Owner Loses

Request to Extend Lease Must Comply with Lease's Renewal Provisions

September 27, 2011    

Facts: An owner and insurance agency signed a 10-year lease for office space. The lease provided for two renewal terms of five years each if the tenant notified the owner 12 months prior to the end of the lease of its intention to renew. The lease also required the tenant to meet with the...

Owner's Denial of Tenant's Access to Elevators Breached Lease

August 31, 2011    

Facts: A restaurant tenant signed a lease for space in a food court area of an office building. The tenant sued the building's owner for fraud and breach of contract, alleging that its food and supply delivery people were being refused access to the entrance of the building and the...

Online Ad for Vacant Space Insufficient to Mitigate Damages

June 20, 2011    

Facts: After a retail tenant didn't pay its rent, the owner of the space sued it for defaulting on its lease. The tenant didn't dispute the owner's claim that it had breached the lease. Instead, it argued that the owner was obligated to mitigate its damages—that is, take...

No Lease Termination for Anticipatory Breach

May 25, 2011    

Facts: A retail tenant assigned its lease to a drugstore, but asked the owner if it could remain primarily liable for the strip mall space, instead of reducing or entirely relieving itself from liability. The owner objected to the assignment and sued the tenant.

The trial court...

Duty to Correct Unsafe Condition Applied to Commercial Lease

April 25, 2011    

Facts: A tenant that operated a tanning salon in a single, one-story building sent a written complaint about the leaky ceiling to the owner, which didn't fully repair the problem. The tenant's employee was hit by plaster that fell from the ceiling into her eye, causing her to fall...

Owner's Recovery Limited to Damage It Actually Suffered

March 20, 2011    

Facts: The owner of two vacant warehouses, one of which had some interior office space, leased the buildings to a construction supply company that planned to convert the warehouses into a retail store. After demolishing the office space, the tenant halted renovations for economic reasons...

Owner Must Deliver Termination Notices According to Lease

February 22, 2011    

Facts: A career center tenant signed a lease with the owner of an office building to rent space in four office suites for an initial term of 124 months. The building was sold, and the tenant and new owner extended the lease. The owner later claimed that the tenant had defaulted on its...

Trial Necessary for Dispute Over Holdover Rent

January 25, 2011    

Facts: A tenant leased office space for its law firm. The lease term was four years and provided for two five-year extensions. After the final extension of the lease term expired, the tenant continued to occupy the space on a month-to-month basis, paying rent as specified in the holdover...

Notice to Quit Not Properly Delivered Under Lease Terms

December 28, 2010    

Facts: The lease between a shopping center owner and a restaurant tenant provided: “All notices, consents, approvals, or demands required under this Lease shall be in writing, and shall be deemed delivered when either: (1) deposited in the United States mail, certified or registered...

Did Owner Have Notice of Illegal Loft Conversion?

November 24, 2010    

Facts: A visitor to an art gallery that consisted of the storage mezzanine (loft) and first floor of a seven-story mixed-use building fell from the loft, which had been used as a bedroom by the tenant for 11 years. There was a knee-high wall around the perimeter of the loft, which...

Tenant's Exclusive Use Provision Applied to Other Buildings

October 23, 2010    

Facts: A fast-food restaurant had an exclusive right to sell “sandwiches and subs” in a shopping center that consisted of three buildings (Building A, Building B, and Building C). The fast-food restaurant tenant was located in Building A.

Tenant Entitled to Early Termination for Space Converted to Housing

September 30, 2010    

Facts: An office building tenant moved out of its space, but continued to fulfill its lease obligations until the property manager notified it that several previous subcontractors hired by the owner were occupying the space. The subcontractors, all of whom were unauthorized to be on the...