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Los Angeles Commercial Lease Counseling – Arbitration Provisions

Arbitration Provisions in Commercial Leases

Continuing our series on important things to consider when you enter into a commercial lease we now turn our focus to arbitration provisions in commercial leases.

Many leases contain contractual arbitration provisions.  Arbitration is a technique for resolving disputes outside of the court system.  In arbitration, the parties to a dispute allow an arbitrator (typically a retired judge) to resolve their dispute and agree to be bound by the arbitrator’s decision – no matter what it is.  There are a few key differences between arbitration and the court system.  For example, consider these salient differences:

  • No right to a jury trial.  In arbitration you do not have the right to a jury trial.   The arbitrator(s) make the final decision on the facts and the law.
  • No right to an appeal.
  • No judicial review.  There is no judicial review of arbitration awards other than for a few types or procedural irregulars – like bias.
  • Arbitrators do not have to follow the rules of evidence.
  • It is expensive.  Unlike the court system where the judge does not charge for their time, arbitrators charge for their time and the fees typically begin around $500/hour.

There are many other key differences between arbitration and the court system.  Depending on your bargaining power in the lease negotiations you may or may not be able to negotiate the arbitration provision.

For help with your commercial lease dispute please do not hesitate to contact us at Schorr Law, APC at (310) 954-1877 or info@schorr-law.com. You can also fill out our Contact Form – we will try to get back to you as soon as possible.

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