GARDEN LAKES COMMUNITY ASSOCIATION, INC. v. Madigan

• Court: Arizona Court of Appeals
• Writing for the Court: GEMMILL.
• Citation: GARDEN LAKES COMMUNITY ASSOCIATION, INC. v. Madigan, 62 P.3d 983, 204 Ariz. 238 (Ariz. App. 2003)
• Decision Date: 18 February 2003
• Docket Number: No. 1 CA-CV 00-0570.,1 CA-CV 00-0570.
• Parties: GARDEN LAKES COMMUNITY ASSOCIATION, INC., an Arizona non-profit corporation, Plaintiff-Appellant, v. William E. MADIGAN and Joan M. Madigan, husband and wife; Henry T. Speak and Lavonne M. Speak, husband and wife, Defendants-Appellees.

62 P.3d 983

204 Ariz. 238

GARDEN LAKES COMMUNITY ASSOCIATION, INC., an Arizona non-profit corporation, Plaintiff-Appellant, v. William E. MADIGAN and Joan M. Madigan, husband and wife; Henry T. Speak and Lavonne M. Speak, husband and wife, Defendants-Appellees.

No. -0570.

Court of Appeals of Arizona, Division 1, Department B.

February 18, 2003.

Thomas & Elardo, P.C. By Neal B. Thomas and Mulcahy Law Firm, P.C. By Beth Mulcahy, Phoenix, Attorneys for Appellant.

Law Office of Hyung S. Choi By Hyung S. Choi and Law Offices of Gerald Pollock, By Gerald Pollock, Phoenix, Attorneys for Appellees.

Ekmark & Ekmark, L.L.C. By Curtis S. Ekmark, Scottsdale, Attorneys for Amicus Curiae Sun City Grand Community Association, Inc.

OPINION

GEMMILL, Judge.

¶ 1 Homeowners in the Garden Lakes subdivision in Avondale, Arizona are members of the homeowners association known as the Garden Lakes Community Association, Inc. ("Association"). The Association issued architectural restrictions governing the construction and appearance of solar energy devices on homes within the subdivision. The appellee homeowners claimed that the restrictions were unenforceable under Arizona Revised Statutes ("A.R.S.") section 33-439(A)(2000) because the restrictions "effectively prohibited" the homeowners from installing or using solar energy devices. The trial court found in favor of the homeowners. We affirm.

FACTS AND PROCEDURAL HISTORY

¶ 2 William and Joan Madigan and Henry and LaVonne Speak owned homes in the Garden Lakes subdivision. To provide a general plan for the use and enjoyment of the planned community, the Association recorded a Declaration of Covenants, Conditions, Restrictions and Easements for Garden Lakes ("Declaration"). The Declaration applies to all owners of property within Garden Lakes who purchased a lot after the Declaration was recorded on January 28, 1986. The Madigans and the Speaks purchased their lots thereafter and accepted their deeds subject to the following provision in the Declaration:

No improvements, alterations ... or other work which in any way alters the exterior appearance of any property or improvements thereon ... shall be made or done... unless and until the Architectural Review Committee has, in each such case, reviewed and approved the nature of the proposed work, alteration, structure or grading and the plans and specifications therefor.

The Association established an architectural review committee ("ARC") and architectural review guidelines ("guidelines").

¶ 3 Guidelines were issued regarding the construction and appearance of solar panels and equipment:

1. All solar energy devices Visible from Neighboring Property or public view must be approved by the Architectural Review Committee prior to installation.

2. Panels must be an integrated part of the roof design and mounted directly to the roof plane. Solar units must not break the roof ridge line, must not be visible from public view and must be screened from neighboring property in a manner approved by the Board of Directors or its designee(s). Roof mounted hot water storage systems must not be Visible from Neighboring Property. Tracker-type systems will be allowed only when not Visible from Neighboring Property.

3. The criteria for screening set forth in Section III(M) "Machinery and Equipment", shall apply to solar panels and equipment.

(Original capitalization preserved). Under the "Machinery and Equipment" section, the guidelines provided:

[S]creening or concealment shall be solid and integrated architecturally with the design of the building or structure, shall not have the appearance of a separate piece or pieces of machinery, fixtures or equipment, and shall be constructed and positioned in such a manner so it is level and plumb with vertical building components and shall be structurally stable in accordance with sound engineering principles.

¶ 4 The Madigans and the Speaks installed solar energy devices ("SEDs") on the roofs of their respective homes without ARC or Association approval. These SEDs included solar panels to collect and transfer heat to their swimming pools. The Association sued the Madigans and the Speaks in separate actions, alleging failure to comply with the guidelines and breach of the Declaration. The Association sought permanent injunctions compelling the removal of the SEDs, monetary penalties, and attorneys' fees and costs. The Madigans and Speaks defended on the basis of A.R.S. § 33-439, arguing that subsection (A) rendered the guidelines void and unenforceable:

Any covenant, restriction or condition contained in any deed, contract, security agreement or other instrument affecting the transfer or sale of, or any interest in, real property which effectively prohibits the installation or use of a solar energy device as defined in § 44-1761¹ is void and unenforceable.

Ariz.Rev.Stat. ("A.R.S.") § 33-439(A)(2000)(emphasis added).

¶ 5 The two actions were consolidated. Prior to trial, the Association waived the estimated $100,000 in fines allegedly owed by the Madigans and the Speaks. Also, William Madigan died before trial and Joan Madigan had the solar equipment removed from the roof of her home. The case was tried to the court with an advisory jury. The court was not asked to make findings of fact and conclusions of law.

¶ 6 During trial, the court granted judgment as a matter of law in favor of the Madigans. The Association's case against the Speaks was submitted to the advisory jury with special interrogatories.²

¶ 7 After post-trial briefing, the trial court entered judgment in favor of the Speaks and Madigans. The court found that the Association's guidelines, combined with the Association's conduct, "effectively prohibited" the Speaks from placing solar energy devices on their residence. The court therefore concluded that, based on A.R.S. § 33-439(A), the Association was not entitled to an injunction enforcing the guidelines regarding solar energy devices. The court also awarded attorneys' fees and costs to the Speaks and Madigans.

¶ 8 The parties agree that the homeowners did not comply with the architectural guidelines of the Association and did not have the approval of the Association or its ARC for installation of their SEDs. The Association on appeal makes several arguments in support of its fundamental position that the trial court erred in concluding that the guidelines were unenforceable under A.R.S. § 33-439(A). Before addressing the substantive issues presented, we first identify the applicable standards for our review.

STANDARDS OF REVIEW

¶ 9 Neither side requested that the court make specific findings of fact and conclusions of law pursuant to Arizona Rule of Civil Procedure 52(a), and the court did not, sua sponte, make detailed findings. Accordingly, we presume that the trial court found every fact necessary to support its judgment and we will affirm if any reasonable construction of the evidence justifies it. Neal v. Neal, 116 Ariz. 590, 592, 570 P.2d 758, 760 (1977); In re CVR 1997 Irrevocable Trust, 202 Ariz. 174, 177, ¶ 16, 42 P.3d 605, 608 (App.2002). Although an advisory jury heard the evidence and answered special interrogatories, it is the findings and judgment of the court that are presumed to be correct rather than the jury's answers to the interrogatories. See Ariz. R. Civ. P. 39(n) ("The answers shall be only advisory to the court."); see also Merryweather v. Pendleton, 91 Ariz. 334, 338, 372 P.2d 335, 338 (1962); Carrillo v. Taylor, 81 Ariz. 14, 19, 299 P.2d 188, 191 (1956).

¶ 10 The Association sought an injunction against the Madigans and Speaks. We apply an abuse of discretion standard when reviewing the denial of injunctive relief. Horton v. Mitchell, 200 Ariz. 523, 526, ¶ 12, 29 P.3d 870, 873 (App.2001). However, to the extent that we are called upon to construe A.R.S. § 33-439(A), our review is de novo. See Lewis v. Ariz. Dep't of Econ. Sec., 186 Ariz. 610, 614, 925 P.2d 751, 755 (App. 1996).

¶ 11 With these principles in view, we address the issues raised in this appeal.

ANALYSIS

¶ 12 The Declaration constitutes a contract between "the subdivision's property owners as a whole and the individual lot owners." Horton, 200 Ariz. at 525, ¶ 8, 29 P.3d at 872 (citing Ariz. Biltmore Estates Ass'n v. Tezak, 177 Ariz. 447, 448, 868 P.2d 1030, 1031 (App.1993)). The Madigans and Speaks purchased their homes subject to the restrictions in the Declaration and the guidelines issued pursuant to the Declaration. See Duffy v. Sunburst Farms East Mut. Water & Agric. Co., 124 Ariz. 413, 416, 604 P.2d 1124, 1127 (1979). Restrictive covenants and architectural guidelines that are clear and unambiguous are generally enforceable against the individual homeowners within the association. Id. at 416-417, 604 P.2d at 1127-28. The Arizona legislature has carved out an exception to the enforceability of these contracts, however, for restrictions that "effectively prohibit" the installation or use of solar energy devices. A.R.S. § 33-439(A).

¶ 13 The Association argues that § 33-439(A) essentially means that covenants, restrictions, and conditions in deeds, along with guidelines promulgated under them, must lead to the "inevitable preclusion" of the installation of solar energy devices to render such limitations void and unenforceable. The Association contends that the Speaks had the burden of proving that the Declaration and guidelines "inevitably precluded" the installation of their solar heating unit and that they failed to meet that burden of proof. The Speaks respond that the evidence showed that the Association's requirements for installation of the solar heating device either could not be met or added so much cost to the installation that any homeowner would forego solar energy and opt instead for a gas or electric pool heater.

¶ 14 To decide this case, we must interpret A.R.S. § 33-439(A). Our goal in interpreting statutes is to fulfill the intent and purpose of the legislature...