In 1992, the Florida Legislature introduced alternative dispute resolution (“ADR”) to the Condominium Act. ADR is intended as a cost-efficient alternative to court for resolving condo disputes.
The 1992 law required parties to arbitrate certain issues prior to pursuing litigation. Arbitrations are filed with the Department of Business and Professional Regulation > Division of Florida Condominiums, Timeshares and Mobile Homes > Arbitration Section. The arbitrator is a state employee who functions as judge and jury, ruling on procedural matters and hearing evidence. The arbitrator’s decision is final and enforceable. The prevailing party is awarded reasonable attorneys’ fees and costs.
In 2021, the Florida Legislature amended the Condominium Act to provide a second ADR option: pre-suit mediation (read more about the 2021 legislative changes here and here).
At mediation, the mediator does not decide on the merits of the case and simply serves as a neutral party to facilitate a voluntary settlement. There is no case number, or procedure or required filings. If successful, the settlement is put into writing and court is avoided. If the parties do not reach an agreement, the mediation results in an impasse; the aggrieved party may proceed to court. The parties do not lose their access court simply by attending mediation, as they do with arbitration.
However, any party who receives a a proper demand for mediation but fails to participate will not be entitled to recover attorney’s fees once the matter proceeds to court, even if that party prevails.
Whether you are are the party seeking mediation or arbitration, or you are the party receiving such a demand, our firm is experienced and available to help you resolve your dispute as efficiently as possible.
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