Feature

How to Avoid Liability for Retail Tenant's Sale of Counterfeit Goods

February 19, 2020    
We’ll give you seven lease protections against liability for “contributory infringement.”     Big fashion houses and producers of luxury goods have found a new and effective way to combat counterfeiting: Rather than chase after the small-potatoes vendors that sell...
Beyond the Lease

Tenant Trademark Infringement: Prevention & Response

February 19, 2020    
If a retail tenant uses leased property to sell counterfeit goods, like knockoff Rolex watches, the brand owner can sue not only the tenant but also the landlord, which is often a preferable option considering that the landlord usually has deeper pockets. And landlords who know about but turn a...
Pop Quiz

Do Tenants in Breach Get Discount on Damages if Replacement Tenant Pays Higher Rent?

February 19, 2020    
SITUATION: With 24 months remaining on its lease, a tenant vacates the premises and stops paying its $10,000 per month rent. After six months of marketing and sales efforts, the landlord finds a replacement tenant willing to pay $15,000 per month. The replacement tenant also pays the landlord a $...
Owner Wins

Landlord's Settlement with Tenant Doesn't Let Guarantor Off the Hook

February 19, 2020    
What Happened: Roughly 18 months into a five-year lease, the landlord sued to evict a tenant for late payment of rent. After settling with the tenant out of court, the landlord asked the tenant’s guarantor to pay the rent for the remaining months of the lease.
Owner Wins

No Relocation Benefits for Tenants Forced Out by Sale to Government

February 19, 2020    
What Happened: A city in Oregon purchased commercial property that it intended to develop for a City Hall. The sale agreement required the owner to deliver the property free of tenants. The owner kept its end of the bargain by informing the tenants of the sale, ending their leases, and letting them...
Owner Wins

Subway Not Liable for Franchisee's ADA Violation

February 19, 2020    
What Happened: After experiencing what he felt was rude and humiliating treatment by a Subway employee while ordering a steak sandwich, a customer brought an ADA lawsuit against not just the restaurant where the incident happened but the franchisor company, which it claimed was responsible for the...
Feature

Use Lease to Manage Liability & Financial Risks for Mass Shootings & Terrorist Attacks

January 23, 2020    
We’ll give you 10 tips for minimizing liability risks from shooting sprees and terrorism.  
Winners & Losers

Can a Holdover Tenant Claim Constructive Eviction?

January 23, 2020    
The tenant’s right of quiet enjoyment lasts for as long as the lease remains in effect. If the landlord does something to interfere with that right, the tenant is entitled to vacate and stop paying rent on the grounds of constructive eviction. But what happens when the original lease expires...
Traps to Avoid

You Can Lose Rent Escalations If You Take Too Long to Bill Them

January 23, 2020    
Whether out of neglect or clerical error, you may forget to invoice a tenant for a tax escalation or other charge it owes you. Or, if the tenant is struggling, you might decide to keep the bill in your back pocket and wait for its finances to improve. In either case, you’re taking a risk. The...
Owner Wins

Lease Clearly Shows that Landlord Owns Tenant Improvements

January 23, 2020    
What Happened: Erection of a reception desk and bar fixture containing sinks for mixing hair color were among the improvements made at the landlord’s expense before a hair salon tenant moved in and opened shop. The reception desk and color bar were also among the assets the tenant attempted...