California Civil Code requires HOAs to offer Internal Dispute Resolution (IDR) under Section 5900 and Alternative Dispute Resolution (ADR) including mediation or arbitration under Section 5925 before litigation. Either party may request IDR, and the association must participate in ADR before filing or defending a civil action.
Under California Civil Code Section 5900-5910 (Internal Dispute Resolution), an association must provide a fair, reasonable, and expeditious procedure for resolving disputes between the association and a member. Either party may request IDR, and the board must designate a member to meet with the requesting party within a reasonable time. Section 5925-5965 (Alternative Dispute Resolution) requires that before filing suit (except for assessment collection or temporary restraining orders), the party must offer to participate in ADR including mediation or arbitration. Failure to comply with the ADR requirement may result in forfeiture of attorney fees even if the party prevails. The San Diego Superior Court also has a mandatory mediation program for HOA disputes. The California Department of Real Estate (DRE) does not directly mediate HOA disputes but may investigate violations of the Davis-Stirling Act. San Diego County Bar Association maintains a mediation panel for CID disputes.
Failure to participate in ADR before litigation may result in loss of attorney fee recovery. The prevailing party in HOA litigation may recover reasonable attorney fees under Civil Code Section 5975.
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