Santa Fe Ridge Homeowners' Ass'n v. Bartschi

199 P.3d 646, 219 Ariz. 391, 535 Ariz. Adv. Rep. 48, 2008 Ariz. App. LEXIS 116
CourtCourt of Appeals of Arizona
DecidedJuly 29, 2008
Docket1 CA-CV 07-0792
StatusPublished
Cited by15 cases

This text of 199 P.3d 646 (Santa Fe Ridge Homeowners' Ass'n v. Bartschi) 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
Santa Fe Ridge Homeowners' Ass'n v. Bartschi, 199 P.3d 646, 219 Ariz. 391, 535 Ariz. Adv. Rep. 48, 2008 Ariz. App. LEXIS 116 (Ark. Ct. App. 2008).

Opinion

OPINION

TIMMER, Judge.

¶ 1 We are asked to decide whether a lawsuit filed by a homeowners’ association to compel a homeowner’s compliance with deed restrictions regarding property maintenance affects title to real property, thereby authorizing the association to record a notice of lis pendens against the homeowner’s property pursuant to Arizona Revised Statutes (“A.R.S.”) section 12-1191(A) (Supp.2007). For the reasons that follow, we decide that such a lawsuit does not affect title to real property, and thus § 12-1191(A) did not authorize appellant Santa Fe Ridge Homeowners’ Association (“Santa Fe”) to record a notice of lis pendens against property owned by appellee Carla Bartsehi. Therefore, the trial court correctly entered partial summary judgment for Bartsehi on her counterclaim against Santa Fe for wrongful recordation of a lis pendens pursuant to A.R.S. § 33-420(A) (2007). Because the record does not reflect that Bartsehi was entitled to an award of all attorneys’ fees claimed pursuant to § 33-420(A), however, we vacate that portion of the judgment and remand for a recalculation of the fee award.

BACKGROUND 1

¶2 Bartsehi owns a home within the planned community of Santa Fe Ridge in Glendale, Arizona. The owners of property within Santa Fe Ridge are subject to a Declaration of Covenants, Conditions and Restrictions (“CC & Rs”). On November 9, 2006, Santa Fe filed a complaint against Bartsehi alleging breach of contract and seeking permanent injunctive relief for violations of the CC & Rs. Specifically, Santa Fe alleged that Bartsehi had failed to maintain the landscaping on her property, failed to remove trash/debris from her front yard, and failed to remove a large crate from her lot. Santa Fe sought injunctive relief requiring Bartsehi to remedy the violations by a certain date. Additionally, Santa Fe asked that in the event Bartsehi failed to comply with any injunction order, it be allowed to enter her property, remedy the violations, and recover any expenses. If Bartsehi failed to pay these expenses, Santa Fe requested that the amounts owing serve as a lien against her property.

¶ 3 On November 13, Santa Fe recorded a notice of lis pendens against Bartschi’s property pursuant to A.R.S. § 12-1191(A). On December 22, Bartsehi filed an answer denying Santa Fe was entitled to relief under its complaint. She additionally filed a counterclaim for wrongful recordation of the lis pen-dens and sought statutory damages, attorneys’ fees, and costs pursuant to A.R.S. § 33-420(A).

¶4 On March 30, 2007, Bartsehi filed a motion for partial summary judgment (“MPSJ”) on her counterclaim, arguing the lis pendens was invalid because Santa Fe’s lawsuit was not an action “affecting title to real property,” as required by § 12-1191(A). Santa Fe responded in opposition, and the court held a hearing on July 9. At the com *394 mencement of the hearing, recognizing that the parties would likely incur significant attorneys’ fees if the lawsuit progressed, the court broached the issue of settlement and a de facto settlement conference ensued. At the conclusion of the hearing, after Bartschi had indicated her willingness to correct the outstanding maintenance issues, the court scheduled a status hearing for the following week to determine the sufficiency of Bartschi’s efforts. Significantly, for purposes of this appeal, the court denied the MPSJ stating, “I think the lis pendens is appropriate____ [The] lis pendens can be removed once [Bartschi] complies with those things that we have just put on the record today.”

¶ 5 The court conducted the follow-up status conference on July 13. After discussing Bartsehi’s efforts to correct the outstanding maintenance issues, the court reconsidered its ruling on the MPSJ:

I am ordering and granting Summary Judgment on behalf of [Bartschi] with respect to the lis pendens because a lis pen-dens can only be brought if there’s some effect to the title of the property. You have other remedies. You have self-help remedy and you do not yet have a hen on the property.
So there’s no legal basis for a lis pendens. So I’m granting the Summary Judgment and ordering the lis pendens be removed no later than 10:00 o’clock a.m. Monday, July 16th.

The court then set the matter for another status conference on July 24.

¶ 6 On July 23, Bartschi filed a motion for statutory damages, attorneys’ fees, and costs pursuant to A.R.S. § 33-420(A). See Richey v. W. Pac. Dev. Corp., 140 Ariz. 597, 601, 684 P.2d 169, 173 (App.1984) (concluding § 33-420 applies to groundless recording of lis pendens). The court held the status conference the next day and indicated its inclination to grant Bartschi’s motion. In response to Santa Fe’s argument that the lis pendens affected title to Bartsehi’s property because prospective purchasers must understand that an outstanding issue exists concerning the property’s compliance with the CC & Rs, the court disagreed, responding as follows:

Let me tell you why you’re not correct. The reason you’re not correct is because you never got a judgment. You never got a lien. Had you gotten a judgment or a lien, then it would have been proper to file lis pendens. But you didn’t do that.
You filed the lis pendens just based on your request for an injunction which was not granted. So it was a premature lis pendens. And it was improper pursuant to 33-420____You did not have any interest that would [a]ffect the title in this property.

The court subsequently granted Bartschi’s request for statutory damages in the amount of $5,000 and her request for attorneys’ fees and costs, subject to her submission of supporting documentation.

¶ 7 On September 12, the court dismissed the complaint because Bartschi was not then in violation of the CC & Rs, and therefore Santa Fe was not entitled to relief. The court also signed a judgment granting Bartschi’s MPSJ and awarding her $5,000 in statutory damages, $11,110 in attorneys’ fees, and $422.20 in costs. This timely appeal followed.

DISCUSSION

I. Propriety of lis pendens

¶ 8 Santa Fe argues the trial court erred by entering partial summary judgment in favor of Bartschi on her counterclaim because (A) the court erred by reasoning that entry of judgment was required before a lis pendens could be properly recorded, and (B) Santa Fe’s lawsuit “affected title to real property,” and the lis pendens was therefore properly recorded pursuant to A.R.S. § 12-1191(A). The trial court properly entered partial summary judgment in favor of Bartsehi if no genuine issues of material fact existed, and she was entitled to judgment as a matter of law. Ariz. R. Civ. P. 56(c).

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Bluebook (online)
199 P.3d 646, 219 Ariz. 391, 535 Ariz. Adv. Rep. 48, 2008 Ariz. App. LEXIS 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/santa-fe-ridge-homeowners-assn-v-bartschi-arizctapp-2008.