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ARIZONA BILTMORE HOTEL v. CONLON GROUP

No. 1 CA-CV 18-0709.

469 P.3d 463 (2020)

ARIZONA BILTMORE HOTEL VILLAS CONDOMINIUMS ASSOCIATION, an Arizona nonprofit corporation, Plaintiff/Appellee, v. The CONLON GROUP ARIZONA, LLC, a Missouri limited liability company; and Mark Finney, Defendants/Appellants.

Court of Appeals of Arizona, Division 1.

Filed June 23, 2020.

Attorney(s) appearing for the Case

Pettit Kohn Ingrassia Lutz & Dolin, PC, Los Angeles, CA, By Grant D. Waterkotte , Counsel for Plaintiff/Appellee.

Dickinson Wright, PLLC, Phoenix, By J. Gregory Cahill , Victoria L. Buchinger , Co-Counsel for Defendant/Appellant The Conlon Group Arizona, LLC.

Finney Law Office, LLC, Clayton, MO, By Daniel P. Finney Jr. , Co-Counsel for Defendant/Appellant The Conlon Group Arizona, LLC.

Shaw & Lines, LLC, Phoenix, By Mark E. Lines , Patrick J. Whelan , Counsel for Defendant/Appellant Mark Finney.

Presiding Judge David D. Weinzweig delivered the opinion of the Court, in which Judge Jennifer M. Perkins and Judge James B. Morse Jr. joined.

OPINION

¶1 Arizona's Nonprofit Corporation Act (the "Act") recognizes a procedural safe harbor for a corporate director to avoid an "award of damages" arising from a "conflicting interest transaction" between the director and the corporation. A.R.S. § 10-3861(B)(1). To gain shelter under the Act, a conflicted...

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