Owner Wins, Owner Loses

Tenant's Right of First Refusal Not Triggered by Management Agreement

March 31, 2008    

Facts: An owner leased six parking lots to a tenant. In turn, the tenant agreed to pay annual rent and manage the parking lots' operations. The lease also contained a right-of-refusal clause, giving it the right, before any other tenant, to accept or reject any lease offers...

Tenant Must Pay Rent Despite Water Damage

March 1, 2008    

Facts: The owner of a commercial building served a tenant a three-day notice demanding back rent. The tenant did not respond to the notice, and the owner sued for payment. The tenant claimed that it had been forced to move and stopped paying rent because an alleged water leak, which the...

Jury Award Stands After Breach of Contract

March 1, 2008    

Facts: A tenant ran several entertainment businesses on the owner's premises. The businesses were unable to make a profit, and the tenant informed the owner that it couldn't pay the rent and removed all of its property from the premises. The owner sued the tenant for unpaid rent,...

Tenant Without Lease Can't Sue Owner for Violating Warranty

March 1, 2008    

Facts: The tenant, while renting space in the owner's building without a lease, experienced property damage from a fire. The tenant then sued the owner, claiming that the owner violated his promise, or warranty, of providing a space suitable for business by failing to safely maintain...

Owner Not Covered by Tenant's Insurance

February 1, 2008    

Facts: An employee of a shopping center tenant died as a result of a criminal assault committed in the tenant's space. Because the victim was the tenant's employee, all claims surrounding her death were handled by the tenant's workers’ compensation insurance.

Owner Made Reasonable Efforts to Minimize Damages

February 1, 2008    

Facts: A tenant signed a commercial lease with a three-year term. Before the three years expired, the tenant and owner had agreed to extend the lease for another three years. After the extension, the tenant assigned the extended lease to a new tenant. The original tenant and the new...

Owner Can't Collect Damages Beyond Property's Fair Market Value

January 1, 2008    

Facts: An owner sued two tenants for defaulting on their commercial leases. The owner attempted to collect damages that would have been more than the fair market value of the properties. A Georgia trial court ruled in favor of the tenants, and the owner appealed.

Decision: A...

Owner Not Required to Accept Lump Sum When Tenant Defaults

January 1, 2008    

Facts: Tenants, a marketing firm and its representatives, entered into a lease granting them use of almost 3,000 square feet of commercial space. The tenants subsequently sold the business and stopped paying rent on the property. The owner notified the tenants that their nonpayment had...