Summary

The Declaration mandates a two-step dispute resolution process before any litigation may be filed. Disputes between homeowners, or between a homeowner and the HOA, must first go through mediation, and if unresolved, binding arbitration administered by the American Arbitration Association (AAA). Direct litigation is only available after these steps are exhausted (or waived by mutual agreement).

Process

StepDescriptionSource
1. MediationParties must attempt mediation firstDeclaration 2004, Article 13
2. Binding ArbitrationIf mediation fails, binding arbitration through AAADeclaration 2004, Article 13
3. LitigationOnly after arbitration (or by mutual waiver)Declaration 2004, Article 13

Applicable Rules

RuleSourceSection
Mediation required before arbitration or litigationDeclaration 2004Article 13
Binding arbitration through American Arbitration Association if mediation failsDeclaration 2004Article 13
Applies to disputes between owners and disputes between owners and HOADeclaration 2004Article 13

Relationship to Violations Process

The R&Rs establish an internal violation and appeal process through API and the Board (see violations-and-fines). That process is the first step for rule enforcement disputes. If an owner disputes a Board decision after exhausting the internal appeal process, the Declaration’s Article 13 mediation/arbitration requirement applies before any court action.

History

No meeting history recorded yet.

Open Questions

  • The Declaration text does not specify who bears the cost of AAA arbitration (split equally, loser pays, or other). AAA rules govern unless the Declaration specifies otherwise.
  • It is not clear whether the mediation/arbitration requirement applies to HOA-initiated enforcement actions (e.g., injunctive relief for ongoing violations) or only to owner-initiated disputes.