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December 06, 2025
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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Similar Trade Names Violated Competition Clause

Jun 30, 2010

Facts: A shoe store tenant signed a 10-year lease with a mall. Under the lease, the tenant was required to pay minimum monthly rent plus 5 percent of its annual gross sales over $1.1 million. A “kickout” provision in the lease allowed the tenant to terminate it early if the gross sales did not exceed that amount in the fifth year of the lease.

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Owner Not Liable for Tenant's Dangerous Condition

Jun 1, 2010

Facts: A restaurant that specialized in tea and tea-related merchandise rented space in a building from an out-of-possession owner that had a right under the lease to access the premises for making structural repairs. Prior to the restaurant's tenancy, there had been no service counter or way to access the basement from inside the space. The restaurant tenant paid to construct a service counter with a trapdoor hatch behind it leading to the basement. The serv...

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Tenant on Hook for Failure to Obtain Insurance

Feb 26, 2010

Facts: A restaurant customer was injured when he tripped and fell on a defective sidewalk abutting the restaurant. The property on which the restaurant was located was owned by a realty company that leased the space to it under a lease agreement and a rider to the lease agreement.


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Owner Entitled to Full Rent for Abandoned Buildings

Feb 1, 2010

Facts: An owner sued a tenant for breaching its two leases after the tenant abandoned both of the owner's buildings that it rented and refused to pay the remaining rent due under the leases. After the tenant failed to appear at two summary dispossess proceedings for nonpayment of rent, the court ruled in favor of the owner, which established that the tenant had breached the leases. However, the court denied the owner's request for a judgment in its favor ...

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Tenant Wasn't Ready, Willing, and Able to Buy Building

Feb 1, 2010

Facts: A tenant leased space in a commercial building for its manufacturing company. The lease contained an option to buy the property at any time during the tenancy for $350,000. The option also provided that the closing of title was to take place within 90 days of the tenant's notice to exercise the option.

The tenant notified the owners via certified mail, as required by the terms of the option, that he wanted to purchase the property in an all-cash ...

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Township Immune from Municipal Parking Lot Lawsuit

Dec 28, 2009

Facts: A woman slipped and fell on a large patch of ice in a municipal parking lot while walking to her car. The ice patch had formed as a result of water running downgrade from melting snow piled near the parked cars, and then freezing.

The woman sued the township for negligence, arguing that it had not properly instructed its snowplow driver as to where in the municipal lot he should put plowed snow so that any runoff wouldn't form ice patches.


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Shopping Center Needing Numerous Repairs Not in “Good Condition”

Dec 28, 2009

Facts: Two owners of a shopping center alleged that a tenant defaulted on the lease because she allowed the property to fall into a deteriorated condition. The tenant refused to relinquish the premises after the termination of the lease, and the owners were forced to file an “unlawful detainer action” to reclaim the property. The trial court ruled that the tenant had not broken the lease, because, according to it, the tenant had taken reasonable care ...

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Tenant Was Not Constructively Evicted

Nov 23, 2009

Facts: A tenant operated her floral shop out of a shopping center under a three-year lease with the center's owner. After another owner bought the shopping center, the tenant agreed to extend her lease by five years. The lease extension agreement stated that the original lease would “remain in full force and effect” for the remainder of the lease.


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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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