Arbitration.Inc
Every association has them: an owner who stopped paying assessments, a fine the owner says was unfair, a late fee that has been disputed for a year. Board members want them settled, and neighbors want them settled fairly. A lawsuit against a fellow owner over a few hundred dollars rarely feels like either.
Why small association disputes linger
An association has a few tools for an unpaid balance or a contested fine: reminder letters, a hearing before the board, a payment plan, and, at the far end, legal action. The last step is expensive, slow, and hard on a community. So small balances sit on the books, fines go unresolved, and the same disagreement comes back at every annual meeting.
Contested fines carry a second problem. When the board that issued a fine also decides the appeal, the owner may never accept the outcome as fair, however careful the board was.
A neutral decision, on the documents
Arbitration puts the question in front of a neutral arbitrator who is not the board, not the management company, and not the owner. Both sides submit their documents: the governing documents and rules, the account ledger, the violation notices, photos, and any correspondence. The arbitrator reviews the record and issues a written, binding award.
For the board, that means a decision it did not have to make itself. For the owner, it means someone independent looked at their side.
What it needs: an agreement to arbitrate
Arbitration rests on a written agreement. For associations, that may live in the governing documents, such as the CC&Rs or bylaws, or the association and an owner can agree to arbitrate a specific dispute. Rules for associations differ from state to state, so the association's attorney should confirm what your documents allow.
What filing looks like on Arbitration.Inc
On Arbitration.Inc, the association or its manager files the claim online with the governing documents, the ledger, and the notices attached. The owner is served a notice of arbitration and can respond with their own position and evidence. A neutral arbitrator decides the case under our published procedural rules, which are built to reach an award in about two weeks, and the award can be confirmed by a court.
An owner can file too, for example to contest a fine. Arbitration.Inc is the forum, not either side's agent.
Before you file
Keep each account's ledger current and every violation notice dated and on file. Make sure the rule behind each fine is written down where owners can find it. Clear records shorten any dispute, whichever way it is decided.
Arbitration.Inc does not give legal advice. For questions about your governing documents or your state's rules, speak with the association's attorney.
New to the terms? Read what arbitration is or the plain-English glossary. See how a case runs for HOA & Condo.