Owner Wins, Owner Loses

Real Estate Agent's Duplicity Doesn't Invalidate Bankruptcy Debtor's Lease Rejection

November 29, 2022    

What Happened: J.C. Penney (JCP) subleased commercial property to Klairmont at below-market rates....

Another Tenant's COVID Frustration Defense Comes Up Empty

October 24, 2022    

What Happened: Stop me if you’ve heard this one before: A restaurant tenant struggled to pay rent after the governor issued a COVID-19 shutdown order in...

No Implied Warranty of Habitability in Commercial Leases in Nevada

October 24, 2022    

What Happened: Frustrated by the landlord’s failure to remedy unsanitary conditions at the site, a warehouse tenant moved out of the property and stopped paying rent. In the lawsuit that followed, the tenant claimed the landlord violated the implied warranty of...

Lease Doesn't Make Tenant Responsible for Real Estate Tax Increases

September 23, 2022    

What Happened: A nonprofit landlord leased property to a for-profit utility to operate a solar-powered electric-generating facility. The lease required the tenant to:

Guarantor on the Hook for Landlord's Consequential Damages

September 23, 2022    

What Happened: A landlord sued Saks, Inc., for failure to honor a corporate guaranty of its subsidiary’s obligation to pay rent under its shopping center lease. Saks owes us attorneys’ fees and consequential damages covering the loss in the property’s value we...

NYC Landlord Not Guilty of Harassing Nonpaying Tenant

September 23, 2022    

What Happened: In May 2020, with the pandemic in full rage, New York City adopted a law banning commercial landlords from harassing tenants. A bridal shop tenant invoked the law after the landlord sued it and its guarantor for unpaid rent and additional rent for real estate tax...

Shopping Center Co-Tenancy Rent Abatement Isn’t an Unenforceable Penalty

August 29, 2022    

What Happened: A shopping center tenant exercised its supposed right to pay reduced rent under a co-tenancy clause that kicked in when either: (1) the center lacked either three anchor tenants; or (2) 60 percent of the space wasn’t leased. While acknowledging that a...

COVID-19 Shutdown Orders Are Not a “Taking” Under the Lease

August 29, 2022    

 What Happened: A clothing retailer leased space for “[a]ny general retail use, including the display and sale of apparel, shoes and accessories, gifts, cards, furniture, home furnishings...

Leaving Equipment Behind for 24 Hours Isn’t a Holdover

July 20, 2022    

What Happened: After a mutually beneficial tenancy of over two decades, Comcast moved out of its Michigan corporate headquarters. The move didn’t go exactly as planned, and the company was unable to remove equipment from its in-house fitness center by the lease termination...

OK to Evict Shopping Center Tenant for Creating a Nuisance Without Opportunity to Cure

July 20, 2022    

What Happened: Shopping center tenants complained to the landlord about the “overwhelming unpleasant possibly toxic odors” emanating from their neighboring bar lounge tenant whose patrons were apparently allowed to smoke tobacco and marijuana with impunity. The...

Landlord Can Collect Rent from Defaulting Tenant After Selling the Property

July 20, 2022    

What Happened: In 2019, a clothing store signed a 10-year lease on commercial property in Chicago, starting in September 2020. But the COVID-19 pandemic hit and the tenant never moved in. In May 2021, the landlord sold the building and terminated the lease. In addition to $1.4...

Bankrupt Tenant Can Renew Lease Despite Defective Renewal Notice

June 23, 2022    

What Happened: A restaurant tenant with a habit of paying rent late took advantage of the COVID-19 shutdown to make some improvements to the space at its own expense, assuming that it would be able to renew once the lease came to an end in August 2021. But the tenant was still...