D.  Alternative Dispute Resolution

 

     §514B-161  Mediation.  (a)  If an apartment owner or the board of directors requests mediation of a dispute involving the interpretation or enforcement of the association of apartment owners' declaration, bylaws, or house rules, the other party in the dispute shall be required to participate in mediation.  Each party shall be wholly responsible for its own costs of participating in mediation, unless both parties agree that one party shall pay all or a specified portion of the mediation costs.  If a party refuses to participate in the mediation of a particular dispute, a court may take this refusal into consideration when awarding expenses, costs, and attorneys' fees.

     (b)  Nothing in subsection (a) shall be interpreted to mandate the mediation of any dispute involving:

     (1)  Actions seeking equitable relief involving threatened property damage or the health or safety of association members or any other person;

     (2)  Actions to collect assessments;

     (3)  Personal injury claims; or

     (4)  Actions against an association, a board, or one or more directors, officers, agents, employees, or other persons for amounts in excess of $2,500 if insurance coverage under a policy of insurance procured by the association or its board would be unavailable for defense or judgment because mediation was pursued.

     (c)  If any mediation under this section is not completed within two months from commencement, no further mediation shall be required unless agreed to by the parties. [L 2004, c 164, pt of §2; am L 2007, c 244, §7; am L 2008, c 205, §§2, 5; am L 2009, c 9, §2; am L 2012, c 34, §14]

 

Case Notes

 

  Where circuit court failed to address condominium owner's argument that condominium association should be estopped pursuant to this section from seeking fees and costs for refusing to respond to condominium owner's request to mediate the issues in the case, the circuit court, on remand, shall determine whether subsection (a) applies in this case; if the statute applies, the circuit court should determine whether the condominium association refused to participate in mediation, and if so, the circuit court should consider, on the record, such refusal in determining whether to award attorneys' fees and costs.  134 H. 251, 339 P.3d 1052 (2014).