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THE LEASING HOTLINE
ARBITRATION
An arbitration clause was limited to the issue of fair market value of the tenant's interest in the leased property. A lease with a hotel gave the landlord the right to purchase the tenant's interest in the hotel if the tenant elected to transfer its hotel business to a third party. In the event the parties could not agree on the fair market value of the interest, the lease required the parties to arbitrate. When the landlord decided to exercise its option to purchase, and the parties were unable to agree on the price, the hotel filed a demand for arbitration of that issue as well as several other disputes between the parties.
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