Condo Media - September 2016 - 49

This proposed bill "mandates" amendments-something that can only be
done via the requisite number of votes
of the members. Unit owners already
have relief via the governing documents
and associations may voluntarily add
provisions dealing with dispute resolution as the community agrees and sees
fit under the proper procedures for
amending the declaration.
The proposed legislation is also
unnecessary and results in needless
expenses for condominiums that
already have plenty of remedies and
relief via the specific contractual
declaration, the RI Condominium
Act, and through the judicial process.
The legislation is arguably at odds
with Section 3.20 of the Rhode Island
Condominium Act, which is the
provision of the Act that deals with
the executive board's enforcement of
the association's declaration, bylaws,
and rules and regulations. Section
3.20 sets the requirements for hearings and fines for violations of the
governing documents. The proposed
legislation would arguably nullify that
provision and the board's authority to
find rule violations and levy fines.
The proposed legislation would also
deny condominium unit owners and
condominium boards their fundamental right of access to the court system in
the normal course. The decision of the
arbitrator is binding upon the parties
unless either party reserves their right
to a jury trial by giving notice to the
other party or parties and to the arbitrators within 60 days of the arbitrator's
award via certified mail, return receipt
requested. If suit has already been initiated, either party must file a request
for a jury trial with the court and with
notice to the other party or parties
within 60 days of the arbitrator's award.
This provision is unclear as it seemingly
forces a jury trial for all appeals of the
arbitrator's decisions. Therefore, this
legislation could ultimately force an
expensive jury trial on a small issue,
such as a keeping a cat in violation of a
no-pet policy.

Alternative dispute resolution should
not be statutorily imposed on every kind
of dispute, some of which might require
immediate judicial intervention. Additionally, there is the reality that court
appointed arbitrators generally will
not understand the nuances of condominiums. Mandating arbitration by noncondominium practitioners will only
result in unnecessary expense, delay, and
a lack of uniformity in decisions-even
within each individual community.
CAI RHODE ISLAND LEGISLATIVE
ACTION COMMITTEE (RILAC)
Members of the RILAC opposed this
proposed legislation as overly vague, far
too overreaching, and intrusive. Thankfully our efforts were successful and the
proposed bill, after passing the House,
was held for further study by the Senate
Judiciary Committee in June 2016.
This past year was not the first time this

type of legislation was proposed, and it
likely will not be the last.
The RILAC will be watching for this
bill next term and will continue to argue
that associations maintain their ability
to self-govern, with free access to the
judicial system, and arbitration only upon
the choice of both parties, or if required
by the individual association's documents.
Arbitration should not be forced on
private condominium communities.
While arbitration may be a positive
choice, it should be voluntary and not
be statutorily imposed. While condominiums are regulated and created by
statute, they should not be micromanaged by statute.
n MARY JOY HOWES, ESQ. IS AN
ATTORNEY IN GOODMAN, SHAPIRO &
LOMBARDI'S RHODE ISLAND OFFICE.

September 2016

http://www.nsins.com http://www.nsins.com

Condo Media - September 2016

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