Alternative Dispute Resolution (ADR)

Our ADR calls for mediation as means to resolve a dispute between an Owner and the HOA. It states if the parties can not resolve the issue than the Owner may request mediation. It also states that the the outcome of the mediation does not fore go the legal alternatives that are available to both parties (not exact words) and that the cost of the mediation would be split between the Owner and the HOA. So I formally requested mediation and two weeks later I get back a very short note that says the BOD has agreed to binding arbitration and we will send you a contract to sign as soon as we have it. It is my understaning that mediation and binding arbitration are significantly different. Does anyone know what my alternatives are at this point? Thanks

The 'binding arbitration' agreement may come out of the mediation; in other words, if you agree to mediation, there may be a commitment on both sides to accept the decision that comes out of mediation.

If in doubt, don't sign anything. The mediation center should be talking to you about any 'settlement' decision, not the HOA.

Renee,

From Findlaw.com :

Arbitration and mediation are similar in that they are alternatives to litigation, or are sometimes used in conjunction with litigation to attempt to avoid litigating a dispute to its conclusion. Both arbitration and mediation employ a neutral third party. Both can be binding; however, it is customary to employ mediation as a non-binding procedure and arbitration as a binding procedure.

Arbitrators generally act similar to a judge and make decisions about evidence and give written opinions. Although arbitration is sometimes conducted with one arbitrator, the most common procedure is for each side to select an arbitrator and for those two arbitrators to select a third arbitrator.

Mediation, on the other hand, is generally conducted before a single mediator who does not judge the case but helps facilitate a discussion and eventual resolution of the dispute.

From Know About.com:

In a binding arbitration, all parties agree to abide by the arbitrator’s decision before the process begins. Once rendered, the arbitrator’s decision carries the same legal weight as the ruling of a court.

OPTIONS:

If the Board will only agree to binding arbitraion and you will only agree with mediation, then I see two options:

1) Litigation
2) Live with the Boards decision

Here are a couple of links you might find interesting:

coloradomediation.org

Colorado Mediators & Arbitrators

Hope this helps,

Tim

Renee...there is a difference and you would need to weigh your options. If I understand correctly binding arbitration is an alternative to court where both parties agree to accept the arbitrator's decision. A lot less expensive than court and has its up and downs. Not sure how deep you are in already but may want to get a lawyer to look at.

If they HOA won't agree to mediation and you won't agree to binding arbitration then court is the next step.

Renee

do your documents say you "have" to try mediation prior to any court action or is it just an option that is available if both parties agree? If it is a mandated step then I would send a letter back to them requesting mediation per your documents. If it isn't mandated then I would send a note to them again requesting non-binding mediation.