Owner Wins, Owner Loses

Tenant Must Comply with Renewal Language

March 25, 2009    

Facts: A tenant signed a lease with the city that contained several 10-year renewal options. The lease stated that prior to exercising the option, the tenant must give a six-month notice of its intention to renew.

Acceptance of Surrender Eliminates Right to Collect Rent

February 26, 2009    

Facts: In 2005, an owner and tenant entered into a five-year lease. In May 2007, after the tenant failed to pay its rent and placed a “Store Closing” sign in its window, the owner began looking for a replacement tenant.

The owner signed a lease with a new tenant for a...

Mechanic's Lien Can Be Placed on Single Space

February 26, 2009    

Facts: A tenant leased 4,375 square feet in a building and hired a contractor to do the buildout of the space. The contractor hired a subcontractor to do the work. Upon completion of the work, the tenant paid the contractor, but the contractor failed to pay the subcontractor.

Guarantor Responsible for Tenant's Rent

February 26, 2009    

Facts: A guarantor personally guaranteed the obligations of a tenant under its lease for 18 months. The obligation included rent, taxes, and insurance. When the tenant vacated the premises without notice, the owner tried to enforce the guaranty. The guarantor admitted signing the guaranty...

Owner Can Withhold Consent to Assign

February 1, 2009    

Facts: After a tenant negotiated the sale of its lease and business to a third party, it asked the owner for consent to assign the lease. The owner refused, and the tenant sued, alleging that the owner unreasonably withheld consent. The trial court ruled in favor of the tenant, and the...

Statute of Frauds Not Applicable to One-Year Lease

February 1, 2009    

Facts: A tenant and an owner entered into a one-year lease. The tenant paid rent for three months and then abandoned the property, arguing that, according to the statute of frauds, the lease was invalid because it lacked a property description. The owner successfully sued in small claims...

Owner Not Liable for Tenant's Pet

February 1, 2009    

Facts: A tenant's dog attacked and severely injured a young child on the premises. The child's parent sued the dog's owner and won a substantial award, and later attempted to sue the building's owner for allegedly not evicting the tenant or forcing him to get rid of his...

Tenant Can't Claim Constructive Eviction

February 1, 2009    

Facts: A tenant signed a lease for space that had a history of flooding problems. During the owner's tenure, it repaired any and all damage that resulted from flooding. Approximately five years into the lease, the owner sold the property, but signed an agreement with the new owner...

Failure to Provide Leak-Free Roof Constitutes Breach

February 1, 2009    

Facts: Shortly after signing a lease, the tenant experienced significant leaking from the roof of her building. After several attempts by the owner to fix the leaking roof and an eventual roof replacement, the tenant moved back into the space. Another storm caused additional water damage...

Tenant Improvements Did Not Violate Lease Restriction

January 1, 2009    

Facts: In exchange for a significant rent increase, an owner agreed not to lease space to any business that sold the same types of products as the tenant.

Owner's Actions Can Create Tenant Property Interest

January 1, 2009    

Facts: A tenant decided to turn over ownership of its business to an employee. The employee informed the owner orally that he was taking over the tenant's business, but did not go through the formality of having the space assigned with a lease agreement. The owner continued to accept...

Failure to Pay Overdue Taxes Violates Bankruptcy Rules

January 1, 2009    

Facts: After a tenant filed for bankruptcy, a limited liability company (LLC) agreed, in a bankruptcy court order, to take over the tenant's lease and settle the tenant's outstanding debt, as determined by bankruptcy rules. The bankruptcy court's order also required the tenant...