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Home » Topics » Commercial Lease Law Insider » Owner Loses

Owner Loses
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Request to Extend Lease Must Comply with Lease's Renewal Provisions

Sep 28, 2011

Facts: An owner and insurance agency signed a 10-year lease for office space. The lease provided for two renewal terms of five years each if the tenant notified the owner 12 months prior to the end of the lease of its intention to renew. The lease also required the tenant to meet with the owner 14 months ahead of the lease termination to discuss fixed rent, if the tenant wanted to renew.

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Tenant Can Sue Owner for Fraudulent Inducement

Sep 28, 2011

Facts: A jewelry store that rented space in an outdoor shopping center sued the owner of the center for fraud. At the time the tenant expressed interest in renting space in the center, the owner represented that a second center, “Phase II,” would be built next door, creating a large shopping complex and that national anchor tenants were prepared to rent space in the center and space at Phase II when it was completed, bringing foot traffic to the area ...

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Owner's Denial of Tenant's Access to Elevators Breached Lease

Sep 1, 2011

Facts: A restaurant tenant signed a lease for space in a food court area of an office building. The tenant sued the building's owner for fraud and breach of contract, alleging that its food and supply delivery people were being refused access to the entrance of the building and the elevators, in violation of its lease, which provided that the tenant would have access to the entire building.


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Online Ad for Vacant Space Insufficient to Mitigate Damages

Jun 21, 2011

Facts: After a retail tenant didn't pay its rent, the owner of the space sued it for defaulting on its lease. The tenant didn't dispute the owner's claim that it had breached the lease. Instead, it argued that the owner was obligated to mitigate its damages—that is, take advantage of any reasonable opportunity to reduce or minimize the damage—before it could collect any money from the tenant.

Decision: A Connecticut hou...

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No Lease Termination for Anticipatory Breach

May 26, 2011

Facts: A retail tenant assigned its lease to a drugstore, but asked the owner if it could remain primarily liable for the strip mall space, instead of reducing or entirely relieving itself from liability. The owner objected to the assignment and sued the tenant.

The trial court ruled in favor of the owner. It pointed out that the tenant's lease with the owner provides that the owner is entitled to terminate the lease if the tenant: (1) makes a late rent...

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Duty to Correct Unsafe Condition Applied to Commercial Lease

Apr 26, 2011

Facts: A tenant that operated a tanning salon in a single, one-story building sent a written complaint about the leaky ceiling to the owner, which didn't fully repair the problem. The tenant's employee was hit by plaster that fell from the ceiling into her eye, causing her to fall and injure her shoulder. The tenant sued the owner.


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Owner's Recovery Limited to Damage It Actually Suffered

Mar 21, 2011

Facts: The owner of two vacant warehouses, one of which had some interior office space, leased the buildings to a construction supply company that planned to convert the warehouses into a retail store. After demolishing the office space, the tenant halted renovations for economic reasons, and the property became rundown.


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Owner Must Deliver Termination Notices According to Lease

Feb 22, 2011

Facts: A career center tenant signed a lease with the owner of an office building to rent space in four office suites for an initial term of 124 months. The building was sold, and the tenant and new owner extended the lease. The owner later claimed that the tenant had defaulted on its lease, and it sued the tenant to recover the space. The tenant claimed that the owner could not evict it from the four suites, because it hadn't delivered two notices properly a...

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Trial Necessary for Dispute Over Holdover Rent

Jan 25, 2011

Facts: A tenant leased office space for its law firm. The lease term was four years and provided for two five-year extensions. After the final extension of the lease term expired, the tenant continued to occupy the space on a month-to-month basis, paying rent as specified in the holdover section of the expired lease. The owner later sued to evict the tenant, terminating the month-to-month tenancy. It claimed that the tenant failed to pay rent equal to the “...

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Notice to Quit Not Properly Delivered Under Lease Terms

Dec 28, 2010

Facts: The lease between a shopping center owner and a restaurant tenant provided: “All notices, consents, approvals, or demands required under this Lease shall be in writing, and shall be deemed delivered when either: (1) deposited in the United States mail, certified or registered, postage prepaid; (2) transmitted by telegraphic or electronic means, with proof of service provided; or (3) delivered in person at the business address specified in this Sectio...

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