Tucson Estates Property Owners Ass'n, Inc. v. McGovern

Tucson, Pima · AZ · Arizona Court of Appeals, Division Two

MIXED · architectural

What happened

Holly McGovern and Donald Sines replaced a shed more than thirty-five years old at Tucson Estates after being told in writing that a moved/replaced shed would have to meet current CC&Rs. TEPOA later sued for injunctive relief and breach of contract (including liquidated damages/fees theories). The trial court decided the injunction and contract claims in the owners’ favor but denied their requests for attorney fees and costs. Owners appealed that denial. On January 15, 2016, the Arizona Court of Appeals (Div. Two) affirmed the denial of attorney fees, reversed the denial of costs, and denied appellate fees in its discretion.

What the court (or agency) held

Mixed but member-favorable overall. On the merits path reflected in the opinion, TEPOA’s injunction and breach claims had already been decided for the owners. On appeal: A.R.S. § 12-341.01(A) permits—but does not mandate—fees to a prevailing party when a contract mandates fees for the other side yet is silent as to the prevailing party; trial court’s denial of fees affirmed. Costs under A.R.S. § 12-341 are treated differently—denial of costs reversed so owners could recover costs as prevailing parties.

Why this matters for members

This result is MIXED — a partial win, not a clean sweep on every claim. Beating an HOA injunction/contract claim is not the same as automatic fee recovery. Arizona distinguishes discretionary contractual/statutory fees (§ 12-341.01) from more mandatory prevailing-party costs (§ 12-341). Owners should still move for costs even if fees are denied, and boards should not assume one-sided fee clauses silence the other side’s fee/cost requests.

What the member did

Defended on approval/estoppel and delay; after beating all claims at trial, sought fees and costs as prevailing parties and appealed the fee/cost denials.

What did not work

No mandatory reciprocal attorney fees under § 12-341.01 when the CC&Rs are one-sided—fees denial affirmed.

Questions for the board

Questions for a lawyer

Citation

Tucson Estates Property Owners Ass'n, Inc. v. McGovern, 239 Ariz. 52, 366 P.3d 111 (App. 2016); No. 2 CA-CV 2015-0069 (2016-01-15). Arizona Court of Appeals, Division Two. Outcome chip: MIXED. Flags: MIXED. Source: https://law.justia.com/cases/arizona/court-of-appeals-division-two-published/2016/2-ca-cv-2015-0069.html

_General information, not legal advice. Outcomes turn on facts and current law._

Source opinion

General information, not legal advice. Outcomes turn on facts and current law.

Not a law firm. Not legal advice. Confirm this against your documents and your state’s law.