Owner Wins, Owner Loses

Tenant Could Remove Fixtures During Unofficial Extension Period

March 31, 2016    

Facts: A restaurant tenant faced with an eviction order offered the owner of the space $40,000 to extend the time it could use the space after it was supposed to vacate. The tenant wanted to use the extra time to work out a deal with a potential buyer of the restaurant, who...

Fitness Classes Violated Permitted Use for Batting Cage Space

February 23, 2016    

Facts: A shopping center owner sued its tenant for violating the permitted-use provision of its lease, which allowed it to operate a batting cage and hold agility classes for team sports. Specifically, the tenant had been offering strength-and-conditioning classes, fitness-...

Court Upholds Shopping Center Lease Arbitration Award

February 23, 2016    

Facts: Under its agreement with a previous owner of the shopping center where it rented space, a tenant had been permitted to use its rent payments to “pay down” a wraparound mortgage that arose from some bankruptcy claims. After the center was purchased, the tenant...

Tenant Made Adequate Repair Efforts During Cure Period

January 28, 2016    

Facts: A national pet product retailer received a notice of default and termination from the owner of the space it rented. The owner alleged that the tenant had failed to perform its maintenance obligations under the lease, most notably, failing to fix a large crack in a wall,...

Tenant's 'Ongoing' Termination Right Lasted for Years

January 28, 2016    

Facts: A tenant negotiated a lease that granted it an ongoing right to terminate its obligations in the event of a sale or relocation of its business. Specifically, the lease stated that, “provided the Tenant is selling or moving the business, Tenant shall have the ongoing...

Owner's Material Breach Is Incurable

December 21, 2015    

Facts: An owner and tenant signed a lease for office space, whereby each party would perform renovations to the space to convert it from industrial to office space. The owner was to perform its renovations first. After the owner missed the deadline to turn the space over to the...

Tenant Bore Risk of Interruption in Business

November 19, 2015    

Facts: A restaurant tenant stopped paying rent for its commercial space. It claimed that a nearby state construction project had substantially decreased its profits because the construction blocked the entrance’s visibility and forced customers to take an indirect route to...

Tenant's Misrepresentation of Financial Condition Was Fraudulent

November 19, 2015    

 Facts: A tenant signed a 13-year lease with the owners of an office building. Upon moving into the office space the tenant failed to secure a $75,000 security deposit bond, which was required under the lease. The tenant later moved out without notice or...

Tenant Must Abandon Space to Rely on 'Constructive Eviction'

November 19, 2015    

Facts: A national department store tenant withheld its rent and engaged in self-help remedies after the owner of the shopping center repeatedly failed to repair problems with the building, including leaking plumbing and a dilapidated appearance both inside and outside the...

Mall Owner Released from Liability for Jewelry Theft

October 26, 2015    

Facts: A jewelry vendor signed a license agreement to sell its inventory from a kiosk in a mall. At the end of the day, the tenant would store its inventory in a safe contained within its space. The space was then closed off and the mall itself was not accessible to the public...

'Premises' Referred to Only Interior of Tenant's Space

October 26, 2015    

Facts: A tenant rented space to operate its café and lounge in an Art Deco-style entertainment complex that included a theater and flashing signage. According to the tenant, the exterior of the building and the unique signage attracted customers to its location. Under the lease...

Space's Increased Value Didn't Raise Rent Rate

September 17, 2015    

Facts: A luxury retailer (subtenant) subleased space for its flagship store. The sublandlord was an affiliate of the owner of the building. The sublandlord informed the subtenant that the property would be redeveloped in two years, and, in the meantime, the subtenant would have...