Maximize Mediation: A Guide to Saving Association Legal Fees

What exactly is mediation, you may ask? It’s is an informal, confidential process whereby a neutral third party attempts to facilitate and negotiate a resolution to a dispute that is acceptable to all parties involved in the dispute. Mediation is conducted by a trained mediator who acts as a guide or negotiator. The mediator helps the parties find common ground and creative solutions to facilitate a resolution that addresses the concerns, needs and interests of both parties– with the goal of a settlement that both parties can live with.

The parties themselves have a say in the outcome of their dispute. They decide what they will agree to and what they will not. They avoid the risk of losing and a judge determining the resolution. No binding result occurs unless and until an agreement is achieved and signed. The resolution is typically memorialized in a written settlement agreement which is an enforceable contract and performance can be compelled by later court action if one party does not hold up its end of the bargain.

Mediation is an art, not a science. Creative solutions can often be found. Tensions are tamed. Relationships are preserved, which is paramount when you must live together in the same community and maintain on-going relationships. A skilled mediator experienced in community association law can be critical to the success of the process.

Mediation is a powerful form of Alternative Dispute Resolution (ADR) with many benefits. First, it is successful. Statistics show that through mediation, parties to Community Association disputes reach a mutually satisfactory agreement in 80% – 90% of cases. Also, the degree of compliance is greater with mediation than with litigation, since the parties are so involved in the outcome, rather than having it imposed upon them. Mediation is faster and cheaper than litigation. It is voluntary and confidential. Mediation offers a forum for each party to share their perspective on the situation. Mediation can assist parties in working collaboratively toward a creative solution acceptable to all. It is an effective tool to resolve neighbor-to-neighbor disputes in a less adversarial setting than a courtroom.

A well-informed Community Manager can educate their Associations about the resource and benefits of mediation for community. Community Managers can inform their Associations about the alternative of mediation, which can be used before or even during litigation to resolve disputes. By educating the Associations about this process, the Manager presents fiscally responsible options to benefit their Associations.

When Boards learn about dispute resolution resources, like mediation, they are better informed and better armed with tools to effectuate the most cost-effective and expedient way to act in the best interests of the Association. Community Managers enhance their position as a value-added service provider for Associations when they Maximize Mediation. In fact, those managers who use mediation, maximize the assets of an Association: both financial and personal.

CAI encourages Community Associations to use mediation as part of their dispute resolution policies. The declarations for some communities may require mediation, arbitration or both, for resolving at least some disputes. Even without mandatory mediation provisions, most state courts now require the parties in a lawsuit to participate in some form of mediation process before going to trial.

So the next time an Association you manage is faced with a parking dispute, a pet problem, nuisance, noise, rule violations, compliance issues, warring factions among Trustees or Board Members, or other community association disputes: Remember: Maximize Mediation. Now you know and can share that information. The benefits of the process are there for the benefit of your Community Associations. It makes good sense.