Arizona Court of Appeals Div. 2: Starr Pass Resort Developments, LLC v. Pima County, et al.

Case No. 2 CA-CV 2023-0082  Filed May 22, 2024

ISSUES:

1. Whether the trial court complied with Rule 12(d)’s “reasonable opportunity” requirement when converting a motion to dismiss to a motion for summary judgment.
2. Whether the Environmental Enhancement Fee was part of the collateral transferred through receivership to the new owner.
3. Whether the trial court’s award of attorney fees to Pima County was appropriate.

DECISION:

1. The trial court has broad discretion in complying with Rule 12(d) and properly exercised that discretion by allowing supplemental memoranda and exhibits.
2. The Enhancement Fee was part of the collateral transferred through receivership to the new owner, as it was included in the deed of trust’s description of collateral.
3. The trial court did not abuse its discretion in awarding attorney fees to Pima County, as the fees were reasonable and necessary.

Synopsis:
This case involves the entitlement to an Environmental Enhancement Fee collected from guests at the Starr Pass Resort. The court affirmed the trial court’s decision to convert a motion to dismiss to a motion for summary judgment, finding that Rule 12(d) grants courts broad discretion in providing a “reasonable opportunity” to present pertinent material. The court rejected arguments that conversion requires an answer, discovery, or separate statements of facts.

NOTE: The court explains the process for converting a motion to dismiss to a motion for summary judgement.

Outcome of the Case:
The Arizona Court of Appeals affirmed the trial court’s grant of summary judgment in favor of Pima County, CREF3, and Buyer, as well as the award of attorney fees to Pima County.

To view all Arizona appellate court decision summaries, click the Subscribe Now button.