David and Goliath, Alternative Dispute Resolution in Florida Condominium Communities

Abstract

This Article explains and evaluates the statutorily mandated alternative dispute resolution procedures contained in the Florida Condominium Act. These mandatory procedures govern numerous types of disputes that arise between condominium associations and their unit owners. Rather than allowing individuals involved in such disputes free access to the court system, Florida has constructed a statutory framework which requires condominium disputes between unit owners and their associations to first to be heard in mandatory non-binding arbitration, administered by the Florida Department of Business and Professional Regulation, as a prerequisite to court access. While this statutory framework does allow parties to resolve their disputes in optional mediation during arbitration proceedings, there are no alternatives to mandatory non-binding arbitration and access to the court system can only be achieved after a dispute is first heard in this substitute forum.

Although the Florida Condominium Act explicitly states that the mandatory procedures provide unit owners time/cost saving efficiencies during dispute resolution, this claim has yet to be proven and is simply begging the question. In reality, Florida’s current system prevents condominiums from developing alternative dispute resolution procedures that would work best for their community, denies unit owners essential rights they would otherwise be provided in court and is easily weaponized by associations to attack the property rights of unit owners with little to no consequences for frivolous claims. The alternative dispute resolution system in the Florida Condominium Act is patently unjust, in stark contrast to the laws of other states and unduly thumbs the scales of justice in favor of condominium associations.

In this Article, I will discuss the two parties involved in condominium disputes, the legislative history of the alternative dispute resolution law, the statutorily mandated dispute resolution process, the legislative defects inherent to the system, how other state legislatures address disputes within condominium communities and the solution that may solve the inadequacies of the current paradigm.

This article uses the story of David and Goliath as a metaphor to help illustrate the parties involved. I hope that this paper prompts critical evaluations of current Florida law and compels legislative reforms to benefit condominium communities across the state.

Keywords: real estate, condo, condominium, Florida, law, Airbnb, VRBO, alternative dispute resolution, arbitration, mediation, vacation rental