Owner Wins, Owner Loses

Lease Was Unclear Regarding Initial Buildout Construction

May 25, 2016    

Facts: An owner signed a lease with a tenant for space to operate a convenience store. After the tenant took possession of the space it notified the owner that the owner’s obligation to remove or remediate any asbestos in the building was waived. The tenant began making...

Landlord Wasn't in Joint Venture with Tenant for Liability Purposes

May 25, 2016    

Facts: An owner signed a lease for nightclub space with a tenant. Under the lease, the owner was entitled to additional rent under certain circumstances. The owner had no day-to-day supervision over the property or the tenant. After a nightclub customer was attacked by a third...

Assignee Had Duty to Read Lease Documents

April 28, 2016    

Facts: A tenant assigned its lease for office space. The assignee later claimed that the owner was required to pay a tenant improvement allowance (TIA). The assignee based its argument on lease drafts that had discussed a TIA. But the final version of the lease, which the tenant...

Lease Signed by Owner's Agent Was Enforceable

April 28, 2016    

Facts: A woman purporting to be the owner of a property signed a lease with a tenant for space to operate its auto body shop. The lease required the tenant to make necessary repairs and improvements, and it specified that those improvements would be left behind at the end of the...

Initial Lease Term—Not Renewals—Used to Determine Fraud Claim

April 18, 2016    

Facts: The owner of a gas station signed a lease with a tenant. The tenant became a sublandlord when it signed a convenience store sublease for space at the gas station where a subtenant could operate its coffee shop. The sublease with the coffee shop subtenant was for a 10-year...

Disputed Charges Were Properly Classified as CAM

April 18, 2016    

Facts: The owner of a shopping center sued a tenant for breach of its lease. The owner had charged as part of common area maintenance (CAM) a prorated amount that it had to spend on fixing potholes in the parking lot and installing signs limiting the parking lot to customers....

Tenant Must Bear Entire Cost of Personal Injury Award

April 18, 2016    

Facts: A car dealership leased a lot where its inventory was stored. It contracted with a car carrier company to transport its cars from certain locations to the lot. A mechanism devised by the dealership tenant to control traffic at the entrance to the lot pulled a brick wall...

Tenant Could Remove Fixtures During Unofficial Extension Period

March 31, 2016    

Facts: A restaurant tenant faced with an eviction order offered the owner of the space $40,000 to extend the time it could use the space after it was supposed to vacate. The tenant wanted to use the extra time to work out a deal with a potential buyer of the restaurant, who...

Fitness Classes Violated Permitted Use for Batting Cage Space

February 23, 2016    

Facts: A shopping center owner sued its tenant for violating the permitted-use provision of its lease, which allowed it to operate a batting cage and hold agility classes for team sports. Specifically, the tenant had been offering strength-and-conditioning classes, fitness-...

Court Upholds Shopping Center Lease Arbitration Award

February 23, 2016    

Facts: Under its agreement with a previous owner of the shopping center where it rented space, a tenant had been permitted to use its rent payments to “pay down” a wraparound mortgage that arose from some bankruptcy claims. After the center was purchased, the tenant...

Tenant Made Adequate Repair Efforts During Cure Period

January 28, 2016    

Facts: A national pet product retailer received a notice of default and termination from the owner of the space it rented. The owner alleged that the tenant had failed to perform its maintenance obligations under the lease, most notably, failing to fix a large crack in a wall,...

Tenant's 'Ongoing' Termination Right Lasted for Years

January 28, 2016    

Facts: A tenant negotiated a lease that granted it an ongoing right to terminate its obligations in the event of a sale or relocation of its business. Specifically, the lease stated that, “provided the Tenant is selling or moving the business, Tenant shall have the ongoing...