Owner Wins, Owner Loses

Did Prospective Tenant Make Oral Promise to Lease?

February 9, 2012    

Facts: A representative of a technology services firm toured a vacant building with two prospective owners who were considering buying the property, but only if they could find an appropriate tenant for it. The representative expressed interest in renting the space, but didn't sign a...

Breach-of-Lease Damages Are Invalid

February 9, 2012    

Facts: A building owner leased space to a restaurant tenant for a five-year term. During the course of renegotiating the lease at the end of the term, the tenant gave the owner a personal written guaranty. The lease provided for accelerated rent if the tenant breached the lease. The...

Lease Assignee Doesn't Own Former Tenant's Structure

November 28, 2011    

Facts: For over 30 years, an auto body business rented commercial property made up of several buildings. Ten years into the lease, the tenant built a small building on the property to use as a “paint room” where it could paint cars it had repaired. A few years later, it...

Request to Extend Lease Must Comply with Lease's Renewal Provisions

September 27, 2011    

Facts: An owner and insurance agency signed a 10-year lease for office space. The lease provided for two renewal terms of five years each if the tenant notified the owner 12 months prior to the end of the lease of its intention to renew. The lease also required the tenant to meet with the...

Tenant Can Sue Owner for Fraudulent Inducement

September 27, 2011    

Facts: A jewelry store that rented space in an outdoor shopping center sued the owner of the center for fraud. At the time the tenant expressed interest in renting space in the center, the owner represented that a second center, “Phase II,” would be built next door, creating a...

Lease's Silence on Rent Abatement Meant It Wasn't Permitted

August 31, 2011    

Facts: The owner of a strip mall and a tenant signed a three-year lease for space in which the tenant was to operate its salon and spa.

Owner's Denial of Tenant's Access to Elevators Breached Lease

August 31, 2011    

Facts: A restaurant tenant signed a lease for space in a food court area of an office building. The tenant sued the building's owner for fraud and breach of contract, alleging that its food and supply delivery people were being refused access to the entrance of the building and the...

Owner Made Reasonable Efforts to Mitigate Damages

July 31, 2011    

Facts: A franchised restaurant tenant signed a lease with a property owner/developer while the shopping center where it would rent space was still being developed. The tenant as a corporation signed the lease as both tenant and guarantor.

Online Ad for Vacant Space Insufficient to Mitigate Damages

June 20, 2011    

Facts: After a retail tenant didn't pay its rent, the owner of the space sued it for defaulting on its lease. The tenant didn't dispute the owner's claim that it had breached the lease. Instead, it argued that the owner was obligated to mitigate its damages—that is, take...

Estoppel Certificate Precluded Tenant's Breach Claim

May 25, 2011    

Facts: The exclusive-use provision in a tenant's lease barred the owner from renting space in its shopping center to other tenants that sold stationary and school supplies. Several months later a school supply store opened in the center, but the tenant didn't object.

No Lease Termination for Anticipatory Breach

May 25, 2011    

Facts: A retail tenant assigned its lease to a drugstore, but asked the owner if it could remain primarily liable for the strip mall space, instead of reducing or entirely relieving itself from liability. The owner objected to the assignment and sued the tenant.

The trial court...

Tenant Couldn't Prove Intent, Ability to Reclaim Property Left Behind

April 25, 2011    

Facts: A tenant that operated a thrift store was evicted for nonpayment of rent. The owner believed the store's inventory, which the tenant had left behind, was “junk” and disposed of it without waiting 15 days—the statutory period during which tenants have an...