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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 118701
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Since 1992, we've been members of a "wildcat" water

Customer Question

Since 1992, we've been members of a "wildcat" water association in SE Arizona. My wife and I have served several years as president / Sec./Treas. New people have taken control....many strange happenings such as they monitor the meters while their own meter has been dead for years, they want to amend the By-laws to allow a $300.00 penalty for taking any member to small claims for any reason. We are not registerd with the AZ Corp. commission, no financial accounting, rarely any meeting notices or minutes, no reciepts given, they's cussed me out at meetings for dissent, they have no clue how to read a water meter, etc. HELP!!! Can an unregistered water assn. penalize anyone $300.00 for any reason? Silas Griffin
JA: Because laws vary from state to state, can you tell me where the company is registered?
JA: Has anything been filed or reported?
Customer: We are in Cochise County, SE Arizona. This water association is NOT registered with the state corporation commission. ADEQ regulates the assn. for health purposes.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I've complained about other irregularities with AZ Attorney Gen. office, county Super, ADEQ, ADWR, the AZ Corp. Commission, etc. with no results.....due to the fact this water assn. is NOT registered with the AZ Corp. Comm. We had registeree back in 1993 but some new member elected to office let it lapse. So, we are not regulated as being a "wildcat" assn. This assn. -- LA COSTA WATER USERS ASSN. has existed and has been regulated by ADEQ since the 1970's. There is something in the law about franchise.....The AZ Corp. Comm. should regulate us and make sure no irregularities can creep in as they have under the current "assumed" leadership. Realtors say we are stuck with the property since five of 10 people aren't interested in buying a house connected to this water assn......LCWUA has a bad name here.
Submitted: 11 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, if you have an agreement with this association and you are a member, even though they are not registered, they can pursue you for the fines if the fines are within their rules and bylaws. As far as their conduct an unregistered association can still operate, so this is why the AG and Corporation Commission is not doing anything, they are allowed to operate as an unregistered organization (which is similar to a sole proprietorship).
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