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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Necessity of Future Alterations Didn't Negate Consent Requirement

Aug 11, 2015

Facts: A fast-food restaurant franchisee was required to update its space every seven to 10 years in accordance with its franchise agreement. Its lease prohibited the tenant from making any alterations to the interior or exterior of the premises without the owner’s written consent. The tenant performed an extensive remodel to the exterior and interior of the re...

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Tenant Must Pay Holdover Rent Rate in 'Clear and Unambiguous' Lease

Jul 14, 2015

Facts: A law firm leased an entire floor in a commercial condominium building. The lease required the tenant to continuously maintain a letter of credit, and to replace that letter of credit if it was no longer valid at any point. A failure to do this would be a lease default. The lease gave the owner the right to terminate the lease in the event of such a default.


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Settlement Terms Didn't Supersede Lease Requirements

Jun 19, 2015

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 c...

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Misused Name in Guaranty Didn't Relieve Guarantors' Responsibility

Jun 19, 2015

Facts: A shopping center owner signed a lease guaranteed by the tenant’s business partners. The tenant stopped paying rent. The guarantors refused to pay. They argued that because the “landlord” was listed as a different business entity in the lease than in the guaranty, they weren’t responsible for the lease obligations. The owner sued the tenant and the guarantors. A court ruled in favor of the owner as to its claims against th...

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'Res Judicata' Precluded Tenant's Claim to Continue Operating

Jun 19, 2015

Facts: The owner of retail space sent a notice informing its tenant that it was in breach of the lease because it hadn’t installed a fire alarm system. The tenant refused to install a system, and the owner was fined by the city. The owner filed a petition with a court to evict the tenant. A judge ruled in favor of the owner in that declaratory judgment action.


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Tenant's Yellowstone Injunction Denied

Jun 19, 2015

Facts: A retail tenant was required by its lease to get the owner’s consent for all assignments and subleases. The tenant defaulted on its lease by, among other violations, assigning without permission the lease to its separate corporate entity, which later subleased the space to a jewelry store. 


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Tenant Required to Pay for Parking Spaces on 'Must-Take' Basis

May 27, 2015

Facts: A retail tenant’s lease provided that a certain number of parking spaces would be available outside the space it rented. The lease provisions specified that the tenant would let the owner know at the beginning of each month how many parking spots it would need. The owner would charge the tenant accordingly. Thus, the parking spots were used by the tenant on “as-needed” basis.


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Tenant's Conversation with Employee Didn't Orally Modify Lease

May 27, 2015

Facts: An office building owner rented space to a media company. The tenant was permitted to vacate the space early, in the third year of the lease, provided that it gave 90 days’ written notice, returned the keys to the owner, and paid any outstanding rent and other charges. After two years, the tenant talked to the owner’s employee, asking to terminate the lease. The tenant owed back rent and other fees, but it gave the keys to the employe...

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Rent Obligation 'Survived' Owner's Reentry

May 27, 2015

Facts: The owner of space leased by a kitchen and bath product retailer locked the tenant out of its space after it paid partial rent for several months and then stopped paying rent altogether. The tenant claimed that it was relieved of the obligation to pay rent after the owner locked the tenant out of the leased premises. The owner asked a trial court for a judgment in its favor without a trial and for damages. The trial court granted the request. The...

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Guaranty Not Rendered Unenforceable by Non-delivery

Apr 13, 2015

Facts: A clothing store tenant signed a modification and extension agreement to extend its five-year lease. There had been no guarantor for the original lease, but the owner required the tenant’s principal to guaranty the lease in order to extend it. The modification and extension agreement required that “tenant shall cause its principal to enter into the Guaranty attached hereto and made a part hereof.” The principal signed the modifi...

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