“Baseball” Arbitration for Commercial Leases

As a means to set a player’s salary when he became a free agent, the arbitration process became a mainstay in baseball. Similarly, a commercial lease should include a baseball arbitration clause to prevent a protracted dispute between the owner and tenant. Often a commercial lease uses fair market value as the method to determine the amount of the renewal rent. Nevertheless, a dilemma arises when each party asserts different dollar amounts. For example, the tenant might believe the fair market value to be $60 per square foot; while the owner places the value at $100. This is where a baseball arbitration clause will shed some light into the dark corners of the commercial lease. The presence of an arbitration clause will allow an arbitrator to determine the square foot fair value of the property. If the arbitrator sets the value at $75, then the new rent amount will be the number closest to the arbitrator’s number. In this case, it would be $60. This encourages the parties to present a realistic amount as the fair market value of the renewal rent when it’s time to renegotiate the lease for an additional term.

Taking Flight – Drone regulations

Unmanned aircraft systems (UAS) known as drones are readily available and can even be purchased at Target or Toys “R” Us. However the federal government deems drones to be aircrafts and subject to Federal Aviation Administration regulations. For one thing, all buyers must register their drone. Registration can be done online by completing a short form and costs $5. A registration number is then generated which must be marked on the drone.

Drone buyers that fail to register are subject to civil and criminal penalties. Even prison time. Yikes! With such serious consequences, large law firms are establishing departments to address legal issues associated with the use of drones. Holland and Knight, a national law firm, is one of the first law firms to establish a Drone Practice in the United States.

There are different regulations for commercial and private use. For instance, legal issues arise when the media utilizes drones and has to balance First Amendment rights and privacy. Commercial regulations also come into play when a business uses drones to take pictures.

But even Dan, the drone aficionado down the street, must follow special rules. For example, Dan must inform a nearby airport of his plans to fly drones. He also can’t fly too high; the drone needs to be within sight; and shouldn’t be flown above people and moving vehicles.

Of course, a benefit of registration is that it should make it easier to locate a lost drone.