Owner Wins, Owner Loses

Failure to Address Issue Does Not Mean Waiver

October 31, 2008    

Facts: A tenant and owner entered into a 10-year lease. Approximately three years into the lease, the tenant sued the owner for violating the terms of the lease. The parties were able to reach a settlement orally, but asked the court to step in because they could not agree on the written...

Owner's Future Plans Not Violation of Lease Terms

September 25, 2008    

Facts: An owner and a tenant entered into a seven-year lease. The tenant made renovations to the space that fit the specific needs of its business. Shortly after, a new owner purchased the building and began renovations, some of which were on the tenant's floor—though not in the...

Defective Lease Execution Negates Original Lease Terms

September 25, 2008    

Facts: A tenant entered into a lease with an owner, but at the lease signing, an individual whose capacity was undetermined signed the lease on the owner's behalf. After a dispute over on-site equipment, the tenant vacated the premises before the end of its lease.

Owner's Refusal to Grant Access Equals Partial Eviction

September 25, 2008    

Facts: An owner and a tenant entered into a lease agreement that gave the tenant exclusive access to the reception area, a lunchroom, a conference room, and reserved parking spaces. The property was eventually transferred to a new owner that refused to grant access to the areas...

Health Code Violations Don't Relieve Rent Obligation

September 8, 2008    

Facts: The tenant and owner entered into a lease agreement containing a provision that relieved the tenant from paying the rent and other charges during the lease term if the premises were unfit for occupancy.

Several months into the lease, the owner was informed that the premises...

Owner's Refusal to Comply with State Law Equals 'Constructive Eviction'

August 31, 2008    

Facts: An owner and tenant entered into a lease that called for the tenant to pay for any modifications to the sprinkler system stemming from any changes the tenant made to the space. The lease made the owner responsible for installing a burglar alarm and fire alarm system.

Tenant's Late Notice Can't Be Excused

August 31, 2008    

Facts: A shoe store tenant and an owner entered into a sublease, and also into a prospective six-year lease for the same space that was to begin when the sublease ended. The six-year lease gave the tenant a termination option.

After unsuccessfully negotiating a base rent...

Tenant Not Entitled to Space After Subtenant Default

July 31, 2008    

Facts: The owner leased a building to a tenant that later sublet the building to a third party for the purposes of running a restaurant. Several years later, a fire damaged the building. The subtenant had the following legal options: 1) fix the damage and recover the cost from the owner;...

Owner Must Inspect After Eviction

July 31, 2008    

Facts: A tenant restaurant defaulted on its lease by operating an after-hours dance club and by failing to pay its rent. The owner sued to evict the restaurant and won, but a week and a half after the eviction judgment was made, the restaurant was still operating, and a customer slipped...

Assignment Does Not Eliminate Options

July 31, 2008    

Facts: An owner and tenant entered into a 20-year lease that included four lease extension options, each for five years. The owner assigned his interest in the lease to a new owner—that is, gave the new owner all of its rights in the lease. The tenant assigned the 20-year base lease...

Tenant Didn't Have to Name Owner in Insurance Policy

June 30, 2008    

Facts: An owner and tenant signed a commercial lease that required the tenant to obtain commercial general liability insurance (CGL) for their “mutual benefit.” The blanket additional insured endorsement in the CGL policy that the tenant purchased stated that the definition of...

'No Terrorism' Insurance Policy Insufficient

June 30, 2008    

Facts: A tenant entered into a lease agreement that required the purchase of insurance coverage for damages as a result of specific harms including smoke, riot, crashing airplanes, and “civil commotion.” The lease agreement did not specifically require coverage for terrorist...