Depending on your specific circumstances, you may have different legal options.
For example, under the Davis- Stirling Act, your HOA must provide a mechanism for Informal Dispute Resolution, or “IDR.” The law requires HOAs to provide a “fair, reasonable, expeditious procedure” for resolving disputes between itself and its members. Essentially, both you and the HOA can ask each other for an informal meeting to discuss and try to resolve your disputes. You’re allowed to have your attorney there. The HOA can have its attorney there too. While you can refuse the HOA’s request, the HOA cannot refuse your request. If you settle, the settlement has to be in writing and signed by both you and your HOA. Because IDR is, by definition, informal, it is not always the most effective course of action.
In addition to IDR, the Davis-Stirling Act provides for Alternative Dispute Resolution or “ADR”. In many cases, the law requires you and the HOA to try ADR before filing a lawsuit in court to enforce the CC&Rs or the Davis-Stirling Act. And failing to engage in ADR may mean an automatic loss.
Mediation is one type of ADR in California, and the one provided for in the Davis-Stirling Act. In mediation, there is no judge and no jury. Instead, it is a formal meeting at which the parties share their side of the story and try to reach a settlement. It is typically more effective than IDR because a neutral third-party helps the parties evaluate their positions and aids them in coming to a resolution. Most importantly, participating in ADR creates the opportunity to recover your attorneys’ fees against the HOA if you have to proceed to litigation.
Unlike IDR, the law has special requirements on how to start the ADR process. If you don’t do it right, the HOA has no obligation to go to ADR, and you may lose your right to recover attorneys’ fees or, even worse, automatically lose your case in court.
Finally, the Davis-Stirling Act allows you to initiate a lawsuit against your HOA. The process of prosecuting or defending a lawsuit is called litigation, and it’s what you see on T.V. and in movies. It involves depositions, written discovery, motions, oral argument, and may ultimately culminate in a trial with a judge and jury. It’s expensive and it’s time-consuming. But sometimes you have to. Your HOA leaves you with no other option.
If you have to file or defend a lawsuit. Don’t do it yourself. No reasonable lawyer would ever tell you to do so. In fact, most lawyers wouldn’t even represent themselves. Litigation is complicated and time-consuming. And the failure to precisely follow the rules and deadlines can have dire consequences. In other words, it’s a full-time job. It’s our job.
If you need help determining what legal option is right for you, we can help you decide. We’ll explain the costs and benefits of each option and guide you to an educated decision.