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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Disputed Charges Were Properly Classified as CAM

Apr 18, 2016

Facts: The owner of a shopping center sued a tenant for breach of its lease. The owner had charged as part of common area maintenance (CAM) a prorated amount that it had to spend on fixing potholes in the parking lot and installing signs limiting the parking lot to customers. The owner classified these repairs as maintenance. Under its lease, the tenant was responsible for its share of maintenance at the center. The tenant argued that these were “...

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Tenant Must Bear Entire Cost of Personal Injury Award

Apr 18, 2016

Facts: A car dealership leased a lot where its inventory was stored. It contracted with a car carrier company to transport its cars from certain locations to the lot. A mechanism devised by the dealership tenant to control traffic at the entrance to the lot pulled a brick wall down. A security guard was injured by the wall and sued both the dealership tenant and the carrier company. The tenant asked the carrier to indemnify it—that is, reimburse i...

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Fitness Classes Violated Permitted Use for Batting Cage Space

Feb 23, 2016

Facts: A shopping center owner sued its tenant for violating the permitted-use provision of its lease, which allowed it to operate a batting cage and hold agility classes for team sports. Specifically, the tenant had been offering strength-and-conditioning classes, fitness-training classes, dance classes, and rowing machines on the premises. (Another tenant in the mall operated a gym and its lease limited the activities of other tenants offering sports ...

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Court Upholds Shopping Center Lease Arbitration Award

Feb 23, 2016

Facts: Under its agreement with a previous owner of the shopping center where it rented space, a tenant had been permitted to use its rent payments to “pay down” a wraparound mortgage that arose from some bankruptcy claims. After the center was purchased, the tenant was required to pay full rent to the new owner. The tenant objected, and the dispute went to arbitration. An arbitrator determined that the lease gave the owner the right to coll...

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Tenant Bore Risk of Interruption in Business

Nov 19, 2015

Facts: A restaurant tenant stopped paying rent for its commercial space. It claimed that a nearby state construction project had substantially decreased its profits because the construction blocked the entrance’s visibility and forced customers to take an indirect route to reach the restaurant. The owner sued it for breaching its lease. The owner asked the court for a judgment in its favor without a trial.

Decision: A Massac...

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Tenant's Misrepresentation of Financial Condition Was Fraudulent

Nov 19, 2015

 Facts: A tenant signed a 13-year lease with the owners of an office building. Upon moving into the office space the tenant failed to secure a $75,000 security deposit bond, which was required under the lease. The tenant later moved out without notice or explanation, stopped paying rent, and removed its fixtures.


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Mall Owner Released from Liability for Jewelry Theft

Oct 26, 2015

Facts: A jewelry vendor signed a license agreement to sell its inventory from a kiosk in a mall. At the end of the day, the tenant would store its inventory in a safe contained within its space. The space was then closed off and the mall itself was not accessible to the public overnight. Thieves broke into the mall and stole jewelry from the safe.


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'Premises' Referred to Only Interior of Tenant's Space

Oct 26, 2015

Facts: A tenant rented space to operate its café and lounge in an Art Deco-style entertainment complex that included a theater and flashing signage. According to the tenant, the exterior of the building and the unique signage attracted customers to its location. Under the lease, the owner was obligated to fix any weather-related damage to the “premises” within six months.


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Owner Not Required to Pay for Accessibility Expenses

Sep 17, 2015

Facts: Less than one year after entering into a five-year lease, a tenant vacated its space, declaring that the owner had materially breached the lease by allegedly refusing to make accessibility improvements under the Americans with Disabilities Act (ADA) that the tenant insisted were required for it to obtain a use and occupancy permit for the space.


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Owner Adequately Mitigated Damages

Aug 28, 2015

Facts: A shopping center owner sought to recover damages from a liquor store tenant after it breached its lease and lease guarantees by failing to pay rent. After the owner sent the tenant a notice to quit possession of the premises, the tenant moved out. The owner sued the tenant. The tenant argued that it shouldn’t have to pay monthly rent until the space is occupied by a new tenant. The tenant claimed that the owner hadn’t mitigated its d...

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