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Pre-Suit Mediation Requirements Now Imposed Against Homeowner’s Associations
In many instances, Homeowners Associations (HOA) are required to mediate certain disputes with their members prior to filing a lawsuit, as outlined in Florida Statute (F.S.) 720.311(2)(a). In mediation, parties engage in formal settlement discussions before an impartial third party, an expert negotiator who aims to facilitate a mutually agreeable resolution.
The law specifically states that disputes between an HOA and a parcel owner concerning the use or changes to the parcel or common areas must proceed to pre-suit mediation before being filed in court. This law mandates pre-suit mediation for certain disputes, including those related to “covenant enforcement disputes.” For example, if a restrictive covenant is included in a declaration of covenants filed by an HOA regulated under F.S. Chapter 720, mediation is a prerequisite to filing a lawsuit. Failure to participate in mediation can have serious consequences, including the preclusion of a party’s recovery of attorneys’ fees in a subsequent lawsuit, even if that party is the prevailing party in the later litigation.
Additionally, the collection of assessments due to HOAs has become increasingly interlaced with the issue of covenant enforcement. For instance, cases like Palm Beach Point Property Owners Ass’n, Inc. v. New Testament Missionary Baptist Church, 764 So. 2d 938 (Fla. 4th DCA 2000), and Gangloff v. Taylor, 758 So. 2d 1159 (Fla. 4th DCA 2000), highlight this trend. Furthermore, statutory provisions have been enacted to address foreclosure of association assessment liens, as outlined in F.S. 720.3085.
In addition to the statutory requirements, many circuit court judges and local rules of procedure mandate mediation as a prerequisite to setting a civil case for trial.
Broward County HOA Attorney Andrew J. Pascale emphasizes the seriousness of real estate litigation, and the lasting implications of a lawsuit filed by an HOA against a homeowner. For more information or legal advice, contact Mr. Pascale at 877-667-1211. Please note that this blog does not constitute legal advice and is for informational purposes only.