Ex-Owner Couldn't Sue for Rent Due After It Sold Center

November 1, 2004

An owner sold its center and assigned all the leases to a new owner. Six months after the sale, the ex-owner sued a tenant for rent due under its lease. The tenant asked the court to dismiss the lawsuit, arguing that only the new owner could sue it under the lease. The court refused to dismiss the lawsuit, so the tenant appealed.

An owner sold its center and assigned all the leases to a new owner. Six months after the sale, the ex-owner sued a tenant for rent due under its lease. The tenant asked the court to dismiss the lawsuit, arguing that only the new owner could sue it under the lease. The court refused to dismiss the lawsuit, so the tenant appealed.

A Georgia appeals court dismissed the lawsuit, ruling that the ex-owner couldn't sue the tenant for the rent due. The court said that the ex-owner had no “standing—that is, no legal authority—to sue the tenant, since it was no longer a party to the tenant's lease. Only the new owner could sue the tenant for the rent due under its lease, the court added [Smith v. 6595 Corp.].

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