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June 26, 2025
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June 25, 2025
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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Owner Entitled to Replace Store with Noncompetitor

Nov 1, 2009

Facts: The lease between a family shoe store and a mall owner included a “competing business” provision under which the owner was prohibited from leasing to any other shoe stores substantially similar to and/or competitive with the tenant. This included other “family” shoe stores. If the owner breached the provision, the tenant could terminate the lease with 30 days notice or continue to operate its store in accordance with all the ...

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Specific Performance Compelled Only for Terms Spelled Out in Lease

Oct 19, 2009

Facts: A property owner leased space to a tenant for its hardware store. The lease contained an “option to purchase” clause that provided a payment timeline for the tenant to follow in the event that it wanted to purchase the space in the future.


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Termination for Eminent Domain Applies to Building, Not Parking Spaces

Oct 19, 2009

Facts: Under the right of eminent domain, a city took over a portion of a tenant's leased space. The portion, which the city planned to use in order to complete a road project, amounted to five out of 107 parking spaces that were part of the leased space. The space also included a building and outdoor area.


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Right to Nonexclusive Use of Parking Spaces Doesn't Include Long-Term Storage of Equipment

Oct 19, 2009

Facts: The owners of a shopping center sued the anchor tenant, a grocery store, after a dispute arose over the tenant's use of common areas behind the store. The trial court found that the tenant violated its lease by placing large, seasonal storage containers in the center's parking spaces, but also concluded that the tenant's practice of keeping bread racks and similar items in parking spaces was permissible under lease provisions allowing the use o...

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Tenant Must Pay Share of Communal Dumpster Fee

Aug 31, 2009

Facts: A tenant that leased two shopping center storefronts through a management company signed identical leases for each unit. Both leases included provisions obligating the tenant to pay its pro rata share of operating expenses for the entire property, and to contract with Waste Management Spokane for its own garbage disposal for the two units, which it did initially.


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Tenant Must Replace Items It Neglected to Maintain

Aug 31, 2009

Facts: A tenant purchased the rights to run a dealership that was part of a franchised chain. The dealership was already operating out of a building that housed its showroom and offices, so the tenant decided to stay in that location, leasing the building and the property it was on from its owner. The tenant and owner signed a lease on Dec. 12, 1983, followed by two subsequent leases over the course of several years.


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Month-to-Month Tenancy Governed by Same Terms in Lease

Jun 25, 2009

Facts: An owner claimed that a tenant failed to pay rent and other charges in the lease when due and additionally owed holdover rent for the third and fourth years of the tenancy. Including late fees and interest, the owner claimed that the tenant owed it more than $3.1 million.

The tenant alleged that the owner was unjustly enriched by the tenant's expenditures, including monies expended for landscaping, water, and garbage collection.


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Owner Entitled to Restrict Tenant's Access to Space

Jun 25, 2009

Facts: A retail tenant sued Burbank Mall Associates on the basis of unjustified delay in turning over the keys to the premises. The trial court ruled in favor of the owner.


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Tenant Not Entitled to Individual Notice of Government Ruling

May 1, 2009

Facts: A tenant operated a business in a building that the local government was planning to designate as blighted—that is, obsolete with a marginal economic use. Before the final decision was made, the local government sent out hearing notices to the owner of the building in the event that it wanted to attend the meeting and contest the blight designation.


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Owner Tried to Mitigate Damages

May 1, 2009

Facts: One year into a five-year lease agreement, a tenant stopped paying rent. After the owner demanded payment, the tenant entered into a separate agreement to bring the rent payments current. The tenant eventually vacated the space. The owner sought additional rent, but the tenant argued that it did not owe the additional rent and claimed that the owner failed to mitigate its damages by not making a reasonable effort to find a new tenant for the premises.


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