Owner Wins, Owner Loses

Tenant's Inconvenience Didn't Override Owner's Decision to Terminate

April 26, 2017    

Facts: A tenant leased space in a shopping center for its restaurant. The tenant had an option to renew its lease, but had to exercise that option a year before the lease term was to expire. The tenant claimed that it sent a letter to the owner of its space, letting it know that...

Right of First Refusal Extinguished Upon Exercise of Option

March 15, 2017    

Facts: Two tenants leased space at a property. The first tenant had a right of first refusal to buy the entire property, including the second tenant’s space, if a third party made an offer. The second tenant had the option to buy its own space at a certain year in its...

Tenant Entitled to Yellowstone Injunction While Awaiting Lease Decision

February 22, 2017    

Facts: A souvenir shop tenant’s lease that was signed in 2000 required it to provide an estoppel certificate to the owner of the building within 10 days. There was a dispute between the owner and tenant as to whether that version of the lease or a new lease that had been...

Foreseeability of Tenant's Denied License Put Risk on Landlord

January 24, 2017    

Facts: In order to open and operate a daycare under state law, Florida daycare tenants must first sign a lease for space before applying for a license to operate the business. A daycare executed a five-year commercial lease for two store spaces in a shopping center while it...

Competing Restaurant Wasn't 'Similar in Concept'

November 22, 2016    

Facts: A restaurant with a 1950s American roadside diner theme leased space at a shopping center. Later, the owner signed a lease with a pancake house restaurant franchisee for space nearby. The tenant asserted that the new lease with the pancake restaurant violated a...

Yellowstone Injunction Awarded to Give Longer Cure Period

November 22, 2016    

Facts: A tenant that operated a gym received a notice from the owner of its space ordering it to obtain the proper permits to operate its business, which were required by its lease. The tenant asked a New York trial court for a Yellowstone injunction, which would toll—that...

Owner Could Withhold Consent to Reduced Rent Sublease

October 21, 2016    

Facts: Two guarantors promised to carry out the lease obligations of a restaurant tenant in the event that the tenant defaulted. The lease’s assignment and subletting clause required the tenant to get the owner’s consent to an assignment or sublet.

After the...

Guaranty Plainly Stated It Was Unconditional Guarantee of Payment

September 26, 2016    

Facts: An office building tenant was in default of its lease and subsequently filed for bankruptcy. The lease had been guaranteed. The guarantor hadn’t filed for bankruptcy. When the building’s owner informed the guarantor that it would have to cover the back rent...

Landlord Retained Responsibility for Ice Removal

August 29, 2016    

Facts: A grocery store customer who slipped and fell on ice in the strip mall’s parking lot sued the grocery store tenant, the center’s owner, and the snow-removal contractor and subcontractor for her injuries. She asserted that they all had a duty of care to keep...

Material Changes to Lease Didn't Relieve Guarantors of Rent Liability

July 25, 2016    

Facts: Two guarantors agreed to be liable for rent payments under a lease for stationery store space. Shortly before the lease was to expire, the tenant and the owner of the shopping center where the store was located entered into an amendment, extending the lease term. The...

Tenant Inadvertently, Not ‘Willfully,’ Held Over Space

June 17, 2016    

Facts: A tenant and owner negotiated a four-month lease for commercial space, with an option to renew on a month-to-month basis. The tenant failed to pay rent for two months in a row, but asked the owner to extend the lease for an additional month past the original lease term....

Lease Was Unclear Regarding Initial Buildout Construction

May 25, 2016    

Facts: An owner signed a lease with a tenant for space to operate a convenience store. After the tenant took possession of the space it notified the owner that the owner’s obligation to remove or remediate any asbestos in the building was waived. The tenant began making...

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