Owner Wins, Owner Loses

Owner Didn't Waive Right to Collect Taxes

October 25, 2013    

Facts: A tenant rented space for its bakery in a shopping center. After the tenant moved out of the space, the center’s owner demanded that it pay real estate taxes and operating expenses incurred while it still occupied its space, plus the cost of restoring the space...

Tenant Entitled to Time to Gather Evidence in Breach-of-Lease Claim

October 25, 2013    

Facts: A used car dealership breached its six-year lease for a one-acre commercial lot where it sold trucks. It failed to pay the full amount of rent and other charges when they were due. The lot’s owner terminated the lease and sent the tenant an eviction notice.

Trial Needed to Determine Whether Consent Was Unreasonably Withheld

October 25, 2013    

Facts: A building with residential space for a cooperative (plaintiff) and commercial space on the ground floor that the plaintiff leased to 11 tenants was located in an historic district, meaning that changes could be made to its exterior only with the approval of a...

Tenant Disputed Rent Calculation Based on CPI Adjustment

September 23, 2013    

Facts: The lease between the owner of a warehouse and its tenant set out base rent for the first several years of the lease. Under the lease, every seven years the base rent would be adjusted to include the original base rent plus an amount calculated using changes in the...

Lease Didn't Give Owner and Tenant Same Right to Terminate

August 28, 2013    

Facts: A large national retailer of arts and crafts materials and a shopping center owner signed a lease with an ongoing cotenancy provision requiring the owner to lease the anchor store in thecenter to a regional or national tenant meeting certain criteria. If the owner fails...

Trial Needed to Determine Liability for Injury in Center’s Common Area

August 7, 2013    

Facts: A shopper suffered severe neurological and brain injuries when two teenagers at the center where she was shopping with her son threw a shopping cart from the fourth level of the center onto her at the ground level. (As a result of the assault, the teenagers were sentenced...

Trial Needed to Determine Allocation of Real Estate Taxes

July 26, 2013    

Facts: A mall owner signed a 20-year ground lease with a tenant for space in which to operate a movie theater. The lease included several clauses concerning the allocation of real estate taxes between the owner and tenant, including who was responsible for having the premises...

Amendment Didn’t Extinguish Excessive Vacancies Clause

July 26, 2013    

Facts: A tenant that sold electronic equipment leased space in a shopping center in 1973. A significant provision of the lease—the excessive vacancies clause—provided for abatement of rent in the event that the occupancy of the shopping center dropped below a certain...

Owner Must Send Statutory Notice of Automatic Renewal Provision

July 26, 2013    

Facts: The initial term of a lease between an owner and its tenant, a supermarket, was for 20 years and contained an option for the tenant to renew four times for five-year extension periods. Under the initial term, the lease would automatically renew unless the tenant notified...

Government Appropriation Trumps Tenant’s Option to Purchase

June 20, 2013    

Facts: A trust that owned property that had been used as retail space signed a lease with a tenant that planned to use the space as a fast-casual restaurant. The lease gave the tenant the option to purchase the property at any time for $110,000. The tenant spent $300,000 on...

Radius Restriction Is Reasonable Restraint on Tenant’s Business

June 20, 2013    

Facts: A commercial developer sought an anchor tenant for the mall it was building. As an inducement to attract a certain national big-box retailer, the developer signed a purchase and sale agreement with the tenant. Under the agreement, the developer agreed to sell 27 acres to...

Owner Couldn't Withhold Consent to Assignment Just to Get Higher Rent

May 23, 2013    

Facts: The owner of a gas station leased the building used as a convenience store and the underlying lot to a tenant for a five-year term. The lease gave the owner the option of renewing the lease every five years, with a total of five additional five-year terms. There would be...