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IINTERNAL DISPUTE RESOLUTION

This Internal Dispute Resolution (“IDR”) Process applies to the Association as well as an Owner as a prerequisite to the filing of any litigation related to a dispute involving their respective rights, duties or liabilities under the governing documents, the Davis-Stirling Common Interest Development Act (“D-S Act”) and / or the nonprofit mutual benefit corporation law (Collectively “CID Dispute”). It does not relate to any collections of assessments unless the Association determines it needs to file litigation to collect same.

Either party (Association or Owner) to a CID Dispute may invoke the following procedure:

  • The party may request to the other party to meet and confer, in an effort to resolve the CID Dispute. The request shall be in writing.
  • An Owner may refuse an Association request to meet and confer. The Association may not refuse an Owner’s request to meet and confer.
  • The Board hereby designates the President or in his/her absence, the Vice President (“Board Designee”), as well as the CID Manager to meet and confer with the Owner. The Board Designee shall also have the right to request the Chairperson of any applicable Committee involved in the CID Dispute to assist the Board and attend the meet and confer session with the Owner. If the Association is pursuing litigation related to a delinquent assessment, the Board designates the Treasurer in lieu of the President as the Board designee.

Although not precluded, attorney participation in the IDR Process is discouraged in order to maintain direct discussions between the principals of the CID Dispute and to maintain the goal of resolution through an expeditious process. To the extent Owner requires that his/her/its attorney attend the IDR Process, the Owner shall be required to give five (5) business days’ written notice to the Association so that the Association can ascertain if it desires its corporate counsel to also attend.

The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other and confer in good faith in an effort to resolve the CID Dispute.

A resolution of the CID Dispute agreed to by the parties shall be memorialized in writing and signed by the parties, including the Board of Designee on behalf of the Association.

The Agreement reached by the Owner and the Board Designee binds the parties and is judicially enforceable if both the following conditions are satisfied:

  • The Agreement is not in conflict with the law or the governing documents of the Association; and
  • The Agreement is ratified by the Board of Directors within thirty (30) days of the date that the Agreement is executed by the Owner and the Board Designee.

The Owner participating in the IDR Process shall not be charged a fee to participate in the IDR Process.

 

(Adopted April 2005)


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