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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Tenant Without Lease Can't Sue Owner for Violating Warranty

Mar 1, 2008

Facts: The tenant, while renting space in the owner's building without a lease, experienced property damage from a fire. The tenant then sued the owner, claiming that the owner violated his promise, or warranty, of providing a space suitable for business by failing to safely maintain the electrical and fire systems. The owner argued that because the tenant did not have a lease, there was no warranty.

Decision: A Massachusetts court ruled in favor...

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Tenant Must Pay Rent Despite Water Damage

Mar 1, 2008

Facts: The owner of a commercial building served a tenant a three-day notice demanding back rent. The tenant did not respond to the notice, and the owner sued for payment. The tenant claimed that it had been forced to move and stopped paying rent because an alleged water leak, which the tenant claimed the owner refused to fix, had caused water damage in the space and made it unsafe.

Decision: A New York trial court ruled in favor of the owner.


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Owner Made Reasonable Efforts to Minimize Damages

Feb 1, 2008

Facts: A tenant signed a commercial lease with a three-year term. Before the three years expired, the tenant and owner had agreed to extend the lease for another three years. After the extension, the tenant assigned the extended lease to a new tenant. The original tenant and the new tenant's agreement extended the original lease for yet another three years, but the new tenant defaulted on the lease before the second extended term was up.

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Owner Not Required to Accept Lump Sum When Tenant Defaults

Jan 1, 2008

Facts: Tenants, a marketing firm and its representatives, entered into a lease granting them use of almost 3,000 square feet of commercial space. The tenants subsequently sold the business and stopped paying rent on the property. The owner notified the tenants that their nonpayment had violated the lease's terms. The tenants offered to settle for a lump sum that was less than the total amount owed under the lease, but the owner refused the offer.


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