AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• The Plaintiff, a member of the Sierra Los Pinos Property Owners Association for approximately twenty-five years and a former Board member, became concerned over an increase in delinquent dues payments and the accuracy of the Board’s financial reporting in 2013. In December 2014, the Plaintiff sought to inspect the Association’s records but was denied access to certain documents, leading to a lawsuit alleging breach of contract for failure to allow inspection of records as required by the Association’s bylaws and the Homeowner Association Act (HOAA) (paras 2-4).

Procedural History

• District Court of Sandoval County, John F. Davis, District Judge: The court ruled that the Sierra Los Pinos Property Owners Association Board of Directors did not breach the implied contract formed by the Association’s bylaws or violate the Plaintiff’s inspection rights under the HOAA (para 1).

Parties' Submissions

• Plaintiff: Argued that the Association breached the bylaws by failing to provide for the inspection of books and records as required, failing to conduct an audit of the Association’s books every three years or sooner at the Board’s discretion, and failing to prepare a review of the Association books at the completion of each fiscal year or at the completion of the Treasurer’s term (para 4).
• Defendant (Sierra Los Pinos Property Owners Association): Contended that all Association information had been made available for inspection on a reasonable basis and that the Association financial information had been provided via the Association’s website. The Association also argued that it can redact “personal adverse financial information” from records it produces for inspection and that the terms “audit” and “review” are interchangeable when interpreting the bylaws (paras 5, 6, 16-18).

Legal Issues

• Whether the district court erred in concluding that the HOAA and the bylaws allow the Board to limit the financial statements and communications that are subject to inspection.
• Whether the bylaws and the HOAA allow the Board to redact “personal adverse financial information.”
• Whether the terms “audit” and “review” are interchangeable as used in the bylaws (para 6).

Disposition

• The Court of Appeals affirmed the district court’s judgment on all issues except the issue of costs, which remains pending in the district court (para 26).

Reasons

• Per MEDINA, J., with BRIANA H. ZAMORA, J., and CYNTHIA A. FRY, J., Pro Tempore, concurring:
  The Court of Appeals found that the HOAA applies to all homeowner associations created and existing within the state but noted that certain sections do not apply to associations created before July 1, 2013, which includes the Sierra Los Pinos Property Owners Association. The court also held that the district court properly interpreted the bylaws, finding that the terms “books, records, and papers” should be interpreted consistent with the HOAA and that the Association can withhold disclosure of personal adverse financial information on delinquent accounts. The court concluded that substantial evidence supported the district court’s finding that the Association complied with the bylaws’ requirement to make available its “books, records, and papers.” Additionally, the court addressed the interchangeability of the terms “audit” and “review” in the bylaws, concluding that the issue was moot since the Board had obtained yearly audits, thereby satisfying and exceeding its yearly review requirement. The Court of Appeals also noted that the district court retains jurisdiction on the question of costs (paras 7-25).