Sierra Verde Ranch Property Owners Association, Plaintiff/Appellee, v. Scott B. McLaren, Defendant/A

In December 2025, the Arizona Court of Appeals affirmed a superior court summary judgment in favor of the Sierra Verde Ranch Property Owners Association (POA) against parcel owner Scott B. McLaren [1, 2]. Key Facts In April 2020, McLaren purchased a parcel of land in Seligman, Arizona [3]. The warranty deed transferring the property explicitly noted that the purchase was subject to recorded covenants, conditions, and restrictions (CC&Rs) [3]. Under these CC&Rs, which established the POA, every parcel owner automatically becomes a member of the association and is contractually obligated to pay regular annual assessments for common area maintenance, operating costs, and reserves [4, 5]. Although McLaren paid his annual assessments late in 2021 and 2022, he refused to pay his assessments of $150.48 in 2023 and $180.50 in 2024 [6]. Due to his non-payment, the POA filed a lawsuit against McLaren in April 2024 seeking a money judgment for the unpaid assessments and foreclosure on the assessment lien [6]. Main Issues McLaren challenged the POA's motion for summary judgment on several grounds, primarily arguing that: Lack of Mutual Assent: He did not validly agree to the CC&Rs because he misunderstood the legal status of the POA, claiming it failed to properly disclose its status as a corporation rather than just an "association" [7, 8]. Prior Material Breach: The POA breached the CC&Rs first by failing to maintain the primary access road to his parcel and closing a designated water well, thereby excusing his obligation to pay annual assessments [8, 9]. Right to a Jury Trial: The superior court's entry of summary judgment improperly deprived him of his constitutional right to a jury trial [10]. The Court's Ruling and Legal Analysis The Court of Appeals systematically rejected McLaren’s arguments: Contractual Binding: Under Arizona law, recorded CC&Rs run with the land and constitute a binding contract between the POA and property owners [11]. By accepting the warranty deed, McLaren automatically became subject to the CC&Rs [11]. The POA's corporate status had no bearing on the validity or applicability of these obligations [7]. Independent Covenant to Pay: The court determined that a parcel owner's obligation to pay assessments is independent of the POA's responsibility to perform maintenance [12, 13]. McLaren was not excused from paying because he was still able to use his property, the CC&Rs did not obligate the POA to maintain a specific road or well, and public policy does not support withholding assessments over minor maintenance disputes [9, 12, 14]. Jury Trial: Summary judgment does not violate the constitutional right to a jury trial when there are no genuine issues of material fact left for a jury to decide [10]. Final Outcome The Yavapai County Superior Court entered a judgment foreclosing on the POA's lien and awarding the POA $848.48 in unpaid assessments and fees, $1,022.14 in collection costs, and $12,545 in attorneys' fees [1, 15]. The Arizona Court of Appeals affirmed the decision in full and awarded the POA its additional reasonable attorneys' fees and costs incurred during the appeal [2, 16]. Case Details: Case ID: sierra-verde-ranch-poa-v-mclaren Docket: 1 CA-CV 25-0384 For more AZ HOA transparency resources visit https://azhoawatch.org Legal & Accuracy Notice - azhoawatch.org is operated by Hound LLC, a homeowner-run project, not a law firm. Nothing in this video is legal advice or creates an attorney-client relationship. We analyze public ADRE/OAH records and may express opinions. Not affiliated with ADRE or the OAH. Read the full Legal & Terms: https://azhoawatch.org/legal