Owner Wins, Owner Loses

Owner Not Required to Pay for Accessibility Expenses

September 17, 2015    

Facts: Less than one year after entering into a five-year lease, a tenant vacated its space, declaring that the owner had materially breached the lease by allegedly refusing to make accessibility improvements under the Americans with Disabilities Act (ADA) that the tenant...

Tenant Not Obligated to Exercise Lease Option

September 17, 2015    

Facts: A bank tenant entered into two ground leases for properties on which to build a bank branch and parking lot, respectively. The tenant was responsible for procuring all necessary permits. The ground leases provided a contingency period—the “Approval Period...

Owner Adequately Mitigated Damages

August 28, 2015    

Facts: A shopping center owner sought to recover damages from a liquor store tenant after it breached its lease and lease guarantees by failing to pay rent. After the owner sent the tenant a notice to quit possession of the premises, the tenant moved out. The owner sued the...

Trial Needed to Determine Fraudulent Nondisclosure Claim

August 28, 2015    

Facts: A tenant negotiated two leases for space for two of its upscale restaurants at an Atlantic City, N.J., pier. The tenant was interested in the particular spaces because two other upscale restaurants had also signed leases for nearby space with the owner.

Necessity of Future Alterations Didn't Negate Consent Requirement

August 11, 2015    

Facts: A fast-food restaurant franchisee was required to update its space every seven to 10 years in accordance with its franchise agreement. Its lease prohibited the tenant from making any...

Tenant Must Pay Holdover Rent Rate in 'Clear and Unambiguous' Lease

July 14, 2015    

Facts: A law firm leased an entire floor in a commercial condominium building. The lease required the tenant to continuously maintain a letter of credit, and to replace that letter of credit if it was no longer valid at any point. A failure to do this would be a lease default....

Settlement Terms Didn't Supersede Lease Requirements

June 19, 2015    

Facts: A car wash tenant signed a lease with a renewal option every five years. The tenant exercised its renewal option twice. During the second renewal period, a dispute between the tenant and owner was settled by a court. The settlement stated that the tenant could operate...

Misused Name in Guaranty Didn't Relieve Guarantors' Responsibility

June 19, 2015    

Facts: A shopping center owner signed a lease guaranteed by the tenant’s business partners. The tenant stopped paying rent. The guarantors refused to pay. They argued that because the “landlord” was listed as a different business entity in the lease than in the...

'Res Judicata' Precluded Tenant's Claim to Continue Operating

June 19, 2015    

Facts: The owner of retail space sent a notice informing its tenant that it was in breach of the lease because it hadn’t installed a fire alarm system. The tenant refused to install a system, and the owner was fined by the city. The owner filed a petition with a court to...

Tenant's Yellowstone Injunction Denied

June 19, 2015    

Facts: A retail tenant was required by its lease to get the owner’s consent for all assignments and subleases. The tenant defaulted on its lease by, among other violations, assigning without permission the lease to its separate corporate entity, which later subleased the...

Tenant Required to Pay for Parking Spaces on 'Must-Take' Basis

May 27, 2015    

Facts: A retail tenant’s lease provided that a certain number of parking spaces would be available outside the space it rented. The lease provisions specified that the tenant would let the owner know at the beginning of each month how many parking spots it would need. The...

Tenant's Conversation with Employee Didn't Orally Modify Lease

May 27, 2015    

Facts: An office building owner rented space to a media company. The tenant was permitted to vacate the space early, in the third year of the lease, provided that it gave 90 days’ written notice, returned the keys to the owner, and paid any outstanding rent and other...