CONDOMINIUM ASSOCIATIONS
EDUCATION

ARBITRATION CASES

Frequently Asked Condominium Arbitration Questions

1.    What is arbitration and how does it differ from mediation?

2.    How do I file a petition for arbitration and are there any rules of procedure that I should be familiar with before filing a petition for arbitration?

3.    Are there any forms other than the Mandatory Non-Binding Petition Form and how do I obtain a copy of the forms?

4.    Are there any costs involved with arbitration?

5.    Do I need an attorney in order to participate in arbitration?

6.    What types of cases can be brought to arbitration?

7.    Are there any other types of disputes that can be arbitrated?

8.    What if I'm not sure if the disagreement I have falls within the jurisdiction of the arbitration program?

9.    Can I appeal the decision of the arbitrator?

10.    What if the arbitrator enters an order in my favor and the other party fails to comply with the order?

1.    What is arbitration and how does it differ from mediation?

Arbitration is an alternative to a court proceeding where a neutral third person, called an arbitrator, considers the facts and arguments presented by the parties and renders a decision. An arbitration proceeding may involve a hearing if there are disputed issues of material fact. If a hearing is held, each party is given an opportunity to present evidence through witnesses and exhibits. If there are no disputed issues of material fact, the arbitrator will generally decide the case based on the assertions in the petition for arbitration, the answer, and the applicable law. In 1992, the Legislature adopted Section 718.1255, Florida Statutes, requiring arbitration of certain condominium disputes as an alternative to court litigation. Mediation, on the other hand, means a process whereby a neutral third person, called a mediator, acts to encourage and facilitate the voluntary settlement of a dispute between two or more parties. It is an informal and non-adversarial process with the objective of helping the disputing parties reach a mutually acceptable and voluntary agreement. In mediation, the decision-making authority rests with the parties. The role of the mediator includes, but is not limited to, assisting the parties in identifying issues, fostering joint problem-solving and exploring settlement alternatives.

2.    How do I file a petition for arbitration and are there any rules of procedure that I should be familiar with before filing a petition for arbitration?

A petition for arbitration must be submitted on a completed DBPR form ARB 6000-001, MANDATORY NON-BINDING PETITION FORM. The petition for arbitration, and a complete copy for each named respondent, shall be mailed to Department of Business and Professional Regulation, Attn: Arbitration Section, 1940 North Monroe Street, Tallahassee, Florida 32399-1029. The rules of procedure governing arbitration proceedings pursuant to Section 718.1255, Florida Statutes, are found in Chapter 61B-45, Florida Administrative Code.

3.    Are there any forms other than the Mandatory Non-Binding Petition Form and how do I obtain a copy of the forms?

In addition to the Mandatory Non-Binding Petition Form mentioned in Question 2, there is DBPR form ARB96-002, QUALIFIED REPRESENTATIVE APPLICATION, which must be submitted in order for someone who is not a member of the Florida Bar to represent a party in an arbitration proceeding; DBPR form ARB 6000-003, ANSWER TO PETITION, which shall be used to file an answer to the petition for arbitration; and DBPR form ARB96-004, REQUEST FOR EXPEDITED DETERMINATION OF JURISDICTION, which must be used in order to file a request to determine whether a particular dispute falls within the jurisdiction of the arbitration program. All of the arbitration forms may be obtained by writing: Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums, and Mobile Homes, Arbitration Section, Northwood Centre, 1940 North Monroe Street, Tallahassee, Florida 32399-1029; 4524 Oak Fair Boulevard, Suite 200, Tampa, Florida 33610-7356; or 1700 NW 64th Street, Suite 500, Fort Lauderdale, Florida 33309.

4.    Are there any costs involved with arbitration?

The petition for arbitration must be accompanied by a filing fee of $50.00. In addition, the prevailing party in an arbitration proceeding is entitled to an award of the costs of the arbitration and reasonable attorney's fees, in an amount determined by the arbitrator. In other words, the losing party will be required to pay the prevailing party's attorney's fees and costs.

5.    Do I need an attorney in order to participate in arbitration?

No. A party may be represented by an attorney, may represent himself, or may be represented by a qualified representative. If a party wants to be represented by a qualified representative, he or she must file with the arbitrator a completed DBPR form ARB96-002, QUALIFIED REPRESENTATIVE APPLICATION. Based on the information provided on the completed form, and based on the response to any inquiries made by the arbitrator concerning the applicant's familiarity and understanding of the statute and rules applicable to the proceeding, the arbitrator will determine whether the prospective representative is authorized and qualified to appear in the arbitration proceeding and capable of representing the rights and interests of the party.

6.    What types of cases can be brought to arbitration?

Section 718.1255(1), Florida Statutes, sets forth the types of disputes that can be heard in arbitration. The arbitration section has jurisdiction to hear cases involving the authority of the board of directors, under Chapter 718 or the association documents, to require any owner to take any action, or not to take any action, involving that owner's unit or the appurtenances thereto, and the authority of the board, under Chapter 718 or the association documents, to alter or add to a common area or element. In addition, an arbitrator can hear cases involving the failure of a governing body, when required by Chapter 718 or an association document, to properly conduct elections, give adequate notice of meetings or other action, properly conduct meetings, and allow inspection of books and records. The arbitrator does not have jurisdiction over disputes primarily involving title to any unit or common element; the interpretation or enforcement of any warranty; the levy of a fee or assessment, or the collection of an assessment levied against a party; the eviction or other removal of a tenant from a unit; alleged breaches of fiduciary duty by one or more directors; or claims for damages to a unit based upon the alleged failure of the association to maintain the common elements or condominium property. Typical disputes currently handled include disputes involving parking, elections, pets, noise restrictions, alterations by a unit owner to the unit or the common elements without the approval of the association, alterations by the association to the common elements without the approval of the unit owners, and other similar cases.

7.    Are there any other types of disputes that can be arbitrated?

The arbitration section also arbitrates disputes filed pursuant to Section 718.112(2)(j), Florida Statutes. When unit owners attempt to recall one or more members of the board of administration, either by a unit owner meeting or by written agreement, the board of administration must determine whether or not to certify the recall. In those cases where the board does not certify the recall, the board must file a petition for recall arbitration. The rules governing recall arbitration are found in Chapter 61B-50, Florida Administrative Code. The parties are not required to use any particular forms in recall arbitration proceedings.

8.    What if I'm not sure if the disagreement I have falls within the jurisdiction of the arbitration program?

Any party who is in doubt as to whether a controversy falls within the jurisdiction of the arbitration program may file a request for expedited determination of jurisdiction by filing a completed DBPR form ARB96-004, REQUEST FOR EXPEDITED DETERMINATION OF JURISDICTION. The $50.00 filing fee must accompany the request.

9.    Can I appeal the decision of the arbitrator?

An arbitration decision is final if an appeal is not filed in the courts. The parties may agree that the arbitration decision will be binding, in which case the parties will not be permitted to file an appeal.

10.    What if the arbitrator enters an order in my favor and the other party fails to comply with the order?

In accordance with Section 718.1255(4)(m), any party to an arbitration proceeding may enforce an arbitration award by filing a petition in a court of competent jurisdiction in which the condominium is located.


ARBITRATION

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