Owner Wins, Owner Loses

Definition of ‘Adjoined’ Not Affected by Unusable Space

January 28, 2014    

Facts: A foot care clinic rented office space and exam rooms in a strip mall. Its lease provided that the owner wouldn’t place a retail business in space “adjoining” the tenant. The owner subsequently leased space in the strip mall to a liquor store. The liquor...

Use of Specific Tenant's Name Binding on Owner

December 17, 2013    

Facts: A shopping center owner and a women’s clothing store signed a lease for space next to a large national bookstore. The lease’s cotenancy provision allowed the tenant to abate its minimum monthly rent if the bookstore stopped operating. After several years, the...

Owner Liable for Shopper's Injuries Outside Tenant's Store

December 17, 2013    

Facts: A shopper was hit by a motorist on the sidewalk outside of a shopping center tenant’s store. The shopper sued the center’s owner and the tenant. The owner and the tenant each asked a trial court for a judgment in its favor without a trial. Each said that the...

Sublease Shifted Maintenance Obligation to Tenant

November 22, 2013    

Facts: A tenant that rented five floors of an office building and the attached parking garage sublet the garage space to a parking garage operator. The owner later discovered water damage in the garage. It sued the tenant, asserting that the tenant was obligated under the lease...

Tenant Not Required to Pay Owner’s Attorney’s Fees

November 22, 2013    

Facts: A supermarket tenant signed a 25-year lease with the owner of a shopping center. Under the lease, the tenant was to pay base rent plus additional rent, which included items like its pro rata share of taxes for the center. Like some of the other tenants in the center, the...

Owner Didn't Waive Right to Collect Taxes

October 25, 2013    

Facts: A tenant rented space for its bakery in a shopping center. After the tenant moved out of the space, the center’s owner demanded that it pay real estate taxes and operating expenses incurred while it still occupied its space, plus the cost of restoring the space...

Tenant Entitled to Time to Gather Evidence in Breach-of-Lease Claim

October 25, 2013    

Facts: A used car dealership breached its six-year lease for a one-acre commercial lot where it sold trucks. It failed to pay the full amount of rent and other charges when they were due. The lot’s owner terminated the lease and sent the tenant an eviction notice.

Trial Needed to Determine Whether Consent Was Unreasonably Withheld

October 25, 2013    

Facts: A building with residential space for a cooperative (plaintiff) and commercial space on the ground floor that the plaintiff leased to 11 tenants was located in an historic district, meaning that changes could be made to its exterior only with the approval of a...

Tenant Disputed Rent Calculation Based on CPI Adjustment

September 23, 2013    

Facts: The lease between the owner of a warehouse and its tenant set out base rent for the first several years of the lease. Under the lease, every seven years the base rent would be adjusted to include the original base rent plus an amount calculated using changes in the...

Lease Didn't Give Owner and Tenant Same Right to Terminate

August 28, 2013    

Facts: A large national retailer of arts and crafts materials and a shopping center owner signed a lease with an ongoing cotenancy provision requiring the owner to lease the anchor store in thecenter to a regional or national tenant meeting certain criteria. If the owner fails...

Trial Needed to Determine Liability for Injury in Center’s Common Area

August 7, 2013    

Facts: A shopper suffered severe neurological and brain injuries when two teenagers at the center where she was shopping with her son threw a shopping cart from the fourth level of the center onto her at the ground level. (As a result of the assault, the teenagers were sentenced...

Trial Needed to Determine Allocation of Real Estate Taxes

July 26, 2013    

Facts: A mall owner signed a 20-year ground lease with a tenant for space in which to operate a movie theater. The lease included several clauses concerning the allocation of real estate taxes between the owner and tenant, including who was responsible for having the premises...