Recent Court Rulings

Recent Court Rulings



Guaranty Must Be 'Continuing' to Create Obligation Past Initial Terms

February 12, 2019    

Facts: A retail tenant signed a lease with one three-year renewal option. The landlord required a guaranty in order to move forward with the deal. After the initial lease term and renewal were complete, an amendment extended the option to renew for five years and increased the...

Landlord's Insurer Can't Seek Subrogation from Tenant

January 17, 2019    

Facts:A landlord and a tenant signed a lease that provided that the landlord would insure the building and the tenant would insure its personal property inside the...

Tenant's Yellowstone Injunction Appropriate Pending Outcome of Late Rent Claims

December 12, 2018    

Facts: A tenant rented space for its office on two floors of a building. When it attempted to exercise its option to renew its lease for an additional five-year term, the landlord offered to buy out the lease, but the tenant rejected the offer. A few weeks later, the tenant...

Jury Trial Needed to Determine Maintenance Responsibility

November 14, 2018    

Facts: A jewelry store tenant that leased space in a shopping center complained repeatedly about a sewage smell and mold problem in the store. It claimed that it was losing business. Its complaints were documented in multiple emails over the course of several months. For its...

Lease Agreement Foreclosed Tenant’s Ability to Collect Condemnation Award

October 18, 2018    

Facts: A large national retailer leased space in a shopping center that later had a major access point blocked by the state’s department of transportation as part of a “condemnation.” The landlord and tenant each asked the state for a “condemnation award...

Landlord's Promise to "Work on" Renewal Wasn’t Fraudulent Inducement

September 26, 2018    

Facts: A tenant rented space to operate its nail salon under a lease that was assigned to it by the original tenant. The lease provided for two additional five-year terms. In order to exercise a renewal option, the tenant had to give written notice 120 days prior to the end of...

Method for Determining Renewal Rent Must Be Sufficiently Definite

August 15, 2018    

Facts: A tenant that operated a market and deli entered into a lease for retail space. The lease was for five years ending in May 2016. The rental rate for the initial term was $5,500 for the first two years, and $6,000 for the remaining three years of the lease. The lease...

Lease Required Tenant to Make Interior Repairs

July 19, 2018    

Facts: A bank leased space for its branch in a retail center. Over the course of several years, the tenant experienced sewer backups and other plumbing problems. It repaired these problems without giving notice to the landlord. After the tenant suspected that water damage had...

Landlord Not Liable for Damage after Month-to-Month Tenancy Terminated

June 20, 2018    

Facts:  A medical tenant clinic signed a lease that it renewed for an additional five-year term. During the initial and renewal term, the tenant paid monthly rent on time. After the renewal term was over, the tenant didn...

Landlord Must Complete Improvements to Collect Rent Under Lease

April 30, 2018    

Facts: A marine supply store signed a lease for retail space. Under the lease, the owner of the space needed to complete improvements to the property before delivering possession. The lease included the following in its definition of “delivery”: “Landlord...

Tenant Didn't Waive Right to Collect Damages for Medical Equipment

April 30, 2018    

Facts: The space that a medical office tenant leased for its operations was flooded several times due to leaks in the building’s roof. Each time a flooding incident happened, the tenant informed the owner, who refused to make repairs. The tenant lost over $1.5 million in...

Trial Necessary to Determine Whether Cotenancy Clause Constituted "Liquidated Damages"

April 10, 2018    

Facts: A clothing retailer tenant signed a lease for space at a shopping center. The lease included cotenancy provisions that required the owner to lease space to three major tenants. If all three tenants were open and operating continuously, the retail tenant paid minimum rent...