Internal Dispute Resolution (“IDR”) and Alternative Dispute Resolution (“ADR”) procedures were adopted by the California Legislature in an effort to minimize the cost and to increase the efficiency of resolving disputes between associations and their members. Recently, the California Legislature adopted Assembly Bill 1738 which undermines this purpose by allowing either party to participate in the IDR process with the assistance of an attorney or other representative. I suspect that the outcome of this change will be to increase both the cost and effectiveness of IDR, and foreseeably, will increase the frequency of litigation.
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Matthew L. Grode, Esq.
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