Owner Wins, Owner Loses

Tenant Not Responsible for Management Fees

September 29, 2014    

Facts: A bank tenant signed a triple-net lease for a standalone building in a shopping center. (Under a typical "triple-net" lease, the tenant pays all expenses, including property taxes and insurance, maintenance, and utilities, leaving the owner with no expense...

Tenant Didn't Have to Pay Expenses for Out-of-State Surveyor

September 29, 2014    

Facts: A bookstore tenant filed for bankruptcy. During the bankruptcy proceedings regarding whether its lease would be rejected or assumed, the owner sent the tenant a notice requesting access to the tenant’s space to perform an “as-built” survey of the space...

Tenant Couldn't Rely on Owner’s Verbal Assurances

August 26, 2014    

Facts: An owner signed a lease with a tenant that intended to operate a private school in its space after performing extensive renovations. After the owner wasn’t able to obtain an amended certificate of occupancy that would permit the tenant to operate a school, rather...

Owner Off Hook for Common Area Slip-and-Fall

August 26, 2014    

Facts: Both a tenant and owner of office space were sued by the widow of a visitor to the building who slipped and fell on a wet surface in the vestibule and died from his injuries. The tenant and owner each asked a trial court for a judgment in its favor without a trial. The...

Bankruptcy Cap Applies to Claims Resulting from Lease Rejection

August 13, 2014    

Facts: A warehouse owner agreed to completely remodel the space into a daycare facility for a tenant. The owner paid for the improvements up front, but the tenant was required to pay back the amount in increments during the lease term, separate from monthly rent. After the...

Arbitration Required for Offset Dispute

July 25, 2014    

Facts: If at any time during the lease a shopping center owner was unable to meet a cotenancy requirement, its tenant was permitted to pay a reduced “substitute rent.” The lease also provided that all disputes arising under the lease and regarding amounts less than $...

Lease Guaranty Not Enforceable Without Signature of Guarantor

July 25, 2014    

Facts: After an office tenant held over its space past its lease term and stopped paying rent, the owner sued the tenant’s president in his personal capacity, asserting that he was a guarantor of the lease and thus was responsible for paying the rent when the tenant...

Lease Excuses Tenant from Liability for Fire

June 25, 2014    

Facts: A dry cleaning business in a shopping center incorrectly installed commercial dryers in its space without using a professionally trained installer. It vented the dryers into the attic instead of to the building’s exterior. The shoddy installation later caused a fire...

'Diner' Lease's Restrictive Covenant Ambiguous

June 25, 2014    

Facts: The restrictive covenant in a restaurant’s lease with a shopping center owner prohibited the owner from leasing to other “diner type” restaurants. When the owner began building out a portion of the center for a national specialty-hamburger restaurant and...

Ambiguous Lease Interpreted Against Drafter

June 25, 2014    

Facts: An office tenant’s lease contained two conflicting provisions regarding the time frame in which the owner was required to fix damage to the tenant’s space. After a roof collapse led to flooding and damage that forced the tenant out of its space temporarily,...

Mediation Necessary to Determine Sidewalk Liability

May 27, 2014    

Facts: A shopper tripped and fell on a two-tiered sidewalk in front of two retail stores. The sidewalk was marked with red paint to warn pedestrians about the drop-off from the upper to the lower level. Still, various employees of the tenants noted that they had witnessed...

Default Judgment Set Aside for Tenant's 'Excusable Neglect'

May 27, 2014    

Facts: A mall owner sued a tenant for allegedly breaching its lease, asking for more than $190,000 in accelerated rent and other fees. After the tenant didn’t respond to the litigation, a trial court entered a default judgment against it. The tenant later asked the court...