Solved it! But just in case someone else ever has the same problem here is what I did. I edited the code as follows:
<p:panel header="Initial Details" style="width:480px;height:300px;">
<p:scrollPanel style="width:465px;height:255px">
<p:inplace emptyLabel="--empty--" id="ajaxInplaceInitialDetails" editor="true">
<p:ajax event="save" listener="#{bigComplaintsDAO.handleEditSave}" update=":messages" />
<p:inputTextarea rows="10" cols="47" maxlength="5000" autoResize="false"
value="#{bigComplaintsDAO.selectedComplaintRow.initialdetails}"
required="true" label="text" queryDelay="750" minQueryLength="4" />
</p:inplace>
</p:scrollPanel>
</p:panel>
<br/>
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I added a scroll panel inside the main panel itself then tweaked the height and width so that it would be flush inside.
more information on scroll panels can be found here: