For Condominium Associations “To Mediate or Arbitrate” that is the question

When a unit owner at a condominium association breaks a rule, refuses to comply with a covenant, fails to fulfill an ongoing maintenance obligation, and the condominium association needs to take action, the procedural options for an Association were just expanded by Florida’s legislature. As a consequence of the passage of Senate Bill 630, both unit owners and the condominium association can now choose either pre-suit mediation (as is currently used for homeowners association disputes) or arbitration through the Division of Condominiums, Timeshares and Mobile Homes, before resorting to litigation. This additional alternative dispute option, i.e., mediation creates flexibility to avoid the previously utilized mandatory arbitration process for most disputes. Mediation, as a new option, creates a vehicle for the parties, i.e., the condominium association’s representatives and the unit owner to sit down, meet, and attempt to resolve the issue. That process involves the formal scheduling a mediation event with a Florida certified mediator, and typically legal counsel for both parties. There is no judge, jury, or arbitrator present to decide “who is right and wrong.” Both parties present their “side of the story”, and the mediator acts as a go-between in an effort to forge an amicable resolution. If an understanding is reached that deal would be reduced to writing at the mediation itself. Any such written mediation agreement would be a binding contract between the parties. Often times mediation is successful in resolving disputes. However, if a meeting of the minds does not occur at mediation then litigation can be instituted. Prior to the adoption of SB 630, most condominium association disputes were only adjudicated only by way of mandatory arbitration through the Division of Condominium. That arbitration option still remains in lieu of going the mediation route. This author believes the advent of mediation as new method to potentially resolve certain condominium association disputes is a positive development likely leading to more widespread resolutions between condominium associations and their unit owners. Mediation can also give the parties an opportunity to avoid more costly arbitration and/or litigation by putting the parties together in a relatively informal setting, air their differences, and with the help of a Florida certified mediator reach a mutually acceptable agreement.