ALTERNATIVE DISPUTE RESOLUTION NOTICE The provisions of Section 1354 of the California Civil Code require Alternative Dispute Resolution (ADR) in a form such as mediation or arbitration, under certain circumstances prior to an owner, member or the Association filing a lawsuit. ADR is required to be attempted before a party files a lawsuit relating to the enforcement of the governing documents of the Association and where the lawsuit is solely for declaratory relief or injunctive relief, or for such relief in conjunction with a claim for damages not in excess of $5,000 unless (1) the filing relates to a cross-complaint, (2) the statute of limitations will run within 120 days or (3) the lawsuit concerns assessments.* ADR may be initiated by serving on the other party a Request for Resolution through ADR (Request). The Request shall include: (1) a brief description of the dispute between the parties; (2) a request for ADR; (3) a notice that the party receiving the Request is required to respond thereto within 30 days of receipt or it will be deemed rejected; and (4) a copy of Civil Code Section 1354. A party receiving a Request shall have 30 days following service of the Request to accept or reject ADR and, it not accepted within the 30 - day period, the Request shall be deemed rejected by that party. The service of the Request must be completed in compliance with California Code of Civil Procedure Section 116.340. ADR must be completed within 90 days of receipt of acceptance of the Request unless extended by written agreement. The costs of ADR shall be borne by the parties. The party filing the lawsuit seeking relief as specified above must file a certificate stating that ADR has been completed. Failure to file such certificate may be grounds for a demurrer or a motion to strike the lawsuit unless (1) the filing party certifies in writing that prior to filing the complaint (a) one of the other parties refused ADR, (b) that preliminary or temporary injunctive relief was necessary, or (c) that the statute of limitations would run in 120 days; or (2) the court finds that failure to comply as required would result in substantial prejudice to one of the parties. In any lawsuit relating to the enforcement of the covenants and restrictions in the Association’s Declaration, the prevailing party shall be awarded reasonable attorney’s fees and costs. The court, in determining such award, may consider a party’s refusal to participate in ADR. If a lawsuit is filed before ADR is attempted, upon agreement of the parties, the lawsuit may be stayed or the dispute may be referred to ADR. Unless otherwise agreed to by the parties, documents, evidence, testimony or admissions make during the ADR process generally shall not be admissible compelled in legal proceedings unless otherwise discoverable. Failure of any member of the Association to comply with the prefiling requirements of Section 1354 of the Civil Code may result in the loss of your rights to sue the association, or another member of the association regarding enforcement of the governing documents. */ Note that ADR may be applicable to disputes relating to assessments if certain criteria are met pursuant to the provisions of California Civil Code Section 1366.3. (See the Association’s Assessment Collection Policy.) << Back to Avalon Samples and Articles Page Portions of this page Copyright 2004 Avalon Management Group Inc. All Rights Reserved, other content may be copyrighted by the respective author(s.)