Alternative Dispute Resolution

Zapata Homeowners Association

Policy #  027.00

Policy Topic:  Alternative Dispute Resolution               Committee:  Governance

Effective Date:  December 19, 2008                                      New  X            Revised

Policy:

1.      It is the general policy of the ZHA to encourage the use of Alternative Dispute Resolution to resolve disputes involving the Association and a member, or a member and a member.  Alternative Dispute Resolution (“ADR”) is defined as a procedure for settling a dispute by means other than litigation, such as mediation, non-binding arbitration, or binding arbitration.

The issue in dispute first should be dealt with through informal verbal discussions with executive board members. The issue in dispute also may be presented at homeowners’ association meetings or communicated to the executive board directly. After a reasonable period for the executive board to review the issue and determine the facts of the dispute, proposed resolutions to the issue in dispute must be presented to the involved parties.

2.      ADR, in the form of binding arbitration, shall be pursued by the ZHA before any lawsuit is filed, except in the case of the collection of assessments or the enforcement of the covenants, bylaws, or rules and regulations of the ZHA, subject to the following:

(a) ADR shall not be required if time constraints prevent accomplishing ADR.

(b) ADR will not be pursued by the ZHA if a member refuses to participate in the process.

(c) Any ADR pursued must be done so using a trained arbitrator, having some familiarity with the governance of community associations.

(d) Any ADR must be conducted in compliance with the Uniform Arbitration Act

and/or the Dispute Resolution Act, as applicable.

(e) If ADR is to be pursued, the member(s) shall execute an agreement with the ZHA prior to the commencement of the ADR process putting on hold any applicable statute of limitations while the parties are attempting to resolve the dispute through ADR. 

3.      Selection of an arbitrator shall be from a list of qualified arbitrators supplied by the court system.  If the parties to the ADR cannot agree on an arbitrator within 14 days, the board shall select one from a predetermined list.

4.      Costs. The costs of ADR shall be split equally among the parties involved in the ADR. In the event a member fails to pay the member’s share of the cost of the ADR, such amount shall be considered an assessment against such member, and may be collected by the ZHA as an assessment pursuant to the declaration and Colorado law.

5.      Definitions. Unless otherwise defined in this resolution, initially capitalized or terms defined in the declaration, shall have the same meaning herein.

6.      Supplement to Law. The provisions of this resolution shall be in addition to, and supplementary to, the terms and provisions of the declaration and the law of the State of Colorado.

7.      Deviations. The board may deviate from the procedures set forth in this resolution if, in its sole discretion, such deviation is reasonable under the circumstances.

Board Approved:  November 21, 2008

Board Chairman:  John White

                            ______________________________

                                    (signature)

Membership Notified Date: January, 2009 by Web Posting, Newsletter

Board Rescinded Date:

Board Chairman:

                                    (printed name)

                           _______________________________

                                    (signature)

Membership Notified Date:                                      by