Attachment J - ADR Mediation Ploicies and Procedures Revised 4.20.21.doc

STEVE SISOLAK

Governor

STATE OF NEVADA

DEPARTMENT OF BUSINESS AND INDUSTRY

REAL ESTATE DIVISION

COMMON-INTEREST COMMUNITIES AND

CONDOMINIUM HOTELS PROGRAM

CICOmbudsman@red.nv.gov http://www.red.nv.gov

TERRY REYNOLDS

Director

SHARATH CHANDRA

Administrator

CHARVEZ FOGER

Ombudsman

ALTERNATIVE DISPUTE RESOLUTION MEDIATION POLICIES & PROCEDURES

PURPOSE

This policy is intended to establish procedures and provide guidance to an approved list of qualified vendors for mediation services maintained by and for the Division’s established Alternative Dispute Resolution (ADR) program. The ADR process is required under Nevada Revised Statutes NRS 38.300 to 38.360, before parties may file a civil action in court, relating to residential property within a Common-Interest Community or Homeowners Association. Vendors are awarded a contract contingent upon the successful negotiation of final contract terms and upon approval of the Board of Examiners. This procedure applies to the filing and processing of all ADR claims, fees, mediation assignments, proceedings, decisions, billing, and payments.

I. MEDIATOR’S QUALIFICATIONS AND EXPERIENCE MUST MEET THE VARIOUS NEEDS OF THE REAL ESTATE DIVISION (THE DIVISION)

a. Must be a Certified Mediator (current within recertification requirements).

b. Must have a minimum of two (2) years’ experience with mediating disputes between parties in a professional capacity.

c. Must have experience with resolution of disputes concerning Homeowner Associations, including, and without limitation, the interpretation, application, and/or enforcement of the covenants; conditions and restrictions pertaining to residential property as well as the articles of incorporation, bylaws, and rules and regulations.

d. During the term of the contract, and within each fiscal year of July 1 through June 30, be available to attend up to (4) hours of instruction if requested by the Division without compensation from the State.

e. Notify the Division in writing of any scheduled or non-scheduled absences, vacations, or time periods the Mediator will not be available for assignment to a hearing.

f. Agree to update Mediator’s curriculum vitae or resume when necessary, for posting on the Division’s website.

g. Must not have any pending litigation against the State of Nevada within the last five (5) years.

h. The State does not guarantee any minimum volume of services. It is the State's intent to enter into contracts with qualified mediators, acting as independent contractors, who have experience in meeting the various needs of agencies.

II. FILING AND SUBMISSION OF CLAIMS AND RESPONSES

a. Each Alternative Dispute Resolution (ADR) claim is filed on form #520 and is submitted to the Real Estate Division, along with a $50.00 filing fee.

b. The claimant will indicate on the form #520, that they would like to participate in the mediation program. After reviewing the list of available mediators, the claimant will note their mediator selection on the form #520.

c. If the claimant wishes to apply for subsidy, the completed form #668 will be submitted along with the claim.

d. The claimant serves the respondent within 45 days. The Respondent will then have 30 days to complete the response form #521 and file it with the Division along with their $50.00 filing fee.

e. If the claimant has selected mediation and the respondent selects the referee program, the method of resolution will default to mediation. This also applies if a claimant selects the referee program, and the respondent does not agree to utilize this method.

f. If there is no response within 30 days of service, the claimant is forwarded a letter stating that the other party did not respond after being served – therefore, NO referee hearing or mediation will be scheduled.

g. A claim that is closed due to lack of response may be reopened upon request from the claimant should a response be received within (1) year of closure without an additional claimant filing fee - allowing further opportunity for the parties to satisfy the requirements of NRS 38.310.

III. ASSIGNMENT OF MEDIATOR

a. The respondent submits their response form to the Division that indicates whether they agree with the claimant’s selection of mediator. If they do not agree with the selection, the Division shall appoint a mediator from the list of approved mediators. If they agree with the selection of mediator, then that mediator will preside over the claim.

b. The Division will notify the parties (in writing) of the name and contact information of the mediator selected.

c. The Division will then forward an assignment letter along with the claim and response forms to the assigned mediator. Any mediator selected must be available within the geographic area (unless agreed upon by both parties).

d. Upon receipt of the assignment letter and review of the forms, the mediator will notify the Division, within three (3) business days if a conflict of interest exists with either party. If a conflict exists, claim forms and all documentation should be returned to the Division immediately for reassignment.

e. Within five (5) days of assignment and review of the claim, the mediator will contact both parties to set up a time and date for the mediation. The mediator will request that each party submit a written statement which sets forth the issues in dispute no later than five (5) days before the mediation is scheduled to be conducted.

f. The mediator will review all supporting documents provided by the parties, schedule and conduct mediations in a manner that adheres to all statutes and policies mandated by NRS 38 and NAC 38.

IV. MEDIATOR PROCEEDINGS AND DECISION

a. The mediator is responsible for securing a location that is amenable to the parties. The mediator schedules and conducts a mediation that does not exceed $500.00 for three (3) hours of mediation, unless the parties agree to an extension of time, at an hourly rate that is not to exceed $200.00 per hour.

b. Mediators are to use their best effort to conclude mediation proceedings within 60 days from the date the claim was filed unless otherwise provided by an agreement of the parties. Within 20 days after the conclusion of the mediation, any agreement obtained through mediation pursuant to NRS 38.330 must be reduced to writing by the mediator and a copy thereof provided to each party.

c. An agreement reached through mediation may be enforced as any other written agreement. Mediation agreements are deemed as confidential – therefore, the mediator does not need to submit a copy of the signed agreement to the Division but shall advise the Division as to the date of the mediation’s conclusion and the result (successful or unsuccessful), within 30 days of the completion of a mediation. The Conflict of Interest disclaimer form should also be included with the closure documents.

d. Should the parties not come to an agreement at the conclusion of a mediation, either party may proceed with a civil court filing within 30 days after the date of the unsuccessful mediation.

V. BILLING AND PAYMENT

a. Mediators may request a deposit of up to $250.00 from each party prior to the start of mediation proceedings if an application for subsidy is not approved by the Division. If a deposit is received, any amounts that are unused by the mediator must be returned to the party or parties.

b. The Division shall notify the mediator if subsidy is approved for either party. The amount of the subsidy shall not exceed $500.00 per mediation or $250.00 per party, whichever is less, or any amount authorized by law. Mediators will obtain all other costs and expenses not covered by the amount subsidized directly from the parties.

c. Should subsidy be granted by the Division, an ‘Invoice’ (form #631) must be submitted within 10 business days after the issuance of the mediator’s statement concerning whether the mediation was successful or unsuccessful in resolving the dispute. Any amounts approved for subsidy (up to $250.00 per party) will be direct deposited into the mediator’s account on file with the State, up to 60 days after the receipt of the billing statement and decision.

VI. ACKNOWLEDGEMENT

By signing this form, I acknowledge that I have been provided information on the Department of Business and Industry, Real Estate Division, Alternative Dispute Resolution Mediation Policies and Procedures.

Independent Contractor’s Signature Date 3300 W. Sahara Avenue, Suite 350, Las Vegas, Nevada 89102-3203 Telephone: (702) 486-4480 Fax: (702) 486-4520 1818 E. College Parkway, Suite 110, Carson City, Nevada 89706-7986 Telephone: (775) 684-1900 Fax: (775) 687-4868