Legal Question in Real Estate Law in California

Is it legal for an incorporated property management company in California to require that new tenants sign a release that waives the tenant's right to sue officers, agents, and employees of the corporation? It does not however waive the right for tenants to sue the corporation itself. And if so, is such a document enforceable in court?


Asked on 6/19/12, 12:53 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Covenants not to sue have limited enforceability in California. Various tests are applied by the courts to determine their legality and enforceability. For example, Civil Code section 1668 provides:

"All contracts which have for ther object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law."

See also Civil Code sections 1667 and 1670.5.

I'd say it's "legal" to require new tenants to sign the release, but when time comes to sue, the release may or may not be enforceable, depending on the nature of the wrong allegedly committed by the officer, agent or director.

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Answered on 6/19/12, 9:05 am


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