IDR: Changes to Statutory Default Procedure

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In the October 2014 issue of our E-NEWS from EG&H newsletter, we described changes to the informal dispute resolution statutes in the Davis-Stirling Act. We also provided educational practice tips for a community association to adopt its own IDR procedure. However, many associations rely upon the default IDR procedure of Civil Code section 5915. For your reference, following is the new wording of the default IDR procedure, effective on January 1, 2015. Community associations that rely on the default procedure may include it in annual policy statements distributed now, but must use it for annual policy statements delivered on or after January 1, 2015.

§5915.  Default IDR Procedure (As Amended, Effective January 1, 2015)

(a)   This section applies to an association that does not otherwise provide a fair, reasonable, and expeditious dispute resolution procedure. The procedure provided in this section is fair, reasonable, and expeditious, within the meaning of this article.

(b)  Either party to a dispute within the scope of this article may invoke the following procedure:

(1)   The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be in writing.

(2)   A member of an association may refuse a request to meet and confer. The association may not refuse a request to meet and confer.

(3)   The board shall designate a director to meet and confer.

(4)   The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other, and confer in good faith in an effort to resolve the dispute. The parties may be assisted by an attorney or another person at their own cost when conferring.

(5)   A resolution of the dispute agreed to by the parties shall be memorialized in writing and signed by the parties, including the board designee on behalf of the association.

(c)   A written agreement reached under this section binds the parties and is judicially enforceable if it is signed by both parties and both of the following conditions are satisfied:

(1)   The agreement is not in conflict with law or the governing documents of the common interest development or association.

(2)   The agreement is either consistent with the authority granted by the board to its designee or the agreement is ratified by the board.

(d)   A member shall not be charged a fee to participate in the process.

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