BILL WOULD IMPACT LEASE WAIVERS

Every commercial lease in the state includes some type of waiver for certain State laws.  A bill that is making its way through the legislature, AB 2667 (Thurmond; D-Richmond) would impact that common practice and a lot more.  Specifically, our industry – along with a huge coalition of like-minded business groups — is opposing the bill because it discriminates against arbitration agreements that waive a right to pursue Civil Rights violations made as a condition of entering into a contract for goods or services and interferes with the fundamental attributes of arbitration, which is likely preempted by the Federal Arbitration Act (FAA). We think AB 2667 will lead to confusion, uncertainty and costly litigation for such contracts. The bill is awaiting hearing in the Assembly Judiciary Committee.

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