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State law provides for alternative dispute resolution (ADR). Civil Code section 1369.510, et seq. This is a mandatory procedure for both the property owner and the homeowners association prior to the initiation of litigation to enforce the CC&R's. There are several exceptions to the requirement for ADR, including:
1. An action within the jurisdiction of the small claims court.
2. An action where a preliminary or temporary injunctive relief is necessary.
3. An action solely for monetary damages.
4. An action where the responding party refuses to accept or participate in alternative dispute resolution.
Assuming the exceptions do not apply, an enforcement action will be dismissed if it does not contain a separate certificate under Civil Code section 1369.560(b) stating that ADR has been completed or excused. ADR may consist of mediation, non-binding arbitration or binding arbitration. The parties must select one of the three methods of ADR. The parties must also select a mediator or arbitrator. May disputes are resolved by ADR.
For more information regarding homeowners association law and/or real estate law, contact Barry A. Ross, Esq. at 949-727-0977, e-mail: rossbarry@aol.com, or visit his website at www.rossrealestatelaw.com.
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