Owner Wins, Owner Loses

Owner's Material Breach Is Incurable

December 21, 2015    

Facts: An owner and tenant signed a lease for office space, whereby each party would perform renovations to the space to convert it from industrial to office space. The owner was to perform its renovations first. After the owner missed the deadline to turn the space over to the...

Tenant Bore Risk of Interruption in Business

November 19, 2015    

Facts: A restaurant tenant stopped paying rent for its commercial space. It claimed that a nearby state construction project had substantially decreased its profits because the construction blocked the entrance’s visibility and forced customers to take an indirect route to...

Tenant's Misrepresentation of Financial Condition Was Fraudulent

November 19, 2015    

 Facts: A tenant signed a 13-year lease with the owners of an office building. Upon moving into the office space the tenant failed to secure a $75,000 security deposit bond, which was required under the lease. The tenant later moved out without notice or...

Tenant Must Abandon Space to Rely on 'Constructive Eviction'

November 19, 2015    

Facts: A national department store tenant withheld its rent and engaged in self-help remedies after the owner of the shopping center repeatedly failed to repair problems with the building, including leaking plumbing and a dilapidated appearance both inside and outside the...

Mall Owner Released from Liability for Jewelry Theft

October 26, 2015    

Facts: A jewelry vendor signed a license agreement to sell its inventory from a kiosk in a mall. At the end of the day, the tenant would store its inventory in a safe contained within its space. The space was then closed off and the mall itself was not accessible to the public...

'Premises' Referred to Only Interior of Tenant's Space

October 26, 2015    

Facts: A tenant rented space to operate its café and lounge in an Art Deco-style entertainment complex that included a theater and flashing signage. According to the tenant, the exterior of the building and the unique signage attracted customers to its location. Under the lease...

Space's Increased Value Didn't Raise Rent Rate

September 17, 2015    

Facts: A luxury retailer (subtenant) subleased space for its flagship store. The sublandlord was an affiliate of the owner of the building. The sublandlord informed the subtenant that the property would be redeveloped in two years, and, in the meantime, the subtenant would have...

Owner Not Required to Pay for Accessibility Expenses

September 17, 2015    

Facts: Less than one year after entering into a five-year lease, a tenant vacated its space, declaring that the owner had materially breached the lease by allegedly refusing to make accessibility improvements under the Americans with Disabilities Act (ADA) that the tenant...

Tenant Not Obligated to Exercise Lease Option

September 17, 2015    

Facts: A bank tenant entered into two ground leases for properties on which to build a bank branch and parking lot, respectively. The tenant was responsible for procuring all necessary permits. The ground leases provided a contingency period—the “Approval Period...

Owner Adequately Mitigated Damages

August 28, 2015    

Facts: A shopping center owner sought to recover damages from a liquor store tenant after it breached its lease and lease guarantees by failing to pay rent. After the owner sent the tenant a notice to quit possession of the premises, the tenant moved out. The owner sued the...

Trial Needed to Determine Fraudulent Nondisclosure Claim

August 28, 2015    

Facts: A tenant negotiated two leases for space for two of its upscale restaurants at an Atlantic City, N.J., pier. The tenant was interested in the particular spaces because two other upscale restaurants had also signed leases for nearby space with the owner.

Necessity of Future Alterations Didn't Negate Consent Requirement

August 11, 2015    

Facts: A fast-food restaurant franchisee was required to update its space every seven to 10 years in accordance with its franchise agreement. Its lease prohibited the tenant from making any...