Owner Wins, Owner Loses

Tenant Not Entitled to Space After Subtenant Default

July 31, 2008    

Facts: The owner leased a building to a tenant that later sublet the building to a third party for the purposes of running a restaurant. Several years later, a fire damaged the building. The subtenant had the following legal options: 1) fix the damage and recover the cost from the owner;...

Assignment Does Not Eliminate Options

July 31, 2008    

Facts: An owner and tenant entered into a 20-year lease that included four lease extension options, each for five years. The owner assigned his interest in the lease to a new owner—that is, gave the new owner all of its rights in the lease. The tenant assigned the 20-year base lease...

Owner Must Inspect After Eviction

July 31, 2008    

Facts: A tenant restaurant defaulted on its lease by operating an after-hours dance club and by failing to pay its rent. The owner sued to evict the restaurant and won, but a week and a half after the eviction judgment was made, the restaurant was still operating, and a customer slipped...

'No Terrorism' Insurance Policy Insufficient

June 30, 2008    

Facts: A tenant entered into a lease agreement that required the purchase of insurance coverage for damages as a result of specific harms including smoke, riot, crashing airplanes, and “civil commotion.” The lease agreement did not specifically require coverage for terrorist...

Tenant Terminated Lease in Bad Faith

June 30, 2008    

Facts: A tenant signed a 15-year lease agreement that included a provision allowing for termination of the lease within 60 days if, after any casualty, the repair and reconstruction costs of the leased space totaled or exceeded 35 percent of the total reconstruction costs.

Four...

Tenant Didn't Have to Name Owner in Insurance Policy

June 30, 2008    

Facts: An owner and tenant signed a commercial lease that required the tenant to obtain commercial general liability insurance (CGL) for their “mutual benefit.” The blanket additional insured endorsement in the CGL policy that the tenant purchased stated that the definition of...

Damage Award Depends on Proof of Amount Lost

May 31, 2008    

Facts: A Nevada tenant rented retail space from the owner. The tenant defaulted on the lease and never opened the store that it had planned to operate. The owner sued the tenant for the lease violation and asked that the trial court award it more than $2.4 million in damages. The trial...

Katrina Damage Didn't Justify Lease Termination

May 31, 2008    

Facts: After Hurricane Katrina had damaged the premises, a Louisiana tenant moved its merchandise and other possessions out of the space that it had rented under a 25-year lease. The tenant also stopped paying rent and refused the owner's request to meet that lease duty.

The...

Tenant's Excuse for No-Show Prevents Eviction

April 30, 2008    

Facts: An owner sued a tenant for nonpayment of rent, and asked that the court award it back-rent of nearly $13,000 and possession of the leased space. The court awarded the owner the requested relief after the tenant did not appear for the trial. The tenant subsequently asked the court...

Subletting Space Didn't Excuse Tenant from Lease Responsibilities

April 30, 2008    

Facts: A lease, entered into in January 2004 between the tenant and the owner, allowed for early termination by the tenant after one year if the tenant chose to close its fitness center. Exercising this right required the tenant to provide 90 days’ written notice of the termination...

Tenant that Waited to Vacate Premises Not 'Constructively Evicted'

March 31, 2008    

Facts: In 2002, a tenant approached the owner about subletting two of its floors to a second tenant. Instead, the owner entered into a separate lease with the second tenant and charged less for rent. The primary tenant was required to cover the difference and be responsible for...

Failure to Operate Parking Lot Continuously Isn't Lease Violation

March 31, 2008    

Facts: The owner leased a parking lot to a tenant, and both agreed that the tenant would use the lot only for off-airport parking and related uses. Subsequently, the tenant opened up a second lot nearby and focused primarily on its operations. Eventually, the tenant moved all of...