Court Upholds Shopping Center Lease Arbitration Award
Facts: Under its agreement with a previous owner of the shopping center where it rented space, a tenant had been permitted to use its rent payments to “pay down” a wraparound mortgage that arose from some bankruptcy claims. After the center was purchased, the tenant was required to pay full rent to the new owner. The tenant objected, and the dispute went to arbitration. An arbitrator determined that the lease gave the owner the right to collect rent from the tenant, and didn’t require it to follow the previous payment arrangement. The tenant appealed.