The Davis-Stirling Act requires HOAs and members to attempt Internal Dispute Resolution (IDR) and Alternative Dispute Resolution (ADR) before filing lawsuits. IDR under Civil Code Β§5900 allows members to meet with a board member to discuss grievances. ADR (mediation or arbitration) is mandatory before most HOA lawsuits per Civil Code Β§5930. Prevailing parties in enforcement actions may recover attorney fees.
The Davis-Stirling Act establishes a multi-step dispute resolution framework for HOA conflicts. Internal Dispute Resolution (IDR) under Civil Code Β§5900 gives any member the right to meet with a board member (or designated committee member) in a non-adversarial setting to discuss a dispute. The association must provide IDR procedures in its annual disclosures. Either party may request IDR, and the other party is encouraged but not required to participate. Alternative Dispute Resolution (ADR) under Civil Code Β§5930 requires that before filing certain lawsuits between an association and a member, the initiating party must offer to participate in mediation or arbitration. If the other party refuses ADR and loses at trial, they may be ordered to pay the prevailing party's attorney fees regardless of who filed the lawsuit. ADR can include mediation (non-binding facilitated negotiation) or binding arbitration. For construction defect claims, the association must follow the pre-litigation procedures under Civil Code Β§6000. The Department of Real Estate and local bar associations offer mediation services for HOA disputes.
Failure to offer ADR before lawsuit: court may award attorney fees to the other party. Refusal to participate in ADR: adverse inference at trial and potential fee-shifting. Non-compliance with IDR disclosure requirements: association liable for statutory penalties.
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