Disputed Charges Were Properly Classified as CAM

April 26, 2016
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Facts: The owner of a shopping center sued a tenant for breach of its lease. The owner had charged as part of common area maintenance (CAM) a prorated amount that it had to spend on fixing potholes in the parking lot and installing signs limiting the parking lot to customers. The owner classified these repairs as maintenance. Under its lease, the tenant was responsible for its share of maintenance at the center. The tenant argued that these were “capital improvements,” not maintenance, and didn’t fall under CAM.

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