State of Arizona, Foothills Reserve HOA $18M eminent domain judgment

The state of Arizona was ordered to pay $18 million to Foothills Reserve homeowners association (HOA) homeowners in a judgment resolving a lawsuit involving eminent domain claims.

The judgment benefits homeowners in the Foothills Reserve subdivision of Phoenix as of July 3, 2018.

The state of Arizona filed a lawsuit in which it aimed to possess a portion of homeowners’ properties in order to perform construction on the Loop 202 South Mountain Freeway; the state paid the Foothills Reserve HOA for these areas. These claims were not disputed. 

However, the HOA argued Arizona needed to further compensate homeowners.

According to the HOA, the noise, pollution, view and general unsightliness of the nearby freeway resulted in diminished home values. The HOA — on behalf of 589 homeowners — asserted the state was responsible for the diminished home value suffered as result of the proximity to the freeway. The state disagreed, arguing it was not liable for these incidental damages.

The Arizona Superior Court of Maricopa County entered a partial judgment of $6.5 million in July 2018, which the state paid. The court recognized the condemned property is necessary for public use but found the state is responsible for lost value as a result of the freeway construction. 

HOA homeowners have the opportunity to receive proximity damages from this judgment. These payments will compensate homeowners for the loss of value sustained. 

Payments will vary, but homeowners are estimated to receive between $3,500 and $50,000, depending on the location of their property within the subdivision.

On March 4, 2022, the court entered a complete judgment against Arizona for a total of $18 million. The State of Arizona appealed this decision but, if the appeals court determines the state is liable for the entire judgment, it must pay an additional $12 million. 

If the HOA prevails in appellate court, class members may be eligible for a second distribution of payments.

The deadline for objection was June 20, 2022. 

The one-day evidentiary hearing for objections was scheduled for June 30, 2022.

In order to receive a distribution from the Foothills Reserve HOA judgment, HOA homeowners must submit a valid claim form by Oct. 20, 2022.

Who’s Eligible

The judgment benefits homeowners in the Foothills Reserve Subdivision as of July 3, 2018. Foothills Reserve is a subdivision in Phoenix.

Potential Award

Varies.

Proof of Purchase

Class members may be asked for further documentation proving entitlement to proceeds after submitting their claim form.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

10/20/2022

Case Name

State of Arizona, ex rel., John Halikowski, Director, Department of Transportation v. Foothills Reserve Master Owners’ Association Inc., Case No.: CV2017-010359, in the Superior Court of the State of Arizona in and for Maricopa County

Final Hearing

06/30/2022

Settlement Website

FootHillsReserveJudgment.com

Claims Administrator

ILYM Group, Inc
P.O. Box 2031
Tustin, CA 92781
888-250-6810

Class Counsel

Michelle Burton
Joe Acosta Jr.

Defense Counsel

Dale S. Zeitlin
Casandra C. Markoff