Owner Wins

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.

Tenant Can't Claim Constructive Eviction

February 1, 2009    

Facts: A tenant signed a lease for space that had a history of flooding problems. During the owner's tenure, it repaired any and all damage that resulted from flooding. Approximately five years into the lease, the owner sold the property, but signed an agreement with the new owner...

Owner Not Liable for Tenant's Pet

February 1, 2009    

Facts: A tenant's dog attacked and severely injured a young child on the premises. The child's parent sued the dog's owner and won a substantial award, and later attempted to sue the building's owner for allegedly not evicting the tenant or forcing him to get rid of his...

Statute of Frauds Not Applicable to One-Year Lease

February 1, 2009    

Facts: A tenant and an owner entered into a one-year lease. The tenant paid rent for three months and then abandoned the property, arguing that, according to the statute of frauds, the lease was invalid because it lacked a property description. The owner successfully sued in small claims...

Owner Can Withhold Consent to Assign

February 1, 2009    

Facts: After a tenant negotiated the sale of its lease and business to a third party, it asked the owner for consent to assign the lease. The owner refused, and the tenant sued, alleging that the owner unreasonably withheld consent. The trial court ruled in favor of the tenant, and the...

Failure to Pay Overdue Taxes Violates Bankruptcy Rules

January 1, 2009    

Facts: After a tenant filed for bankruptcy, a limited liability company (LLC) agreed, in a bankruptcy court order, to take over the tenant's lease and settle the tenant's outstanding debt, as determined by bankruptcy rules. The bankruptcy court's order also required the tenant...

Failure to Address Issue Does Not Mean Waiver

October 31, 2008    

Facts: A tenant and owner entered into a 10-year lease. Approximately three years into the lease, the tenant sued the owner for violating the terms of the lease. The parties were able to reach a settlement orally, but asked the court to step in because they could not agree on the written...

Health Code Violations Don't Relieve Rent Obligation

September 8, 2008    

Facts: The tenant and owner entered into a lease agreement containing a provision that relieved the tenant from paying the rent and other charges during the lease term if the premises were unfit for occupancy.

Several months into the lease, the owner was informed that the premises...

Tenant's Late Notice Can't Be Excused

August 31, 2008    

Facts: A shoe store tenant and an owner entered into a sublease, and also into a prospective six-year lease for the same space that was to begin when the sublease ended. The six-year lease gave the tenant a termination option.

After unsuccessfully negotiating a base rent...

Tenant Not Entitled to Space After Subtenant Default

July 31, 2008    

Facts: The owner leased a building to a tenant that later sublet the building to a third party for the purposes of running a restaurant. Several years later, a fire damaged the building. The subtenant had the following legal options: 1) fix the damage and recover the cost from the owner;...

'No Terrorism' Insurance Policy Insufficient

June 30, 2008    

Facts: A tenant entered into a lease agreement that required the purchase of insurance coverage for damages as a result of specific harms including smoke, riot, crashing airplanes, and “civil commotion.” The lease agreement did not specifically require coverage for terrorist...

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...