Warren R. Brown, Petitioner, vs. Mogollon Airpark, Inc., Respondent. - 18F-H1818045-REL

Описание: This administrative hearing addresses a consolidated matter involving three petitions filed against Mogollon Airpark, Inc. (Mogollon) by Petitioners Warren R. Brown and Brad W. Stevens. The hearing was conducted on September 28, 2018, before Administrative Law Judge Thomas Shedden.

Procedural History (Rehearing Status):

Docket No. 18F-H1818029-REL-RHG is explicitly a rehearing granted by the Arizona Department of Real Estate following an initial dismissal. In the original 029 matter, the Administrative Law Judge (ALJ) dismissed Mr. Brown’s petition (filed January 29, 2018) because it failed to name a specific governing document violation, and the ALJ found that ARIZ. REV. STAT. § 33-1803 applied only to regular, not special, assessments.

At the rehearing, Mr. Brown (029) and Mr. Stevens (054) filed "single-issue petitions" alleging that Mogollon violated ARS § 33-1803(A).

Key Facts and Issues:

The consolidated matters (029-RHG, 045, 054) addressed two main areas of alleged statutory violation stemming from actions taken by Mogollon in 2018:
Assessment Increase (029, 054): Mogollon raised its annual assessment by $325 (a 39.4% increase over the prior $825 assessment). Mogollon categorized this increase as a $116 "regular assessment" increase (14.1%) and a $209 "special assessment". Petitioners argued that the total 39.4% increase violated ARS § 33-1803(A), which prohibits a regular assessment increase of more than 20% above the preceding year's assessment. Petitioners contended that "regular assessment" referred to the process by which all assessments are instituted, regardless of type. Mogollon argued the 20% limit applied only to the "regular assessment," which only increased by 14.1%.
Late Fees and Interest (045): Mr. Brown alleged Mogollon violated ARS § 33-1803(A) by instituting a $25 late fee and charging 18% interest on past due accounts. The statute limits late charges to the greater of $15 or 10% of the unpaid assessment amount.

Legal Conclusions and Outcome:

The Administrative Law Judge rendered a bifurcated decision on October 18, 2018:
Assessment Increase (029-RHG and 054 Matters) – Mogollon Prevailed: The ALJ found that Mr. Brown and Mr. Stevens failed to prove by a preponderance of the evidence that Mogollon violated ARS § 33-1803(A) regarding the $325 increase. The ALJ rejected the Petitioners' interpretation of "regular assessment," noting that adopting their view (that all assessments must follow "regular" procedure) would render the word "regular" trivial or void in the statute.
Outcome (029-RHG/054): Both petitions were dismissed, and Mogollon was deemed the prevailing party in these specific matters.
Late Fees (045 Matter) – Mr. Brown Prevailed: Mogollon argued the late fee limitation only applied to "regular assessments," but the ALJ rejected this, noting that the statute's language limits charges for late payment on "assessments" generally, omitting the word "regular".
Outcome (045): Mr. Brown was deemed the prevailing party. Mogollon was ordered to rescind the $25 late fee assessed against Mr. Brown and pay him his $500 filing fee.

Case Details:
Case ID: 18F-H1818029-REL-RHG
Docket: 18F-H1818045-REL

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