53 Cal.App.5th 1087
Cal. Ct. App.2020Background
- In 2014 (renewed 2015) Keisa Williams, Rubin Womack and three others rented an apartment at 3620 W. 102nd St.; they sued the owners in 2016 alleging bed-bug infestation, habitability breaches, personal injury and property damage.
- The owners moved to compel arbitration in 2019 based on an arbitration clause in the lease (section XVIII) and an "Addendum B" arbitration agreement; tenants had initialed the lease clause but Addendum B was not produced with the initial petition and its signature/initial blocks were blank.
- The trial court denied the petition, finding the owners had not shown a valid arbitration agreement and had waived arbitration.
- On appeal the owners conceded the Federal Arbitration Act did not apply; the Court of Appeal analyzed the dispute under California law.
- The Court of Appeal affirmed, holding arbitration provisions in residential leases that waive procedural litigation rights (including jury trial) are void under Civil Code §1953(a)(4), following Jaramillo and Harris.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of arbitration clauses in a residential lease under Civ. Code §1953(a)(4) | Lease arbitration is void because it waives procedural rights in tenant-related litigation (including jury trial) | Lease arbitration is enforceable; tenants initialed clause | Arbitration clauses in these leases are invalid under §1953(a)(4) |
| Applicability of the Federal Arbitration Act (preemption) | FAA does not apply; state law governs | FAA/federal policy should govern arbitration enforcement | Owners failed to show interstate commerce; FAA not applied; state law controls |
| Proof of an enforceable arbitration agreement (Addendum B issues) | No valid separate agreement produced; Addendum B unsigned/blank | Owners later produced Addendum B and declared it was the form used | Court affirmed invalidity under §1953; trial finding owners failed to prove a valid agreement supported denial |
| Waiver of arbitration by owners' litigation conduct | Owners litigated and thereby waived arbitration | Owners denied waiver | Trial court found waiver; appellate decision affirmed on public-policy ground (void agreement) but waiver finding supported denial |
Key Cases Cited
- Jaramillo v. JH Real Estate Partners, Inc., 111 Cal.App.4th 394 (2003) (lease provisions waiving procedural litigation rights, including jury trial, are void under §1953)
- Harris v. University Village Thousand Oaks, CCRC, LLC., 49 Cal.App.5th 847 (2020) (applies §1953 to continuing-care/residential contracts; arbitration provisions void when they waive tenants' procedural rights)
- Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC, 55 Cal.4th 223 (2012) (standard of review: de novo review of arbitration-denial when evidence not in conflict)
- Khalatian v. Prime Time Shuttle, Inc., 237 Cal.App.4th 651 (2015) (party seeking FAA preemption bears burden to show interstate commerce)