Alternative Dispute Resolution – Frequently Asked Questions (FAQs)

 What is a community association’s obligation to offer Alternative Dispute Resolution (ADR)?

New Jersey’s Condominium Act provides 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. A person other than an officer of the association, a member of the governing board or a unit owner involved in the dispute shall be made available to resolve the dispute. A unit owner may notify the Commissioner of Community Affairs if an association does not comply with this subsection. The commissioner shall have the power to order the association to provide a fair and efficient procedure for the resolution of disputes.” Similarly, the Planned Real Estate Development Full Disclosure Act (PREDFDA), N.J.S.A. 45:22A-44(c), provides that “[t]he association shall provide a fair and efficient procedure of the resolution of disputes between individual unit owners, which shall be readily available as an alternative to litigation.” 

What is the difference between Mediation and Arbitration?

Mediation is where a neutral third party hears both parties version of a dispute in order to find a mutually agreeable solution. Arbitration is a process where the parties refer the dispute to one or more persons (arbitrators, arbiters) and are usually bound by that decision. Both mediation and arbitration are forms of Alternative Dispute Resolution (ADR); however the CAI-NJ ADR program only offers mediation.

Do I need an attorney?

You do not need to be represented by an attorney in the CAI-NJ ADR Program. The premise behind Alternative Dispute Resolution is that it provides a mechanism other than costly litigation to resolve disputes within community associations. The New Jersey Condominium Act and Planned Real Estate Development Full Disclosure Act (PREDFDA) utilize similar statutory language when they require associations to provide “a fair and efficient procedure for resolution” of disputes between unit owners and the association, or between unit owners, “which shall be readily available as an alternative to litigation.”

Can I bring an attorney?

The CAI-NJ ADR Program is a mediation process, and as such, does not require the presence of an attorney or legal representation for either party. If you are being represented by an attorney, please let the CAI-NJ office know in advance, so that we can advise the mediator and other party.

What happens if the parties don’t abide by the agreement?

Mediation is a process that seeks a mutually agreeable solution to the dispute, but it does not impose a solution on the parties. The parties should enter the mediation with pure intentions to abide by an agreement. Parties can always resort to litigation to resolve disputes.

Who bears the cost of Alternative Dispute Resolution (ADR)?

Statutory law does not address the cost of alternative dispute resolution, nor does it address who pays for it. Payment of costs should be arranged between the participating parties of the mediation.

What are the benefits of ADR through CAI-NJ?

The CAI-NJ ADR Program will most likely be less expensive than the normal judicial process because it is a one-time fee rather than court costs and undetermined legal fees. Also, mediation is a confidential process unlike court cases that are adjudicated in public session. Finally, most mediation requires one session to resolve, and those sessions can be scheduled quickly. A filed court case may take months or years to resolve.

 Who are the CAI-NJ Mediators?

Our mediators are certified mediators on file at the CAI-NJ office. The mediators are either an attorney with practical experience in community association law, or a trained professional (including unit owners, community managers, and community association volunteer leaders) who has completed a course specifically designed for common interest communities with the New Jersey chapter of the Community Association Institute (CAI-NJ).

Download the ADR Mediation Request Form