Owner Wins

Eviction Moratorium Doesn't Get Guarantor Off the Hook

February 22, 2021    

What Happened: Like so many tenants affected by COVID-19, Saks Fifth Avenue stopped paying rent at its flagship New York City store. The landlord sued Saks’ parent company, the lease guarantor, for $2.7 million in unpaid rent. If these were normal times, we’d be...

Eviction Moratorium Doesn't Get Guarantor of Defaulting Tenant Off the Hook

February 18, 2021    

What Happened: Like so many tenants affected by COVID-19, Saks Fifth Avenue stopped paying rent at its flagship New York City store. The landlord sued Saks’ parent company, the lease guarantor, for $2.7 million in unpaid rent. If these were normal times, we’d be...

Tenant Waived Its Right to Arbitrate by Starting Lawsuit Against Landlord

February 18, 2021    

What Happened: If there are any disputes under this lease, we’ll try to resolve them via mediation. If that doesn’t work, we’ll go to binding arbitration. Those were the essential terms of a commercial lease between a landlord and gas station owner. Sure enough...

COVID Shutdown Orders Don't Excuse Tenant's Failure to Pay Rent

January 22, 2021    

What Happened: Stop me if you’ve heard this one before: A gym that had to shut down temporarily under the governor’s COVID-19 emergency orders stopped paying rent in March. The landlord couldn’t evict because of the state-wide moratorium on commercial evictions...

Agreeing on Specs Isn’t Condition Precedent to Tenant’s Duty to Pay Rent

January 22, 2021    

“Within thirty (30) days after the Effective Date of the Lease, the parties shall agree upon a preliminary description of the Tenant's Work, which shall be attached to the Lease as Exhibit D. Within sixty (60) days following the Effective Date of the Lease, the parties shall agree...

Bankruptcy Court Lifts Stay to Let Owner Evict Assignee in Chapter 11

November 18, 2020    

What Happened: An airport tenant assigned its lease to an assignee. In June 2020, the owner and tenant signed an agreement terminating the lease. In August, the assignee filed for Chapter 11 bankruptcy. The owner asked for permission to bring a lawsuit to evict the assignee...

Landlord Can Evict Marijuana Operation Without Giving Opportunity to Cure

October 21, 2020    

What Happened: A county in a state with legalized marijuana adopted an ordinance banning cultivation. A tenant that got its license before the ban was adopted determined that it was exempt and kept on operating. But the tenant had never gotten the required permits and thus wasn...

Tenant Had Possession of Property Despite Not Moving In

October 21, 2020    

What Happened: A medical clinic signed a multi-year lease on a three-story building requiring major renovations. After faithfully paying monthly rent for two years, the clinic stopped making its rent payments. The landlord sent a default notice giving the clinic five days to...

Owner Wins Chance to Prove Accelerated Rent Claim at Trial

September 18, 2020    

What Happened: Six years into its 10-year term, an owner exercised its lease right to adjust a dental clinic tenant’s rent. But the clinic refused to pay the increase and moved out. The owner claimed the clinic was in default, terminated the lease, and demanded $1.5...

Previous Owner's Acceptance of Late Rent Doesn't Waive New Owner's Right to Timely Rent

September 18, 2020    

What Happened: A medical tenant repeatedly paid rent late without late fees or any other penalties. But then the building was sold. And the new owner wasn’t as forgiving or tolerant of the tenant’s personal stresses and “business ups and downs” as the...

Tenants Must Pay Neighbors $7.4M for Negligent Use of Warehouse

September 18, 2020    

What Happened: Only 10,000 of the tenant’s 560,000 square-foot recycling warehouse had fire department approval for occupancy. And while the tenants were advised to do so, they never installed the necessary, code-compliant sprinkler and water flow systems. So, when the...

Tenant Can't Avoid Summary Eviction Suit by Moving Case to Federal Court

August 25, 2020    

What Happened: After paying only partial rent in April, Bed Bath & Beyond (BB&B) paid no rent in May, claiming that the Louisiana governor’s COVID-19 order closing “all malls, except for stores in a mall that have a direct outdoor entrance and exit that...