Owner Loses

Tenant Entitled to Yellowstone Injunction While Awaiting Lease Decision

February 22, 2017    

Facts: A souvenir shop tenant’s lease that was signed in 2000 required it to provide an estoppel certificate to the owner of the building within 10 days. There was a dispute between the owner and tenant as to whether that version of the lease or a new lease that had been...

Foreseeability of Tenant's Denied License Put Risk on Landlord

January 24, 2017    

Facts: In order to open and operate a daycare under state law, Florida daycare tenants must first sign a lease for space before applying for a license to operate the business. A daycare executed a five-year commercial lease for two store spaces in a shopping center while it...

Yellowstone Injunction Awarded to Give Longer Cure Period

November 22, 2016    

Facts: A tenant that operated a gym received a notice from the owner of its space ordering it to obtain the proper permits to operate its business, which were required by its lease. The tenant asked a New York trial court for a Yellowstone injunction, which would toll—that...

Landlord Retained Responsibility for Ice Removal

August 29, 2016    

Facts: A grocery store customer who slipped and fell on ice in the strip mall’s parking lot sued the grocery store tenant, the center’s owner, and the snow-removal contractor and subcontractor for her injuries. She asserted that they all had a duty of care to keep...

Tenant Inadvertently, Not ‘Willfully,’ Held Over Space

June 17, 2016    

Facts: A tenant and owner negotiated a four-month lease for commercial space, with an option to renew on a month-to-month basis. The tenant failed to pay rent for two months in a row, but asked the owner to extend the lease for an additional month past the original lease term....

Tenant Could Remove Fixtures During Unofficial Extension Period

March 31, 2016    

Facts: A restaurant tenant faced with an eviction order offered the owner of the space $40,000 to extend the time it could use the space after it was supposed to vacate. The tenant wanted to use the extra time to work out a deal with a potential buyer of the restaurant, who...

Tenant Made Adequate Repair Efforts During Cure Period

January 28, 2016    

Facts: A national pet product retailer received a notice of default and termination from the owner of the space it rented. The owner alleged that the tenant had failed to perform its maintenance obligations under the lease, most notably, failing to fix a large crack in a wall,...

Tenant's 'Ongoing' Termination Right Lasted for Years

January 28, 2016    

Facts: A tenant negotiated a lease that granted it an ongoing right to terminate its obligations in the event of a sale or relocation of its business. Specifically, the lease stated that, “provided the Tenant is selling or moving the business, Tenant shall have the ongoing...

Owner's Material Breach Is Incurable

December 21, 2015    

Facts: An owner and tenant signed a lease for office space, whereby each party would perform renovations to the space to convert it from industrial to office space. The owner was to perform its renovations first. After the owner missed the deadline to turn the space over to the...

Tenant Must Abandon Space to Rely on 'Constructive Eviction'

November 19, 2015    

Facts: A national department store tenant withheld its rent and engaged in self-help remedies after the owner of the shopping center repeatedly failed to repair problems with the building, including leaking plumbing and a dilapidated appearance both inside and outside the...

Space's Increased Value Didn't Raise Rent Rate

September 17, 2015    

Facts: A luxury retailer (subtenant) subleased space for its flagship store. The sublandlord was an affiliate of the owner of the building. The sublandlord informed the subtenant that the property would be redeveloped in two years, and, in the meantime, the subtenant would have...

Tenant Not Obligated to Exercise Lease Option

September 17, 2015    

Facts: A bank tenant entered into two ground leases for properties on which to build a bank branch and parking lot, respectively. The tenant was responsible for procuring all necessary permits. The ground leases provided a contingency period—the “Approval Period...