Our client lives in Los Angeles, CA. He moved into a unit that seemed nice until he discovered that his upstairs neighbor made noise at all hours of the night. He left before his lease was over. His Landlord served him with a bill for $6,000 for early termination of his lease. John ended up paying nothing!
Part of the lease agreement was an agreement that any disputes be settled by arbitration. John submitted a demand for consumer arbitration to his Landlord. The Landlord dropped its claim for $6,000 and John is happy in his new, quieter apartment.
The Landlord/Tenant relationship isn’t an obvious source of arbitration. But in this case the Landlord opened the door to consumer arbitration by including the arbitration provision in the contract. Further, John filed his arbitration with the AAA, which has a broad definition of what qualifies as a consumer arbitration, and that definition includes residential leases.
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