[RPPTL LandTen] Arbitration Clauses in the residential setting

[Neil B. Shoter]

The attached prior discussion might be helpful.

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Neil B. Shoter
Partner / LEED Accredited Professional
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________________________________
From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of harry at evict.com
Sent: Thursday, March 17, 2011 10:19 AM
To: 'RPPTL Landlord Tenant Committee'
Subject: [RPPTL LandTen] Arbitration Clauses in the residential setting

I have a residential REIT client (apartment communities) who wants to place some arbitration language in his leases.

1. Security Deposits: I recommended against it as 83.49 clearly give the tenant the right to have access to the courts etc and for the small amount of security  deposit disputes that end up in court with attorney representation of the tenant, by agreeing to arbitrate could actually increase the costs and frequency of disputes and mediators/arbitrators are not free. In other words, the system "ain't broke" let's not fix it.

2. Damages to personal property:  We run into a lot of cases where the tenant's personal property gets damaged by flood, fire, mold, car is damaged by landscaper etc.  I think an arbitration clause may work and be legal here. Most leases have clauses that state that the landlord is not responsible for the tenant's personal property. Whether this is in fact upholdable by the courts is questionable as there is an implied warranty of habitability. Most tenants believe that the landlord is not liable for damages to personal property if that is what the lease says.

3. Personal injury:    This one is a doozy and way out of my league.  Can an arbitration clause be used to deal with slips and falls and other personal injury matters?  My gut instinct is NO.

Thoughts?

Harry

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From: "Drobner, David S." <ddrobner at carltonfields.com>
Subject: Re: [RPPTL LandTen] Arbitration Clauses in Commercial Lease?
Date: Thu, 20 Jan 2011 16:02:58 -0500
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