Owner Wins, Owner Loses

Rent Obligation 'Survived' Owner's Reentry

May 27, 2015    

Facts: The owner of space leased by a kitchen and bath product retailer locked the tenant out of its space after it paid partial rent for several months and then stopped paying rent altogether. The tenant claimed that it was relieved of the obligation to pay rent after the owner...

Guaranty Not Rendered Unenforceable by Non-delivery

April 13, 2015    

Facts: A clothing store tenant signed a modification and extension agreement to extend its five-year lease. There had been no guarantor for the original lease, but the owner required the tenant’s principal to guaranty the lease in order to extend it. The modification and...

'Course of Conduct' Used to Clarify Ambiguous Lease

April 13, 2015    

Facts: Since the start of its lease with a tenant, a building owner paid for electricity for the tenant’s space and charged the tenant 50 percent of the cost as part of the additional rent due. The lease didn’t require the owner to provide electricity, it just...

Owner's Termination Right Wasn't 'Ongoing'

April 13, 2015    

Facts: When an anchor tenant closed its store at a shopping center, the cotenancy clause in a lease between an arts-and-crafts supply retailer and the center’s owner was triggered. When the owner had failed to obtain another anchor tenant after six months, the tenant...

Tenant Can't Claim Constructive Eviction While Occupying Space

March 12, 2015    

Facts: A video rental store tenant stopped paying rent after the shopping center’s owner hung “Retail Space for Lease” signs in the windows and invited real estate brokers and potential lessees to tour the space. The tenant claimed that the owner’s...

Owner's Duty of Care Stemmed from 'Unusual' Lease Provisions

March 12, 2015    

Facts: The employee of a tenant who rented retail space was injured when a light fixture fell on her upper back and neck while she was working. The employee sued the owner. The owner asked a trial court for a judgment in its favor without a trial. The trial court granted the...

Rent Abatement Was Unreasonable Penalty on Owner

February 13, 2015    

Facts: A shopping center owner sued one of its tenants, challenging the enforceability of lease provisions conditioning the tenant’s obligation to open a store and pay rent on a specific retailer operating a store in the center on the commencement date of the lease. It...

Statute of Limitations Barred Suit Against Center's Owner

February 13, 2015    

Facts: A supermarket customer fell and was injured in the parking lot at the shopping center. She sued the tenant, claiming that the fall occurred because of a defective and dangerous condition there. The tenant notified the customer that the center’s owner was responsible...

Owner Must Give Proper Notice for Fixture Removal

February 13, 2015    

Facts: An owner claimed that its restaurant tenant breached the lease by failing to remove “trade” fixtures before moving out. The tenant argued that it wasn’t required to remove the fixtures because the owner hadn’t complied with the lease terms...

Tenant Is 'Prevailing Party' Under Fee-Shifting Provisions

January 16, 2015    

Facts: A retail lease provided that attorney’s fees and expenses would be awarded to the prevailing party in “any dispute” between the owner and tenant arising out of the use or occupancy of the space. The owner later sued the tenant for several claims...

Farmer's Market 'Stalls' Violated Supermarket's Restrictive Use

January 16, 2015    

Facts: The lease between a shopping center owner and a supermarket tenant contained a restrictive-use covenant prohibiting the owner from leasing space to another grocery store or “food market.” The lease defined food market to include any vendor selling food items....

Nonmaterial Breach Didn't Excuse Tenant's Performance

January 16, 2015    

Facts: A tenant operating a securities firm moved out of its office building space three and a half years before the end of the lease term and stopped paying rent. The owner of the office building sued the tenant.