Laundromat Must Pay Only Proportionate Share of Water Bill

July 31, 2002

A laundromat tenant's lease required it to pay a proportionate share of the center's CAM costs and taxes—and the lease's definition of “taxes” included “water…rent.” The owner tried to bill the laundromat an extra $1,000 a month fee for its water usage. The laundromat paid its share of the CAM costs and taxes, but refused to pay the extra water fee. So the owner sued the laundromat, claiming that the utility section of the lease required the laundromat to pay separately for its water usage.

A laundromat tenant's lease required it to pay a proportionate share of the center's CAM costs and taxes—and the lease's definition of “taxes” included “water…rent.” The owner tried to bill the laundromat an extra $1,000 a month fee for its water usage. The laundromat paid its share of the CAM costs and taxes, but refused to pay the extra water fee. So the owner sued the laundromat, claiming that the utility section of the lease required the laundromat to pay separately for its water usage.

A District of Columbia appeals court ruled that the laundromat had to pay only its proportionate share of the center's water bill. The court said that the term “water… rent” in the lease's definition of taxes referred to the water bill the owner got from the local government. And the lease section on taxes required the laundromat to pay only its proportionate share of that bill. So the lease section on utilities didn't apply, and the laundromat wasn't required to pay the extra fee for its actual water usage [Double H Hous. Corp. v. Big Wash, Inc.].

More like this