Mission Viejo homeowners in disputes with their HOA must attempt Internal Dispute Resolution and Alternative Dispute Resolution before filing lawsuits under the Davis-Stirling Act. IDR involves a direct meeting with a board member, while ADR involves mediation or arbitration through a neutral third party. The city does not directly mediate HOA disputes but the Orange County Superior Court provides mediation resources.
The Davis-Stirling Act establishes a multi-step dispute resolution framework that Mission Viejo HOA members must follow before pursuing litigation. Internal Dispute Resolution (IDR) under Civil Code Section 5900 allows any member to request a meeting with one or more board members to discuss the dispute. The HOA must participate in IDR if requested, and the meeting must be scheduled within a reasonable time. Either party may have an attorney or other representative present. If IDR does not resolve the issue, Civil Code Section 5925 provides for Alternative Dispute Resolution (ADR), which typically involves mediation by a neutral third party. The prevailing party in ADR may be entitled to attorney fees in subsequent litigation. Before filing a civil action relating to the enforcement of governing documents, Civil Code Section 5930 requires the party to serve a Request for Resolution offering to submit the dispute to ADR. If the other party refuses ADR, they may not recover attorney fees in later litigation even if they prevail. Mediation services are available through organizations such as the Orange County Bar Association and the American Arbitration Association. Some disputes involving election challenges, assessment collection, or construction defects have specific statutory procedures that supplement the general IDR/ADR requirements. The California Department of Consumer Affairs does not regulate HOAs but provides educational materials through its Common Interest Development Bureau.
Filing a lawsuit without first attempting IDR and offering ADR may result in the court dismissing the action or denying attorney fees. Parties who refuse a reasonable offer of ADR risk being denied attorney fee recovery even if they prevail in court. HOA boards that refuse to participate in IDR as required by statute may face sanctions.
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