Tarrant Bell Property, LLC v. Superior Court

We granted review in this case to decide whether, under Code of Civil Procedure section 638, a trial court has discretion to refuse to enforce a predispute agreement providing that, in the event of dispute, a referee may hear and decide certain contested issues. The Court of Appeal held that a trial court has such discretion and that the trial court here properly exercised that discretion on the facts of this case. We agree with the Court of Appeal’s holding and affirm its judgment.

Factual Background

In October 2008, 120 current and former lessees and residents of a mobilehome park in California (real parties in interest) sued the park’s current and former owners (defendants) for failing properly to maintain the park’s common areas and facilities and for otherwise subjecting park residents to substandard living conditions. The lease agreements between defendants and about 100 of the real parties in interest provide (1) the parties will submit to arbitration any tenancy dispute (with certain exceptions for actions by the owner), including claims regarding maintenance, condition, nature, or extent of the facilities, improvements, services, and utilities provided to the…