Rainey, Chad D. v. The Garden Lakes Community Association - 25F-H061-REL

Описание: This summary addresses the legal case hearing of Rainey, Chad D. v. The Garden Lakes Community Association (Garden), Case No. 25F-H061-REL, held virtually on August 4, 2025, before Administrative Law Judge (ALJ) Kay A. Abramsohn of the Office of Administrative Hearings (OAH).

Key Facts and Main Issues

The core dispute originated from a single-issue petition filed by Petitioner Chad D. Rainey, a homeowner, who alleged that Garden violated ARIZ. REV. STAT. § 33-1805(A) and Bylaws Article VI, Section 6.13 by refusing to provide requested vendor invoices.

The Petitioner’s request, sent on April 18, 2025, sought access to invoices for the past 12 or 24 months related to specific bookkeeping accounts, primarily concerning lake maintenance, repairs, and annual meeting expenses. Garden provided the requested contracts but declined to produce the invoices.

The main legal issue was the interpretation of ARIZ. REV. STAT. § 33-1805(A), specifically whether vendor invoices constituted "all financial and other records of the association" that must be made "reasonably available for examination" by members.

Hearing Proceedings and Key Arguments

The Petitioner, representing himself, argued that the statute is clear that "all financial and other records" must be disclosed. Rainey emphasized that the summary financial documents available online to homeowners (typically 14–15 pages per month) were insufficient for a member or auditor to properly review expenses, determine specific vendor payments, or reconcile line items, making the invoices crucial records. He asserted the invoices did not fall under any statutory exemption (such as privileged or executive documents).

The Association, represented by counsel, argued that the requested documents were "third-party invoices" or "source documents" and were not considered records of the Association required for disclosure under Arizona law. Garden highlighted that financial summaries were transparently provided online.

Testimony from Garden’s Treasurer, Deborah Taylor, and Community Manager, Stephanie Villa, established that the Board delegates the handling, processing, and payment of invoices to the management company (CCMC) via a third-party system (IPS). The Board itself reviews monthly Financial Packets (often 100+ pages) for budget variances, but these packets do not include the underlying invoices.

Final Decision and Outcome

The ALJ found that the Petitioner sustained his burden of proof that Garden violated ARIZ. REV. STAT. § 33-1805(A) and Garden Bylaws Article VI, Section 6.13.

The ALJ issued an Administrative Law Judge Decision on September 1, 2025, concluding that:
Documents in the custody of Garden’s property management company are considered Garden’s documents and must be made accessible to homeowners.
Garden’s attempt to portray the requested documents as "executive," "third-party," or "source" documents was "disingenuous," as the records do not meet any statutory exemption criteria.
The Garden Bylaws explicitly require the Association to maintain "detailed and accurate records" of receipts and expenditures that specify and itemize expenses.

The Order granted the Petition, requiring Garden to comply with ARIZ. REV. STAT. § 33-1805(A) and the Bylaws by providing reasonable examination access to the requested vendor invoices. Garden was also ordered to reimburse the Petitioner’s $500 filing fee. No civil penalty was found appropriate in this matter.

Case Details:
Case ID: 25F-H061-REL
Docket: 25F-H061-REL

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