Case Details
– Petitioner: Thomas A. and Jade Bossert
– Respondent: Silverbell West Association, Inc.
– Case Number: Not specified in the provided text.
– Date and Time of Hearing: March 18, 2021, with the record held open until April 2, 2021 for written closing arguments.
– Judge’s Name: Adam D. Stone
– Whether the Petitioner was Successful: Yes, the Petitioner was deemed the prevailing party.
Case Description
The case involves a dispute between homeowners Thomas A. and Jade Bossert (the Petitioners) and the Silverbell West Association, Inc. (the Respondent), a condominium association situated in Tucson, Arizona. The Petitioners filed a petition with the Arizona Department of Real Estate alleging that the Association had violated state statutes regarding the disclosure of financial records and the timely completion of annual financial audits for the fiscal years 2018 and 2019.
On August 17, 2020, the Petitioners claimed that the Association failed to provide necessary financial documentation as required by Ariz. Rev. Stat. § 33-1258(A), and also failed to complete the required financial compilations within 180 days of the end of their fiscal years as mandated by Ariz. Rev. Stat. § 33-1243(J). The Respondent countered by denying these allegations.
The matter was referred to the Office of Administrative Hearings for a hearing on November 4, 2020. The Petitioners presented their case with witness testimonies and submitted various exhibits to support their claims. They highlighted issues regarding the handling of financial documents by the Association’s Board of Directors, including disorganized records and failure to hand over requested documents despite repeated requests.
Testimonies revealed that although the Board was aware of its obligations to provide certain records, there were significant lapses in fulfilling these responsibilities. The Board President, Rex Warnix, admitted to shortcomings in retrieving the necessary documentation while the Treasurer, Donald Molley, was primarily blamed for the disarray and incompleteness of financial records.
Upon reviewing the evidence, Judge Adam D. Stone determined that the Respondent had indeed violated Arizona statutes by failing to provide access to financial records and not completing the required financial compilations. The Tribunal noted the severity of these violations but declined to impose a civil penalty, concluding that the steps taken by the Board to improve record-keeping practices following the Petitioner’s complaints were sufficient.
As a result, the Judge ordered that the Petitioners be awarded their filing fees of $1,000 from the Association, marking them as the prevailing parties in this administrative dispute. The final order was issued on April 16, 2021, and the Respondent was required to reimburse these fees within 30 days.
Legal Advice & Recommendations
In this case, the petitioner, Thomas A. and Jade Bossert, prevailed in their administrative hearing against Silverbell West Association, Inc. for violating Arizona Revised Statutes (ARS) regarding homeowners associations. The key statutory provisions cited were ARS § 33-1258(A), which mandates that all financial records must be reasonably made available for examination by any member of the association, and ARS § 33-1243(J), which requires that an annual financial audit, review, or compilation be completed within 180 days after the fiscal year ends and made available to unit owners within 30 days after completion.
Reasons For The Petitioner’S Success
1. Clear Evidence of Non-Compliance: The evidence presented showed that the Association failed to provide the requested records specified under ARS § 33-1258(A). Testimonies from the petitioner and the third-party witness corroborated that the documents provided were disorganized and incomplete.
2. Incomplete Financial Compilations: The petitioner demonstrated that the association failed to complete the annual financial compilation for 2019 within the required timeframe, violating ARS § 33-1243(J). The Administrative Law Judge (ALJ) found that the compilation that was eventually prepared was incomplete.
3. Failure of Board Members to Act: The ALJ noted that other board members, including the Association president, did not take adequate actions to rectify the issues with financial records. This included not retrieving necessary documents despite having knowledge of the deficiencies.
Recommendations For Petitioner
If The The Bosserts Had To Pursue This Matter Again, Or Similar Cases Arise, They Could Enhance Their Strategy By
1. Maintain Comprehensive Documentation: Keeping detailed logs of all correspondence and requests can bolster their position in future disputes. Recording dates, times, and content of communications with the Association, along with noting any delays or non-responses, would provide a solid background for claims of negligence or failure to comply.
2. Seek Legal Counsel Early: Engaging legal counsel at the very beginning could help frame the requests in a manner that emphasizes statutory compliance and enforceability, potentially deterring the Board from non-compliance.
3. Engage Other Members: If other unit owners share similar concerns, the petitioner could consider forming a coalition to strengthen their voice against the board, as there is strength in numbers which can compel the board to comply with transparency requirements.
4. File Complaints Promptly: If responses are insufficient, moving quickly to file complaints with the appropriate regulatory authority (like the Arizona Department of Real Estate) can keep pressure on the Board to act.
5. Request for Mediation: If conflicts arise, a proactive request for mediation before escalating matters to formal hearings could help resolve issues amicably.
Advice For Similar Cases
For Homeowners Facing Similar Circumstances, The Following Advice Can Be Useful
– Understand Your Rights: Familiarize yourself with the governing documents of the Association and relevant Arizona laws (like ARS § 33-1258(A) and § 33-1243(J)). Knowing your rights enables you to advocate effectively for your interests.
– Be Persistent: Document each interaction and do not hesitate to make formal requests repeatedly if your initial requests are ignored.
– Collaborate with Other Owners: Should many owners have the same issues, consider collective action, which can make it harder for the Board to ignore concerns.
– Utilize Official Channels: Always consider addressing issues through official channels such as the Arizona Department of Real Estate for disputes that remain unresolved after internal resolution attempts.
In conclusion, the Bosserts won because they successfully proved that the Association violated specific statutory provisions and failed to meet their obligations regarding record-keeping. By maintaining meticulous records and taking timely actions, they set a precedent for accountability that could guide others in similar situations.