Pettit Kohn Prevails with Trial Verdict in Arizona HOA Dispute

Pettit Kohn Shareholder and ABOTA attorney Grant Waterkotte, assisted by associate Cameron Flynn, prevailed at trial on a case which involved a long running dispute between Pettit Kohn’s client, an Arizona homeowner’s association, and the former association board president.

The case issues were extraordinarily complex.  The former board president led the association to enter into a contract with his own company, despite a conflict of interest.  Pettit Kohn’s client sued its former board president for breach of fiduciary duty, fraud, breach of contract, and a handful of other claims.  The former board president then countersued the homeowner’s association for breach of contract, asserting that the association had breached its contract with this company which he owned.  In addition, the former board president claimed tens of millions of dollars in damages for the alleged breach of contract claim.  He also claimed the association was unjustly enriched because his company covered legal expenses incurred by the association.

At trial, the client sought to void the contract it viewed as improper, and recoup some of the attorney’s fees it had been forced to pay as a result of the former president’s actions.  After nearly two weeks of trial, the judge took the matter under advisement.  Ultimately, the court ruled in the association’s favor and found against the defendant on his counterclaims.  Pettit Kohn’s client was awarded $650,000 in damages and because the association prevailed on its breach of contract claim, the client will be entitled to attorneys’ fees and costs under Arizona law.

Pettit Kohn’s client was thrilled with the result.  Pettit Kohn Ingrassia Lutz & Dolin congratulates Mr. Waterkotte and his trial team for their success in this Arizona case.