Owner Loses

Owner's Future Plans Not Violation of Lease Terms

September 25, 2008    

Facts: An owner and a tenant entered into a seven-year lease. The tenant made renovations to the space that fit the specific needs of its business. Shortly after, a new owner purchased the building and began renovations, some of which were on the tenant's floor—though not in the...

Owner's Refusal to Comply with State Law Equals 'Constructive Eviction'

August 31, 2008    

Facts: An owner and tenant entered into a lease that called for the tenant to pay for any modifications to the sprinkler system stemming from any changes the tenant made to the space. The lease made the owner responsible for installing a burglar alarm and fire alarm system.

Assignment Does Not Eliminate Options

July 31, 2008    

Facts: An owner and tenant entered into a 20-year lease that included four lease extension options, each for five years. The owner assigned his interest in the lease to a new owner—that is, gave the new owner all of its rights in the lease. The tenant assigned the 20-year base lease...

Owner Must Inspect After Eviction

July 31, 2008    

Facts: A tenant restaurant defaulted on its lease by operating an after-hours dance club and by failing to pay its rent. The owner sued to evict the restaurant and won, but a week and a half after the eviction judgment was made, the restaurant was still operating, and a customer slipped...

Tenant Didn't Have to Name Owner in Insurance Policy

June 30, 2008    

Facts: An owner and tenant signed a commercial lease that required the tenant to obtain commercial general liability insurance (CGL) for their “mutual benefit.” The blanket additional insured endorsement in the CGL policy that the tenant purchased stated that the definition of...

Damage Award Depends on Proof of Amount Lost

May 31, 2008    

Facts: A Nevada tenant rented retail space from the owner. The tenant defaulted on the lease and never opened the store that it had planned to operate. The owner sued the tenant for the lease violation and asked that the trial court award it more than $2.4 million in damages. The trial...

Tenant's Excuse for No-Show Prevents Eviction

April 30, 2008    

Facts: An owner sued a tenant for nonpayment of rent, and asked that the court award it back-rent of nearly $13,000 and possession of the leased space. The court awarded the owner the requested relief after the tenant did not appear for the trial. The tenant subsequently asked the court...

Failure to Operate Parking Lot Continuously Isn't Lease Violation

March 31, 2008    

Facts: The owner leased a parking lot to a tenant, and both agreed that the tenant would use the lot only for off-airport parking and related uses. Subsequently, the tenant opened up a second lot nearby and focused primarily on its operations. Eventually, the tenant moved all of...

Tenant that Waited to Vacate Premises Not 'Constructively Evicted'

March 31, 2008    

Facts: In 2002, a tenant approached the owner about subletting two of its floors to a second tenant. Instead, the owner entered into a separate lease with the second tenant and charged less for rent. The primary tenant was required to cover the difference and be responsible for...

Owner Not Covered by Tenant's Insurance

February 1, 2008    

Facts: An employee of a shopping center tenant died as a result of a criminal assault committed in the tenant's space. Because the victim was the tenant's employee, all claims surrounding her death were handled by the tenant's workers’ compensation insurance.

Owner Can't Collect Damages Beyond Property's Fair Market Value

January 1, 2008    

Facts: An owner sued two tenants for defaulting on their commercial leases. The owner attempted to collect damages that would have been more than the fair market value of the properties. A Georgia trial court ruled in favor of the tenants, and the owner appealed.

Decision: A...