What is court-ordered arbitration? Arbitration is an informal trial held before a neutral court official called an arbitrator.7A-38.3F. Prelitigation mediation of condominium and homeowners association disputes. Unenforceable HOA rules are those that go against the law. HOAs cannot create covenants that are contrary to federal and state laws. Designed to offer parties, with the help of their attorneys and a mediator, an opportunity and the support they need to settle their cases. It is essential for every association to adopt an HOA dispute resolution policy. Here are some tips on resolving disputes in your HOA internally. Mediation or arbitration two alternative dispute resolution (ADR) methods that seek to resolve differences without the need for litigation. We will discuss different strategies for resolving disputes with HOAs, provide examples of lawsuits filed against HOAs and go over the small claims process.