Vales v. KINGS HILL CONDOMINIUM ASS'N

125 P.3d 381, 211 Ariz. 561, 467 Ariz. Adv. Rep. 22, 2005 Ariz. App. LEXIS 169
CourtCourt of Appeals of Arizona
DecidedDecember 22, 2005
Docket1 CA-CV 04-0816
StatusPublished

This text of 125 P.3d 381 (Vales v. KINGS HILL CONDOMINIUM 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
Vales v. KINGS HILL CONDOMINIUM ASS'N, 125 P.3d 381, 211 Ariz. 561, 467 Ariz. Adv. Rep. 22, 2005 Ariz. App. LEXIS 169 (Ark. Ct. App. 2005).

Opinion

125 P.3d 381 (2005)
211 Ariz. 561

Janet VALES, a married woman dealing with her sole and separate property, Plaintiff/Appellant,
v.
KINGS HILL CONDOMINIUM ASSOCIATION, an unincorporated association, Defendant/Appellee.

No. 1 CA-CV 04-0816.

Court of Appeals of Arizona, Division One, Department D.

December 22, 2005.

*383 Jackson White, P.C. By James L. Tanner, Mesa, Attorneys for Plaintiff-Appellant.

Jones, Skelton & Hochuli, P.L.C. By Michael A. Ludwig, Randall H. Warner, Phoenix, Attorneys for Defendant-Appellee.

OPINION

HALL, Judge.

¶ 1 Appellant Janet Vales appeals from the trial court's orders granting summary judgment to appellee Kings Hill Condominium Association (Kings Hill) and denying her motion for a new trial. Vales, the owner of a Kings Hill condominium unit, filed a complaint in superior court challenging the validity of a "no-rental" amendment to the condominium declaration. The trial court ruled that the amendment was validly enacted and Kings Hill was entitled to judgment as a matter of law and that, in any event, Vales' action was time-barred. For the reasons discussed below, we vacate the trial court's orders and remand for proceedings consistent with this Opinion.

FACTUAL AND PROCEDURAL HISTORY

¶ 2 The relevant facts are undisputed. On December 29, 1969, Kings Hill, a forty-two unit condominium complex, recorded a "Declaration of Restrictions, Establishment of Board of Management and Lien Rights" (Declaration). In August 1999, Vales purchased a Kings Hill unit from her uncle's trust. From the time of her acquisition, Vales never occupied the condominium as her personal residence. Instead, she leased the property through a rental company.

¶ 3 On March 24, 2000, Kings Hill mailed ballots to the forty-two condominium owners, proposing a "no-rental" amendment to the Declaration. The ballot stated in pertinent part:

The following "No Rental Clause" has been approved by the board members of the Kings Hill Condominium to be added to our Declaration of Restrictions. We are presenting it to the Home Owners for your approval. Please read and sign.
"Notwithstanding any provision herein to the contrary, no owner of a unit shall rent or lease such unit, provided that any owner renting or leasing a unit at the time of adoption of this provision may continue renting or leasing such unit, except that such right to continue the renting or leasing of the unit shall terminate on March 26, 2000 or upon the first to occur of the following events: (1) Sale of the unit by the person(s) who are owner(s) at the time of adoption of this provision[,] (2) death of the owner(s)[,] (3) the owner(s) as of the date of adoption of this provision ceases to rent or lease the unit for more than three (3) consecutive months."

¶ 4 Section 22 of the Declaration provided that it could be amended by majority vote of the unit owners. Twenty-four of the forty-two unit owners voted to approve the amendment, with Vales casting a dissenting ballot. On May 12, 2000, Kings Hill recorded the amendment, but with the following additional language added:

No owner of a unit shall lease such unit for business, speculative investment or other similar purposes for any period of time which will extend more than three (3) years after the date of recordation of this amendment or June 1, 2003, whichever comes first.

¶ 5 After the recording of the amendment, Vales continued to lease her unit. At or *384 about the time her unit became vacant on March 31, 2003, Vales attempted to secure new tenants through the rental company. The rental company executed a four-month lease agreement with two prospective tenants, but the tenants cancelled the agreement when they learned that Kings Hill intended to enforce the Declaration's no-rental restriction as of June 1, 2003. With the cancellation of the lease, Vales suffered a $6600 loss in rental income.

¶ 6 On May 20, 2003, more than three years after the recording of the amendment, Vales filed a complaint against Kings Hill seeking declaratory relief and monetary damages for breach of contract and intentional interference with contract. In its answer, Kings Hill countered that the amendment's passage complied with all of the Declaration's requirements and that, in any event, Vales' complaint was time-barred. After the parties filed cross-motions for summary judgment, the trial court ruled in a signed minute entry, stating:

That pursuant to Section 22 of the Declaration of Restrictions, all owners are subject to the regulation set forth in the [Declaration];
That the amendment restricting the ability of owners to lease their premises was passed in accordance with the applicable [Declaration]. The amendment was properly enacted.
That the amendment was enacted and adopted in conformity with old Chapter 4.1 of Title 33 of the Arizona Revised Statutes. That older chapter did not specify and/or mandate a particular percentage of owners that would be necessary to adopt an amendment to [the] existing [Declaration]. As a consequence, the requirement of existing A.R.S. § 33-1227(D) [requiring unanimous consent] is inapplicable to these factual circumstances.
That under these factual circumstances, A.R.S. § 33-12[0]1(B) and (D) mandate that Section 22 of the Declarations of Restrictions [requiring passage of an amendment by a simple majority] is controlling; and
Further, that A.R.S. § 33-1227(B) providing a 1 year statute of limitation is applicable.
The Court thus finds that there exists no genuine issue of material fact and further that [Kings Hill] is entitled to judgment as a matter of law.

¶ 7 Vales filed a motion for new trial on the basis that the judgment was not justified by the evidence or was contrary to law. See Ariz. R. Civ. P. 59(a)(8). The trial court denied the motion and Vales timely appealed. We have jurisdiction pursuant to Arizona Revised Statutes (A.R.S.) section 12-2101(B) (2003).

DISCUSSION

¶ 8 On appeal, Vales contends that the trial court erred by determining that her claim is time-barred by the one-year statute of repose[1] set forth in A.R.S. § 33-1227(B) (2000) and by finding that the passage of the amendment complied with the Declaration's requirements.[2]

¶ 9 Summary judgment may be granted when "there is no genuine issue as to any material fact and [] the moving party is entitled to judgment as a matter of law." Ariz. R. Civ. P. 56(c). In reviewing a summary judgment in a case involving undisputed material facts, we independently review the trial court's application of the law to the facts. Canady v. Prescott Canyon Estates Homeowners Ass'n, 204 Ariz. 91, 92, ¶ 6, 60 P.3d 231, 232 (App.2002). Additionally, we review the interpretation and application of statutes de novo. Levitan v. State, Registrar of Contractors, 201 Ariz.

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Bluebook (online)
125 P.3d 381, 211 Ariz. 561, 467 Ariz. Adv. Rep. 22, 2005 Ariz. App. LEXIS 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vales-v-kings-hill-condominium-assn-arizctapp-2005.