Was Tenant's Agreement an Assignment or Sublease?

What Happened: A pizzeria tenant transferred its interests in a five-year lease to two individuals via an agreement called an “assignment.” When the individuals stopped paying rent with 14 months left on the lease, the landlord sued the tenant for payment of the $125K rental balance. The tenant then sued the individuals, but the court ruled that because the “assignment” was actually a sublease the individuals weren’t on the hook for the remaining 14 months’ rent. The tenant appealed.

Full Article Access:

Full access to complete articles from Commercial Lease Law Insider is for subscribers only.

Not yet ready to subscribe?