Eminent Domain Doesn't Give Tenant Right to Terminate

March 25, 2009
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Facts: A portion of the tenant's leased space was taken over by the city for a road project under the right of eminent domain. However, the portion taken was not actually part of the building; it amounted to five out of 107 parking spaces. Based on the lost spaces, the tenant sued the owner, and asked the court to grant its request to terminate its lease. The court ruled against the tenant and found that under the circumstances, the language in the lease did not give the tenant the right to terminate the lease. The tenant appealed.

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