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Resolving Lease Conflicts

This case study showcases the effectiveness of mediation in resolving a complex dispute between an international tenant and an Indian landlord.

The dispute

The Tenant, X, was an international company who had leased a property from Y, the Indian landlord for a period of 10 years. Before signing the lease agreement X identified modifications that needed to be done to the property, which was completed by Y as specified. Three years into the lease, the management of X changed. The new management identified a new list of modifications that needed to be made and gave the landlord Y 30 days to implement such modifications. X started withholding rent after the 30 day time limit.

The mediation

The dispute arose because the parties were not able to understand the demands made by each other. In mediation, X shared that the new management had a zero tolerance policy to any building violations after an accident in one of their Bangladesh properties. Y shared that the modifications that X wanted would require change of building plans, which could not be done in a short period of time. Through mediation, X understood the local realities and Y understood the new non-negotiable company policies. Mediation gave a platform for the parties to discuss the reasons for their demands and also understand their practical realities.

The outcome

The parties agreed to terminate the lease and X agreed to vacate the property in 30 days. X agreed to pay Y for the back rent and a lump sum for early termination. Y agreed to return the security deposit.

Conclusion

The mediator used the expert lawyer to help the parties (1) understand the law (2) the risks and opportunities of litigation (3) obtain a reality check on the cost and time of litigation (4) draft , register and execute the terms of the agreement, after the terms were found through the mediation.

 

After terms regarding division of the property were found, the mediator worked with the siblings through a process to rebuild their relationship – a need that was clearly identified by all the siblings, early on in the mediation.

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