Dispute Resolution and EnforcementAlternative Dispute Resolution Prerequisite to Civil Action
Section § 5925
This section explains terms relevant to the article. "Alternative dispute resolution" refers to ways to resolve conflicts outside of court, like mediation or arbitration, and can be binding or not, based on what everyone agrees to. "Enforcement action" describes a lawsuit or legal process, except for a counterclaim, aimed at enforcing specific laws or rules such as this act, laws about nonprofit mutual benefit corporations, or the organization's rules.
Section § 5930
Before taking an enforcement case to superior court, parties must try to resolve their issue through alternative dispute resolution (like mediation or arbitration). This rule applies when the case is about getting a legal declaration, stopping someone from doing something, or seeking certain court orders, but only if the monetary claim is within set limits. It doesn't cover small claims cases or disputes about assessments unless otherwise stated by law.
Section § 5935
If you're involved in a dispute, you can kick off a formal process by sending a Request for Resolution to the other people involved. This request must briefly explain the issue, ask for alternative ways to resolve it, and inform the other party they need to reply within 30 days or it's automatically considered a no. If the request is to a member, include a copy of the relevant article. You can send this by various methods like mail or fax, as long as it's likely the person will actually get it. The other party has 30 days to respond, and if they don't, it's taken as a rejection.
Section § 5940
This law section deals with requests for alternative dispute resolution (ADR) processes like mediation. If someone sends you a request for ADR and you agree, you both need to finish the ADR process within 90 days, unless you both agree in writing to extend the time. The rules from another section of law apply to how the ADR should be conducted, but not if it's arbitration. Also, the cost of going through ADR is something both parties have to share.
Section § 5945
This law section states that if someone serves a 'Request for Resolution' before the deadline for starting a legal enforcement action, then the deadline is paused. The pause lasts while waiting for a response to the request, and if the request is agreed to, it also pauses during the time spent on alternative dispute resolution, plus any agreed extensions.
Section § 5950
This law requires that when you start a legal action to enforce something, you must also file a certificate showing that specific conditions related to dispute resolution have been met. These conditions include either completing alternative dispute resolution, another party not accepting terms, or needing urgent legal action. If you don't file this certificate, the court can potentially dismiss your case unless not doing so would unfairly harm one of the parties involved.
Section § 5955
This law allows parties involved in a legal enforcement action to agree in writing to try resolving their dispute through alternative means, like mediation or arbitration, instead of court. When they choose this path, the court case is put on hold, meaning certain rules won't apply during this pause. Each party involved has to pay their share of the costs for this alternative process.
Section § 5960
This law says that if someone's going to court to enforce something and they're asking for the other person to pay their attorney's fees and costs, the court can look at whether or not the person reasonably refused to try and resolve the issue outside of court, like through mediation or arbitration, before they started the lawsuit.
Section § 5965
Every year, a homeowners association must give its members a summary of a specific law that talks about dispute resolution. This summary includes a warning that if members don't follow certain dispute resolution rules, they might lose the ability to take legal action against the association or other members about community rules or laws. This summary must be included in an annual policy statement.