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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Mall of America Avoids Getting Stuck with Sears’ Bankruptcy Assignee

Mar 17, 2020

    What Happened: When Sears went bankrupt, its Mall of America (MoA) lease was taken over not by another retailer, restaurant, or amusement venture, but by Transform Leaseco LLC, a “very unshopping-mall-like” corpora...

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Tenant Responsible for Landlord’s Property Removal Costs

Mar 17, 2020

What Happened: A landlord sued a warehouse tenant for unpaid rent and the $9,000 it spent to remove the seven trailers, two tractors, two refrigerators, two pianos, furniture, and other property the tenant left behind after being evicted. While admitting liability for the rent, the tenant denied responsibility for the landlord’s removal costs. The lease didn’t say anything about the tenant’s having to pay the landlord’s costs of ...

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Landlord's Settlement with Tenant Doesn't Let Guarantor Off the Hook

Feb 19, 2020

What Happened: Roughly 18 months into a five-year lease, the landlord sued to evict a tenant for late payment of rent. After settling with the tenant out of court, the landlord asked the tenant’s guarantor to pay the rent for the remaining mon...

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No Relocation Benefits for Tenants Forced Out by Sale to Government

Feb 19, 2020

What Happened: A city in Oregon purchased commercial property that it intended to develop for a City Hall. The sale agreement required the owner to deliver the property free of tenants. The owner kept its end of the bargain by informing the tenants of the sale, ending their leases, and letting them stay on a month-to-month basis until the city took ownership.

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Subway Not Liable for Franchisee's ADA Violation

Feb 19, 2020

What Happened: After experiencing what he felt was rude and humiliating treatment by a Subway employee while ordering a steak sandwich, a customer brought an ADA lawsuit against not just the restaurant where the incident happened but the franchisor company, which it claimed was responsible for the disability discrimination committed by its franchisees. The franchisor denied having any liability for the incident and asked the court to let it out of the c...

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Lease Clearly Shows that Landlord Owns Tenant Improvements

Jan 23, 2020

What Happened: Erection of a reception desk and bar fixture containing sinks for mixing hair color were among the improvements made at the landlord’s expense before a hair salon tenant moved in and opened shop. The reception desk and color bar were also among the assets the tenant attempted to sell upon vacating the premises seven years later. But the landlord insisted that it owned the fixtures, and the asset sale eventually fell through...

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No Constructive Eviction Where Tenant Didn’t Notify Owner of Sewage Problem

Jan 23, 2020

What Happened: After experiencing repeated problems with the building sewage system, a bank branch tenant decided to move out. In its notification letter, the tenant claimed that it was subjected to “hazardous environmental conditions”—namely, mold and sewage backup—and claimed that the landlord’s failure to remedy the problem was constructive eviction. The landlord, in turn, sent the tenant a default notice, and it was on ...

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Tenant's Nuisance Claim Against Owner Isn’t an Open-and-Shut Case

Jan 23, 2020

What Happened: Sharing an office building with a gym where individuals and classes deliberately dropped free weights to the ground as part of their “Cross Fit” training made it hard for a tenant to carry out its radiation practice in peace. Frustrated with its failure to stop the “constant array of disturbances, excessive vibrations, massive booms, noxious noise and adverse effect on hangers supporting pipes and conduits,” the te...

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How Much of Replacement Tenant’s Rent Must Landlord Offset Against Original Tenant’s Debt?

Dec 26, 2019

What Happened: An auto detailing tenant acknowledged installing a parking lot area without the landlord’s authorization and then vacating with 19 months remaining on the lease. The question: How much, if any, of the rent the landlord received from the new tenant should be offset against the previous tenant’s debts? The court turned to the following lease language:


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Eviction Court Had No Authority to Cut Tenant’s Rent

Dec 24, 2019

What Happened: After spending more than $45,000 for improvements, a tenant claimed that it discovered that the premises it leased for five years for use as a hair salon was only 452 square feet rather than the 600 square feet the landlord represented. So the tenant asked for a rent break. When the landlord refused, it stopped paying rent, prompting the landlord to sue for eviction. The tenant claimed that the landlord made false representations about th...

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