Owner Wins, Owner Loses

Owner's Duty of Care Stemmed from 'Unusual' Lease Provisions

March 12, 2015    

Facts: The employee of a tenant who rented retail space was injured when a light fixture fell on her upper back and neck while she was working. The employee sued the owner. The owner asked a trial court for a judgment in its favor without a trial. The trial court granted the...

Rent Abatement Was Unreasonable Penalty on Owner

February 13, 2015    

Facts: A shopping center owner sued one of its tenants, challenging the enforceability of lease provisions conditioning the tenant’s obligation to open a store and pay rent on a specific retailer operating a store in the center on the commencement date of the lease. It...

Statute of Limitations Barred Suit Against Center's Owner

February 13, 2015    

Facts: A supermarket customer fell and was injured in the parking lot at the shopping center. She sued the tenant, claiming that the fall occurred because of a defective and dangerous condition there. The tenant notified the customer that the center’s owner was responsible...

Owner Must Give Proper Notice for Fixture Removal

February 13, 2015    

Facts: An owner claimed that its restaurant tenant breached the lease by failing to remove “trade” fixtures before moving out. The tenant argued that it wasn’t required to remove the fixtures because the owner hadn’t complied with the lease terms...

Tenant Is 'Prevailing Party' Under Fee-Shifting Provisions

January 16, 2015    

Facts: A retail lease provided that attorney’s fees and expenses would be awarded to the prevailing party in “any dispute” between the owner and tenant arising out of the use or occupancy of the space. The owner later sued the tenant for several claims...

Farmer's Market 'Stalls' Violated Supermarket's Restrictive Use

January 16, 2015    

Facts: The lease between a shopping center owner and a supermarket tenant contained a restrictive-use covenant prohibiting the owner from leasing space to another grocery store or “food market.” The lease defined food market to include any vendor selling food items....

Nonmaterial Breach Didn't Excuse Tenant's Performance

January 16, 2015    

Facts: A tenant operating a securities firm moved out of its office building space three and a half years before the end of the lease term and stopped paying rent. The owner of the office building sued the tenant.

Termination Agreement Didn't Extinguish Tenant's Guaranty Obligations

September 29, 2014    

Facts: As part of its lease for space in a shopping center, a retail tenant signed a guaranty, in which the tenant personally guaranteed payment of rent in the event that the business couldn’t pay. The tenant later encountered financial difficulties and fell behind on its...

Tenant's Oral Request Not Sufficient to Renew Lease

September 29, 2014    

Facts: A restaurant tenant approached the owner of the space it rented to discuss renewing its lease. It orally requested a renewal, but didn’t put the request in writing, as required by the renewal provisions in its lease. Later, when the owner refused to renew the lease...

Tenant Not Responsible for Management Fees

September 29, 2014    

Facts: A bank tenant signed a triple-net lease for a standalone building in a shopping center. (Under a typical "triple-net" lease, the tenant pays all expenses, including property taxes and insurance, maintenance, and utilities, leaving the owner with no expense...

Tenant Didn't Have to Pay Expenses for Out-of-State Surveyor

September 29, 2014    

Facts: A bookstore tenant filed for bankruptcy. During the bankruptcy proceedings regarding whether its lease would be rejected or assumed, the owner sent the tenant a notice requesting access to the tenant’s space to perform an “as-built” survey of the space...

Tenant Couldn't Rely on Owner’s Verbal Assurances

August 26, 2014    

Facts: An owner signed a lease with a tenant that intended to operate a private school in its space after performing extensive renovations. After the owner wasn’t able to obtain an amended certificate of occupancy that would permit the tenant to operate a school, rather...