Owner Wins

Rent Abatement Was Unreasonable Penalty on Owner

February 13, 2015    

Facts: A shopping center owner sued one of its tenants, challenging the enforceability of lease provisions conditioning the tenant’s obligation to open a store and pay rent on a specific retailer operating a store in the center on the commencement date of the lease. It...

Statute of Limitations Barred Suit Against Center's Owner

February 13, 2015    

Facts: A supermarket customer fell and was injured in the parking lot at the shopping center. She sued the tenant, claiming that the fall occurred because of a defective and dangerous condition there. The tenant notified the customer that the center’s owner was responsible...

Nonmaterial Breach Didn't Excuse Tenant's Performance

January 16, 2015    

Facts: A tenant operating a securities firm moved out of its office building space three and a half years before the end of the lease term and stopped paying rent. The owner of the office building sued the tenant.

Termination Agreement Didn't Extinguish Tenant's Guaranty Obligations

September 29, 2014    

Facts: As part of its lease for space in a shopping center, a retail tenant signed a guaranty, in which the tenant personally guaranteed payment of rent in the event that the business couldn’t pay. The tenant later encountered financial difficulties and fell behind on its...

Tenant's Oral Request Not Sufficient to Renew Lease

September 29, 2014    

Facts: A restaurant tenant approached the owner of the space it rented to discuss renewing its lease. It orally requested a renewal, but didn’t put the request in writing, as required by the renewal provisions in its lease. Later, when the owner refused to renew the lease...

Tenant Couldn't Rely on Owner’s Verbal Assurances

August 26, 2014    

Facts: An owner signed a lease with a tenant that intended to operate a private school in its space after performing extensive renovations. After the owner wasn’t able to obtain an amended certificate of occupancy that would permit the tenant to operate a school, rather...

Owner Off Hook for Common Area Slip-and-Fall

August 26, 2014    

Facts: Both a tenant and owner of office space were sued by the widow of a visitor to the building who slipped and fell on a wet surface in the vestibule and died from his injuries. The tenant and owner each asked a trial court for a judgment in its favor without a trial. The...

Bankruptcy Cap Applies to Claims Resulting from Lease Rejection

August 13, 2014    

Facts: A warehouse owner agreed to completely remodel the space into a daycare facility for a tenant. The owner paid for the improvements up front, but the tenant was required to pay back the amount in increments during the lease term, separate from monthly rent. After the...

Arbitration Required for Offset Dispute

July 25, 2014    

Facts: If at any time during the lease a shopping center owner was unable to meet a cotenancy requirement, its tenant was permitted to pay a reduced “substitute rent.” The lease also provided that all disputes arising under the lease and regarding amounts less than $...

'Diner' Lease's Restrictive Covenant Ambiguous

June 25, 2014    

Facts: The restrictive covenant in a restaurant’s lease with a shopping center owner prohibited the owner from leasing to other “diner type” restaurants. When the owner began building out a portion of the center for a national specialty-hamburger restaurant and...

Court Finds No Implied Term for Construction Completion in Lease

April 30, 2014    

Facts: A tenant signed a lease for space for its restaurant. At the time the lease was signed, the owner was in the process of gutting and remodeling the premises, including installing an elevator. To install the elevator, the owner was required to draw up architectural plans,...

Guarantor, Not Tenant, on Hook for Lease Obligations

April 30, 2014    

Facts: A guarantor promised to fulfill the lease obligations of a restaurant tenant if the tenant breached the lease. It signed a “good guy” unconditional guaranty. The tenant stopped paying rent because it claimed its sales had declined because scaffolding built in...