The Davis-Stirling Act requires HOAs to offer internal dispute resolution (IDR) and alternative dispute resolution (ADR) before litigation. Members may request IDR meetings with the board. ADR mediation is required before most lawsuits.
Civil Code §5900–5920 establishes the internal dispute resolution (IDR) process allowing any HOA member to meet with a board representative to resolve disputes informally. The HOA must provide IDR procedures annually. If IDR fails, Civil Code §5925–5965 requires alternative dispute resolution (ADR) — typically mediation — before filing lawsuits between an HOA and a member for amounts under $100,000 or non-monetary disputes. A party failing to participate in ADR may lose the right to recover attorney fees even if they prevail in court. The Davis-Stirling Act also allows members to petition the court to enforce the governing documents. Small claims court is available for disputes under $10,000. The California Department of Real Estate handles complaints regarding common interest development management.
Refusing IDR carries no penalty but may affect credibility. Refusing ADR before litigation may result in forfeiture of attorney fee recovery. Court may order compliance with governing documents and award attorney fees to the prevailing party.
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