Rules:** Consequently, the HOA’s requirement to use a specific, HOA-furnished "H" frame constituted an unauthorized regulation that is precluded by state law. The "L" frame used by Petitioners was deemed an industry standard type.
**Final Outcome**
* **Prevailing Party:** The Petitioners.
* **Orders:** The HOA was ordered to comply with A.R.S. § 33-1808(F), pay the Petitioners' filing fee of $550.00, and pay a civil penalty of $200.00 to the Department.
* **Finality:** The decision was certified as the final administrative decision on August 5, 2013, after the Department of Fire, Building and Life Safety took no action to modify or reject it within the statutory timeframe.
Case Participants
Petitioner Side
- Randall C. Hack (petitioner)
Randall C. and Lori M. Hack Family Trust
Appeared on behalf of the Trust; provided testimony - Lori M. Hack (petitioner)
Randall C. and Lori M. Hack Family Trust
Provided testimony
Respondent Side
- D. Reid Garrey (HOA attorney)
Garrey, Woner, Hoffmaster & Peshek, P.C. - Richard John Tetreault (board member)
The Ranch at Prescott HOA
Chairman of the Ranch; provided testimony
Neutral Parties
- M. Douglas (ALJ)
Office of Administrative Hearings
Administrative Law Judge - Gene Palma (agency director)
Department of Fire, Building and Life Safety
Director - Cliff J. Vanell (agency director)
Office of Administrative Hearings
Director; certified the decision - Joni Cage (agency staff)
Department of Fire, Building and Life Safety
Recipient of decision copy - Rosella J. Rodriguez (clerk)
Office of Administrative Hearings
Mailed/faxed copies of the certification