Out of Court Binding Dispute Resolution
Colorado HOA Forum: Homeowner Advocates
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Mediation Provides "half a loaf" Solution to HOA Dispute Resolution
We already have mediation in State Law and most HOA by-laws
(governing documents). Making mediation mandatory when it currently
doesn't work solves very little and will only add time, cost, uncertainty, and
more process to an already weak HOA enforcement system.
Homeowners want an accessible and affordable HOA enforcement
system and one that has a defined process from beginning to end. An
enforcement process that renders decisions expeditiously and based on
HOA law and their own by-laws. An HOA legal enforcement process that
is out of court for most homeowner complaints and is binding.
The idea of mandatory mediation contradicts all the positive aspects we
advocate in enforcing HOA law. Mediation, optional or mandatory, is an
enforcement system based on "hope", "if", and "maybe" not certainty of a
decision nor does it bring the feature of finality in the complaint process; it
is aimed at resolving some, not all, complaints thus leaving many
homeowners with the costly, time consuming, and litigious court system
to resolve simple problems which is the current problem; it will add time,
cost, and more hoops for homeowners to jump through to gain a
decision on a dispute; it will still clutter our court system with HOA cases
that neither belong in court nor require the formality of our court system for
a judgement; and this process will require homeowners to gamble
several hundred dollars on a mediation session that in many cases will
not result in any or only a partial decision which is simply unacceptable
and unaffordable for homeowners.
The idea is to resolve complaints, have decisions rendered, make
dispute resolution affordable and accessible. Our proposal of med-arb
meets this criteria. Mediation, mandatory or not, will simply add more
process, time, cost, and uncertainty to dispute resolution which is no
one's goal.
Comparison of Dispute Resolution Processes Med-Arb, Mediation (Mandatory Mediation), Court
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Evaluation Criteria
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Med-Arb
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Mediation
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Court
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Cost Effective
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X
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X (partial)
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Litigious
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X
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Timely, Efficient
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X
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X (partial)
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Guaranteed Binding Decision Rendered
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X
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X
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Minimizes steps in process from beginning to definite end
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X
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Definite and defined process from point of filing complaint to decision
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X
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X
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Accessible to Homeowners
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X
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X (partial)
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Easily Understood by Homeowners
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X
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X
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Due process of law guaranteed*
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X
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X
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Affordable
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X
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X (partial)*
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Applicable to all HOA Disputes
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X (partial)*
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X (partial)*
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X
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Reduces Court caseload and costs
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X
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X (partial)*
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Avoiding Court System
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X
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X (partial)
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Cost effective, timely, efficient only for those cases in which a binding
agreement is reached, else just the opposite is true and overall the process
will leave many left in the court as only solution.
Accessible but can result in homeowners not pursuing a complaint since they
must "gamble" several hundred dollars in this process which is lost if
agreement is not reached.
Affordable: Requires homeowner to risk cost of mediation and may simply
add to cost if agreement not reached.
Only reduces caseload for complaints settled. Pertains only to cases: seeking
under $7,500 damages; not felonies; and must concern non-compliance with
State HOA laws/HOA governing documents. Cases not ending in total binding
solution can end up in court