Couple win lawsuit vs. HOA over remodeling

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A jury ruled that the homeowners association discriminated against Bill Martin and Amy Amaro-Martin in obstructing a remodeling project on their townhouse after the HOA originally approved it in 2005.

by Peter Corbett -The Arizona Republic

Bill Martin and Amy Amaro-Martin were like thousands of other Valley residents a few years back who tapped into their home equity to remodel and expand their townhouse.

What they did not expect was a tortuous four-year battle with their homeowners association over their remodeling plans. That clash led to a recent $200,000 jury verdict in their favor.

A Maricopa County Superior Court jury ruled late last month that the Sutton Place Improvement Association discriminated against the Martins in obstructing their remodeling and filing a lawsuit against the couple to stop the project. Bill Martin is Black and Amy Amaro-Martin is Hispanic.

The Sutton Place board oversees 47 townhouses in central Phoenix near 24th Street and Osborn Road.

"Juries in Arizona are tired of the power HOAs have," said Ashley Adams, the Martins' attorney. "(The Sutton Place board) financially ruined the Martins because of this litigation, and they were mistreated by people in the community."

The Martins' case is somewhat unusual in that homeowners do not often prevail in litigation involving homeowners associations. Plus, their discrimination complaint in a countersuit added an ugly element to the battle among neighbors of Sutton Place, a cozy community of mostly retirees that dates back to the early 1960s.

The Martins said that other residents had remodeling plans quickly approved, but their request dragged on for more than two years while board members continually harassed them. The couple also found another minority resident who heard a board member say, "Black people shouldn't be living here."

Jean Alley, Sutton Place Improvement Association president, declined to discuss the case. She referred questions to attorney Steven Napoles, who did not return calls seeking comment.

The Martins' ordeal began in August 2004 when they submitted remodeling plans to the association board. Their one-story townhouse is among 10 units that are outside the gated part of the community.

They wanted to more than double the size of the home by adding a second story and a deck on top of that.

Bill Martin is a fitness trainer, his wife a sales representative for an online employment service. They have two children.

Sutton Place board members had concerns about the new wing of the Martins' townhouse extending more than 15 feet from the original front of the home. They also wanted the arched windows, stucco and wrought-iron features to fit with the architectural features of the community.

Phoenix approved the Martins' plans in March 2005, and the board gave its OK two months later.

Martin, acting as his own general contractor, started construction of the addition in February 2006. Within two months, the board began complaining about the Martins' addition, its height, windows, stucco and paint color.

"It just became a witch hunt," Martin said of complaints from board members. "It was clear I was never going to satisfy these people."

A year later, the board filed suit against the Martins, claiming they had violated the association's deed restrictions by deviating from their remodeling plans. The Martins denied the claims and responded with a countersuit claiming the board discriminated against them.

Martin said he was reluctant to do that. "I never play the race card," he said. "That's just not me."

In the May 29 ruling, Judge Craig Blakey decided that the Martins were not in violation of the association's deed restrictions and that any deviations from the plans were inconsequential to the overall project.

"Mixed signals were given by different representatives of the board of directors to the (Martins) and, as the jury had to find in rendering its verdict, (the board) treated (the Martins) differently than it did other residents who remodeled their homes," Blakey said.

The Martins are now negotiating with the board and its insurance company on a settlement of the $200,000 judgment and the couple's attorney fees, which they estimate at more than $80,000.

Bill Martin said he has little hope of collecting from the association.

Sutton Place resident Joe Smith, a former board member, said he fears residents will be stuck with paying up to $8,000 each to pay the judgment and legal fees.

Smith said the board used the association's $25,000 reserve fund to file suit against the Martins without ever holding a public meeting to consider the action.

The association, one of the first homeowners groups in Arizona, could be forced to file for bankruptcy, he said. Since the jury verdict, Martin said no board member has apologized to him.

"It didn't have to be this way, but it became personal," he said of the dispute. "I like living here, and they're not going to run me off."