Owner Wins, Owner Loses

Deadline for Repairs Not Extended by Appeals Process

July 26, 2012    

Facts: For 30 years, a fitness center leased space in a shopping center under a series of leases. After a fire damaged the center, the center’s owner made some repairs and asked the tenant to resume its operations in the space. The tenant, however, claimed that the repairs...

Lease Modification Must Be in Writing

July 26, 2012    

Facts: A women’s clothing manufacturing company rented space in an office building. The chief executive officer of the company signed the lease on behalf of the company, gave a security deposit, and executed a “good-guy” guaranty, personally guaranteeing that...

Thrift Store Wasn’t ‘Qualified Replacement’ for Retail Tenant

June 26, 2012    

Facts: A shopping center tenant signed a 10-year lease with a five-year extension option. Under the lease, the tenant had the right to renegotiate the terms of the extension period, including the rental rate. At the time that the tenant signed the lease, the center included...

'Kickout' Provision Didn't Require Specific Date of Termination from Tenant

June 26, 2012    

Facts: A retail tenant’s shopping center lease included a “kickout” provision, allowing it to terminate the lease if its annual gross sales during the fifth year of the lease term didn’t exceed $3.5 million. To terminate the lease, the tenant was required...

Lease Termination Delayed for Tenant to Cure Violations

May 28, 2012    

Facts: The owner of a building used as a supermarket terminated its tenant's lease and ordered it to move out of the space because the tenant had allegedly “incurably” defaulted on the lease—that is, violated the lease in a way that couldn't be fixed—by...

Owner Assumed Duty for 'Punch List'

May 3, 2012    

Facts: A utility company signed a lease for an office building that would be constructed according to a building plan between it and the owner. The lease would commence when the building was “substantially complete,” meaning that the building had been constructed according to...

Owner Responsible for Property Taxes

May 3, 2012    

Facts: An office building tenant asked the owner to pay the property taxes that it claimed the owner was responsible for under its lease terms. The tenant withheld its rent while the owner refused to pay the property taxes. The owner informed the tenant that by withholding its rent...

Rent Abatement Mandatory Under 'Self-Executing' Provision

April 12, 2012    

Facts: In April, an owner and tenant signed a lease for retail space in a shopping center that was still under construction. The lease provided that the owner would deliver the property to the tenant in an improved condition specified in the lease by the time the lease was to start, in...

Tenant Agreed to Owner's Exculpatory Clause in Lease

April 12, 2012    

Facts: A clause in a lease between a retail tenant and shopping center owner generally exempted the owner from liability and stated that an insurance claim was the tenant's sole recourse for the owner's negligence. Another paragraph specifically precluded the tenant from suing the...

Renewal Rent Must Be Determined by Appraisers, Not Court

March 26, 2012    

Facts: An office building owner rented space to a bank under a five-year lease with two five-year extension options. Under the lease, if the tenant exercised its options to extend, the owner and tenant were to attempt to agree on the renewal rent. If they were unable to agree, the lease...

Owner Didn't Send Written Notice of Noise Violation

February 27, 2012    

Facts: A resident of a mixed-use retail and condominium building complained that the employees of a restaurant that rented space on the ground floor of the building played excessively loud music. The resident sued the owner of the building for “private nuisance,” claiming that...

Owner Not Entitled to Daily Charge After Permanent Store Closure

February 27, 2012    

Facts: A supermarket tenant closed its store before the end of its 20-year lease for shopping center space. The center's owner sued the tenant, asking the court for: an injunction (that is, an order to a party to do or refrain from doing something) to force the tenant to continue...