Tenant's Late Notice Can't Be Excused

Facts: A shoe store tenant and an owner entered into a sublease, and also into a prospective six-year lease for the same space that was to begin when the sublease ended. The six-year lease gave the tenant a termination option.

After unsuccessfully negotiating a base rent reduction, the tenant's agent orally notified the owner that the tenant would be exercising its right to terminate, but sent the written notice and a check for the termination fee late by the terms of termination clause.

The owner refused to accept the oral notice, the written notice, and the check, and sent them back to the tenant, claiming that the tenant had not complied with the terms of the lease. The tenant then sued the owner and asked the court to view the noncompliance as a harmless oversight and to force the owner to accept the late written notice. The trial court refused and ruled in favor of the owner. The tenant appealed.

Decision: An Illinois appeals court upheld the trial court's decision and ruled in favor of the owner.

Reasoning: The court ruled that the tenant's failure to send a timely notice and check was not a minor lease violation. The court also noted that if the tenant was unsure of how to exercise the termination option, it could have easily consulted the lease.

• Genesco, Inc. v. 33 North Lasalle Partners, L.P., May 2008