Owner Loses

Owner Didn't Mitigate Damages

October 18, 2009    

Facts: The owner of a shopping center sued a former tenant, a fast-food chain company, after the company's franchisee assumed the company's original lease but then breached by terminating early. Because the company remained the guarantor under the original lease, it made the...

Owner Didn't Address Dangerous Condition in Common Area

October 18, 2009    

Facts: An office tenant notified her building's manager about a dangerous condition in a common walkway. Although the manager promised to repair the walkway, it was not fixed, nor was any warning sign posted. After injuring her right foot, right arm, and both knees when she tripped on...

Manager Charged Tenant Impermissible Insurance Premiums

September 27, 2009    

Facts: Between 1998 and 2005, a tenant signed lease agreements for 15 of its electronics stores in various shopping centers managed by a real estate investment trust. The lease agreements required the manager to obtain property and liability insurance for the common areas of the centers....

Competing Tenant Not Liable Under Exclusive Right

September 27, 2009    

Facts: A real estate company and an insurance company that were joint owners of a shopping center signed a declaration creating restrictive covenants that were to run with the land on which the center was built. Under the declaration, a tenant that sold food and drugs had an exclusive...

Owner Didn't Mitigate Damages

July 26, 2009    

Facts: Danada Square, LLC, the operator of a shopping center, sued KFC National Management Company, a former tenant, after a KFC franchisee assumed KFC's original lease but terminated the lease with Danada early. Because KFC remained the guarantor under the original lease, it made the...

Owner Responsible for Tenant's Water-Damaged Goods

July 26, 2009    

Facts: Shortly after a tenant leased retail space in a shopping center to operate her clothing store, water began seeping through leaks in the roof. By June 2006 the entire store was flooded, damaging much of the inventory. After a brief re-opening, the tenant's store was closed...

Tenant Entitled to Lost Wages for Owner's Illegal Entry

June 24, 2009    

Facts: A tenant alleged that after he entered into possession of two units in a commercial building under a rental agreement, he found that the door lock had been changed and a “for rent” sign had been put up. He was told that he had been “locked out” because he...

Mall Has Duty to Repair Roof

June 24, 2009    

Facts: In December 2005, Quincy Mall sued Kerasotes Showplace Theatres to recover alleged unpaid rent due under the commercial lease. In May 2008, the trial court ruled in favor of the theatres.

The owner argued that it was not its responsibility to replace the tenant's roof...

Owner Illegally Withheld Tenant's Security Deposit

April 30, 2009    

Facts: A tenant and an owner entered into a five-year lease, and the tenant made a $10,000 security deposit. Three years into the lease, the tenant approached the owner, wanting to transfer its lease to another business owner. The owner refused, and the tenant and the new business...

Nonbinding Letter of Intent Not Equal to Contract

April 30, 2009    

Facts: A large retail bank approached an owner about leasing space so that it could open a branch. After several discussions and an assessment of the premises, the bank determined that the premises would not be suitable for its design. As a result, the bank sought and found suitable space...

Tenant Granted Use of Extra Space Not Liable for Extra Rent

April 28, 2009    

Facts: A tenant agreed to lease space in a strip mall. The tenant leased only one space, but at the time the lease was signed, the space was not big enough for the tenant to run its business. To accommodate the tenant, the owner offered to let the tenant use an adjacent space until it...

Owner's Refusal to Sell Property Constitutes Breach

April 28, 2009    

Facts: A tenant entered into a 10-year lease that contained a clause giving it the option to purchase the property at the end of the lease period. The lease did not indicate how the option to purchase must be exercised. After approximately two years, the tenant merged with another company...