Tenant Loses

Tenant Loses

Arbitration Required for Offset Dispute

July 31, 2014    

 Facts: If at any time during the lease a shopping center owner was unable to meet a cotenancy requirement, its tenant was permitted to pay a reduced “substitute rent.” The lease also provided that all disputes arising under the lease and...

Tenant Couldn't Rely on Owner's Verbal Assurances

July 31, 2014    

Facts: An owner signed a lease with a tenant that intended to operate a private school in its space after performing extensive renovations. After the owner wasn’t able to obtain an amended certificate of occupancy that would permit the tenant to operate a school, rather...

'Diner' Lease's Restrictive Covenant Ambiguous

June 27, 2014    

Facts: The restrictive covenant in a restaurant’s lease with a shopping center owner prohibited the owner from leasing to other “diner type” restaurants. When the owner began building out a portion of the center for a national specialty-hamburger restaurant and...

Mediation Necessary to Determine Sidewalk Liability

May 30, 2014    

Facts: A shopper tripped and fell on a two-tiered sidewalk in front of two retail stores. The sidewalk was marked with red paint to warn pedestrians about the drop-off from the upper to the lower level. Still, various employees of the tenants noted that they had witnessed...

Court Finds No Implied Term for Construction Completion in Lease

April 25, 2014    

Facts: A tenant signed a lease for space for its restaurant. At the time the lease was signed, the owner was in the process of gutting and remodeling the premises, including installing an elevator. To install the elevator, the owner was required to draw up architectural plans,...

Defect Must Be Latent to Defeat As-Is Lease

March 31, 2014    

Facts: The state health department forced a frozen yogurt shop tenant to suspend its operations until the waste water system for its space in a strip mall complied with state requirements. The tenant, who was unaware that its water system was inadequate, complained to the owner...

Personal Lease Guaranty Was Ambiguous

March 31, 2014    

Facts: A coffee shop tenant signed a lease for space in a strip mall, and signed a personal guaranty, promising that he would be financially responsible if the lease were defaulted on. The tenant later sold the coffee shop. When the new coffee shop tenant stopped paying rent,...

Tenant Must Pay Rent During Reduced Occupancy Period

February 28, 2014    

Facts: A retail tenant’s lease for shopping center space gave it the right to stop operating for a “reduced occupancy period” if a major co-tenant left the center until it was replaced. While a reduced occupancy period was in effect, the tenant decided to...

Owner Didn't Waive Early Termination Provisions

February 28, 2014    

Facts: A lease for storage space for casino equipment gave the tenant an early termination right, provided that it sent a letter in writing to the owner and paid a termination fee by a certain date. During a phone call shortly before the early termination deadline, the tenant...

Trial Needed to Determine Creation of Hazardous Condition

January 31, 2014    

Facts: Some high school students participated in an after-school work program at a general merchandise store. A chaperone who was monitoring the students tripped over a large piece of wood on the floor of a stockroom. She sued the tenant for negligence, asserting that a store...

Owner Not Liable for Tenant’s Flood Damage

January 31, 2014    

Facts: The shopping center where a general store-type tenant rented space was damaged when the area experienced flooding. The tenant sued the owner of the shopping center, among other parties including the adjacent tenant (a grocery store) and the Federal Emergency Management...

Tenant Must Be 'Prevailing Party' to Collect Attorney’s Fees

January 31, 2014    

Facts: An owner and tenant signed a 60-month lease that included an attorney’s fees provision. Toward the end of the lease, the tenant stopped paying rent. The owner sued the tenant for the back rent, and pursued an unlawful detainer action, separately. A court determined...