Alternate Dispute Resolutions

In New Jersey, pursuant to applicable State statutory and regulatory law, Condominium and Homeowners Associations must provide a fair and efficient procedure for the Resolution of Disputes between individual Unit Owners and the Associations, as well as between different Unit Owners; thou shall be readily available as an alternate to litigation. This is commonly referred to as “Alternative Dispute Resolution”. A person other than an officer of the Association a member of the Governing Board or a Unit Owner involved in the dispute shall be made available to resolve the dispute. An Association that fails to comply with this requirement may be subject to a reprimand by the Department of Community Affairs.

A word of caution here as to the Association’s ability to assess a fine to a noncompliant Unit Owner: The New Jersey Condominium Act sets forth that no fine is to be imposed against a Unit Owner unless the Unit Owner is given written notice of the action taken by the Association and of the alleged basis of the action and is advised in writing of the Unit Owner’s right to participate in the Association’s Dispute Resolution Procedure. Homeowners Associations should likewise follow this note of caution.

We have assisted Communities in meeting their Alternate Dispute Resolution requirements by preparing specifically tailored ADR protocols and procedures, which meet with the State’s approval. We have also provided Counsel to the Associations and their Governing Bodies that find themselves involved in an ADR hearing.

Giaimo & Associates also offers Alternative Dispute/Mediation services to those Communities who are looking for an outside impartial Mediator. Mediation services are provided in a cost-effective, practical, result oriented approach in an effort to relieve the Association of the burden and expense of litigation.

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Practice