2005 California Civil Code Sections 1369.510-1369.590 Article 2. Alternative Dispute Resolution

CIVIL CODE
SECTION 1369.510-1369.590

1369.510.  As used in this article:
   (a) "Alternative dispute resolution" means mediation, arbitration,
conciliation, or other nonjudicial procedure that involves a neutral
party in the decisionmaking process.  The form of alternative
dispute resolution chosen pursuant to this article may be binding or
nonbinding, with the voluntary consent of the parties.
   (b) "Enforcement action" means a civil action or proceeding, other
than a cross-complaint, for any of the following purposes:
   (1) Enforcement of this title.
   (2) Enforcement of the Nonprofit Mutual Benefit Corporation Law
(Part 3 (commencing with Section 7110) of Division 2 of Title 1 of
the Corporations Code).
   (3) Enforcement of the governing documents of a common interest
development.
1369.520.  (a) An association or an owner or a member of a common
interest development may not file an enforcement action in the
superior court unless the parties have endeavored to submit their
dispute to alternative dispute resolution pursuant to this article.
   (b) This section applies only to an enforcement action that is
solely for declaratory, injunctive, or writ relief, or for that
relief in conjunction with a claim for monetary damages not in excess
of five thousand dollars ($5,000).
   (c) This section does not apply to a small claims action.
   (d) Except as otherwise provided by law, this section does not
apply to an assessment dispute.
1369.530.  (a) Any party to a dispute may initiate the process
required by Section 1369.520 by serving on all other parties to the
dispute a Request for Resolution.  The Request for Resolution shall
include all of the following:
   (1) A brief description of the dispute between the parties.
   (2) A request for alternative dispute resolution.
   (3) A notice that the party receiving the Request for Resolution
is required to respond within 30 days of receipt or the request will
be deemed rejected.
   (4) If the party on whom the request is served is the owner of a
separate interest, a copy of this article.
   (b) Service of the Request for Resolution shall be by personal
delivery, first-class mail, express mail, facsimile transmission, or
other means reasonably calculated to provide the party on whom the
request is served actual notice of the request.
   (c) A party on whom a Request for Resolution is served has 30 days
following service to accept or reject the request.  If a party does
not accept the request within that period, the request is deemed
rejected by the party.
1369.540.  (a) If the party on whom a Request for Resolution is
served accepts the request, the parties shall complete the
alternative dispute resolution within 90 days after the party
initiating the request receives the acceptance, unless this period is
extended by written stipulation signed by both parties.
   (b) Chapter 2 (commencing with Section 1115) of Division 9 of the
Evidence Code applies to any form of alternative dispute resolution
initiated by a Request for Resolution under this article, other than
arbitration.
   (c) The costs of the alternative dispute resolution shall be borne
by the parties.
1369.550.  If a Request for Resolution is served before the end of
the applicable time limitation for commencing an enforcement action,
the time limitation is tolled during the following periods:
   (a) The period provided in Section 1369.530 for response to a
Request for Resolution.
   (b) If the Request for Resolution is accepted, the period provided
by Section 1369.540 for completion of alternative dispute
resolution, including any extension of time stipulated to by the
parties pursuant to Section 1369.540.
1369.560.  (a) At the time of commencement of an enforcement action,
the party commencing the action shall file with the initial pleading
a certificate stating that one or more of the following conditions
is satisfied:
   (1) Alternative dispute resolution has been completed in
compliance with this article.
   (2) One of the other parties to the dispute did not accept the
terms offered for alternative dispute resolution.
   (3) Preliminary or temporary injunctive relief is necessary.
   (b) Failure to file a certificate pursuant to subdivision (a) is
grounds for a demurrer or a motion to strike unless the court finds
that dismissal of the action for failure to comply with this article
would result in substantial prejudice to one of the parties.
1369.570.  (a) After an enforcement action is commenced, on written
stipulation of the parties, the matter may be referred to alternative
dispute resolution.  The referred action is stayed.  During the
stay, the action is not subject to the rules implementing subdivision
(c) of Section 68603 of the Government Code.
   (b) The costs of the alternative dispute resolution shall be borne
by the parties.
1369.580.  In an enforcement action in which fees and costs may be
awarded pursuant to subdivision (c) of Section 1354, the court, in
determining the amount of the award, may consider whether a party's
refusal to participate in alternative dispute resolution before
commencement of the action was reasonable.
1369.590.  (a) An association shall annually provide its members a
summary of the provisions of this article that specifically
references this article.  The summary shall include the following
language:
   "Failure of a member of the association to comply with the
alternative dispute resolution requirements of Section 1369.520 of
the Civil Code may result in the loss of your right to sue the
association or another member of the association regarding
enforcement of the governing documents or the applicable law."
   (b) The summary shall be provided either at the time the pro forma
budget required by Section 1365 is distributed or in the manner
prescribed in Section 5016 of the Corporations Code.  The summary
shall include a description of the association's internal dispute
resolution process, as required by Section 1363.850.


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