AVOIDING PITFALLS IN DISPUTE RESOLUTION WITH PROBLEM OWNERS
D
espite having well drafted, clear and simple rules and regulations, associations are inevitably going to find themselves in the middle of a dispute between a homeowner and the association. How successfully an association resolves such a dispute depends on how well the association has prepared. Being prepared includes forming an effective dispute resolution policy, both internal and alternative, as well as collecting materials and evidence to support the Association’s position, having an understanding of the controlling laws and written communications with the homeowner.
The most important policy an association can have is its policy to act quickly. Prolonging taking action and/or decision making will only cause more frustration for the board, neighbors and the owner who the dispute is with.
To avoid flaming the fire for a problem owner, convey the purpose of the communication which is to investigate if there is a violation or not. Further, the tone of the communication should be aligned with the severity of the problem and may evolve over the course of the ongoing dispute.
Communication
There are different types of problem owners, so understanding the various personalities may also help the association to maximize its resolution efforts. Ask the owner to respond in writing about the issue and their objective. Understanding the owner’s intent behind their actions will help guide the board toward a solution and obtaining this information in writing supplies evidence in case the dispute ends up in litigation.
The focus in this article is the problem owner. When dealing with this owner, the theme should be to diffuse, stay disconnected from emotional outbursts, and stick to an agenda for hearings, IDR or ADR. From the very first communication with the problem homeowner, the association is setting the tone. If the association uses template letters, it is a good idea to make sure that the letters serve the association’s purpose: to obtain understanding and compliance. Never say or write anything that can be used against you and the Association. While being direct and to the point may serve its purpose for explaining the rule, associations know all too well that homeowners need a little hand holding when it comes to receiving violation letters. 18 |
CONNECT MAGAZINE • ISSUE ONE 2020
Collecting Evidence Be organized and start collecting evidence immediately. The Association should have a policy of creating a written file for each violation. The file should include “memos to file” documenting conversations had with the owner, statements from neighbors, copies of all written communications with the owner on the matter and minutes from board decisions on the
