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Home » Topics » Commercial Lease Law Insider » Owner Loses

Owner Loses
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Definition of ‘Adjoined’ Not Affected by Unusable Space

Jan 28, 2014

Facts: A foot care clinic rented office space and exam rooms in a strip mall. Its lease provided that the owner wouldn’t place a retail business in space “adjoining” the tenant. The owner subsequently leased space in the strip mall to a liquor store. The liquor store and tenant were separated by an unusable 500 square foot hallway. The tenant claimed that the liquor store adjoined its space, and, therefore, the owner had breached the l...

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Use of Specific Tenant's Name Binding on Owner

Dec 17, 2013

Facts: A shopping center owner and a women’s clothing store signed a lease for space next to a large national bookstore. The lease’s cotenancy provision allowed the tenant to abate its minimum monthly rent if the bookstore stopped operating. After several years, the bookstore moved out of its space; the owner replaced it with a bargain bookseller and then a university bookstore.


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Owner Liable for Shopper's Injuries Outside Tenant's Store

Dec 17, 2013

Facts: A shopper was hit by a motorist on the sidewalk outside of a shopping center tenant’s store. The shopper sued the center’s owner and the tenant. The owner and the tenant each asked a trial court for a judgment in its favor without a trial. Each said that the other had a duty of care to the shopper and was liable for damages arising from the accident. The court ruled in favor of the tenant, and the owner appealed.

Decisio...

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Tenant Not Required to Pay Owner’s Attorney’s Fees

Nov 22, 2013

Facts: A supermarket tenant signed a 25-year lease with the owner of a shopping center. Under the lease, the tenant was to pay base rent plus additional rent, which included items like its pro rata share of taxes for the center. Like some of the other tenants in the center, the tenant had an audit right that it could exercise if it wanted to contest its share of the taxes. Another tenant in the center contested the amount of taxes for the center.

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Tenant Entitled to Time to Gather Evidence in Breach-of-Lease Claim

Oct 25, 2013

Facts: A used car dealership breached its six-year lease for a one-acre commercial lot where it sold trucks. It failed to pay the full amount of rent and other charges when they were due. The lot’s owner terminated the lease and sent the tenant an eviction notice.


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Tenant Disputed Rent Calculation Based on CPI Adjustment

Sep 23, 2013

Facts: The lease between the owner of a warehouse and its tenant set out base rent for the first several years of the lease. Under the lease, every seven years the base rent would be adjusted to include the original base rent plus an amount calculated using changes in the Consumer Price Index (CPI), which is published by the U.S. Department of Labor and is designed to measure changes over time in prices paid by urban consumers for various goods and serv...

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Lease Didn't Give Owner and Tenant Same Right to Terminate

Aug 28, 2013

Facts: A large national retailer of arts and crafts materials and a shopping center owner signed a lease with an ongoing cotenancy provision requiring the owner to lease the anchor store in thecenter to a regional or national tenant meeting certain criteria. If the owner fails to maintain an anchor tenant, the tenant would pay reduced “alternative rent.” The lease gives the tenant a continuing right to terminate if the ongoing cotenancy requ...

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Trial Needed to Determine Liability for Injury in Center’s Common Area

Aug 7, 2013

Facts: A shopper suffered severe neurological and brain injuries when two teenagers at the center where she was shopping with her son threw a shopping cart from the fourth level of the center onto her at the ground level. (As a result of the assault, the teenagers were sentenced to six months in a juvenile residential facility.) The shopper sued the center’s owners, management, and two tenants—a price club and a discount furniture store.

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Trial Needed to Determine Allocation of Real Estate Taxes

Jul 26, 2013

Facts: A mall owner signed a 20-year ground lease with a tenant for space in which to operate a movie theater. The lease included several clauses concerning the allocation of real estate taxes between the owner and tenant, including who was responsible for having the premises assessed for taxes and the formula for how the tenant’s share of those taxes would be calculated.


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Amendment Didn’t Extinguish Excessive Vacancies Clause

Jul 26, 2013

Facts: A tenant that sold electronic equipment leased space in a shopping center in 1973. A significant provision of the lease—the excessive vacancies clause—provided for abatement of rent in the event that the occupancy of the shopping center dropped below a certain amount. Over the course of the next several decades, the tenant and owner agreed to multiple extension agreements, the last of which excused the tenant from paying percentage re...

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