Recent Court Rulings

Tenant Triggered “Escape Clause”

April 22, 2013    

Facts: A mattress store tenant signed a lease with a shopping center owner for space next to a national chain grocery store. The monthly rent was $5,000. After the grocery store moved out of its space, the tenant stopped paying rent, gave a 60-day notice to the owner, and moved...

License Agreement Entitles Owner to Evict

April 22, 2013    

Facts: An owner licensed 24,000 square feet of retail space in its shopping center to a licensee to sell its merchandise. The owner later revoked the license, under which the licensee was required to leave the space in case of a revocation. However, the licensee refused to leave...

Tenant's Real Estate Taxes Not Capped Like CAM Costs

March 27, 2013    

Facts: A tenant rented space in a shopping center to run its bakery. It executed a letter of intent (LOI) with the center’s owner and signed a lease. The LOI set forth terms, including terms pertaining to CAM cost increases and taxes, which were later incorporated into the...

Yellowstone Injunction Granted for Restaurant Tenant

March 27, 2013    

Facts: An owner bought a building that already leased space to a restaurant, among other tenants. The tenants’ leases were assigned to the owner. The owner discovered that a tenant renting space for two bars and a delicatessen (restaurant tenant) in the building had been...

Video Gambling Lawsuit Filed Within Statute of Limitations

March 27, 2013    

Facts: An owner sued the personal guarantor of a commercial lease for a video gambling establishment for breach of contract. The guarantor contended that owner’s claim was barred by the statute of limitations because the owner didn’t attempt to enforce the guaranty...

Constructive Eviction Claim Not Valid

February 27, 2013    

Facts: A tenant who provided physical therapy services rented space on the top floor of a five-story building. After three months, the tenant stopped paying full rent. The owner sued the tenant to recover the space and won. The tenant sued the owner for constructive eviction....

"Frustration of Purpose" Didn’t Terminate Tenant’s Lease

February 27, 2013    

Facts: A tenant leased space at a shopping center for its sporting goods store. The center was in a flood zone and had been flooded several times, ruining the inventory of the center’s tenants each time. Under the lease, the tenant was required to have an “all-risk...

"Out-of-Possession Landlord" Not Liable for Floor Cave-In

January 29, 2013    

 

Facts: An employee was injured while working at a warehouse leased by his employer. The floor of the warehouse collapsed while the employee was stacking steel in a bay. The basement under the bay was rented to another tenant. The employee and the steel fell into...

Tenant Not Responsible for Parking Lot

January 29, 2013    

 

Facts: A pedestrian slipped and fell on ice in the parking lot of a shopping center. She sued the owner of the property. The owner asserted that the tenant that rented the store near the parking lot was obligated to keep not only its space and the area...

Tenant Must Pay Owner's Excise Tax

January 29, 2013    

Facts: After a tenant signed a lease for space it used as a convenience store, the property was sold and the lease was assigned to a new owner.

Owner Must Maintain Lighting Near Loading Dock

December 21, 2012    

Facts: A discount store rented space at a strip mall. The lease provided that the center’s owner would maintain the lighting in the common areas, including the area of the center behind the stores, which was used as a loading dock for merchandise to be brought into the...

Statute of Limitations Barred Owner’s Back Rent Claim

December 21, 2012    

Facts: An office building owner continued to accept rent from a tenant after its lease was over. The lease provided that the owner could sue the holdover tenant for liquidated damages if it failed to surrender the space when the term ended. Several months later, the owner sent a...

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