Listing Wrong Company Name Doesn't Defeat Tenant’s Renewal Notice

What Happened: In seeking to exercise its five-year lease renewal option, retail tenant Intermix did just about everything right. The notice was timely; it was in proper written form; and it clearly stated Intermix’s intent to renew. But the officer who executed the option on Intermix’s behalf made one mistake: Instead of Intermix, he listed its sister company Old Navy in the signature box. So, the landlord concluded that the notice was deficient and sued Intermix for failing to vacate after the original lease expired.

Decision: The Illinois appeals court found the renewal valid and awarded Intermix not just possession but also $125,832 in attorney’s fees.

Reasoning: Exercise of a renewal option is valid only if the tenant strictly complies with the option terms, the court acknowledged. And the lease in this case did say that the renewal option had to be exercised by the “Tenant.” But inadvertently listing Old Navy instead of Intermix in the signature box was an “immaterial” “technicality,” the court found. The top of the renewal notice did reference Intermix and the body stated that “Tenant hereby exercises its” renewal right. Most significantly, the landlord knew perfectly well that Intermix was the party purporting to renew the lease and that treating the notice as coming from Old Navy or anybody other than Intermix was “illogical.”  

• 900 North Rush LLC v. Intermix Holdco, Inc.: 2019 IL App (1st) 181914, 2019 Ill. App. LEXIS 707