Course of Conduct Let Tenant Off the Hook for CAM Costs
Facts: A national clothing retailer signed a lease for space at a shopping center. Later, when the center’s owner tried to charge the tenant for center expenses, the tenant refused to pay. The tenant claimed that the lease doesn’t require it to pay for heating, ventilation, and air conditioning (HVAC) expenses and a share of mall operation costs. The mall’s management company and owner disagreed. A district court agreed with the tenant, declaring that it has no obligation to pay for HVAC or common area maintenance expenses. The owner appealed.