Let's Enforce Legal "Specific Performance" Provisions

The bankruptcy of Irvine, California based Bethany Group is serving as the catalyst for the examination by the media of the issue of landlord foreclosures and denial of basic services.

Yesterday, MSNBC ran an article highlighting the difficulties experienced by tenants at the seven Bethany group properties in Arizona. The article recounted the loss of basic tenant services such as trash pick-up, maintenance neglect and water shut-offs. The story also noted that tenants are usually at risk for their security deposits in landlord bankruptcies. MSNBC quoted a representative of the court appointed receiver indicating that tenants continue to be responsible for rent payments under their leases even though they are being denied basic services.

The American Tenants Association proposals, as noted in my previous blog post and press release, will protect tenants security deposits by placing them in legal escrow accounts segregated from the day-to-day operating funds of the landlord.

Ongoing tenant obligations under their lease where the landlord is denying basic services, however, raise legal issues of “specific performance”. The MSNBC article quoted the receiver’s representative essentially threatening tenants with legal action if they attempt to break their lease even though they are not receiving services. The position of the ATA is that the legal concept of specific performance comes into play. Under this provision, the plaintiff (tenant) can compel the defendant (landlord) to perform according to the lease, i.e., provide a safe, clean, habitable environment.

Our continuing legislative efforts will include codification of specific performance equity provisions already available, in our opinion, under common law. These efforts will include enforcement provisions so that the law “has teeth” and tenants will be able to take advantage, if required, of the full legal remedies available to them.

You can view the MSNBC article through this link.
http://www.msnbc.msn.com/id/29697413/from/ET/