Owner Wins, Owner Loses

Lease's Non-Compete Covenant Didn't Apply to Prior Tenants

October 31, 2010    

Facts: A tenant and owner signed a lease extension for shopping center restaurant space that the tenant had been renting to run its pizza parlor. The extended lease term was from June 1, 2010, to May 31, 2026.

Tenant Must Strictly Comply with Terms of Renewal Option

October 31, 2010    

Facts: A tenant operated a restaurant-bar on the first floor of a commercial building. A company controlled by the president of the tenant's company had sold the entire building to a new owner in a sale-leaseback transaction whereby the owner leased the first floor back to the tenant...

Tenant with Stairwell Access Could Not Terminate Over Broken Elevator

October 23, 2010    

Facts: A garment manufacturer tenant signed a lease for the seventh-floor of a building. The tenant and owner acknowledged that because the building's elevator was undergoing renovations, it might not be available for service at the start of the lease term. To account for the possible...

Property Manager's Testimony Contradicted by Evidence

October 23, 2010    

Facts: A tenant rented commercial space for its beauty salon under a 10-year lease that required rent plus a percentage of the building's operating costs (overhead charge). The estimated monthly overhead charge was $800, and the owner was obligated to calculate the actual overhead...

Owner Entitled to Full Rent for Abandoned Buildings

October 23, 2010    

Facts: An owner sued a tenant for breaching its two leases after the tenant abandoned both of the owner's buildings that it rented and refused to pay the remaining rent due under the leases. Because the tenant failed to appear at two summary dispossess proceedings for nonpayment of...

Tenant's Exclusive Use Provision Applied to Other Buildings

October 23, 2010    

Facts: A fast-food restaurant had an exclusive right to sell “sandwiches and subs” in a shopping center that consisted of three buildings (Building A, Building B, and Building C). The fast-food restaurant tenant was located in Building A.

Affidavit Used as Evidence of Tenant's Personal Guaranty Default

September 30, 2010    

Facts: A tenant signed a lease for office building space. At the same time, the tenant also signed a personal guaranty, guaranteeing his rent obligations under the five-year lease. The tenant moved out of its office space a year before the lease term was to end, but the owner didn't...

Tenant Entitled to Early Termination for Space Converted to Housing

September 30, 2010    

Facts: An office building tenant moved out of its space, but continued to fulfill its lease obligations until the property manager notified it that several previous subcontractors hired by the owner were occupying the space. The subcontractors, all of whom were unauthorized to be on the...

Property Manager Had “Corporate Authority” to Evict Under Agreement

August 31, 2010    

Facts: A doctor rented space in a medical office building owned by a real estate corporation. The corporation sued the doctor for nonpayment of rent. The building's property management company notified the doctor that he had 60 days in which to vacate the space; otherwise, the...

Mall's Kiosk Placement Did Not Cause Slip-and-Fall

August 31, 2010    

Facts: A customer sued a shopping mall after she slipped and fell down concrete steps leading to a fountain, because she was looking at merchandise on a kiosk. The customer claimed that the mall's placement of the kiosk in relation to the stairs created a dangerous condition.

Lifestyle Tenant Can Terminate After Co-Tenancy Requirements Not Met

July 25, 2010    

Facts: A lifestyle center comprised of condominiums, retail stores, and restaurants was to be constructed in three phases. A bookstore tenant signed a lease with the lifestyle center's owner for retail space in a building that was not yet completed. Under the lease, the tenant was...

Mall Manager Responsible for Replacing Faulty Ladder

July 25, 2010    

Facts: A sporting goods store tenant at a shopping mall hired a contractor to hang its sign and provided a ladder for him to use while working. The contractor claimed that he had warned the tenant and mall manager that the feet on the ladder were worn out, but was told to “just...