By E.J (Jay) Jarvis II
This article first appeared in the CAI Coachella Valley’s HOA Living Magazine, August 2025 Issue.
Community associations and their members occasionally disagree. When conflicts arise, the association board often turns to alternative dispute resolution (ADR) instead of litigation. ADR methods—such as negotiation, mediation, or arbitration—offer flexibility in resolving disputes.
Parties may choose one method or combine multiple steps in sequence, progressing from the least to the most formal approach. Many contracts even require ADR before or instead of going to court.
Negotiation involves the parties identifying key issues, understanding each other’s needs and interests, brainstorming solutions, and finalizing terms— typically in a written settlement agreement. It’s an informal, cost-effective, and cooperative process that allows both sides to focus on their interests objectively.
Mediation introduces a neutral, trained mediator to help resolve the conflict. Though slightly more time-consuming and costly than negotiation, mediation remains collaborative and often preserves relationships. The parties themselves, with the mediator’s guidance, craft the settlement.
Arbitration is a more formal process that can require significant time and expense. Arbitrators—typically legal experts—issue binding decisions based on presented evidence and testimony. In most cases, these decisions cannot be appealed or relitigated.
ADR can be an efficient, cost-saving alternative to traditional court proceedings. However, there are important financial considerations. In court, parties pay attorneys and court fees, but the state covers judges’ salaries. In ADR—particularly arbitration—participants must pay for the professionals involved.
Sometimes, the ADR agreement stipulates that the losing party covers all associated costs, including the opposing party’s legal fees. This is rare in court judgments.
Attorney Nicholas Caplin, interviewed by KPBS News in San Diego, noted that ADR has become one of his go-to tools—especially in cases involving pickleball disputes. While some of these cases proceed to court, many are resolved through mediation or arbitration.
Boards and concerned homeowners should always begin with negotiation. If unsuccessful, mediation is often the next best step.
While arbitration can be costly, it remains less formal than court and often skips strict evidentiary procedures. Ultimately, associations should aim to resolve disputes early—through negotiation—saving time, money, and relationships.
