Owner Wins, Owner Loses

Owner Can Withhold Consent to Assign

February 1, 2009    

Facts: After a tenant negotiated the sale of its lease and business to a third party, it asked the owner for consent to assign the lease. The owner refused, and the tenant sued, alleging that the owner unreasonably withheld consent. The trial court ruled in favor of the tenant, and the...

Tenant Can't Claim Constructive Eviction

February 1, 2009    

Facts: A tenant signed a lease for space that had a history of flooding problems. During the owner's tenure, it repaired any and all damage that resulted from flooding. Approximately five years into the lease, the owner sold the property, but signed an agreement with the new owner...

Statute of Frauds Not Applicable to One-Year Lease

February 1, 2009    

Facts: A tenant and an owner entered into a one-year lease. The tenant paid rent for three months and then abandoned the property, arguing that, according to the statute of frauds, the lease was invalid because it lacked a property description. The owner successfully sued in small claims...

Owner Not Liable for Tenant's Pet

February 1, 2009    

Facts: A tenant's dog attacked and severely injured a young child on the premises. The child's parent sued the dog's owner and won a substantial award, and later attempted to sue the building's owner for allegedly not evicting the tenant or forcing him to get rid of his...

Failure to Pay Overdue Taxes Violates Bankruptcy Rules

January 1, 2009    

Facts: After a tenant filed for bankruptcy, a limited liability company (LLC) agreed, in a bankruptcy court order, to take over the tenant's lease and settle the tenant's outstanding debt, as determined by bankruptcy rules. The bankruptcy court's order also required the tenant...

Tenant Improvements Did Not Violate Lease Restriction

January 1, 2009    

Facts: In exchange for a significant rent increase, an owner agreed not to lease space to any business that sold the same types of products as the tenant.

Owner's Actions Can Create Tenant Property Interest

January 1, 2009    

Facts: A tenant decided to turn over ownership of its business to an employee. The employee informed the owner orally that he was taking over the tenant's business, but did not go through the formality of having the space assigned with a lease agreement. The owner continued to accept...

Owner's Failure to Offer Defense Solidifies Damage Claim

November 30, 2008    

Facts: An owner and a tenant entered into a five-year lease. During the end of the third renewal period, the tenant was informed that a new owner planned to demolish the building. The tenant tried to find an alternative space, but the new owner refused to let the tenant out of the lease...

Payment to Court Isn't Proof of Default

November 30, 2008    

Facts: An owner sued a tenant, claiming that it owed past-due rent. The amount was in dispute. The owner submitted two separate amounts, with one being substantially larger than the other. In accordance with state law, the tenant deposited the disputed amount in an account managed by the...

Issues Not Addressed in Settlement Agreement Require Separate Lawsuit

November 30, 2008    

Facts: An owner sued its tenant for nonpayment of rent. Before the trial, the owner and tenant settled the dispute and entered into a settle agreement. The trial court approved the terms and retained authority to enforce them. The tenant agreed that if it violated any of the financial...

'As Is' Clause Doesn't Apply to Profitability of Business

October 31, 2008    

Facts: A tenant and an owner discussed the value and potential of a business for sale, and then entered into a lease agreement that allowed the tenant to lease the property, the business, and all of its contents for a specified amount with an option to purchase. The document signed by...

Lack of Witness at Lease Signing Doesn't Negate Agreement

October 31, 2008    

Facts: An owner operating as a limited liability company (LLC) signed a 10-year lease with a tenant while the building was still under construction. When the building was almost completed, the owner backed out of the deal, claiming that the lease was not valid, because there were no...