Home Steve Shulman

Mediation

Disputes large and small are a regular part of life in homeowner associations. While always prepared to litigate, Epsten believes it is preferable to settle many disputes through quicker and less costly methods, including negotiation and mediation. Experience has shown that the results of mediation can be effective and satisfying. Mediation can be the fastest, most-effective solution to conflicts between homeowners and homeowners in conflict with their association.

In mediation, the disputing parties present their problem to a neutral third person who is an experienced mediator. Investigation and documentation of the complaint is made and the mediator conducts meetings to openly explore the opposing positions and guide negotiation between the parties. If the parties do not reach a compromise on their own, the mediator presents a resolution of the dispute that the parties can either accept or reject. While mediation is non-binding, studies have documented a success rate of 85% when a mediator is employed to settle a dispute.

CC&Rs

A recorded document (generically referred to as the “declaration” of “conditions, covenants and restrictions” or “CC&Rs”) setting forth use restrictions governing the common interest development, making membership in the association, and payment of assessments, mandatory. “CC&Rs” may also refer to recorded amendments of the original CC&Rs. For CC&Rs first recorded after January 1, 1996, the declaration has to contain a legal description of the development, a statement identifying the development as one of four types of common interest developments, the name of the association, the use restrictions, and (occasionally) other statutorily-mandated items. Civ. Code §§4250, 4255.

D&O Insurance

This stands for Directors and Officers Liability Insurance. D&O insurance is intended to defend and indemnify the directors and officers of an association and often the association itself, usually against claims made by other persons arising out of alleged losses or damage other than bodily injury or property damage and possibly other personal (non-bodily) injury losses, such as libel or slander, that are covered under the typical commercial general liability (“CGL”) insurance policy. For directors and officers to obtain the limitations against liability offered by Civil Code section 5800, associations must have D&O insurance in the amounts specified in the statute. See the Article, Insurance for Community Associations, for more information.

Disclosures for Owners & Purchasers

California Civil Code section 4525 provides that the owner of a separate interest, other than an owner subject to the requirements of section 11018.6 of the California Business and Professions Code, shall, as soon as practicable before transfer of title to the separate interest or execution of a real property sales contract therefor, as described in Business and Professions Code section 2985, provide the following to a prospective purchaser. See Section 4525 for the list of documents.

Mechanics’ Liens

Mechanics liens are involuntary security interests in real estate that a licensed contractor can record with a county recorder and then file a lawsuit to foreclose upon to get paid. These liens are an extremely powerful remedy that contractors use to obtain payment for materials they supply or work they perform on a private work of improvement. Therefore, it is extremely important that associations not pay contractors without first obtaining necessary releases of mechanics lien rights.

Robert’s Rules of Order

Robert’s Rules of Order is a system of rules for conducting board or member meetings in a structured and orderly manner, often referred to as “parliamentary procedure.” There is an official Robert’s Rules of Order, Newly Revised, now in the 11th edition that is copyrighted by Henry M. Robert III for the Robert’s Rules Association. There are other books that use the term “Robert’s Rules,” some of which are companions to or simplifications also produced by Henry M. Robert or the Robert’s Rules Association and others that are various adaptations and simplifications rules of parliamentary procedure that apparently use the name because of older versions of Robert’s Rules whose copyright has expired. There are other simplified books and pamphlets containing rules of parliamentary procedure. Also see Parliamentary Procedure.