A HOA’s failure to comply with its own arbitration provisions nullified its request to compel binding arbitration…
Many disputes arise between Homeowners Associations (HOAs) and homeowners that implicate a HOA’s arbitration and enforcement provisions contained in its governing documents. In Mansouri v. Superior Court of Placer County, 181 Cal.App.4th 633 (2010) (Mansouri), a HOA sought to compel binding arbitration against a homeowner who had not secured architectural approval prior to enclosing her patio. The HOA’s Covenants, Conditions and Restrictions (CC&Rs) contained a provision that required disputes to be arbitrated by a three party panel. The HOA had offered single party arbitration with the homeowner but failed to offer, or request, a three party panel pursuant to the CC&Rs. On appeal, the court in Mansouri held that the HOA’s failure to request arbitration pursuant to the CC&Rs nullified its petition.
|HOAs and Boards of Directors must strictly adhere to the requirements and guidelines in their governing documents–especially in instances of dispute resolution and enforcement procedures. The procedures through which a HOA must first try to resolve its disputes, and the HOA’s efforts to comply with those procedures, are paramount to ensuring a beneficial outcome for the HOA.|
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