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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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"Out-of-Possession Landlord” Not Obligated to Make Repairs, Maintain Premises

Nov 19, 2012

Facts: A restaurant tenant’s employee required surgery for a broken wrist that he suffered in a slip-and-fall accident on a spiral staircase, used to access the employee locker room. The employee claimed that the staircase was greasy, and that the steps were worn smooth. He sued the owner for his personal injuries, claiming that the owner was responsible for maintaining the staircase in a safe condition. The owner asked a trial court for a judgmen...

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Owner Not Responsible for Third-Party Disturbance of Tenant

Nov 19, 2012

Facts: A shopping center tenant rented space to operate a nightclub. There was an unfinished office building across the street from the center, which the center’s owner told the tenant would be completed the following year. When the office building hadn’t been finished by then, the tenant reduced its rent payments, which were accepted by the owner, for several months in a row and sued the owner, asserting that criminal activity in the unfini...

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Appeals Court Overturns Jury Verdict in Slip-and-Fall Case

Oct 19, 2012

Facts: A business owner slipped on a puddle of oil on the floor of the warehouse space he rented. He sued the trust that owned the property and the trustee (the defendants) for negligent maintenance of the premises and a jury trial was held. The jury ruled in his favor. The defendants asked the court for a judgment notwithstanding the verdict (JNOV), a practice whereby a judge may overrule the decision of a jury and reverse or amend its verdict. JNOV pe...

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Triple Net Lease Shielded Owner from Liability

Sep 28, 2012

Facts: An appliance store leased a building and parking lot “as is” from the owner under a triple net (NNN) lease—that is, a lease in which a commercial tenant is responsible for maintaining the premises and for paying all utilities, taxes, and other charges associated with the property. The owner continued to occupy some of the building’s storage areas. A deliveryman for the tenant fell in a part of the parking lot wholly used a...

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Outbuildings Not Included in Lease’s Maintenance Requirement

Aug 30, 2012

Facts: An employee of a truck rental company tenant sued the property’s owner for negligence, after the employee injured his back when he stepped into a hole in the floor of a tire “shed” that was on the property the owner leased to the tenant. The owner asserted that it owed no “duty of care” to the tenant’s employee, because the lease’s requirement that the owner maintain the property didn’t apply to out...

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Tenant's Security Deposit Not Credited to Unpaid Rent

Aug 30, 2012

Facts: A real estate company rented a corner store and partial basement of a building for a 10-year lease term. The tenant paid $42,000 as a security deposit. Two guarantors also signed separate written guaranty agreements, guaranteeing full performance of the terms of the lease, including rent payment. Shortly after it moved into the space, the tenant breached the lease agreement by failing to pay its monthly rent as well as its additional rent. Conseq...

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Lease Modification Must Be in Writing

Jul 26, 2012

Facts: A women’s clothing manufacturing company rented space in an office building. The chief executive officer of the company signed the lease on behalf of the company, gave a security deposit, and executed a “good-guy” guaranty, personally guaranteeing that the company would perform all lease obligations while in actual possession of the premises. The tenant operated in the space for several years, but then asked the owner about the ...

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Owner Assumed Duty for 'Punch List'

May 4, 2012

Facts: A utility company signed a lease for an office building that would be constructed according to a building plan between it and the owner. The lease would commence when the building was “substantially complete,” meaning that the building had been constructed according to the agreed-upon plan, with the exception of only minor items that needed repair on a “punch list” that the tenant was responsible for providing after it inspected the...

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Rent Abatement Mandatory Under 'Self-Executing' Provision

Apr 13, 2012

Facts: In April, an owner and tenant signed a lease for retail space in a shopping center that was still under construction. The lease provided that the owner would deliver the property to the tenant in an improved condition specified in the lease by the time the lease was to start, in June. The lease also included a rent abatement provision, stating that the tenant could exercise it if the building was not in the promised improved condition when the lease starte...

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Tenant Agreed to Owner's Exculpatory Clause in Lease

Apr 13, 2012

Facts: A clause in a lease between a retail tenant and shopping center owner generally exempted the owner from liability and stated that an insurance claim was the tenant's sole recourse for the owner's negligence. Another paragraph specifically precluded the tenant from suing the owner for damages arising out of any remodeling that might take place at the center, but provided for abatement of a portion of the rent under that circumstance.


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