Failure to Satisfy Contractor’s Lien Costs Franchise Tenant Nearly $1 Million

What Happened: After receiving a notice to file claim from a contractor who didn’t get paid for fire prevention work performed on a Boston Market restaurant, the landlord notified the tenant leasing the property that it was in default of the lease and gave it 30 days to cure. The tenant ignored the notice. As a result, the lien was recorded. So, the landlord terminated the lease and sued the tenant for unpaid rent and other damages. Despite being validly served, the tenant didn’t respond to the complaint while remaining in possession of the property.

Ruling: The Florida court entered default judgment against the tenant for $927,055.63.

Reasoning: The landlord presented evidence establishing that the tenant committed a slew of lease violations by:

• Failing to remediate fire and life safety violations at the property;
• Failing to cure the default resulting from those violations;
• Allowing a notice to file claim for lien to be issued in connection with unpaid services performed at the property on the tenant’s behalf;
• Failing to satisfy the claim of lien upon receiving notice of the claim, resulting in its being recorded;
• Failing to surrender the property upon the landlord’s termination of the lease; and
• Failing to pay “multiple months’ worth of rent” while remaining in possession of the property after termination of the lease.

• 16251 Bos. LLC v. Bos. Mkt. Corp., 2024 U.S. Dist. LEXIS 1117