Owner Could Withhold Consent to Reduced Rent Sublease

October 31, 2016
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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 tenant made partial rent payments several months in a row, the owner terminated the lease and sued the tenant for the back rent of more than $54,000. The tenant claimed that it had, in fact, produced a subtenant for the space, but the owner unreasonably withheld its consent to that arrangement.

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