Owner Wins, Owner Loses

Issues Not Addressed in Settlement Agreement Require Separate Lawsuit

November 30, 2008    

Facts: An owner sued its tenant for nonpayment of rent. Before the trial, the owner and tenant settled the dispute and entered into a settle agreement. The trial court approved the terms and retained authority to enforce them. The tenant agreed that if it violated any of the financial...

Owner's Failure to Offer Defense Solidifies Damage Claim

November 30, 2008    

Facts: An owner and a tenant entered into a five-year lease. During the end of the third renewal period, the tenant was informed that a new owner planned to demolish the building. The tenant tried to find an alternative space, but the new owner refused to let the tenant out of the lease...

Payment to Court Isn't Proof of Default

November 30, 2008    

Facts: An owner sued a tenant, claiming that it owed past-due rent. The amount was in dispute. The owner submitted two separate amounts, with one being substantially larger than the other. In accordance with state law, the tenant deposited the disputed amount in an account managed by the...

'As Is' Clause Doesn't Apply to Profitability of Business

October 31, 2008    

Facts: A tenant and an owner discussed the value and potential of a business for sale, and then entered into a lease agreement that allowed the tenant to lease the property, the business, and all of its contents for a specified amount with an option to purchase. The document signed by...

Failure to Address Issue Does Not Mean Waiver

October 31, 2008    

Facts: A tenant and owner entered into a 10-year lease. Approximately three years into the lease, the tenant sued the owner for violating the terms of the lease. The parties were able to reach a settlement orally, but asked the court to step in because they could not agree on the written...

Lack of Witness at Lease Signing Doesn't Negate Agreement

October 31, 2008    

Facts: An owner operating as a limited liability company (LLC) signed a 10-year lease with a tenant while the building was still under construction. When the building was almost completed, the owner backed out of the deal, claiming that the lease was not valid, because there were no...

Defective Lease Execution Negates Original Lease Terms

September 25, 2008    

Facts: A tenant entered into a lease with an owner, but at the lease signing, an individual whose capacity was undetermined signed the lease on the owner's behalf. After a dispute over on-site equipment, the tenant vacated the premises before the end of its lease.

Owner's Refusal to Grant Access Equals Partial Eviction

September 25, 2008    

Facts: An owner and a tenant entered into a lease agreement that gave the tenant exclusive access to the reception area, a lunchroom, a conference room, and reserved parking spaces. The property was eventually transferred to a new owner that refused to grant access to the areas...

Owner's Future Plans Not Violation of Lease Terms

September 25, 2008    

Facts: An owner and a tenant entered into a seven-year lease. The tenant made renovations to the space that fit the specific needs of its business. Shortly after, a new owner purchased the building and began renovations, some of which were on the tenant's floor—though not in the...

Health Code Violations Don't Relieve Rent Obligation

September 8, 2008    

Facts: The tenant and owner entered into a lease agreement containing a provision that relieved the tenant from paying the rent and other charges during the lease term if the premises were unfit for occupancy.

Several months into the lease, the owner was informed that the premises...

Owner's Refusal to Comply with State Law Equals 'Constructive Eviction'

August 31, 2008    

Facts: An owner and tenant entered into a lease that called for the tenant to pay for any modifications to the sprinkler system stemming from any changes the tenant made to the space. The lease made the owner responsible for installing a burglar alarm and fire alarm system.

Tenant's Late Notice Can't Be Excused

August 31, 2008    

Facts: A shoe store tenant and an owner entered into a sublease, and also into a prospective six-year lease for the same space that was to begin when the sublease ended. The six-year lease gave the tenant a termination option.

After unsuccessfully negotiating a base rent...