News & Insights

Home » News & Insights » Cooler Heads Can Prevail:

Cooler Heads Can Prevail:

Other

Litigation, while certainly a needed bow in the quiver, is not always a good first line of defense.  Litigation can be costly, and if your building has a history of litigation, property values can be affected.  Additionally, if your building is in the middle of a litigation, many lenders will shy away from making loans in connection with a unit in the building.  Mediation is far less expensive than litigation and can be a positive and effective way to resolve condo and co-op disputes.

Typically in mediation, a mediator is jointly selected by the parties.  In a city like New York, there is a long list of mediators with substantial experience in handling condo and co-op matters.  Once the initial conflict checks are completed, and oaths made, the mediator reviews documents submitted by each party.  A mediator will meet with all parties to discuss the matter and then meet with each party separately to hear confidential information and discuss possible settlement.  After meeting with each party separately, and typically more than once, a mediator will recommend a particular avenue for settlement.  If everyone agrees to the basic terms, an agreement can be drafted and the matter settled.

If the parties cannot resolve their dispute and litigation is commenced, there may still be an opportunity for the parties to be heard by a mediator.  Depending on the nature of the litigation or the stage of the litigation, the parties may be ordered to mandatory mediation.  Alternatively, if the issue involves a contract that included an agreement to arbitrate disputes rather than traditional litigation, the parties will be faced with arbitration.

Regardless of the nature of the dispute, the aim of your building’s board of directors and your building’s counsel should be to try to resolve the matter in the first instance.  Litigation should not be a reactionary tool.  When tempers flare, having cooler heads come to the table may save you a lengthy, costly court battle.  Whether the parties try to mediate their dispute through their attorneys, or agree to mediation, often, third parties such as attorneys and mediators can resolve conflicts without the need for court intervention.

Recent Posts

Impact of Shorter COVID-19 Quarantine on Workplaces

On Monday, the CDC announced changes to its recommended isolation and quarantine time from 10 days to 5 days for asymptomatic people with COVID-19. They recommend that people leaving isolation after 5 days continue to wear a mask for the following 5 days. The CDC also...

Restaurants Sue Over Vaccine Mandate

Restaurant operators sued Mayor Bill de Blasio and New York City over Key to NYC, the new indoor vaccine mandate program, on August 17-the same day the mandate went into effect. A group of restaurants in Staten Island, through the Independent Restaurant Owners...

Financial Regulators’ New Target: Social Media Influencers and SPACs

The Financial Industry Regulatory Authority (“FINRA”) will conduct three new regulatory sweeps in an effort to combat various activities causing extreme fluctuations in the financial markets. FINRA has chosen to target special purpose acquisition companies (“SPACs”),...

Does WARN Apply to Virus Closures?

Enterprise, in Benson et al. v. Enterprise Leasing Co. of Florida LLC et al., has tried to argue that the Worker Adjustment and Retraining Notification Act (“WARN”), through its natural disaster exception, does not apply to closures caused by COVID-19. Two Florida...