Tenant's Lease Violations Are Grounds for Eviction

February 1, 2005

A shopping center owner sued to evict a tenant, claiming that the tenant violated its lease by paying rent late on several occasions over a four-year period; failing to provide proof of insurance, despite six requests for such proof; and closing down its store, despite a continuous operations lease clause. The tenant argued that it paid its rent late and closed its business because the owner failed to repair roof leaks that had caused water damage to its space. It also argued that it couldn't be evicted because its violations were minor.

A shopping center owner sued to evict a tenant, claiming that the tenant violated its lease by paying rent late on several occasions over a four-year period; failing to provide proof of insurance, despite six requests for such proof; and closing down its store, despite a continuous operations lease clause. The tenant argued that it paid its rent late and closed its business because the owner failed to repair roof leaks that had caused water damage to its space. It also argued that it couldn't be evicted because its violations were minor.

A Minnesota appeals court ruled that the owner could evict the tenant because of its lease violations. The court rejected both of the tenant's arguments. The court said that even if the owner had failed to make required repairs, such failure didn't absolve the tenant of its lease obligations. And the court said that the tenant's failure to maintain the required insurance coverage wasn't a minor violation because such failure exposed the owner to “a potentially significant liability risk” [505 Las Americas, Inc. v. American Indian Neighborhood Development Corp.].

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