Prescott Newspapers, Inc. v. Yavapai Community Hospital Ass'n

785 P.2d 1221, 163 Ariz. 33, 17 Media L. Rep. (BNA) 2105, 41 Ariz. Adv. Rep. 6, 1989 Ariz. App. LEXIS 218
CourtCourt of Appeals of Arizona
DecidedAugust 15, 1989
Docket1 CA-CV 88-198
StatusPublished
Cited by6 cases

This text of 785 P.2d 1221 (Prescott Newspapers, Inc. v. Yavapai Community Hospital Ass'n) 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
Prescott Newspapers, Inc. v. Yavapai Community Hospital Ass'n, 785 P.2d 1221, 163 Ariz. 33, 17 Media L. Rep. (BNA) 2105, 41 Ariz. Adv. Rep. 6, 1989 Ariz. App. LEXIS 218 (Ark. Ct. App. 1989).

Opinions

CONTRERAS, Presiding Judge.

Yavapai Community Hospital Association (Association) and the nine individual members of its board of trustees appeal from a judgment declaring they must comply with the Arizona open meeting law, A.R.S. § 38-431 et seq., and enjoining them from closing a “retreat” previously scheduled for the members of its board on May 1, 1987, or any other board meeting required to be open under the Arizona open meeting law. Appellants also appeal from the denial of their motion for new trial and motion to amend findings and conclusions. The appeal raises the following questions:

(1) whether the Association constitutes a “public body” within the meaning of A.R.S. § 38-431(5);
(2) whether the “retreat” of the Association’s board of trustees scheduled for May 1, 1987, would have constituted a “meeting” within the meaning of A.R.S. § 38-431(3);
(3) whether the. trial court’s judgment infringes on the Association’s right of privacy in its business affairs or its board members’ rights of free speech and privacy; and
(4) whether the trial court erred in awarding appellees their attorney’s fees pursuant to A.R.S. §§ 12-2030 and 38-431.07(A).

Because we conclude the Association is not a “public body” within the clear language of A.R.S. § 38-431(5) and, therefore, is not subject to Arizona’s open meeting law, we need not decide the remaining questions. The judgment of the trial court is reversed, and the matter is remanded in order that the trial court can consider and enter an appropriate award of attorney’s fees to appellants. We have jurisdiction pursuant to A.R.S. § 12-2101(B), (F)(1) and (F)(2).

FACTS AND PROCEDURAL HISTORY

Viewed in the light most favorable to sustaining the judgment, the facts are as follows. Central Yavapai Hospital District (District or Hospital District), which is not a party to this litigation, is a special taxing district organized in 1960 pursuant to A.R.S. § 36-1231 et seq. (now A.R.S. § 48-1901 et seq.). The District owns the real property and buildings located on Willow Creek Road in Prescott, Arizona, comprising the hospital facilities known as the Yavapai Regional Medical Center (Hospital). The District is governed by an elected board of directors. Only registered voters who reside within the Hospital District’s boundaries may vote in elections for the District board. The Yavapai County Board of Supervisors may levy taxes for the support of the Hospital District, and the District itself has the power to levy taxes. A.R.S. §§ 48-1907(6) and 48-1914(B). No Hospital District tax has ever been levied except for the payment of organizational expenses incurred when the District was created in 1960. The District, is a political subdivision of the state and is subject to the Arizona open meeting law.

Pursuant to A.R.S. § 48-1907(5), the District has the power to provide for the operation and maintenance of a hospital owned by it. A.R.S. § 48-1910 empowers the District’s board of directors to purchase personal and real property and erect or rent and equip buildings or rooms necessary for a hospital. Section 48-1910 also requires the District board to lease the hospital as provided by A.R.S. § 48-1911 if the District has any unpaid bonded indebtedness. A.R.S. § 48-1911 provides, in pertinent part:

A. A lease of the hospital and its equipment, executed by the board of directors of the district, shall:
3. Be executed to a corporation not for pecuniary profit, duly organized under the laws of this state for the purpose of conducting a hospital.
[36]*364. Provide for a rental upon terms and in an amount which will provide a fair return to the district on its investment, be sufficient to meet the payments of principal and interest of bonds issued under this article, and provide amounts necessary to meet the expenses of the district.’

The Hospital was originally built with money the District obtained through selling bonds authorized by A.R.S. § 48-1912 (formerly A.R.S. § 36-1242). The District currently leases the Hospital to the appellant Association, a nonprofit corporation incorporated in Arizona in 1942 as the “Prescott Community Hospital Association.” The Association adopted its current name by amending its Articles of Incorporation in 1963. Its Restated Articles of Incorporation state it was formed “[t]o own, operate, manage, and maintain hospitals, clinics, sanitoriums, or other places of treatment in any manner, of human ills of any kind or character____” The Restated Articles require the Association to “admit as members all persons who qualify for membership in accordance with such by-laws as it may adopt.” Its Bylaws provide:

Each resident of the Central Yavapai Hospital District who is at least eighteen (18) years of age shall be a member of the Association at his will and shall be eligible to cast one vote in person for the election of each trustee or upon any issue presented at an annual or special meeting.

The Bylaws further provide that the trustees of the Association are to be elected by the votes of the Association’s members at annual elections. Under the Restated Articles of Incorporation and the Bylaws, provisions of the Bylaws may be amended only by a majority vote of the members present at a regular or special meeting of the membership.

The Association’s annual elections for trustees do not coincide with elections for the Hospital District’s board of directors, and the District plays no part in the process by which the Association’s trustees are elected. The cost of elections for trustees of the Association is borne entirely by the Association.

The Hospital District leases the Hospital to the Association. The current lease commenced April 15, 1986, and will continue for a period of ten years subject to renegotiation and termination provisions.

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Bluebook (online)
785 P.2d 1221, 163 Ariz. 33, 17 Media L. Rep. (BNA) 2105, 41 Ariz. Adv. Rep. 6, 1989 Ariz. App. LEXIS 218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prescott-newspapers-inc-v-yavapai-community-hospital-assn-arizctapp-1989.