Owner Wins

Method for Determining Renewal Rent Must Be Sufficiently Definite

August 15, 2018    

Facts: A tenant that operated a market and deli entered into a lease for retail space. The lease was for five years ending in May 2016. The rental rate for the initial term was $5,500 for the first two years, and $6,000 for the remaining three years of the lease. The lease...

Lease Required Tenant to Make Interior Repairs

July 19, 2018    

Facts: A bank leased space for its branch in a retail center. Over the course of several years, the tenant experienced sewer backups and other plumbing problems. It repaired these problems without giving notice to the landlord. After the tenant suspected that water damage had...

Landlord Not Liable for Damage after Month-to-Month Tenancy Terminated

June 20, 2018    

Facts:  A medical tenant clinic signed a lease that it renewed for an additional five-year term. During the initial and renewal term, the tenant paid monthly rent on time. After the renewal term was over, the tenant didn...

Landlord's Unlawful Detainer Action Didn't Bar Subsequent Lawsuit

March 27, 2018    

Facts:  After a retail tenant stopped paying rent, the owner of the center asked a trial court for an “unlawful detainer” so that it could physically evict the tenant. An unlawful detainer action is a...

Lease Prohibited Tenant’s Request for Declaratory Judgment

February 23, 2018    

Facts: A landlord served a notice to cure on its tenant, claiming that the tenant had failed to have the space’s fire sprinklers inspected. A dispute as to responsibility for the sprinklers ensued between the landlord and tenant. The tenant asked a trial court to issue a...

Owner Gave Required Notice to Vacate Under Temporary Lease Agreement

January 23, 2018    

Facts: A tenant that operated two retail kiosks within a mall property thought that the owner of the center wasn’t providing adequate security. It sued the owner for breach of the implied covenant of good faith and fair dealing and constructive eviction after the owner...

Estoppel Certificates Precluded Tenants from Collecting TIA

October 18, 2017    

Facts: Tenants sued both the former and the current owner of the building in which they leased commercial space for failing to reimburse them for improvements they made to the premises, as required under their leases. The current owner challenged the complaint on the grounds...

Tenant's Inconvenience Didn't Override Owner's Decision to Terminate

April 26, 2017    

Facts: A tenant leased space in a shopping center for its restaurant. The tenant had an option to renew its lease, but had to exercise that option a year before the lease term was to expire. The tenant claimed that it sent a letter to the owner of its space, letting it know that...

Competing Restaurant Wasn't 'Similar in Concept'

November 22, 2016    

Facts: A restaurant with a 1950s American roadside diner theme leased space at a shopping center. Later, the owner signed a lease with a pancake house restaurant franchisee for space nearby. The tenant asserted that the new lease with the pancake restaurant violated a...

Owner Could Withhold Consent to Reduced Rent Sublease

October 21, 2016    

Facts: Two guarantors promised to carry out the lease obligations of a restaurant tenant in the event that the tenant defaulted. The lease’s assignment and subletting clause required the tenant to get the owner’s consent to an assignment or sublet.

After the...

Guaranty Plainly Stated It Was Unconditional Guarantee of Payment

September 26, 2016    

Facts: An office building tenant was in default of its lease and subsequently filed for bankruptcy. The lease had been guaranteed. The guarantor hadn’t filed for bankruptcy. When the building’s owner informed the guarantor that it would have to cover the back rent...

Material Changes to Lease Didn't Relieve Guarantors of Rent Liability

July 25, 2016    

Facts: Two guarantors agreed to be liable for rent payments under a lease for stationery store space. Shortly before the lease was to expire, the tenant and the owner of the shopping center where the store was located entered into an amendment, extending the lease term. The...

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