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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Another Tenant's COVID Frustration Defense Comes Up Empty

Oct 24, 2022

 What Happened:  Stop me if you’ve heard this one before: A restaurant tenant struggled to pay rent after the governor issued a COVID-19 shutdown order in March 2020. In August, the landlord sued for breach of lease. The tenant admitted to owing the landlord rent but claimed impossibility and impracticability. The court rejected both...

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No Implied Warranty of Habitability in Commercial Leases in Nevada

Oct 24, 2022

What Happened: Frustrated by the landlord’s failure to remedy unsanitary conditions at the site, a warehouse tenant moved out of the property and stopped paying rent. In the lawsuit that followed, the tenant claimed the landlord violated the implied warranty of habitability. The court rejected the defense and awarded the landlord damages and attorney fees.

Ruling: The Nevada appeals court upheld the lower court’s rulin...

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Guarantor on the Hook for Landlord's Consequential Damages

Sep 23, 2022

What Happened: A landlord sued Saks, Inc., for failure to honor a corporate guaranty of its subsidiary’s obligation to pay rent under its shopping center lease. Saks owes us attorneys’ fees and consequential damages covering the loss in the property’s value we suffered due to its breach, the landlord argued. Saks denied liability for consequential damages since such losses were unforeseeable at the time the lease was signed.

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NYC Landlord Not Guilty of Harassing Nonpaying Tenant

Sep 23, 2022

What Happened: In May 2020, with the pandemic in full rage, New York City adopted a law banning commercial landlords from harassing tenants. A bridal shop tenant invoked the law after the landlord sued it and its guarantor for unpaid rent and additional rent for real estate tax and utilities cost escalations. The court didn’t buy it and awarded the landlord summary judgment without need for a trial. The tenant appealed.


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COVID-19 Shutdown Orders Are Not a “Taking” Under the Lease

Aug 29, 2022

 What Happened: A clothing retailer leased space for “[a]ny general retail use, including the display and sale of apparel, shoes and accessories, gifts, cards, furniture, home furnishings, housewares, packaged foods prepared for off-site consumption, plants, fresh and dried flowers, pots, containers and stands for plants or flowers, and/or items related to the fo...

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OK to Evict Shopping Center Tenant for Creating a Nuisance Without Opportunity to Cure

Jul 20, 2022

What Happened: Shopping center tenants complained to the landlord about the “overwhelming unpleasant possibly toxic odors” emanating from their neighboring bar lounge tenant whose patrons were apparently allowed to smoke tobacco and marijuana with impunity. The landlord warned the tenant about violating house rules barring use of the premises for illegal and nuisance activities. A week later, it reentered the space, changed the locks, and re...

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Landlord Can Collect Rent from Defaulting Tenant After Selling the Property

Jul 20, 2022

What Happened: In 2019, a clothing store signed a 10-year lease on commercial property in Chicago, starting in September 2020. But the COVID-19 pandemic hit and the tenant never moved in. In May 2021, the landlord sold the building and terminated the lease. In addition to $1.4 million in unpaid rent from September 2020 to May 2021, the landlord sued the tenant for $3 million representing the rental value of the leased property over the remainder of the ...

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Another Restaurant Tenant’s COVID-19 Impossibility Defense Bites the Dust

Jun 23, 2022

What Happened: February 2020 was the last month a high-end steak house restaurant tenant paid full rent. When COVID-19 hit, the restaurant had to shut down and later could open only for outdoors and indoor dining at very limited capacity. In September, the tenant moved out at the landlord’s demand. Three months later, the landlord found a replacement at a much lower rent. It then sued the tenant and guarantor for unpaid and unjust enrichment in us...

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Out-of-Possession Landlord Not Liable for Injury to Tenant’s Employee

May 23, 2022

What Happened: The employee of a tenant suffered serious injury after a heavy box fell on top of him. The victim blamed the accident on the leaky warehouse roof, which caused the box to become waterlogged and weakened the palette holding it up. He sued the landlord for negligence. His theory: As an invitee, the landlord owed him a duty of reasonable care.

Ruling: The Michigan appeals court upheld the lower court’s decision t...

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OK to Evict Tenant for Growing Marijuana Without a Permit

May 23, 2022

What Happened: What happens when a tenant signs a five-year lease on a warehouse for use as an indoor cannabis cultivation facility but can’t get the necessary permits because the property doesn’t have an adequate fire sprinkler system? The tenant figured the landlord would install the system; the landlord thought it was up to the tenant to install the system. And when the tenant continued the grow operation without meeting this responsibili...

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