Owner Loses

Trial Needed to Determine Liability for Injury in Center’s Common Area

August 7, 2013    

Facts: A shopper suffered severe neurological and brain injuries when two teenagers at the center where she was shopping with her son threw a shopping cart from the fourth level of the center onto her at the ground level. (As a result of the assault, the teenagers were sentenced...

Trial Needed to Determine Allocation of Real Estate Taxes

July 26, 2013    

Facts: A mall owner signed a 20-year ground lease with a tenant for space in which to operate a movie theater. The lease included several clauses concerning the allocation of real estate taxes between the owner and tenant, including who was responsible for having the premises...

Amendment Didn’t Extinguish Excessive Vacancies Clause

July 26, 2013    

Facts: A tenant that sold electronic equipment leased space in a shopping center in 1973. A significant provision of the lease—the excessive vacancies clause—provided for abatement of rent in the event that the occupancy of the shopping center dropped below a certain...

Owner Must Send Statutory Notice of Automatic Renewal Provision

July 26, 2013    

Facts: The initial term of a lease between an owner and its tenant, a supermarket, was for 20 years and contained an option for the tenant to renew four times for five-year extension periods. Under the initial term, the lease would automatically renew unless the tenant notified...

Owner Couldn't Withhold Consent to Assignment Just to Get Higher Rent

May 23, 2013    

Facts: The owner of a gas station leased the building used as a convenience store and the underlying lot to a tenant for a five-year term. The lease gave the owner the option of renewing the lease every five years, with a total of five additional five-year terms. There would be...

Tenant Triggered “Escape Clause”

April 24, 2013    

Facts: A mattress store tenant signed a lease with a shopping center owner for space next to a national chain grocery store. The monthly rent was $5,000. After the grocery store moved out of its space, the tenant stopped paying rent, gave a 60-day notice to the owner, and moved...

Yellowstone Injunction Granted for Restaurant Tenant

March 26, 2013    

Facts: An owner bought a building that already leased space to a restaurant, among other tenants. The tenants’ leases were assigned to the owner. The owner discovered that a tenant renting space for two bars and a delicatessen (restaurant tenant) in the building had been...

Tenant Not Responsible for Parking Lot

January 23, 2013    

Facts: A pedestrian slipped and fell on ice in the parking lot of a shopping center. She sued the owner of the property. The owner asserted that the tenant that rented the store near the parking lot was obligated to keep not only its space and the area adjacent to the store but...

Owner Must Maintain Lighting Near Loading Dock

December 14, 2012    

Facts: A discount store rented space at a strip mall. The lease provided that the center’s owner would maintain the lighting in the common areas, including the area of the center behind the stores, which was used as a loading dock for merchandise to be brought into the...

Statute of Limitations Barred Owner’s Back Rent Claim

December 14, 2012    

Facts: An office building owner continued to accept rent from a tenant after its lease was over. The lease provided that the owner could sue the holdover tenant for liquidated damages if it failed to surrender the space when the term ended. Several months later, the owner sent a...

Lease Term Determining CAM Costs Not Ambiguous

November 19, 2012    

Facts: A restaurant tenant rented space in a strip center. The entire property was 82,875 square feet. The “buildingfootprint” and the total leasable area was 21,415 square feet. The restaurant tenant leased 6,281 square feet of the property. In addition to base rent...

Tenant Had Ownership of Rooftop Sign

October 19, 2012    

Facts: An owner and a tenant disagreed about which party owned the outdoor advertising sign on top of the building. The owner asserted that the sign is an “improvement and appurtenance” to the building and therefore was conveyed to it when it bought the building. The...