December 20, 2019 - Introduced by Representatives Kitchens, Ballweg and B.
Meyers, cosponsored by Senators Cowles, Olsen, Petrowski, Hansen and L.
Taylor. Referred to Committee on Housing and Real Estate.

AB685,1,3 1An Act to create 703.245 of the statutes; relating to: creating a pre-filing notice
2requirement applicable to a dispute between a condominium association and a
3unit owner.

This bill provides that, if a condominium association and unit owner have a
disagreement arising out of or related to the condominium, the association or unit
owner generally may not file a claim related to the disagreement in circuit court until
the association or unit owner complies with certain requirements created in the bill.

Under the bill, the association or unit owner must provide a notice of claim to
the other party, and either party may, within ten business days, request a direct
negotiation conference, which must occur no later than 30 days after the request is
delivered, to resolve the disagreement. Under the bill, “direct negotiation” means “a
dispute resolution process that involves an exchange of offers and counteroffers by
the parties or a discussion of the strengths and weaknesses or the merits of the
parties' positions, without the use of a 3rd person.” If a unit owner requests a direct
negotiation conference, the association is required to participate. If an association
requests a direct negotiation conference, the unit owner may, but is not required to,
participate.

The bill provides that, after the association or unit owner gives the notice of
claim, the association or unit owner may file the claim in circuit court when the
earliest of the following occurs:

1. Neither party timely requests a direct negotiation conference.

2. The parties fail to resolve the dispute within ten business days after
participating in a direct negotiation conference.

3. The parties fail to timely conduct a direct negotiation conference.

4. A party notifies the other party that direct negotiation has not resulted in
a resolution of the disagreement and the notifying party is terminating direct
negotiations.

The bill also provides that, if the parties resolve the disagreement through
direct negotiation and document that resolution in a written settlement agreement
signed by the parties and a party to the agreement materially breaches any material
part of the agreement, the nonbreaching party may file a claim in circuit court
related to the breach without first providing a notice of claim. If the nonbreaching
party prevails in the circuit court action, the circuit court must award the
nonbreaching party costs and reasonable attorney fees.