Tenants Must Pay Neighbors $7.4M for Negligent Use of Warehouse

What Happened: Only 10,000 of the tenant’s 560,000 square-foot recycling warehouse had fire department approval for occupancy. And while the tenants were advised to do so, they never installed the necessary, code-compliant sprinkler and water flow systems. So, when the warehouse burned down in a fire, neighboring property owners sued the tenant and its corporate owners for negligence, gross negligence, and public nuisance. We’re not responsible, the tenants claimed, because we only leased the building.

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