A Bill for an Act
Page 1, Line 101Concerning alternative dispute resolution for disputes that
Page 1, Line 102arise between a unit owner and a unit owners'
Page 1, Line 103association.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Under current law, common interest communities are encouraged to use mediation prior to filing a complaint with the court. The bill requires a dispute between a unit owner and a unit owners' association to go through an internal dispute resolution process and mediation before the parties can file a complaint with the court. If the parties are unable to reach a mediation agreement, the bill allows the parties to undergo arbitration or commence a legal proceeding.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, repeal and reenact, with amendments, 38-33.3-124 as follows:
Page 2, Line 338-33.3-124. Mandatory mediation - legislative declaration -
Page 2, Line 4purpose - definitions. (1) The general assembly finds and declares
Page 2, Line 5that the purpose of this section is to provide an efficient, fair,
Page 2, Line 6and cost-effective process for resolving disputes between a unit
Page 2, Line 7owner and a unit owners' association while preserving the
Page 2, Line 8integrity of community relationships and minimizing the burden on the judicial system.
Page 2, Line 9(2) As used in this section, unless the context otherwise requires:
Page 2, Line 10(a) "Arbitration" means a binding process in which an
Page 2, Line 11arbitrator hears the facts of the dispute and issues a final decision that is enforceable by law.
Page 2, Line 12(b) "Dispute" means any conflict, claim, or disagreement
Page 2, Line 13between a unit owner and a unit owners' association regarding
Page 2, Line 14the interpretation, enforcement, or application of the common
Page 2, Line 15interest community's governing documents, policies, or actions.
Page 2, Line 16"Dispute" does not include a conflict, claim, or disagreement
Page 2, Line 17filed pursuant to part 8 of article 20 of title 13, or disagreement that involves a declarant or an affiliate of a declarant.
Page 2, Line 19(c) "Mediation" means a process through which parties
Page 2, Line 20involved in a dispute concerning matters arising under this
Page 3, Line 1article 33.3 meet with a mediator to discuss the matter, defining
Page 3, Line 2and articulating the issues and their positions on the issues, with a goal of resolving the dispute.
Page 3, Line 3(d) "Mediator" means an individual who is trained to assist
Page 3, Line 4the parties in reaching a mutually acceptable resolution of the
Page 3, Line 5parties' disputes through the identification and evaluation of alternatives.
Page 3, Line 6(3) A dispute between a unit owner and a unit owners'
Page 3, Line 7association must undergo mediation prior to the commencement of a lawsuit or, if applicable, arbitration.
Page 3, Line 8(4) (a) In the event of a dispute between a unit owner and
Page 3, Line 9a unit owners' association, the unit owners' association must
Page 3, Line 10submit a written request to the unit owner requesting resolution. The written request must include:
Page 3, Line 11(I) A brief description of the dispute between the parties;
Page 3, Line 12(II) A notice that the party receiving the request for
Page 3, Line 13resolution must respond within thirty days after receipt or the request will be deemed rejected;
Page 3, Line 14(III) A copy of this section; and
Page 3, Line 15(IV) A proposed date, time, and location for an informal meeting to discuss a possible resolution of the dispute.
Page 3, Line 16(b) Service of the request described in subsection (4)(a) of
Page 3, Line 17this section must be made through personal service pursuant to the Colorado rules of civil procedure.
Page 3, Line 18(c) (I) All communications during the informal meeting
Page 3, Line 19described in subsection (4)(a) of this section are confidential and
Page 3, Line 20protected communications consistent with rule 408 of the Colorado rules of evidence and section 13-22-307.
Page 4, Line 1(II) If resolution cannot be reached during the informal
Page 4, Line 2meeting described in subsection (4)(a) of this section, the parties
Page 4, Line 3must agree on a date and location for mediation and the
Page 4, Line 4identity of the mediator within fourteen days after the informal meeting.
Page 4, Line 5(III) Mediation must take place within thirty days after the informal meeting.
Page 4, Line 6(5) (a) The mediator assigned to carry out the mediation
Page 4, Line 7must be an impartial third party and must be approved by both parties.
Page 4, Line 8(b) (I) If the parties cannot reach a mediation agreement
Page 4, Line 9within fourteen days after mediation begins, the mediation
Page 4, Line 10process is considered unsuccessful and the parties mayinitiate litigation or, if applicable, demand arbitration.
Page 4, Line 11(II) If mediation is unsuccessful, the mediator must sign a
Page 4, Line 12mediation certificate stating that the parties attended a
Page 4, Line 13mediation conference on the date identified on the certificate
Page 4, Line 14but were unable to reach a resolution or that one or more parties did not attend the mediation conference.
Page 4, Line 15(III) The party filing a complaint or demanding
Page 4, Line 16arbitration must include a copy of the mediation certificate with the complaint or demand for arbitration.
Page 4, Line 17(IV) If the party filing the complaint or demand for
Page 4, Line 18arbitration fails to attach a copy of the mediation certificate,
Page 4, Line 19the court, arbitrator, or arbitration panel must dismiss the case
Page 4, Line 20without prejudice.
Page 5, Line 1(c) If a mediation agreement is reached, the terms of the
Page 5, Line 2mediation agreement must be in writing and signed by both
Page 5, Line 3parties and the mediation agreement is enforceable as a contract.
Page 5, Line 4(d) The cost of mediation must be shared equally between
Page 5, Line 5the unit owner and the association, unless otherwise agreed upon by the parties.
Page 5, Line 6(6) The requirements of this section do not apply to the following:
Page 5, Line 7(a) A dispute involving a violation of local, state, or federal law;
Page 5, Line 8(b) A dispute involving a claim of discrimination, harassment, or other civil rights violation;
Page 5, Line 9(c) A case in which one party seeks emergency relief or injunctive relief from the court;
Page 5, Line 10(d) A dispute that has already been adjudicated in court or through arbitration; or
Page 5, Line 11(e) A dispute in which the initial complaint seeks only the
Page 5, Line 12collection of past-due assessments claimed by an association against a unit owner.
Page 5, Line 13(7) A unit owners' association shall, on an annual basis,
Page 5, Line 14provide a copy of this section and a copy of the unit owners'
Page 5, Line 15association's written policies regarding dispute resolution to each of its unit owners.
Page 5, Line 16(8) The statute of limitations applicable to a claim,
Page 5, Line 17cross-claim, or counterclaim that is the subject matter of
Page 5, Line 18mediation is tolled for the period of the mediation, with the
Page 6, Line 1tolling period beginning on the date the written request for
Page 6, Line 2resolution is received by the unit owner, pursuant to subsection
Page 6, Line 3(4) of this section, and ending seven days after the mediator signs the mediation certificate.
Page 6, Line 4(9) A unit owners' association must update the
Page 6, Line 5association's written policies to comply with requirements of
Page 6, Line 6this section and provide a copy of the updated written policy to
Page 6, Line 7its unit owners within fourteen days after updating the written policies.
Page 6, Line 8SECTION 2. Safety clause. The general assembly finds,
Page 6, Line 9determines, and declares that this act is necessary for the immediate
Page 6, Line 10preservation of the public peace, health, or safety or for appropriations for
Page 6, Line 11the support and maintenance of the departments of the state and state institutions.