AZ Supreme Court to decide whether or not to proceed on Gelb and HOA adjudication

The Arizona Supreme Court will decide on April 19th whether or not  it will hear the appeal on the unconstitutionality of the adjudication of HOA disputes by an administrative agency.

For more information, see

Advocate submits amicus brief in AZ supreme court appeal of HOA due process

AZ bill, SB 1148, seeks to restore OAH adjudication of HOA disputes

Violating HOA due process would be oppression

That though the will of the majority is in all cases to prevail, that will to be rightful must be reasonable; that the minority possesses their equal rights, which equal law is to protect, and to violate would be oppression.” (Thomas Jefferson, 1801).

 

The Arizona bill, SB 1148 passed out of committee on March 1st, to restore the Office of Administrative Hearings adjudication of HOA disputes appears to be stalled, once again as in 2006, by the House Rules Committee.  Once more it is not on the House Rules agenda.  Failure to address the objections of the appellate court opinion in Gelb will heighten the likelihood that the Arizona Supreme Court will now have to decide the issue, and other matters raised in my amicus curiae brief. See Gelb v. DFBLS, CV 10-0371-PR.

 

The supreme court has yet to decide to hear this important case, waiting, as expected, to see if the Legislature would pass SB 1148 to render the constitutionality issue moot – no longer a controversy.  If not handled by the Legislature, then the Court cannot avoid addressing the following plea in my brief:

 

It is quite evident that an Arizona homeowner living within an HOA governed subdivision cannot look to the Attorney General, the Legislature, DFBLS, or ADRE for due process protections and the equal application of the laws. Even the lower courts are suspect. With all due respect, it remains to this Court to stand behind the promises and covenants between our system of government and the people as set forth in the U.S. and state Constitutions.

  

In deciding the constitutionality issue, the Court will need to address the real issue at hand, the separation of powers issue, where the Legislature remained silent and did not file a defense of their HOA due process statute. However,  the Legislature felt compelled to intervene in the controversial DOJ challenge to the immigration law statute, SB 1070.  Is this selective support for certain laws and parts of the Constitution over others? 

Senate President Pearce, author of SB 1070, said, “I want to make sure everyone knows, we, in the Senate, will govern from the bottom up, not from the top down” and I believe in the rule of law, I’ve always believed in the rule of law, We’are a nation of laws.  Yet it appears that top-down, special interest “push” pressures still prevail with respect to HOAs (See prior commentaries with respect to HB 2441).

It is a well established doctrine that the legitimacy of a democratic government  rests on fair and just laws.

That though the will of the majority is in all cases to prevail, that will to be rightful must be reasonable; that the minority possesses their equal rights, which equal law is to protect, and to violate would be oppression.” (Thomas Jefferson, 1801).

 It would seem that the best course of action is to quickly pass SB 1148

CAI response to amicus brief: laws never protected HOA homeowner’s constitutional rights

 

My long awaited debate with the CAI (Community Associations Institute) lawyers on substantive issues relating to HOAs has finally come about. Well, almost. The CAI member law firm and attorney for the HOA responded to the amicus brief submitted to the Arizona Supreme Court by this homeowner rights advocate in Gelb v. DFBLS, CV 10-0371-PR. In short, two issues are addressed: the constitutionality challenge itself, and the alleged political bias by the appellate court in its decision holding the statute unconstitutional.

 

First, the Response simple reiterates its Response to the Petition for Review, maintaining that the issue was already settled by the appellate court.

 

Second, as to the arguments advanced in the amicus brief that the appellate court allowed political considerations to influence its opinion, the Amicus, that’s me, is painted as a conspiracy believer. “The amicus curiae closes his brief with a conspiracy theory about the involvement of undersigned counsel in this case and other cases in which the constitutionality of the statute was challenged.” The CAI member attorney defends his rush to file this appeal, which occurred as a result of the Phoenix Townhouse v. AZ OAH superior court default decision, with “legal counsel had the obligation to raise every issue available that could result in prevailing for his client in the pending case.” However, this sidesteps the question raised in the default Phoenix Townhouse case, still unanswered by the attorney, as to the legal standing of the real person in interest, Ron Meritt, who had left the HOA prior to the constitutionality challenge. Smith coud not risk opening this door again.

 

In unsupportable conclusions, the attorney, Jason Smith, charges me with suggesting that his constitutionality challenge was made to intimidate homeowners from filing suit. That does not follow logically. The challenge, as stated in the brief, was that the HOA attorneys weren’t looking too good and had to end the success of OAH adjudication. Further far-fetched charges made by attorney Smith include that I “liken undersigned counsel and his firm to henchmen for authoritarian regimes suppressing the rights of homeowners.” The record before the Arizona Legislature over the past 10 years and statements made by the firm are well documented in this respect. Smith adds, “The conspiratorial hyperbole notwithstanding”, we were just doing our job for our client.

 

Furthermore, in an unbelievable statement echoing that of the CAI amicus brief before the NJ appellate court in Twin Rivers HOA free speech case, Smith firmly states that, “It is clear from the that the amicus curiae simply wants to impose constitutional protections on members in homeowners associations. The law has never supported that proposition.” Let me rephrase that statement:

 

The law has never supported the proposition that homeowners in HOAs are entitled to constitutional protections.

 

A copy of CAI’s Response Brief with its above in-your-face statement of the law should be sent to every state attorney general, every state legislature, every state real estate department, and every state’s consumer watchdog and consumer protection agency. This declaration by Smith, p. 8, should be highlighted as evidence of misrepresentation and fraud in the sale of planned communities and condos, and homebuyer protections demanded.

 

Finally, in Smith’s gratuitously offered proposed solution, as all those of us who have attempted to obtain justice from our state legislatures well know, and as CAI — the national lobbying organization supporting the HOA establishment — and attorney Smith well know, the legislatures have not accepted the fact that the HOA laws are unconstitutional special laws for private organizations, as these laws cannot be supported by a necessary and compelling government interest. This level of judicial scrutiny is necessary to deny due process and equal application of the law protections to the residents in de facto, yet unrecognized HOA private governments.

 

Sources:

Staropoli amicus curiae brief

CAI/Smith amicus response

CAI Twin Rivers amicus curiae brief, p. 19.

AZ Supreme Court accepts advocate’s amicus brief in challenge to HOA statute

The Arizona Supreme Court has accepted my amicus curiae brief in support of constitutionality of the DFBLS/OAH due process statutes (Gelb v. DFBLS, CV 10-0371-PR). The Court has yet to decide if it will hear the Petition from the homeowner. Neither party objected to my brief, not even the CAI HOA law firm that received harsh treatment. I had presented background facts and arguments in an effort to assist the Court in understanding the disgraceful state of affairs with HOAs.

Responses to my brief, if any, are due within 20 days. For over 10 years I’ve been waiting for the CAI HOA attorneys to debate the substantive, constitutional issues with me for all to see.  I await their response.

The excerpt below makes a strong accusation against the Arizona Legislature, which can be applied to all state legislatures. Given this posture,  I would like to thank those all too few individual legislators who had come forth over the years, in several states, to do battle for homeowner justice, but who were not sufficient to overcome the opposition in their legislatures. Your efforts are very much appreciated.

From the first paragraph of my Conclusion:

It is quite evident that an Arizona homeowner living within an HOA governed subdivision cannot look to the Attorney General, the Legislature, DFBLS, or ADRE (real estate dept.) for due process protections and the equal application of the laws. Even the lower courts are suspect. With all due respect, it remains to this Court to stand behind the promises and covenants between our system of government and the people as set forth in the U.S. and state Constitutions.

See Advocate submits amicus brief in AZ supreme court appeal of HOA due process, and for a copy of the amicus brief, Amicus.

What led to the AZ supreme court constitutionality challenge to HOA adjudication?

Ever wonder how and why this statute granting DFBLS the right to submit HOA disputes to an ALJ for adjudication was challenged as unconstitutional?

Chris Gelb filed her petition (08F-H088012-BFS, Apr. 22, 2008) with DFBLS citing violations of her governing documents, and  a violation of the duty of directors under Title 10, 10-3830, as well as a violation of §§ 6.12 and 6.13 of the common law Restatement of Servitudes (2000 ed.). 

In general, Sec 6.12 deals with the authority of the court to overturn board decisions, and 6.13 deals with duties of the board to its members.   Gelb alleged discrimination against her in regard to a landscaping issue –  the type of gravel chosen by the board.   Gelb lost on the legal technicality that  the  “no discrimination” covenant applied only to the CC&Rs and not to the Design Guidelines.  (Raises the question as to why the winners, Carpenter, filed the constitutionality challenge).

She lost the case on the governing documents claim, and the other two were dismissed as being outside  OAH jurisdiction. The broader issues of a rational and equal treatment of members found in both of the dismissed claims would have probably brought about a favorable decision.  

The superior court decision in Phoenix  Townhouse v OAH, DFBLS had just declared the statute before us as unconstitutional, and Jason E. Smith, the Carpenter Hazlewood attorney of record in both cases, jumped at the opportunity to obtain an appellate decision, using Gelb,  that would serve as precedent.  All as a result of the gravel chosen by the HOA board.

 
Justice will still be lacking without the ALJ being able to consider these two important areas of law affecting HOAs.