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About Timmy Chou
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I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > CC&R's

Arbitration/Mediation - CC&R's


Expert: Timmy Chou - 9/2/2006

Question
I live in Tract 9300 in Pacific Palisades, California.  We have CC&R's dating from 1925 that establishes the Pacific Palisades Association (Grantor). In the deeds it states:  "No building or other structure shall be erected or the erection thereof begun on said premises until the plans and specifications thereof shall have first presented to and approved in writing by the Grantor as to outward appearance and design." The Association Guidelines state that notification and plans must be sent to all the surrounding neighbors. A developer bought a lot and erected a 3-story, 45 foot building without consulting the Palisades Association at all.  Our height limit is 28 feet. He was informed by a neighbor of the requirement to do submit plans to the Association, and talked to the secretary of the Association prior to commencing construction.  However, he ignored the CC&R's and went ahead. He is a high roller with multimillion dollar buildings in construction all over the city, and our Association does not have funding for lawsuits. The Los Angeles City Dept. of Building & Safety (we are within their jurisdiction) says they have nothing to do with CC&R's.

My question is, can we get an injunction to stop construction? If so, what "body" would we petition for this? What body of law and what agency oversees the upholding of CC&R's.  We have made many calls, and we don't know what to do about this flagrant violation.  A recent lawsuit in an adjoining neighborhood between a developer and the resident's group went into multimillion dollars, with counter suits, etc. Is that the only way to enforce our CC&R's

Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is unfortunately very typical.  I am not a lawyer, nor can I mediate your dispute with just you alone but I can respond to your question from my consulting experience.  Note that this issue will surely have legal implications and you should consult an attorney.

You have discovered one of the shocking facts about the legal system: just because you are in the right and just because you may have a law behind you does not mean you have the ablility to enforce the law.  

You may be able to get an injunction, but you will have to hire an attorney and file a lawsuit.  If your pockets are not as deep as the high roller's, he will just bulldoze you over--which is what he is counting on I bet.  

There is no "agency" that enforces HOA agreements I'm sorry to say since these agreements are private agreements made between private parties.  You have the remedies within the court system but you will have to pay to access them.  

Your HOA would have done well to review the language of the CC&Rs and made sure there was language that provided for attorney's fees to be paid by violators of the agreement, and so forth.  Bulldozers would have to think twice if they wanted to get into a fight werein they would have a good chance of funding BOTH sides of the dispute.

See if there are trade organizations such as the HOA Association of America.  Many times such groups are able to bring expertise and experience to bear in your behalf, and also give you guidance about strategy.  They may also be able to support your litigation.

You can also go to the press.  Embarrass this guy as a HOA buster, liar and scoundrel, and he may have to back off.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no %100 winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Is confidential, no record
    Less costly than litigation
    Preserves business and family relationships
    85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more harm
    usually more expensive than mediation and arbitration
    part of the public record

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