Mr. Harris,
Sometimes (not always), a letter from a lawyer on law firm letterhead will be enough to get the other owner to at least talk to you.
In a lawsuit or arbitration to enforce the CC&Rs, the prevailing party is entitled to recover all of its legal fees. I would include the story of a lawyer who installed a wooden floor, violating the CC&Rs, refused to cover them, lost the case, and one an appeal where the court reduced the legal fees he had to pay the HOA from $1.4 million to $800,000.00. That should convince him it's cheaper to meet and compromise than to go through the legal process, whether it's a lawsuit or an arbitration.
Small claims court cannot grant an injunction to force the other owner to obey the CC&Rs. Arbitration will be faster than a lawsuit, but it might not be cheaper. In court, your filing fee of $435.00 pays for unlimited use of a courtroom, judge, clerk and bailiff. Arbitrators charge $400-$600 per hour, and have an incentive to make it take as many hours as possible.
I always seem to have a CC&R dispute pending. I just finished two and have one pending, now.
Dana Sack
Answered on Jun 10th, 2017 at 9:36 AM