Ib Property Holdings, LLC v. Rancho Del Mar Apartments Limited Partnership

CourtCourt of Appeals of Arizona
DecidedAugust 23, 2011
Docket2 CA-CV 2011-0030
StatusPublished

This text of Ib Property Holdings, LLC v. Rancho Del Mar Apartments Limited Partnership (Ib Property Holdings, LLC v. Rancho Del Mar Apartments Limited Partnership) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ib Property Holdings, LLC v. Rancho Del Mar Apartments Limited Partnership, (Ark. Ct. App. 2011).

Opinion

FILED BY CLERK AUG 23 2011 COURT OF APPEALS IN THE COURT OF APPEALS DIVISION TWO STATE OF ARIZONA DIVISION TWO

IB PROPERTY HOLDINGS, LLC, a ) Delaware limited liability company, ) 2 CA-CV 2011-0030 ) DEPARTMENT A Plaintiff/Appellee, ) ) OPINION v. ) ) RANCHO DEL MAR APARTMENTS ) LIMITED PARTNERSHIP, an Arizona ) limited partnership; and M.P.I. ) GENERAL II, INC., an Arizona ) corporation, ) ) Defendants/Appellants. ) )

APPEAL FROM THE SUPERIOR COURT OF PIMA COUNTY

Cause No. C20106836

Honorable Ted B. Borek, Judge

AFFIRMED

Gust Rosenfeld P.L.C. By Matthew D. Bedwell Phoenix Attorneys for Plaintiff/Appellee

Sherman & Howard L.L.C. By David A. Weatherwax and Dewain D. Fox Phoenix Attorneys for Defendants/Appellants B R A M M E R, Judge.

¶1 Rancho Del Mar Apartments Limited Partnership (Rancho) and M.P.I.

General II, Inc. (MPI) (collectively referred to herein as Rancho) appeal from the trial

court‟s order granting a preliminary injunction against it in favor of IB Property

Holdings, LLC (IB) and the court‟s denial of Rancho‟s motion to dissolve the injunction.

Rancho argues the court erred by applying the wrong standard when determining whether

to issue the preliminary injunction, by finding IB would suffer irreparable harm if the

injunction was not granted, and by finding IB had a strong likelihood of success at trial.

We affirm.

Factual and Procedural Background

¶2 We view the facts in the light most favorable to upholding the trial court‟s

ruling. Smith v. Beesley, 226 Ariz. 313, ¶ 3, 247 P.3d 548, 551 (App. 2011). This case

involves a dispute about an easement among owners of a three-phase apartment complex.

David Case and Mark Breen own equal shares of MPI. MPI is the operating general

partner of Rancho, which owns Phase I of the complex. IB took title to Phase II

following a trustee sale after Phase II‟s previous owner, Del Moral Limited Partnership

(Del Moral), which Case owned in part, defaulted on loan obligations it had secured with

a deed of trust on Phase II. Las Montañas Village Limited Partnership, also affiliated

with Case, owns Phase III. Prior to Del Moral‟s default, all three phases of the apartment

complex were treated as a single entity operating under shared use agreements.

2 ¶3 In 1991, Rancho granted an easement to Del Moral‟s predecessor,

Resolution Trust Corporation (RTC).1 Case and Breen were involved in negotiating and

executing the easement.2 Del Moral paid for the construction of a security gate at the

main Campbell Avenue entrance to the project and also constructed a gate across the

easement, obstructing access to Bilby Road. The Bilby Road gate remained locked from

its construction until IB opened it after it took title to Phase II. Rancho relocked the gate,

and IB reopened it. After IB opened the gate for a second time, Rancho closed the gate

again and constructed a fence completely blocking access to Bilby Road.

¶4 IB filed a complaint seeking injunctive relief and damages after Rancho

built the fence, accompanied by a motion for a temporary restraining order to enjoin

Rancho from blocking the easement. The parties stipulated to vacating the temporary

restraining order hearing and agreed to an evidentiary hearing on IB‟s request for a

preliminary injunction. At the conclusion of the hearing, the trial court granted the

preliminary injunction. Rancho then filed a motion for reconsideration limited to the

issue of irreparable harm and requesting in the alternative a stay pending appeal, which

1 The easement states: Grantor hereby grants and conveys to Grantee and its successors and assigns a[] pedestrian and passenger vehicle easement over entranceways and vehicle driveways located on Phase I . . . as they may exist from time to time, for the purposes of providing pedestrian ingress and egress and passenger vehicle ingress and egress to and from Phase II-III, all as hereinafter limited. 2 The easement was amended in 1993 and 1995 in ways not material to our analysis.

3 the court denied. The court signed an amended order granting the preliminary injunction.

Rancho filed a motion to dissolve the preliminary injunction pursuant to Rule 65(c), Ariz.

R. Civ. P., which the court denied. This appeal followed. We have jurisdiction pursuant

to A.R.S. § 12-2101(A)(5)(b).

Discussion

¶5 “Granting or denying a preliminary injunction is within the sound

discretion of the trial court, and its decision will not be reversed absent an abuse of that

discretion.” Valley Med. Specialists v. Farber, 194 Ariz. 363, ¶ 9, 982 P.2d 1277, 1280

(1999). We defer to the court‟s factual findings unless clearly erroneous, but review its

legal conclusions de novo. Flying Diamond Airpark, LLC v. Meienberg, 215 Ariz. 44,

¶ 9, 156 P.3d 1149, 1152 (App. 2007).

The Shoen Standard for Preliminary Injunctive Relief

¶6 Rancho argues the trial court erred when it utilized the standard for granting

preliminary injunctive relief established by Division One of this court in Shoen v. Shoen,

167 Ariz. 58, 63, 804 P.2d 787, 792 (App. 1990). The court in Shoen adopted a Ninth

Circuit standard the United States Supreme Court subsequently overturned in Winter v.

Natural Resources Defense Council, Inc., 555 U.S. 7, 20-21 (2008), and Rancho urges us

to follow the more stringent standard Winter announced. As a preliminary matter,

although the court in Shoen cited both federal and state law as authority for the standard it

ultimately adopted, it did not suggest Arizona either should or would follow federal

rather than state precedent as that law developed. 167 Ariz. at 63, 804 P.2d at 792. To

the extent Rancho suggests we should do so now, we decline the invitation.

4 ¶7 Although Rancho contends Arizona courts “have long followed the same

standard” as federal courts when considering whether to issue preliminary injunctions, it

offers no authority supporting its suggestion that we should reject Arizona‟s established

standard in the face of the developed conflicting federal law. Our supreme court adopted

the Shoen standard in Smith v. Arizona Citizens Clean Elections Commission, 212 Ariz.

407, ¶ 10, 132 P.3d 1187, 1190-91 (2006), as have we, see Kromko v. City of Tucson, 202

Ariz. 499, ¶ 3, 47 P.3d 1137, 1139 (App. 2002), and we are bound to follow decisions of

our supreme court, Green v. Lisa Frank, Inc., 221 Ariz. 138, ¶ 13, 211 P.3d 16, 23 (App.

2009). Our court of appeals has continued to employ the Shoen standard since Winter

was decided. See Ariz. Ass’n of Providers for Persons with Disabilities v. State, 223

Ariz. 6, ¶ 12, 219 P.3d 216, 222 (App. 2009); see also White v. Greater Ariz. Bicycling

Ass’n, 216 Ariz.

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