Owner Wins, Owner Loses

Owner Could Withhold Consent to Reduced Rent Sublease

October 21, 2016    

Facts: Two guarantors promised to carry out the lease obligations of a restaurant tenant in the event that the tenant defaulted. The lease’s assignment and subletting clause required the tenant to get the owner’s consent to an assignment or sublet.

After the...

Guaranty Plainly Stated It Was Unconditional Guarantee of Payment

September 26, 2016    

Facts: An office building tenant was in default of its lease and subsequently filed for bankruptcy. The lease had been guaranteed. The guarantor hadn’t filed for bankruptcy. When the building’s owner informed the guarantor that it would have to cover the back rent...

Landlord Retained Responsibility for Ice Removal

August 29, 2016    

Facts: A grocery store customer who slipped and fell on ice in the strip mall’s parking lot sued the grocery store tenant, the center’s owner, and the snow-removal contractor and subcontractor for her injuries. She asserted that they all had a duty of care to keep...

Material Changes to Lease Didn't Relieve Guarantors of Rent Liability

July 25, 2016    

Facts: Two guarantors agreed to be liable for rent payments under a lease for stationery store space. Shortly before the lease was to expire, the tenant and the owner of the shopping center where the store was located entered into an amendment, extending the lease term. The...

Tenant Inadvertently, Not ‘Willfully,’ Held Over Space

June 17, 2016    

Facts: A tenant and owner negotiated a four-month lease for commercial space, with an option to renew on a month-to-month basis. The tenant failed to pay rent for two months in a row, but asked the owner to extend the lease for an additional month past the original lease term....

Lease Was Unclear Regarding Initial Buildout Construction

May 25, 2016    

Facts: An owner signed a lease with a tenant for space to operate a convenience store. After the tenant took possession of the space it notified the owner that the owner’s obligation to remove or remediate any asbestos in the building was waived. The tenant began making...

Landlord Wasn't in Joint Venture with Tenant for Liability Purposes

May 25, 2016    

Facts: An owner signed a lease for nightclub space with a tenant. Under the lease, the owner was entitled to additional rent under certain circumstances. The owner had no day-to-day supervision over the property or the tenant. After a nightclub customer was attacked by a third...

Assignee Had Duty to Read Lease Documents

April 28, 2016    

Facts: A tenant assigned its lease for office space. The assignee later claimed that the owner was required to pay a tenant improvement allowance (TIA). The assignee based its argument on lease drafts that had discussed a TIA. But the final version of the lease, which the tenant...

Lease Signed by Owner's Agent Was Enforceable

April 28, 2016    

Facts: A woman purporting to be the owner of a property signed a lease with a tenant for space to operate its auto body shop. The lease required the tenant to make necessary repairs and improvements, and it specified that those improvements would be left behind at the end of the...

Initial Lease Term—Not Renewals—Used to Determine Fraud Claim

April 18, 2016    

Facts: The owner of a gas station signed a lease with a tenant. The tenant became a sublandlord when it signed a convenience store sublease for space at the gas station where a subtenant could operate its coffee shop. The sublease with the coffee shop subtenant was for a 10-year...

Disputed Charges Were Properly Classified as CAM

April 18, 2016    

Facts: The owner of a shopping center sued a tenant for breach of its lease. The owner had charged as part of common area maintenance (CAM) a prorated amount that it had to spend on fixing potholes in the parking lot and installing signs limiting the parking lot to customers....

Tenant Must Bear Entire Cost of Personal Injury Award

April 18, 2016    

Facts: A car dealership leased a lot where its inventory was stored. It contracted with a car carrier company to transport its cars from certain locations to the lot. A mechanism devised by the dealership tenant to control traffic at the entrance to the lot pulled a brick wall...