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This website allows you to electronically file and monitor court rule petitions and comments and to view existing rules of court, recent amendments of those rules, and pending rule petitions and comments. Any visitor to this site may view posts on this website, but to post a petition or comment you must register and log in. To view instructions on how to register and how to file a petition or comment, please visit our Frequently Asked Questions (FAQ) page. 
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Last Post 08 Jul 2014 05:24 PM by  HOAGOV
R-14-0020 Rule 31(d), Rules of the Supreme Court
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jgreene
Posts:

--
13 May 2014 10:06 AM
    R-14-0020

    Petition to Amend Rule 31(d), Rules of the Supreme Court

    Would conform rule to recent legislation regarding representation of condominium or homeowners associations in small claims court

    Petitioner:
    David K. Byers
    Administrative Director
    Administrative Office of the Courts
    1501 W. Washington, Suite 411
    Phoenix, AZ 85007
    (602) 452-3301
    Projects2@courts.az.gov

    Expedited adoption is requested to meet the legislation's July 24, 2014 effective date.

    Filed: May 13, 2014

    Amended on an expedited basis.

    ADOPTED on a permanent basis December 16, 2014.

    Attachments
    HOAGOV
    Posts:

    --
    08 Jul 2014 05:24 PM
    George K. Staropoli

    At present, even licensed and trained legal document preparers cannot represent others in the courts, yet unlicensed and untrained HOA managers have been given under SB 1482 (Ariz. Sess. L. Ch. 83 (2014) special dispensation on a broad basis to do so. Of the current 30 exemptions under Rule 31(d), none allow for payment to a third party agent and none allow a contractor to an entity to represent that entity. Section 7 of SB 1482 affecting ARS 22-512 does not include restrictions on fee payments to contractors, nor does it restrict contractor employees to those not regularly involved in representing the HOA in small claims court, as contained in all existing Rule 31(d) exemptions.

    To allow this third attempt at UPL exemptions just for HOA managers would violate the due process clause for fair adjudicative process, and SB 1482, Section 7, is a special law.
    Of the current 30 exemptions under Rule 31(d), none allow for payment to a third party agent and none allow a contractor to an entity to represent that entity. Section 7 of SB 1482 affecting ARS 22-512 does not include restrictions on fee payments to contractors, nor does it restrict contractor employees to those not regularly involved in representing the HOA in small claims court, as contained in all existing Rule 31(d) exemptions.

    Furthermore, notice should be taken that HOA manager industry comes with unclean hands. The Supreme Court rejected a similar request in 2011, R11-0001, and the 2013 petition, R13-0041, relating to SB 1454, the initial version of SB 1482, was withdrawn upon the declaration that the bill was unconstitutional. In January 2012 HOA managers were put on notice by the AZ Supreme Court opinion (UPL Advisory Opinion, 12-01) on the Unauthorized Practice of Law, and one firm in particular, a member of two HOA special interest trade organizations, was found to have engaged in the unauthorized practice of law (in RE: Board of Legal Document Preparers v. AAM, LDP-NFC-09-L094 and LDP-NFC-10-L026). Yet, this bill has no restrictions that HOA managers must obtain adequate training and licensing, as has been required for ACLDP, in order to protect homeowners from abuse.
    Arizona courts have held, “Courts have found a legitimate purpose lacking where a regulation fails to protect the public from harm.” Vong v. Aune, 1 CA-CV 13-0423 (May 27, 2014).

    For these reasons the petition for exemption from UPL for HOA managers must once again be denied.

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