WHEREAS, the Board of Directors of the LAKES
AT LARCHMONT CONDOMINIUM ASSOCIATION believe that conflicts
which arise between condominium association homeowners
and between homeowners and their association are best
resolved by way of negotiation and mediation rather than
litigation; and
WHEREAS such "Alternative Dispute Resolution"
(ADR) is faster, friendlier, less expensive and often
more effective than resorting to the courts to resolve
disputes; and
WHEREAS the New Jersey Condominium Act (N.J.S.A.
46:8B-14(k)) requires that "an association shall
provide a fair and efficient procedure for the resolution
of housing-related disputes between individual unit owners
and the association, and between unit owners, which shall
be readily available as an alternative to litigation";
BE IT THEREFORE RESOLVED that the following ADR procedure
is hereby adopted by the Board of Directors of the LAKES
AT LARCHMONT CONDOMINIUM ASSOCIATION at its meeting on
the 17th of May, 2001, and shall be added as Section I
of the Association's Rules and Regulations:
Section I . ALTERNATIVE DISPUTE RESOLUTION (ADR)
1. Applicability This ADR procedure shall apply
to all housing-related disputes which arise between unit
owners, as well as between unit owners and the Association.
Although ADR must be offered in all such situations, acceptance
of and participation in the ADR procedure is voluntary
on the part of all unit owners. This ADR procedure shall
not apply to disputes regarding payment of assessments,
penalties, fines and fees.
2. Method The ADR method to be offered by the
Association shall be "mediation". Mediation,
unlike arbitration and litigation, is an informal, cooperative,
problem-solving approach to conflict resolution. It provides
for a neutral mediator to assist the parties negotiate
a settlement of their dispute which is agreeable to all
involved.
3. Mediator The neutral party who shall act as
the mediator of the aforesaid housing-related disputes
shall be a panel of residents from the Association known
as the "ADR Panel". The panel which will mediate
any given dispute shall consist of no less than three
(3) but no more than five (5) persons, but nothing shall
prevent the overall number of panel members from being
greater than five (5) (i.e. substitutes and alternates
are encouraged). No panel member who has any direct interest
or involvement in the dispute to be mediated shall serve
as a panel member with regard to that dispute, nor shall
any current member of the Board of Directors of the Association
be permitted to serve as a panel member. In the event
that less than three (3) panel members are available to
mediate a dispute, the parties involved may agree to allow
that panel to mediate the dispute. If all parties do not
so agree, the Association shall hire a professional mediator
to mediate the dispute, in which event the cost of hiring
the professional mediator will be borne by the parties
involved, in equal amounts.
4. Procedure
a. Dispute between unit owners
i. Upon formal notice to the Association
from a unit owner that a dispute exists with another
unit owner, the property manager shall contact all
parties to determine the nature of the dispute and
to attempt to quickly and informally resolve the dispute.
ii. If the efforts by the property manager
described in (a) above are not successful within three
(3) days, the property manager shall send formal written
notice to the parties involved acknowledging that
a dispute exists, identifying the nature of the dispute,
and offering ADR-Mediation to the parties involved.
iii. If a party accepts the Association's
offer of ADR-Mediation, that party shall notify the
property manager in writing within five (5) days.
Upon receipt of said acceptance by all parties, the
property manager shall promptly schedule an ADR-Mediation
hearing, which shall be held no later than fourteen
(14) days from the date the property manager receives
acceptance from all parties involved.
iv. In a dispute involving more than two
parties, if less than all parties agree to ADR-Mediation,
the hearing may still go forward only if those parties
participating agree that such mediation would be beneficial.
In a dispute involving only two parties, if less than
both agree to ADR-Mediation, then the Association's
offer of ADR will be withdrawn. If the ADR offer is
withdrawn and the dispute involves a violation of
the Rules, Regulations and Restrictions of the LAKES
AT LARCHMONT CONDOMINIUM ASSOCIATION, the Association
will proceed to enforce said Rules, Regulations and
Restrictions pursuant to its enforcement powers as
outlined elsewhere in the Public Offering Statement
(POS) of the Association and as otherwise provided
by law.
b. Dispute between a unit owner and the Association
i.(1) In the event that a unit owner violates
a Rule, Regulation or Restriction of the Association,
the property manager shall notify the unit owner in
writing of the violation and request that the unit
owner immediately correct the violation. The notice
shall also inform the unit owner of the option to
resolve the dispute by way of ADR-Mediation.
i.(2) In the event that a unit owner claims
that the Association has failed to act properly or
has acted improperly with regard to the exercise of
its duties, responsibilities and powers, the unit
owner shall notify the Association in writing of the
claim. The property manager shall investigate the
claim and promptly respond to the unit owner in writing,
clearly stating the Board's position with regard to
the claim. This notice shall also inform the unit
owner of the option to resolve the dispute by way
of ADR-Mediation.
ii. If the unit owner accepts the Association's
offer of ADR-Mediation, he/she must do so in writing
to the property manager within five (5) days. Upon
receipt of said complaint
