Notice of arbitration: what should the syndicate do with it upon receipt?

I am outraged that my syndicate of co-owners is failing to fulfill its legal obligations under article 477 of the Code of Civil Procedure. After sending a notice of arbitration to the directors by registered mail and submitting the supporting documents to a Arbitration center, no notice was communicated to the co-owners. Yet, this article requires the syndicate to inform all co-owners of the subject of any legal proceeding within five days to ensure transparency regarding actions that may impact the co-ownership. Question: Is a notice of arbitration considered a legal proceeding under this article?

Answer: Article 477 of the Code of Civil Procedure states:

« An application relating to divided co-ownership of an immovable is notified to the syndicate of co-owners, which must inform all the co-owners of the subject matter of the application within five days after the notification. »

Thus, when legal proceedings are initiated against the syndicate of co-owners, it is required to notify all co-owners within five days of receiving the notification. This notice must also specify the subject of the request.

Arbitration notice and divided co-ownership

A notice of arbitration request constitutes a request related to the divided co-ownership under article 477 of the Code of Civil Procedure. Therefore, the syndicate of co-owners must inform each co-owner, within five days of receiving the notice, of the subject of this arbitration request.

The arbitration process

The arbitration process begins with the notification of a request or notice of arbitration. This document outlines the subject of the dispute between the parties. Arbitration is often the most recognized and popular method of dispute resolution. It can replace a trial, as an arbitrator's decision is generally final and not subject to appeal (except in cases of non-compliance with applicable rules or public order ). Such decisions also have the force of res judicata between the parties.

Enforcement of arbitral awards

Unlike court judgments, arbitral awards can only be enforced after homologation. If the losing party refuses to comply with an award, the successful party may request that it be homologated by a competent court. Once homologated, the arbitral award becomes enforceable.

Obligations of the Syndicate of co-owners in arbitration cases

The syndicate of co-owners must notify each co-owner upon receiving a notice of arbitration because:

• An arbitral decision can have financial repercussions on the syndicate and, by extension, on each co-owner.
• If the syndicate is ordered to pay a sum of money, the judgment is enforceable not only against the syndicate but also against those who were co-owners at the time the cause of action arose, in proportion to the relative value of their fraction. This underscores the importance of notifying each co-owner of the subject of an arbitration notice.

WHAT YOU SHOULD KNOW !  The board of directors must notify each co-owner in writing within five days. This obligation applies after receiving an arbitration notice, usually served by a bailiff. The notice must specify the nature of the dispute and its potential impacts.

WHAT TO KEEP IN MIND : A formal notice is not considered a legal proceeding. Therefore, the board of directors is not required to notify co-owners of it.

WARNING !  Failure to inform co-owners may result in the syndicate’s liability. Consequently, co-owners may claim damages if they can demonstrate harm.

 CONSULT A Notice template of legal proceedings

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