Owner Wins

Termination for Eminent Domain Applies to Building, Not Parking Spaces

October 18, 2009    

Facts: Under the right of eminent domain, a city took over a portion of a tenant's leased space. The portion, which the city planned to use in order to complete a road project, amounted to five out of 107 parking spaces that were part of the leased space. The space also included a...

Specific Performance Compelled Only for Terms Spelled Out in Lease

October 18, 2009    

Facts: A property owner leased space to a tenant for its hardware store. The lease contained an “option to purchase” clause that provided a payment timeline for the tenant to follow in the event that it wanted to purchase the space in the future.

Right to Nonexclusive Use of Parking Spaces Doesn't Include Long-Term Storage of Equipment

October 18, 2009    

Facts: The owners of a shopping center sued the anchor tenant, a grocery store, after a dispute arose over the tenant's use of common areas behind the store. The trial court found that the tenant violated its lease by placing large, seasonal storage containers in the center's...

Tenant Must Pay Share of Communal Dumpster Fee

August 30, 2009    

Facts: A tenant that leased two shopping center storefronts through a management company signed identical leases for each unit. Both leases included provisions obligating the tenant to pay its pro rata share of operating expenses for the entire property, and to contract with Waste...

Tenant Must Replace Items It Neglected to Maintain

August 30, 2009    

Facts: A tenant purchased the rights to run a dealership that was part of a franchised chain. The dealership was already operating out of a building that housed its showroom and offices, so the tenant decided to stay in that location, leasing the building and the property it was on from...

Month-to-Month Tenancy Governed by Same Terms in Lease

June 24, 2009    

Facts: An owner claimed that a tenant failed to pay rent and other charges in the lease when due and additionally owed holdover rent for the third and fourth years of the tenancy. Including late fees and interest, the owner claimed that the tenant owed it more than $3.1 million.

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Owner Entitled to Restrict Tenant's Access to Space

June 24, 2009    

Facts: A retail tenant sued Burbank Mall Associates on the basis of unjustified delay in turning over the keys to the premises. The trial court ruled in favor of the owner.

Tenant Not Entitled to Individual Notice of Government Ruling

April 30, 2009    

Facts: A tenant operated a business in a building that the local government was planning to designate as blighted—that is, obsolete with a marginal economic use. Before the final decision was made, the local government sent out hearing notices to the owner of the building in the...

Owner Tried to Mitigate Damages

April 30, 2009    

Facts: One year into a five-year lease agreement, a tenant stopped paying rent. After the owner demanded payment, the tenant entered into a separate agreement to bring the rent payments current. The tenant eventually vacated the space. The owner sought additional rent, but the tenant...

Tenant Must Comply with Renewal Language

March 25, 2009    

Facts: A tenant signed a lease with the city that contained several 10-year renewal options. The lease stated that prior to exercising the option, the tenant must give a six-month notice of its intention to renew.

Mechanic's Lien Can Be Placed on Single Space

February 26, 2009    

Facts: A tenant leased 4,375 square feet in a building and hired a contractor to do the buildout of the space. The contractor hired a subcontractor to do the work. Upon completion of the work, the tenant paid the contractor, but the contractor failed to pay the subcontractor.

Guarantor Responsible for Tenant's Rent

February 26, 2009    

Facts: A guarantor personally guaranteed the obligations of a tenant under its lease for 18 months. The obligation included rent, taxes, and insurance. When the tenant vacated the premises without notice, the owner tried to enforce the guaranty. The guarantor admitted signing the guaranty...