Take a moment and imagine your family or circle of friends: each person with his or her unique personality, attitude, experience and background. In a co-op building or condo association, hundreds of people live together, sharing common areas and trying to abide by the same rules and regulations. That’s hundreds of different backgrounds, experiences and personalities coming together and like your own family, it's inevitable that there will occasionally be friction—or outright conflict—between members of the group, no matter how harmonious things usually are.

When it comes to disputes between boards and owners, or between two unit owners, Jeffrey H. Itzkowitz, a lawyer with Brach Eichler L.L.C. in Roseland says when legal action has been brought against an individual or board, it’s important to take the proper steps—and take them promptly.

“If the action is brought against the board or the building, the first thing the board should do is notify their insurance broker,” says Itzkowitz. “Individual board members should be named in the board's insurance policy, and the insurance should cover them. If the allegation is outside the scope of the insurance coverage, the board or individual should consult their own attorney. Further, if the board determines there is a situation that may have caused the problem or injury, they should address it, correcting any defect or dangerous situation as soon as possible. Such action would not be held against them. It would be an act of good faith.”

“The most common reasons boards sue individual residents are to enforce the rules and regulations of the association, and to compel payment of obligations, such as maintenance,” says Itzkowitz, who has served as general counsel for the New Jersey Property Owners Association since 1999. “At times it is necessary to compel an owner to allow their fellow unit owners to enjoy their units in peace and quiet. Other times, a suit is brought to enforce prohibitions, such as against renting the unit or a violation of rental guidelines.”

“Whether a lawsuit has merit is usually first examined by the attorney for the potential plaintiff,” adds Itzkowitz. “There are rules against filing frivolous lawsuits.”

Norman Zlotnick, a partner with the Northfield-based law firm of Biel, Zlotnick and Feinberg agrees with Itzkowitz that bitter disputes over violations of HOA regulations are not uncommon. “Co-op and condo boards suing individual unit owners for unpaid monthly dues and various other breaches are commonplace,” he says.

Itzkowitz believes that once litigation has been initiated, it is imperative that board members not discuss litigation matters with anyone other than their attorney or the insurance company representative.

Speak to Your Legal Counsel

Zlotnick agrees with Itzkowitz that once litigation has begun that the association’s legal counsel should be the only person the case is discussed with.

“Board members should not contact the suing party of that party’s attorney for any reason other than to advise that you have sent it to your carrier or the like,” he says. “And that should be done either by management or counsel and you should not discuss the case with anyone.”

Disputes between co-op and condo boards and unit owners can range anywhere from violation of rental guidelines to harboring an illegal pet to noise violations to secondhand smoke.

“The most common disputes I see between co-op or condo boards and unit owners has to do with some sort of damage to the unit,” says Felicia T. Farber, a Hackensack-based attorney and mediator who is a member of the New Jersey Association of Professional Mediators. “The damage can be done from a leaky roof, or if there is some sort of internal leak I’ve also mediated a few mold cases and there was also a case when something was repaired within in the unit and was done defectively and it continued to be a problem.”

It’s Not Just the Economy

In today’s economy, money is a huge underlying factor in disputes. Many of these disputes, if not resolved internally, can result in litigation in the courts, which is expensive, frustrating and time-consuming.

“Litigation is expensive,” says Zlotnick. “The initial cost depends upon the type of case, complexity of same, and the geographical location of the case. Costs in major urban areas like Hoboken are generally higher.”

“It is almost impossible to predict the costs of suits in general. One must analyze the facts and circumstances in order to evaluate the necessary course of action,” says Itzkowitz. “If there is insurance and the matter is covered by the policy, then there will be no cost to the condo association, as the insurance company will cover it all. If there is no coverage, the matter will usually be billed at the hourly rates of the attorneys covering the case and could run in the range of $10,000 to $15,000 and if more complex, in the multiple tens of thousands of dollars. It depends on the claims, defense, counterclaims, extent of discovery, motions and briefs.”

ADR, mediation and, in appropriate cases, binding arbitration, offers an economical and efficient alternative to resolving these condominium disputes through litigation in the courts. (See separate article this issue on mediation.)

“Mediation saves time and money and a lot of stress and aggravation,” says Farber, who has mediated thousands of cases, “Litigation is costly and can go on for years and years. Cases that go to litigation can cost hundreds of thousands of dollars, whereas in mediation you can settle a case early on before the parties have invested so much money in their case. If they actually win at the end of it, they are not really winning.”

She states that approximately 80 to 85 percent of disputes brought to her mediation company reach settlement or resolution.

“The mediation process can take any where from one day to over a year depending on the number of parties involved and the complexity of the dispute,” says Farber. “Specifically to co-ops and condos these disputes typically takes a day at the most, it’s usually just a couple of hours.”

In a community where there are different personalities that often clash, settling disputes might just be as simple as getting to know your residents better. As author Harper Lee wrote in To Kill a Mockingbird, “You never really understand a person until you consider things from his point of view, until you climb inside of his skin and walk around in it.”

Creative Thinking Helps

To solve problems it is necessary to get to the root of the problem, says Farber.

“The mediator will help the parties to present their issues to identify what their underlying concerns are,” says Farber. “Because very often people in mediation just vent and get emotional and just throw a lot of things out there that has nothing to do with the dispute. But you have to see what they really mean behind their words and find out what the true issues are and prioritize them so you can resolve it.”

Perhaps those living in condo communities should also take heed of Henry Ford’s wise words: “Coming together is a beginning, staying together is progress, and working together is success."

Lisa Iannucci is a freelance writer and a frequent contributor to The New Jersey Cooperator. Staff Writer Christy Smith-Sloman contributed to this article.