Tenant Must Pay for Share of Utilities 'Actually Used'

A grocery store lease set a deadline for the owner to provide “separate electric and water service by separate meter.” The lease also required the tenant to pay its “pro-rata share of such utilities.” When the owner failed to install the separate water and electric meters by the deadline, the tenant sued. It claimed that it was overcharged in its water and electric bills. The lower court ruled that the owner should have calculated the tenant's share of utility charges based on the square footage of the space. The owner appealed, arguing that the tenant's share should have been based on its actual usage.

A Florida appeals court ruled that the tenant was responsible for paying its pro-rata share of utility costs based on its actual usage. The phrase “pro-rata share of such utilities” in the lease showed that the parties intended the tenant to pay for utilities it actually used, said the court. And although the owner hadn't installed any meters, it proved to the court that there were other ways to determine actual usage [Sorota v. Belmat, Inc.].