Owner Wins, Owner Loses

Owner Didn't Mitigate Damages

July 26, 2009    

Facts: Danada Square, LLC, the operator of a shopping center, sued KFC National Management Company, a former tenant, after a KFC franchisee assumed KFC's original lease but terminated the lease with Danada early. Because KFC remained the guarantor under the original lease, it made the...

Tenant Entitled to Lost Wages for Owner's Illegal Entry

June 24, 2009    

Facts: A tenant alleged that after he entered into possession of two units in a commercial building under a rental agreement, he found that the door lock had been changed and a “for rent” sign had been put up. He was told that he had been “locked out” because he...

Owner Entitled to Restrict Tenant's Access to Space

June 24, 2009    

Facts: A retail tenant sued Burbank Mall Associates on the basis of unjustified delay in turning over the keys to the premises. The trial court ruled in favor of the owner.

Month-to-Month Tenancy Governed by Same Terms in Lease

June 24, 2009    

Facts: An owner claimed that a tenant failed to pay rent and other charges in the lease when due and additionally owed holdover rent for the third and fourth years of the tenancy. Including late fees and interest, the owner claimed that the tenant owed it more than $3.1 million.

...

Mall Has Duty to Repair Roof

June 24, 2009    

Facts: In December 2005, Quincy Mall sued Kerasotes Showplace Theatres to recover alleged unpaid rent due under the commercial lease. In May 2008, the trial court ruled in favor of the theatres.

The owner argued that it was not its responsibility to replace the tenant's roof...

Nonbinding Letter of Intent Not Equal to Contract

April 30, 2009    

Facts: A large retail bank approached an owner about leasing space so that it could open a branch. After several discussions and an assessment of the premises, the bank determined that the premises would not be suitable for its design. As a result, the bank sought and found suitable space...

Owner Illegally Withheld Tenant's Security Deposit

April 30, 2009    

Facts: A tenant and an owner entered into a five-year lease, and the tenant made a $10,000 security deposit. Three years into the lease, the tenant approached the owner, wanting to transfer its lease to another business owner. The owner refused, and the tenant and the new business...

Owner Tried to Mitigate Damages

April 30, 2009    

Facts: One year into a five-year lease agreement, a tenant stopped paying rent. After the owner demanded payment, the tenant entered into a separate agreement to bring the rent payments current. The tenant eventually vacated the space. The owner sought additional rent, but the tenant...

Tenant Not Entitled to Individual Notice of Government Ruling

April 30, 2009    

Facts: A tenant operated a business in a building that the local government was planning to designate as blighted—that is, obsolete with a marginal economic use. Before the final decision was made, the local government sent out hearing notices to the owner of the building in the...

Nonbinding Letter of Intent Not Equal to Contract

April 28, 2009    

Facts: A large retail bank approached an owner about leasing space so that it could open a branch. After several discussions and an assessment of the premises, the bank determined that the premises would not be suitable for its design. As a result, the bank sought and found suitable space...

Owner's Refusal to Sell Property Constitutes Breach

April 28, 2009    

Facts: A tenant entered into a 10-year lease that contained a clause giving it the option to purchase the property at the end of the lease period. The lease did not indicate how the option to purchase must be exercised. After approximately two years, the tenant merged with another company...

Tenant Granted Use of Extra Space Not Liable for Extra Rent

April 28, 2009    

Facts: A tenant agreed to lease space in a strip mall. The tenant leased only one space, but at the time the lease was signed, the space was not big enough for the tenant to run its business. To accommodate the tenant, the owner offered to let the tenant use an adjacent space until it...