LOS ANGELES-The new California law designed to add protection against predatory lawsuits will have landlords and tenants taking a closer look at their commercial lease agreements before it kicks in on July 1.

Senate Bill 1186, which became law last September and takes effect on July 1, is intended to provide state landlords, tenants and business owners with added protection against predatory lawsuits based on alleged violations of construction-related disability access laws.

The availability of the protections turns on whether the subject property has been evaluated by a Certified Access Specialist for compliance with applicable disability access requirements. All commercial leases executed on and after July 1, 2013 need to disclose whether the subject premises have been inspected by a CASp, and, if so, whether the inspected premises have been determined to meet all applicable accessibility requirements.

However, the new law does not require the CASp inspections. It simply requires that landlords state in their leases whether or not they have had the inspection, and if so, whether the property meets the applicable accessibility standards.

A disclosure in a commercial lease that the premises have not been CASp inspected may prompt the tenant to request that the landlord undertake such inspection. Or the tenant may agree to undertake such inspection on its own (both of which are likely intended results from the legislation) in order to receive the benefits under SB 1186.

Alain R'bibo, a partner with the Allen Matkins firm in Century City, says that predatory lawsuits claiming disability access violations are still prevalent. “As long as there are plaintiffs out there, this has been a source of distress for landlords and business owners,” R'bibo tells GlobeSt.com, “Clearly the legislature felt the need to enact this. That also speaks to the number of such suits.”

R'bibo cites a variety of areas that could trigger a potential disability access suit, including bathrooms, ramps, and handicapped parking. “The ADA and other acceptability codes are extensive and there are lots of areas where a particular space might fall short of what's required,” R'bibo says. “Basically, when these lawsuits come around, they will look for anything to hang their hat on.” Potential settlements could range from a few thousand to “much more,” R'bibo says.

The new legislation is aimed at making such predatory suits “harder to perpetrate,” R'bibo says. He suggested that landlords, business owners and tenants carefully review their commercial lease terms, since tenants are often named as a party to disability access lawsuits.

R'bibo also cautioned that commercial landlords should be careful not to simply insert a statement that the property has not been inspected. Other relevant provisions of lease agreements, such as the compliance with law and the indemnity clauses, may be affected by improper language.

As reported previously in GlobeSt.com, the new law has other areas that are subject to interpretation. However, it should provide a business opportunity for certified access specialists.

Instant Insights /

New Law Requires Lease Scrutiny

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