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IC 32-25.5-5
Chapter 5. Grievance Resolution
IC 32-25.5-5-1
Application of chapter to exempt claims
Sec. 1. This chapter does not apply to an exempt claim unless the
parties agree that this chapter is applicable to the exempt claim.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-2
"Claim"
Sec. 2. (a) As used in this chapter, "claim" refers to any of the
following:
(1) A claim arising out of or relating to the interpretation,
application, or enforcement of the governing documents.
(2) A claim relating to the rights or duties of the association of
co-owners or the board under the governing documents.
(3) A claim relating to the maintenance of the subdivision.
(4) Any other claim, grievance, or dispute among the parties
involving the subdivision or the homeowners association.
(b) The term does not include an exempt claim.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-3
"Claimant"
Sec. 3. As used in this chapter, "claimant" refers to a party who
has a claim against another party.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-4
"Exempt claim"
Sec. 4. As used in this chapter, "exempt claim" refers to any of the
following claims or actions:
(1) A claim by the homeowners association for assessments or
dues and any action by the association to collect assessments or
dues.
(2) An action by a party to obtain a temporary restraining order
or equivalent emergency equitable relief:
(A) to maintain the status quo and preserve the party's ability
to enforce the governing documents; or
(B) when an emergency condition exists that jeopardizes the
health or safety of any of the residents within the community
governed by the homeowners association.
(3) A suit to which an applicable statute of limitations would
expire within the notice period. This subdivision does not apply
if a party against which the claim is made agrees to toll the
statute of limitations as to the claim for the period reasonably
necessary to comply with this chapter.
Indiana Code 2015
(4) A dispute that is subject to mediation, arbitration, or other
alternate dispute resolution under applicable law, contract,
warranty agreement, or other instrument.
(5) A claim that is substantively identical to a claim:
(A) that was previously addressed by the parties; or
(B) that was resolved by a judicial determination in favor of
one (1) of the parties.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-5
"Legal proceedings"
Sec. 5. As used in this chapter, "legal proceedings" refers to either
of the following:
(1) An action maintained in a court.
(2) An administrative proceeding initiated under an applicable
law.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-6
"Party"
Sec. 6. As used in this chapter, "party" refers to any of the
following:
(1) The homeowners association.
(2) A member of the homeowners association.
(3) The board.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-7
"Respondent"
Sec. 7. As used in this chapter, "respondent" refers to the party
against whom a claimant has a claim.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-8
Grievance resolution procedures required
Sec. 8. The governing documents must include grievance
resolution procedures that apply to all members of the homeowners
association and the board.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-9
Requirements for claimant to begin legal proceedings
Sec. 9. A claimant may not initiate a legal proceeding seeking
redress or resolution of a claim until the claimant has complied with
the procedures described in this chapter.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-10
Notice of claim; required information
Indiana Code 2015
Sec. 10. A claimant must provide notice of the claim to the
respondent, stating plainly and concisely the following information:
(1) The nature of the claim, including the date, time, location,
persons involved, and the respondent's role in the claim.
(2) The basis of the claim, including the provision of the
governing documents or other authority out of which the claim
arises.
(3) What the claimant wants the respondent to do or not to do to
resolve the claim.
(4) That the respondent has a right to meet with the claimant, if
the respondent makes a written request for a meeting.
(5) The name and address of the person from whom the
respondent must request a meeting under subdivision (4).
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-11
Negotiation meeting; access to subject property
Sec. 11. (a) This section applies if a respondent has requested a
meeting under section 10 of this chapter not later than ten (10)
business days after the date of the notice of the claim given under
section 10 of this chapter.
(b) The claimant and the respondent shall meet in person to
resolve the claim by good faith negotiation, at the time and place
agreed to by the claimant and the respondent.
(c) During the meeting, the parties must have full access to the
property that is the subject of the claim to inspect the property, if
appropriate or necessary. If the respondent agrees to take corrective
action, the claimant must provide the respondent and the respondent's
agents with full access to the property to take and complete corrective
action.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-12
Impasse; submission of claim to mediation or binding arbitration;
costs of mediator or arbitrator
Sec. 12. (a) The parties are considered to be at an impasse if:
(1) the respondent does not request a meeting under section 10
of this chapter;
(2) either party fails to attend a meeting agreed upon under
section 11 of this chapter; or
(3) the parties are unable to settle the claim at a meeting held
under section 11 of this chapter.
(b) Either party may, not later than ten (10) days after an impasse
is reached, request in writing to the other party that the other party
submit the claim to mediation or binding arbitration.
(c) The party making the request under subsection (b) is
responsible for the costs of the mediator or arbitrator.
As added by P.L.141-2015, SEC.14.
Indiana Code 2015
IC 32-25.5-5-13
Impasse; beginning legal proceedings
Sec. 13. If an impasse is reached and:
(1) neither party requests mediation or arbitration; or
(2) mediation or arbitration does not result in a settlement of the
claim;
the claimant may begin legal proceedings.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-14
Settlement of claim through negotiation, mediation, or arbitration;
legal proceedings; recovery of costs
Sec. 14. (a) This section applies if a claim is settled through
negotiation, mediation, or arbitration.
(b) The settlement of the claim must be documented in a written
agreement signed by each of the parties.
(c) If a party fails to abide by the settlement agreement signed
under subsection (b), the other party may begin legal proceedings
without again complying with this chapter.
(d) If a party who begins legal proceedings under subsection (c)
prevails in those legal proceedings, the party is entitled to recover
from the other party:
(1) court costs;
(2) attorney's fees; and
(3) all other reasonable costs incurred in enforcing the
settlement agreement.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-15
Effect of release or discharge
Sec. 15. A release or discharge of a respondent from liability to
the claimant with respect to the claim does not release or discharge
the respondent with respect to any other person who is not a party to
the claim.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-16
Powers of board
Sec. 16. The board, on behalf of the homeowners association, and
without the consent of the members of the homeowners association,
may do any of the following:
(1) Negotiate settlements of claims or legal proceedings under
this chapter.
(2) Execute settlement agreements, waivers, releases of claims,
or any other documents resulting from application of this
chapter.
As added by P.L.141-2015, SEC.14.
IC 32-25.5-5-17
Indiana Code 2015
Costs of each party
Sec. 17. Except as otherwise provided in this chapter, each party
shall bear its own costs for application of this chapter, including
attorney's fees.
As added by P.L.141-2015, SEC.14.
Indiana Code 2015
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