Owner Wins, Owner Loses

No Trial Needed to Rule that Assignee Breached Lease

October 18, 2021    

What Happened: Less than six months after assuming the responsibilities of the lease from the previous tenant, the assignee notified the landlord that it planned to close its furniture rental store. When it became clear that the assignee wasn’t going to pay the remaining...

Changing Locks of Deadbeat Tenant Was Constructive Eviction

October 17, 2021    

What Happened: A landlord was concerned that a fitness center that was way behind on rent would suddenly move and take all of its equipment. So, it went to court to get what in Illinois is called a “distress warrant” granting a lien on a tenant’s personal...

Landlord Not on the Hook for Construction Defects in Improvements

September 21, 2021    

What Happened: Under a “build to suit” lease, a landlord purchased a property, made a construction contract with a builder...

Mold that Could’ve Been Discovered ≠ Breach of Implied Warranty of Suitability

September 21, 2021    

What Happened: Upon taking possession of the premises she had just leased for use as a daycare center, a tenant detected a strange odor. It turned out to be mold, and the environmental consultant’s report showed that it was all over the walls and in the carpeting of the...

Tenant’s Request for Buildout Delay Isn’t an Anticipatory Breach

August 24, 2021    

What Happened: Under the terms of a 10-year restaurant lease, the obligation to pay rent didn’t kick in until the buildout was complete and the tenant began operating in the space. With work on the premises still to be done, the governor issued a COVID-19 shutdown order....

Arbitrator Went Too Far in Awarding Tenant Lost Profits

August 24, 2021    

What Happened: After waiting a year and a half, the tenant claimed that the landlord was in violation of its lease duty to complete the repairs necessary to make the 10,000 square feet of leased space suitable for use as a laser tag/pizzeria establishment. As provided under the...

Just Because Lights Are Easy to Remove Doesn’t Mean They’re Not Fixtures

August 24, 2021    

What Happened: Nobody had any issue with the auto dealer’s removal of the “Ford” sign it had installed on the lot at its own expense and owned. But the tenant also took away six large light stands when its lease came to an end. The landlord claimed that the...

Leasing Mall Space to Medical Clinic Violates Landlord’s Duty to Operate Retail Establishment

July 21, 2021    

What Happened: A shopping center lease gave a fabric and crafting suppliers tenant the right to pay a lower substitute rent if the landlord violated its obligation to run the center as a “first-class retail project.” The problem began when the landlord leased space...

Contractor's Lien Against Tenant Doesn't Reach Landlord

July 21, 2021    

What Happened: A restaurant tenant hired a contractor to install kitchen equipment in its leased space. The tenant paid only $60,000 of the contractor’s $274,000 bill. So, the contractor placed a lien on the space to secure the balance. And since the tenant had since been...

Court Nixes Tenant's $3M Racial Discrimination Case Against Landlord

July 21, 2021    

What Happened: For the first six months of the lease, an African-American owner of a day spa had a “great” and “courteous” relationship with her landlord. But then came the middle-of-the-night call the landlord received from the Sheriff’s Office...

Tenant Took Too Long to Exercise Purchase Option

June 17, 2021    

What Happened: After evicting a liquor store tenant, a landlord sued for immediate possession of the property. But the tenant didn’t want to leave and offered to buy the property, citing the following option in the lease:

Tenant has option...

Retail Tenant Gets Temporary Force Majeure Reprieve from Eviction

June 17, 2021    

What Happened: A clothing retailer cited the force majeure clause in its leases as an excuse for not paying rent during the COVID-19 shutdown months of April and May 2020. Not so fast, responded the landlord, noting that the clause: