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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Berlin Sans FB","sans-serif";color:#1F497D">I would consider structuring it as a demand note with the balance decreasing over time.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Berlin Sans FB","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="text-autospace:none"><b><span style="font-family:"Berlin Sans FB","sans-serif";color:black">Andrew Hay<o:p></o:p></span></b></p>
<p class="MsoNormal" style="text-autospace:none"><b><span style="font-family:"Berlin Sans FB","sans-serif";color:black">Hay & Swann PLLC</span></b><span style="font-family:"Berlin Sans FB","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Berlin Sans FB","sans-serif";color:black">201 South 34th Street<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Berlin Sans FB","sans-serif";color:black">Tacoma, WA 98418<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Berlin Sans FB","sans-serif";color:black">Phone: (253) 272-2400</span><span style="font-family:"Berlin Sans FB","sans-serif";color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Berlin Sans FB","sans-serif";color:black">Fax: (253) 267-8947<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Berlin Sans FB","sans-serif";color:black"><a href="http://www.washingtonlaw.net/"><span style="color:black">www.washingtonlaw.net</span></a><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-family:"Arial","sans-serif";color:black">THIS IS A CONFIDENTIAL COMMUNICATION AND IS INTENDED FOR THE DESIGNATED RECIPIENT ONLY. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY THE SENDER IMMEDIATELY
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> Wednesday, May 06, 2020 9:12 AM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> Re: [WSBARP] Residential Lease: Liquidated Damages Question<o:p></o:p></span></p>
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<p>I'm not seeing that breaking the lease early would result in "damages" related to the new flooring in that presumably the house is worth more with the new flooring than without. Conversely, I'm also not seeing that the schedule you propose deals with the
actual harm possibly caused if the breach is late in the term. Assuming we're not talking about carpet, the floors should still be in good condition in 10 years, but what if it's been so damaged it needs to be replaced? Would this system prevent any recovery
for the landlord if the lease went to term and the tenant destroyed the floors?<o:p></o:p></p>
<p>Also, I'm having some "this is so bizarre it must be wrong" alarms going off. Seems like a really bad idea from both sides. First, I'd be very skeptical of any tenant willing to enter into such a contract. Second, assuming the property is encumbered,
would the landlord face liability to the tenant in the event of foreclosure? Third, if there were a breach would the landlord be able to actually recover for the breach. Stated differently, are they actually getting anything non-illusory for tying up their
property for 10 years? Fourth, if this property is in Seattle are they aware that in 2026 new legislation will provide that landlords will be tarred and feathered each time they collect rent?
<o:p></o:p></p>
<pre>Kary L. Krismer<o:p></o:p></pre>
<pre>206 723-2148<o:p></o:p></pre>
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<p class="MsoNormal">On 5/6/2020 8:46 AM, Gabriel Dietz wrote:<o:p></o:p></p>
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<p class="MsoNormal">Good Morning Fellow List Mates: <o:p></o:p></p>
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<p class="MsoNormal">I have a potential client, a landlord who is considering a 10-year residential lease in Seattle. Before the lease begins, landlord and tenant want to install new floors throughout the premises. Landlord proposes to pay for the costs of
the floor installation. Tenant, in theory, would agree to a liquidated damages clause where tenant reimburses landlord for some of the costs of the floor install in the event that the tenant breaks the lease early. The amount of damages would be a straight-line
amortization over the life of the lease. For example, if tenant breaks the lease in month 1, tenant would be responsible for 50% of damages. If tenant breaks the lease in month 120, tenant would not be responsible at all. Other than the typical limitations
on liquidated damages under Washington law, is there anything in the Washington Residential Landlord-Tenant Act or otherwise that would prohibit/limit this structure?<o:p></o:p></p>
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<p class="MsoNormal">Thank you in advance,<o:p></o:p></p>
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<p class="MsoNormal">Gabe<o:p></o:p></p>
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<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:black">Gabriel A. Dietz Partner (206) 451-3859</span><o:p></o:p></p>
<p style="margin:0in;margin-bottom:.0001pt"><a href="mailto:gabe@hdpnw.com" target="_blank"><span style="font-size:11.0pt;font-family:"Arial","sans-serif"">gabe@hdpnw.com</span></a><o:p></o:p></p>
<p style="margin:0in;margin-bottom:.0001pt"><a href="http://www.hdpnw.com" target="_blank"><span style="font-size:11.0pt;font-family:"Arial","sans-serif"">www.hdpnw.com</span></a><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:black">
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:black"><img border="0" width="345" height="79" id="_x0000_i1025" src="https://lh4.googleusercontent.com/XvYBR2rJITmAKOo2nBbTLwFamRLzd307jA8sGNhA9o1Et1z8kkRPeXOcE2lKnZLi_F4w-Jd2Rm32YmoJy0goUqGFLP7wKCEUC-XzQ-LRiNGl0-ihI7WNL5tbD6LOHOMx45-LAy0c">CONFIDENTIALITY
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shred the materials and any attachments. You are hereby notified that any use, disclosure, copying, or distribution of this communication, or the taking of any action in reliance on the contents of this information, is strictly prohibited. If you have received
this transmission in error, please immediately notify me by email or telephone.</span><o:p></o:p></p>
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<pre>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>_______________________________________________<o:p></o:p></pre>
<pre>WSBARP mailing list<o:p></o:p></pre>
<pre><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><o:p></o:p></pre>
<pre><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></pre>
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