Geraghty v. Shalizi

Settlement agreement signed by tenant, which contained a release of claims arising from the tenancy, was enforceable against the tenant since it was a voluntary agreement rather than a tenant waiver of rights under the city’s rent ordinance.  A landlord paid a tenant $25,000 to move out so the landlord could be move in.  The tenant signed a release of claims arising from the tenancy and premises.  Shortly thereafter, due to loss of his job, the landlord moved out.  The release was not voidable; it was not induced by fraud.  Nor was it contrary to public policy.  San Francisco’s rent ordinance bans tenant waivers of rights under the ordinance, but that ban does not apply to settlement agreements.  Here, the landlord threatened to sue before entering into the settlement.

California Court of Appeal, First District, Division 1 (Banke, J.); January 24, 2017 (published February 10, 2017); 2017 WL 550042

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