State Codes and Statutes

State Codes and Statutes

Statutes > Arizona > Title32 > 32-2193.39

32-2193.39. Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response

A. A claimant whose application is denied pursuant to section 32-2193.38 may file, within six months after receiving notice of a denial of the claim, a verified application in the court in which judgment was entered in the claimant's favor for an order directing payment from the condominium recovery fund based on the grounds set forth in the claimant's application to the commissioner.

B. The claimant shall serve a copy of the verified application on the commissioner and on the judgment debtor and shall file a certificate or affidavit of service with the court. Service on the commissioner shall be made by certified mail addressed to the commissioner. Service on a judgment debtor shall be made pursuant to section 32-2193.35 and shall include notice that an application has been filed with the court for a claim against the condominium recovery fund that was previously denied by the commissioner.

C. The commissioner shall advise the subdivider that, if payment is awarded, the subdivider's public report will be automatically suspended, pending repayment to the fund, plus interest at the rate provided by section 44-1201, subsection A. The commissioner shall include a description of the subdivider's right to appear and defend the action and that failure by the judgment debtor to timely file a response constitutes a waiver of objection.

D. The commissioner and the judgment debtor each must file a written response within thirty calendar days after being served with the application pursuant to subsection B of this section. The court shall set the matter for hearing on the petition of the claimant. The court may grant a request of the commissioner for a continuance of up to thirty calendar days and, on a showing of good cause by any party, may continue the hearing for a time that the court considers appropriate.

E. At the hearing, the claimant must establish compliance with the requirements of section 32-2193.34.

F. If the judgment debtor fails to file a written response to the application, the commissioner may compromise or settle the claim at any time during the court proceedings and, on joint petition of the applicant and the commissioner, the court shall issue an order directing payment from the condominium recovery fund.