Owner Wins

Tenant Terminated Lease in Bad Faith

June 30, 2008    

Facts: A tenant signed a 15-year lease agreement that included a provision allowing for termination of the lease within 60 days if, after any casualty, the repair and reconstruction costs of the leased space totaled or exceeded 35 percent of the total reconstruction costs.

Four...

Katrina Damage Didn't Justify Lease Termination

May 31, 2008    

Facts: After Hurricane Katrina had damaged the premises, a Louisiana tenant moved its merchandise and other possessions out of the space that it had rented under a 25-year lease. The tenant also stopped paying rent and refused the owner's request to meet that lease duty.

The...

Subletting Space Didn't Excuse Tenant from Lease Responsibilities

April 30, 2008    

Facts: A lease, entered into in January 2004 between the tenant and the owner, allowed for early termination by the tenant after one year if the tenant chose to close its fitness center. Exercising this right required the tenant to provide 90 days’ written notice of the termination...

Tenant's Right of First Refusal Not Triggered by Management Agreement

March 31, 2008    

Facts: An owner leased six parking lots to a tenant. In turn, the tenant agreed to pay annual rent and manage the parking lots' operations. The lease also contained a right-of-refusal clause, giving it the right, before any other tenant, to accept or reject any lease offers...

Tenant Without Lease Can't Sue Owner for Violating Warranty

March 1, 2008    

Facts: The tenant, while renting space in the owner's building without a lease, experienced property damage from a fire. The tenant then sued the owner, claiming that the owner violated his promise, or warranty, of providing a space suitable for business by failing to safely maintain...

Jury Award Stands After Breach of Contract

March 1, 2008    

Facts: A tenant ran several entertainment businesses on the owner's premises. The businesses were unable to make a profit, and the tenant informed the owner that it couldn't pay the rent and removed all of its property from the premises. The owner sued the tenant for unpaid rent,...

Tenant Must Pay Rent Despite Water Damage

March 1, 2008    

Facts: The owner of a commercial building served a tenant a three-day notice demanding back rent. The tenant did not respond to the notice, and the owner sued for payment. The tenant claimed that it had been forced to move and stopped paying rent because an alleged water leak, which the...

Owner Made Reasonable Efforts to Minimize Damages

February 1, 2008    

Facts: A tenant signed a commercial lease with a three-year term. Before the three years expired, the tenant and owner had agreed to extend the lease for another three years. After the extension, the tenant assigned the extended lease to a new tenant. The original tenant and the new...

Owner Not Required to Accept Lump Sum When Tenant Defaults

January 1, 2008    

Facts: Tenants, a marketing firm and its representatives, entered into a lease granting them use of almost 3,000 square feet of commercial space. The tenants subsequently sold the business and stopped paying rent on the property. The owner notified the tenants that their nonpayment had...