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Tax, SDIRAs & Cost Segregation

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Jessica H.
  • Southern, CA
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Attorney's Fees / Lawsuit / Arbitration in California Lease

Jessica H.
  • Southern, CA
Posted Feb 22 2018, 22:30

Hi guys,

I'm working on my lease agreement for my rental property in California and I'm stuck in the legal clause regarding payment of attorney's fees in a lawsuit. I've purchased NOLO's California Landlord's Law Book: Rights & Responsibilities which came with the lease agreement example. In there, Clause 22, states:

22. Payment of Attorneys’ Fees in a Lawsuit. In any action or legal proceeding to enforce any part of this Agreement, the prevailing party [ ] will not/ [ ] will recover reasonable attorneys’ fees and court costs.

However, they recommend against including the attorney fees clause in the lease for various reasons (in CA, courts don't recognize the one-way attorneys' fees contract provision, tenant's lawyers can take advantage of included attorney's clauses in contract to get paid, etc). So now I'm looking into alternative clauses that I can use such arbitrations/meditations. What do you think of this one I found in an agreement on the web? I like it, but I'm confused about this language: "Each party shall bear their own respective fees and cost relative to the arbitration process and attorneys' fees, if awarded shall not exceed $500." How do you understand it?

ARBITRATION OF DISPUTES: Owner and Tenant agree to mediate any dispute or claim arising between them out of this agreement, including personal injury. Mediation shall be resolved by arbitration conducted by the American Arbitration Association. Each party shall bear their own respective fees and cost relative to the arbitration process and attorneys' fees, if awarded shall not exceed $500. The decision of the arbitrators shall be final and judgment maybe entered on it in accordance with applicable law. This provision shall not affect nor apply to any circumstance or event in which the Tenant is in breach or default of any term of the Agreement, including but not limited to those circumstance which would give rise to a cause of action for Unlawful Detainer under the laws of the State of California. Said actions for unlawful detainer are specifically excluded from this provision.

Thanks so much in advance! Legal language always gives me a headache. :)

Jessica

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