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Members urge mediation and binding arbitration before HOA uses association funds for lawsuits

Leilani Community Association members meeting · October 30, 2025
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Summary

Members debated a motion directing the board to pursue mediation first and binding arbitration second before initiating lawsuits against members or vendors, with attendees urging legal review to confirm enforceability and limits (foreclosures/assessments excluded).

A member proposed directing the board to seek mediation and then binding arbitration before using LCA funds to initiate lawsuits against members, except for foreclosure, lien, or assessment actions the board must pursue to collect dues. The Moderator summarized the intent: "for any dispute, we're saying between the board and members, regardless of what it is, we will seek mediation first, and then we will go to binding arbitration on that dispute."

Attendees debated practical enforceability: several members said individuals could still file suit on their own, and one attendee warned arbitration arrangements must be worded carefully so they are not perceived as one‑sided. Members agreed the motion should be refined and sent for legal review before inclusion in the election material because the association cannot bind an individual member from filing suit with personal funds.