Owner Wins, Owner Loses

Owner Couldn't Use Self-Help to Evict Tenant

April 30, 2014    

Facts: A tenant rented space to operate its dental practice. After the building was bought by a new owner that intended to turn the building into a hotel, the tenant received a notice of cancellation. The lease gave the owner the right to cancel the lease if it intends to apply...

Personal Lease Guaranty Was Ambiguous

March 26, 2014    

Facts: A coffee shop tenant signed a lease for space in a strip mall, and signed a personal guaranty, promising that he would be financially responsible if the lease were defaulted on. The tenant later sold the coffee shop. When the new coffee shop tenant stopped paying rent,...

Owner Can't Sue for Future Rent Without Acceleration Clause

March 26, 2014    

Facts: After a flood damaged its store in a strip mall, a sporting goods tenant announced that it would be closing its store and moving out. The tenant informed the owner that it was no longer able to get and maintain adequate insurance as required by the lease. The tenant was...

Defect Must Be Latent to Defeat As-Is Lease

March 26, 2014    

Facts: The state health department forced a frozen yogurt shop tenant to suspend its operations until the waste water system for its space in a strip mall complied with state requirements. The tenant, who was unaware that its water system was inadequate, complained to the owner...

Owner Didn't Waive Early Termination Provisions

February 26, 2014    

Facts: A lease for storage space for casino equipment gave the tenant an early termination right, provided that it sent a letter in writing to the owner and paid a termination fee by a certain date. During a phone call shortly before the early termination deadline, the tenant...

Tenant Must Pay Rent During Reduced Occupancy Period

February 26, 2014    

Facts: A retail tenant’s lease for shopping center space gave it the right to stop operating for a “reduced occupancy period” if a major co-tenant left the center until it was replaced. While a reduced occupancy period was in effect, the tenant decided to...

Owner Not Liable for Tenant’s Flood Damage

January 28, 2014    

Facts: The shopping center where a general store-type tenant rented space was damaged when the area experienced flooding. The tenant sued the owner of the shopping center, among other parties including the adjacent tenant (a grocery store) and the Federal Emergency Management...

Definition of ‘Adjoined’ Not Affected by Unusable Space

January 28, 2014    

Facts: A foot care clinic rented office space and exam rooms in a strip mall. Its lease provided that the owner wouldn’t place a retail business in space “adjoining” the tenant. The owner subsequently leased space in the strip mall to a liquor store. The liquor...

Use of Specific Tenant's Name Binding on Owner

December 17, 2013    

Facts: A shopping center owner and a women’s clothing store signed a lease for space next to a large national bookstore. The lease’s cotenancy provision allowed the tenant to abate its minimum monthly rent if the bookstore stopped operating. After several years, the...

Owner Liable for Shopper's Injuries Outside Tenant's Store

December 17, 2013    

Facts: A shopper was hit by a motorist on the sidewalk outside of a shopping center tenant’s store. The shopper sued the center’s owner and the tenant. The owner and the tenant each asked a trial court for a judgment in its favor without a trial. Each said that the...

Sublease Shifted Maintenance Obligation to Tenant

November 22, 2013    

Facts: A tenant that rented five floors of an office building and the attached parking garage sublet the garage space to a parking garage operator. The owner later discovered water damage in the garage. It sued the tenant, asserting that the tenant was obligated under the lease...

Tenant Not Required to Pay Owner’s Attorney’s Fees

November 22, 2013    

Facts: A supermarket tenant signed a 25-year lease with the owner of a shopping center. Under the lease, the tenant was to pay base rent plus additional rent, which included items like its pro rata share of taxes for the center. Like some of the other tenants in the center, the...