Jaramillo v. JH Real Estate Partners, Inc

In Jaramillo v. JH Real Estate Partners, Inc. (2003) 111 Cal.App.4th 394, the court held that Civil Code section 1953 precluded an arbitration provision in a residential lease, because such a provision would constitute a waiver of jury trial, one of the lessee's "'procedural rights in litigation.'" (Jaramillo, supra, at p. 404.) The court concluded, however, that "nothing in section 1953 precludes a tenant of residential premises and the tenant's landlord from entering into a separate agreement to arbitrate that is entirely independent of any lease agreement. Certainly, Civil Code section 1942.1 expressly authorizes a written agreement to arbitrate controversies 'relating to a condition of the premises claimed to make them untenantable.' We think that the most reasonable interpretation of section 1953, subdivision (a)(4), is that it establishes the general rule that a tenant of residential premises cannot validly agree, in a residential lease agreement, to binding arbitration to resolve disputes regarding his or her rights and obligations as a tenant." (Id. at p. 404.)