Condo ADR Bill in FL Legislature

The Florida Legislature began its session this week and there is already a bill out of drafting relating to alternative dispute resolution (ADR). The act would amend Section 34.01, Florida Statutes, expanding the jurisdiction of county courts to include certain disputes occurring in condominium and cooperative associations. It would also amend Section 718.103, Florida Statutes, defining the term “condominium documents” and Section 718.112 conforming provisions to changes made by the act, requiring that a provision for mandatory mediation, rather than nonbinding arbitration, be included in association bylaws. The language also amends Section 718.117, revising how a unit owner or lienor may contest a plan of termination and amending Section 718.1255, revising the requirements for ADR in condominium associations and providing a form for the written demand an aggrieved party is required to serve on a responding party, as well as providing requirements for the service of a statutory demand to participate in presuit mediation and the response to such service. The legislation would provide requirements for mediators selected by the parties and that parties to equally share the costs of presuit mediation, while authorizing a mediator to require advance payment of fees and costs. Under the law, presuit mediation proceedings would be conducted in accordance with Chapter 44, Florida Statutes, in addition to the Florida Rules of Civil Procedure and authorize a representative from an association’s insurance carrier to attend presuit mediation conferences. The likely effective date would be July 1, 2019. Search for more here-- https://bit.ly/2VKtnHI

HOA Presuit Mediation in FLA

Yesterday, I had the pleasure of negotiating a resolution to a beachfront homeowner's association (HOA) dispute in presuit mediation. Because this process is statutory, I thought it a good idea to remind everyone of the contents of Section 720.311, Florida Statutes. A mediator is authorized to conduct mediation or arbitration under this section only if he or she has been certified as a circuit court civil mediator by the Florida Supreme Court. The Florida Legislature, finding that alternative dispute resolution reduces court dockets and trials and offers a more efficient, cost-effective option to litigation, created this mechanism for HOAs. Importantly, the filing of any petition or the serving of a demand for presuit mediation as provided for in this section tolls the applicable statute of limitations. Note that neither election disputes nor recall disputes are eligible for presuit mediation, as those are arbitrated under another process. Disputes between an association and a parcel owner regarding use of or changes to the parcel or the common areas and other covenant enforcement disputes, disputes regarding amendments to the association documents, disputes regarding meetings of the board and committees appointed by the board, membership meetings not including election meetings, and access to the official records of the association are subject to a of a demand for presuit mediation served by an aggrieved party before the dispute is filed in court. Presuit mediation proceedings must be conducted in accordance with the applicable Florida Rules of Civil Procedure, and these proceedings are privileged and confidential to the same extent as court-ordered mediation under Chapter 44, Florida Statutes. Disputes subject to presuit mediation under Chapter 720 do not include the collection of any assessment, fine, or other financial obligation, including attorney’s fees and costs, claimed to be due or any action to enforce a prior mediation settlement agreement between the parties. Also, in any dispute subject to presuit mediation under this section where emergency relief is required, a motion for temporary injunctive relief may be filed with the court without first complying with the presuit mediation requirements of this section. After any issues regarding emergency or temporary relief are resolved, a court may either refer the parties to a mediation program administered by the courts or require mediation under this section. An arbitrator or judge may not consider any information or evidence arising from the presuit mediation proceeding except in a proceeding to impose sanctions for failure to attend a presuit mediation session or to enforce a mediated settlement agreement. Persons who are not parties to the dispute may not attend the presuit mediation conference without the consent of all parties, except for counsel for the parties and a corporate representative designated by the association. The statute also provides approved forms for use in the demand and response. See complete statutory language here-- https://bit.ly/2FXkhj1