MOUNTAIN VIEW CONDO. ASS'N v. Scott

883 P.2d 453, 180 Ariz. 216
CourtCourt of Appeals of Arizona
DecidedAugust 25, 1994
Docket2 CA-CV 93-0288
StatusPublished

This text of 883 P.2d 453 (MOUNTAIN VIEW CONDO. ASS'N v. Scott) 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
MOUNTAIN VIEW CONDO. ASS'N v. Scott, 883 P.2d 453, 180 Ariz. 216 (Ark. Ct. App. 1994).

Opinion

180 Ariz. 216 (1994)
883 P.2d 453

MOUNTAIN VIEW CONDOMINIUMS HOMEOWNERS ASSOCIATION, INC., dba Arbor Point Condominiums, an Arizona nonprofit corporation, Plaintiff/Appellant,
v.
Clifford J. SCOTT and Valerie Scott, husband and wife; Lawyers Title of Arizona, as Trustee under Trust No. 7518-T; Douglas R. Knoles, a married man as his sole and separate property; Superstition Homes, an Arizona corporation; Inca Investment, Inc., an Arizona corporation, Defendants/Appellees.

No. 2 CA-CV 93-0288.

Court of Appeals of Arizona, Division 2, Department A.

August 25, 1994.

*217 Tanis A. Duncan, Tucson, for plaintiff/appellant.

Dan L. Dudley, Tucson, for defendants/appellees.

OPINION

LACAGNINA, Judge.

In this appeal we must decide whether the unit owner of a condominium is obligated to pay assessments to the homeowners' association if the construction of improvements on the individual unit has not occurred. We hold that because unit ownership includes a vested, undivided interest in the common elements, the obligation to pay assessments arises from unit ownership and is not dependent upon completion of improvements. We therefore reverse the judgment of the trial court.

FACTS AND PROCEDURAL HISTORY

Mountain View Condominiums is a condominium complex created in 1984 under the Horizontal Property Regime Act, former A.R.S. §§ 33-551 to 33-561,[1] when the Declaration of Covenants, Conditions and Restrictions (Declaration) was recorded and the plat was filed. Legal title was vested in Lawyers Title of Arizona, the Declarant[2], as trustee under Trust 7518-T. Lawyers Title recorded a plat subdividing the land into 76 units and common elements (referred to in the condominium documents as "Common Areas") A, B, C, and D. Although beneficial interest was initially vested in Roger Mountain Limited Partnership, following foreclosure by Security Savings on October 31, 1991, Security Savings deeded that interest to C.J. Scott. On April 21, 1993, Scott and Lawyers Title deeded their interests in Units 22-76 of the Mountain View Condominiums to Inca Investment, Inc. (Units 22-68), Douglas R. Knoles (Units 69-71), and Superstition Homes (Units 72-76), under contracts for sale.

A unit is defined in Section 2.23 of the Declaration as follows:

"Unit" shall mean a separate freehold estate designated by a number on the Plat, together with its appurtenant Common Area Interest. A Unit shall include a garage as set forth on the Plat and the Unit shall consist of an airspace defined as follows:
a. The lower boundary is a horizontal plane (or planes) the elevation of which coincides with the top surfaces of the unfinished floors.
b. The upper boundary is a plane (or planes) the positions of which coincides with the bottom surface of the unfinished ceilings.
c. The lateral boundaries are the vertical planes coincidental with the interior *218 unfinished surfaces of the unit's common walls, doors and windows.
d. Each Unit includes the surfaces so described, and the portions of the building and improvements lying within said boundaries, including paint, wallpaper and the like, carpeting and other floor covering. Each such Unit shall also include ownership in the interior partitions, ranges, dishwashers, garbage disposal units, water heaters, and other household appliances lying within said boundaries and/or appurtenant areas.
e. Additionally, each Unit shall include the exterior doors and windows and the frames thereof.

According to the Condominium Documents, each unit owner owns an individual unit plus an undivided one-seventy-sixth fractional interest in the Common Area. Section 1.8, Declaration. The Common Area Interest is appurtenant to each unit and cannot be severed from the unit. Id. The Common Area is defined as "the description of the Condominium Property including improvements, less the description of all Units...." Section 2.9, Declaration. Improvements are defined as "all physical structures and utility delivery systems...."[3] Section 2.14, Declaration.

Sections 4.1 and 4.2 of the Declaration provide for the formation of an association prior to the conveyance of the first unit to serve as the governing body for all owners and unit occupants, to provide maintenance and repair, control and management of the Common Area and to set and collect annual and special assessments from the unit owners. Each unit owner, including Declarant, is deemed a member of the Association. Section 4.6, Declaration. In addition, each unit owner, "by acceptance of a deed to any Unit," covenants and agrees to pay assessments to the Association. Section 6.1, Declaration. Section 6.2 mandates that the assessments be used "to promote the recreation, health, safety, and welfare of the members and their guests, for the improvement and maintenance of the Common Areas...." Although the Association is the governing body for all unit owners, its stated obligations do not relieve unit owners from their responsibilities under the Arizona Horizontal Property Regime Act and the Condominium Documents. Section 4.2, Declaration.

The Association brought this action to collect assessments from Scott, Knoles, Superstition and Inca (defendants). Defendants argued they are not responsible for assessments on land where construction of improvements has not occurred. The Association contended that as owners of each unit, which includes an undivided interest in the Common Area, they are responsible for assessments for its maintenance and repair.

On cross-motions for summary judgment, the trial court granted defendants' motion, ruling as follows:

The Court believes that the written declarations control. Those declarations define "unit;" and, accordingly, an owner's obligation to pay an assessment, in a way which clearly contemplates an erected structure.
As for the Fairway Villas[4] case, the statute defined a condominium as an existing or proposed building, and the statute was deemed to govern. There is nothing in the case suggesting that the declarations said anything different from the statute.
Thus, the Court concludes that the declarations in this matter refer only to completed buildings constructed on the designated area of the condominium plan, and that any party which has not built is not obligated to pay assessments.

The Association appeals from the court's judgment, including its award of attorneys' fees.

*219 OBLIGATIONS OF UNIT OWNERS

"[T]he rights and obligations of condominium owners with regard to the common elements may be found in three sources — the statute, the declaration, and the bylaws." American Savings Service Corp. v. Selby, 149 Ariz. 348, 355-356, 718 P.2d 1001, 1008-1009 (App. 1985). These must be read together, in relation to each other, and harmonized, if possible. Sun-Air Estates, Unit 1 v. Manzari, 137 Ariz. 130, 132, 669 P.2d 108, 110 (App. 1983); A.R.S.

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Related

Sun-Air Estates, Unit 1 v. Manzari
669 P.2d 108 (Court of Appeals of Arizona, 1983)
Makeever v. Lyle
609 P.2d 1084 (Court of Appeals of Arizona, 1980)
Fairway Villas Venture v. Fairway Villas Condominium Ass'n
815 S.W.2d 912 (Court of Appeals of Texas, 1991)
Bradley v. Mullenix
763 S.W.2d 272 (Missouri Court of Appeals, 1988)
American Savings Service Corp. v. Kosaka
718 P.2d 1001 (Court of Appeals of Arizona, 1985)
Mountain View Condominiums Homeowners Ass'n v. Scott
883 P.2d 453 (Court of Appeals of Arizona, 1994)

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Bluebook (online)
883 P.2d 453, 180 Ariz. 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mountain-view-condo-assn-v-scott-arizctapp-1994.