Settlement Terms Didn't Supersede Lease Requirements
Facts: A car wash tenant signed a lease with a renewal option every five years. The tenant exercised its renewal option twice. During the second renewal period, a dispute between the tenant and owner was settled by a court. The settlement stated that the tenant could operate until the owner found a replacement tenant. Several years went by with no replacement tenant. In the meantime, the tenant didn’t exercise its option for a third term, but it continued to operate at the property on a holdover basis.