Legislature enacts more reform of condominium litigation
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The Act also requires alternative dispute resolution as a way to enforce warranties under Washington's Condominium Act. Between 30 and 90 days after a condominium-defect action begins, parties now may demand arbitration. For projects permitted after August 1, 2005, the party seeking arbitration advances the costs of the arbitration but can seek reimbursement of those costs if it wins. A losing party may appeal the arbitration decision by seeking a trial de novo in superior court, but if that party then fails to improve its position, it must pay the other party's fees and costs incurred in the trial de novo.

If arbitration is not sought, the court must set a detailed case schedule that includes deadlines for completion of investigation, disclosure of defects, and proposed scopes of repair and cost estimates. Any court-ordered mediation must begin within 14 months.

The Act contains other provisions to make condominium litigation more efficient. Experts for the parties must meet and confer in good faith to try to narrow or resolve issues pertaining to the scope and cost of repair. Either party may petition the court to appoint a neutral expert to investigate, render an opinion on any disputed issues, and potentially testify at trial.

To promote early settlement, the Act contains new rules for offers of judgment and attorney fees. Either party may submit an offer of judgment and must specify the amount of damages the party is willing to pay or receive, excluding attorney fees and costs. An offer by defendant must show that it is able to pay both damages and attorney fees and costs. If plaintiff accepts the defendant's offer, then plaintiff is the prevailing party and may recover its fees in an amount that the arbitrator or judge determines according to existing standards. If plaintiff does not accept the offer and ultimately recovers less than the offer, then defendant is the prevailing party, and plaintiff must pay defendant's costs and reasonable attorney fees incurred after the date of the offer. Plaintiff's liability for attorney fees will not exceed 5 percent of the assessed value of the condominium as a whole.