IN THE SUPERIOR COURT OF THE STATE OF ARIZONA IN AND FOR THE COUNTY OF PIMA. Case No Plaintiff, Defendants.

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1 Carpenter, Hazlewood, Delgado & Bolen, PLC Attorneys at Law 0 E. Southern Avenue, Suite 00 Tempe, Arizona t t minuteentries@carpenterhazlewood.com Chad Miesen 0 Allison Kline 0 FERRIN.0001 Attorneys for Plaintiff FILED TONI L. HELLO CLERK, SUPERIOR OURT //0 :0: AM BY: ALAN WALKER DEPUTY Case No. C0 0 HON. CATHERINE M WOODS IN THE SUPERIOR COURT OF THE STATE OF ARIZONA IN AND FOR THE COUNTY OF PIMA 1 LONNY FERRIN (AKA LONNIE FERRIN), a single man, Plaintiff, Case No vs. LA CHOLLA AIRPARK, INC., an 1 Arizona Corporation; JOHN DOES I-X; JANEDOES 1-X; ABC CORPORATIONS 1 IX; and XYZ PARTNERSHIPS 1-X; 1 COMPLAINT (Civil-Breach of Contract; Declaratory Judgment) Defendants. 0 1 Lonny Ferrin aka Lonnie Ferrin ("Plaintiff'), by and through undersigned counsel, for its Complaint against Defendants, allege as follows: THE PARTIES, JURISDICTION, AND VENUE 1. Plaintiff, Lonny Ferrin aka Lonnie Ferrin, is and has been the owner of certain real property located in Pima County, Arizona at all times relevant to this dispute. 1

2 Defendant, La Cholla Airpark, Inc. ("LCAP") is an Arizona corporation transacting business in Pima County, Arizona.. Defendants JOHN DOES I-X, JANE DOES I-X, ABC CORPORATIONS I-X, AND XYZ P ARTNERSIDPS I-X are individuals, corporation or business entities which caused the events herein complained of to occur in the State of Arizona. The true identities of said Defendants are unknown to Plaintiff at this time, and Plaintiff will amend this Complaint when the names of said Defendants become known.. The acts alleged herein were done in Pima County, Arizona. This court has jurisdiction over this matter. Venue is proper before this court. GENERAL ALLEGATIONS. Plaintiff incorporates by reference all previous allegations as though fully set forth herein.. LCAP is an Arizona corporation whose shareholders are the owners of lots within the Common-Interest Community known as La Cholla Airpark, located in Oro Valley, Arizona ("the Community").. Plaintiff is the owner of 0 North Skyhawk Drive, Oro Valley, Arizona which is located within the Community (the "Property").. Plaintiff has been a shareholder of LCAP since July 0, by virtue of his ownership of the Property.

3 . The Community is subject to certain recorded restrictions known as the Declaration of Establishment of Conditions and Restrictions for La Cholla Air Park (the "Declaration").. LCAP Board of Directors adopted LCAP's Bylaws on March, 001, which were signed by LCAP's Secretary at the time, Tammy Y. Kastre (the "Bylaws").. Pursuant to the Bylaws, LCAP was formed for purposes of, among other things, managing, maintaining, and repairing the roads within the Community LCAP is obligated to maintain,00 square yards of pavement that covers the various parking areas, streets, and runway throughout the Community and to repair any areas that are deteriorating A chip seal was last applied to a major portion of the roads in Based on the use and traffic conditions of these streets, chip seal should be 1 applied every eight years In 00, the Travelair section of the Community road system was reworked as a "New Standard" for all future road paving. Travelair was coated with several inches of asphalt overlaying a gravel base with erosional curbing where necessary. This was the last time any significant maintenance was performed on the roads in the Community. 1. LCAP has failed to meet its obligations to Plaintiff under the Declaration to maintain the roads within the Community and has caused many of the roads to tremendously deteriorate.

4 This dilapidation is evident through the various isolated areas of depressions, potholes, alligator or spider web pattern cracks, edge deteriorations, chip seal deteriorations, and damages from oil and gasoline deposits from parked vehicles throughout the roads of the Community. 1. Shareholders of LCAP pay monthly assessments in the amount of $1. ($00.00 annually) to maintain the roads in the Community.. LCAP's total annual income from shareholder assessments was $0,0.00 in The total annual assessments do not generate enough income for LCAP to fulfill its obligations of maintaining the roads in the Community. 1. In order to raise assessments, the Declaration must be amended. To amend the Declaration two-thirds of the outstanding common voting stock must approve the amendment.. Having to amend the Declaration each time in order to adjust the amount of assessments is extremely problematic and diverges from the trend in most commoninterest communities and related associations.. On or about July, 0, LCAP attempted to amend the Declaration in order to raise assessments. LCAP did not achieve the necessary votes to adopt a Declaration amendment.. On or about April 00, was the last successful attempt to raise the shareholders annual assessment to $00 from $00.

5 1 1. The Declaration does not allow for a practical budgeting process nor does it take into account inflation costs, which is inconsistent with modem common-interest community structures.. As a result of the actions above, LCAP failed to meet its obligations to maintain the roads, and the Community and Plaintiff have suffered damages as a result of LCAP's actions. Moreover, certain provisions of the Declaration significantly impede the functioning of the Community because the annual assessment amount is unrealistically low, inflation cripples LCAP's ability to perform its responsibilities, and the vote requirements make it practically impossible to solve this problem by amendment. COUNT ONE 1 BREACH OF CONTRACT. 1 Plaintiff incorporates by reference all previous allegations as though fully 1 set forth herein. 1. The Declaration constitutes a contract between Plaintiff and LCAP. 0. LCAP has breached this contract by failing to maintain the roads within the 1 Community in accordance with the Declaration. 0. LCAP's breach of its contractual obligations owed to Plaintiff as shareholder of LCAP has caused Plaintiff to suffer damages in an amount to be proven at trial. 1. Pursuant to the Declaration and/or A.R.S , Plaintiff is entitled to an award of his reasonable attorneys' fees and costs incurred herein.

6 COUNT TWO DECLARATORY RELIEF PURSUANT TO THE RESTATEMENT OF PROPERTY SECTION.1. Plaintiff incorporates by reference all previous allegations as though fully set forth herein.. Pursuant to the Restatement (Third) of Property (Servitudes).1 (000), the Court has the power to excuse compliance with the requirements of a common interest community's governing documents.. Section.1 provides in relevant part as follows: A court may excuse compliance with any of the following provisions in a governing document if it finds that the provision unreasonably interferes with the community's ability to manage the common property, administer the servitude regime, or carry out any other function set forth in the declaration, and that compliance is not necessary to protect the legitimate interests of the members or lenders holding security interests: ( 1) a provision limiting the amount of any assessment that can be levied against individually owned property;... () a provision requiring approval of more than a majority of the voting power to adopt an amendment described in.(1)(a).. LCAP 's current requirement to amend the Declaration each time to raise assessments (two-thirds shareholder approval) unreasonably interferes with LCAP's ability to manage the common property, administer the Declaration, and carry out other necessary functions addressed in the Declaration because ( 1) the current annual assessment rate at $00 does not generate enough income for LCAP to maintain the roads

7 in the Community, and () LCAP is unable to achieve the two-thirds shareholder approval requirement in order to raise assessments in order to fulfill their obligations set forth in the Declaration.. As a result of two-thirds shareholder approval requirement, Plaintiff and the other shareholders with in the Community continue to suffer irreparable injury.. Plaintiff respectfully demands that this Court declare that the Association is excused from complying with Section of the Declaration, which requires two-thirds shareholder approval in order to raise assessments. WHEREFORE, the Plaintiff requests that this Court enter an order: a. A warding Plaintiffs monetary damages in an amount to be proven at trial; b. Awarding Plaintiff interest on monetary damages awarded at the highest rate allowed by law; c. Declaring that Section of the Declaration, which requires two-thirds shareholder approval to raise assessments, unreasonably interferes with the community's ability to manage the common property, administer the servitude regime, or carry out any other function set forth in the Declaration, and that compliance is not necessary to protect the legitimate interests of the members or lenders holding security interests; d. Modifying that portion of Section of the Declaration that sets the assessment amount to read:

8 In order to provide for the operation and management of La Cholla AirPark, Inc. and to perform its duties and obligations under these conditions and restrictions, the Board, for each Assessment Period, shall assess an Annual Assessment against each parcel. For the purposes of this section, "Annual Assessment" shall mean the assessment levied against each parcel and Owner thereof, pursuant to Section of these conditions and restrictions. Furthermore, "Assessment Period" shall be La Cholla Air Park's fiscal year. The Board shall not levy an Annual Assessment that is more than twenty percent (0%) greater than the immediately preceding fiscal year's Annual Assessment without the approval of a majority of the Shareholders. The Board shall give notice of the Annual Assessment to each Owner at least thirty (0) days prior to the beginning of each Assessment Period, but failure to give such notice shall not affect the validity of the Annual Assessment. If the Board determines during any Assessment Period that the funds budgeted for the Assessment Period are, or will, become inadequate to meet all budgeted expenses for any reason, including, without limitation, nonpayment of Assessments by shareholders, it may subject to the twenty percent (0%) limit set forth above, increase the Annual Assessment for that Assessment Period and the revised Annual Assessment shall commence on the date designated by the Board. Additionally, the Board shall suspend, for the entire period during which any Assessments, fees, charges, fine and penalties, together with interest and late charges, costs of collecting and reasonable attorneys' fees remain delinquent, the delinquent Owner's right to vote on any matter at regular or special meeting of La Cholla Air Park. e. For an award of Plaintiffs reasonable attorneys' fees and costs pursuant to the Declaration and/or A.R.S ; and f. For such other and further relief as the Court deems just and proper. RESPECTFULLY SUBMITTED this th day of September, 0. & BOLEN, PLC