Q&A: Inserting ADR Into the Application

Q. Can we include an alternate dispute resolution (ADR) in our co-op’s application itself? Since the applicant is not a shareholder yet, is this legal? If we reject a candidate, we would like to avoid the threat of litigation and use our ADR rule, which currently only applies to shareholders (including the seller).

                                    —Covering Our Bases

A. “I’m assuming the application is a standalone administrative document of the association,” says attorney Sima L. Kirsch of the Law Office of Sima L. Kirsch in Chicago. “It’s not as if you are requesting protected information. You may include an ADR paragraph, which are very common these days. This does not mean that there won’t be a party that may not agree with it, but it is doubtful that anyone would reject completing the application because of it. This is not intended as legal advice, and any legal questions should be discussed with an attorney that practices in this field.” 

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