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Home » Topics » Commercial Lease Law Insider » Owner Loses

Owner Loses
Owner Loses RSS Feed RSS

Owner's Refusal to Comply with State Law Equals 'Constructive Eviction'

Sep 1, 2008

Facts: An owner and tenant entered into a lease that called for the tenant to pay for any modifications to the sprinkler system stemming from any changes the tenant made to the space. The lease made the owner responsible for installing a burglar alarm and fire alarm system.


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Assignment Does Not Eliminate Options

Aug 1, 2008

Facts: An owner and tenant entered into a 20-year lease that included four lease extension options, each for five years. The owner assigned his interest in the lease to a new owner—that is, gave the new owner all of its rights in the lease. The tenant assigned the 20-year base lease to a new tenant, and assigned the lease options to a third party. Several years later, the third party assigned the lease options to the new tenant.

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Owner Must Inspect After Eviction

Aug 1, 2008

Facts: A tenant restaurant defaulted on its lease by operating an after-hours dance club and by failing to pay its rent. The owner sued to evict the restaurant and won, but a week and a half after the eviction judgment was made, the restaurant was still operating, and a customer slipped and fell on the restaurant's dance floor due to a ceiling leak. The customer sued the restaurant and the owner for her injuries. The jury awarded the customer $385,440 in dama...

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Tenant Didn't Have to Name Owner in Insurance Policy

Jul 1, 2008

Facts: An owner and tenant signed a commercial lease that required the tenant to obtain commercial general liability insurance (CGL) for their “mutual benefit.” The blanket additional insured endorsement in the CGL policy that the tenant purchased stated that the definition of “an insured” includes “any person that a written contract required the tenant to name as an additional insured.”


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Damage Award Depends on Proof of Amount Lost

Jun 1, 2008

Facts: A Nevada tenant rented retail space from the owner. The tenant defaulted on the lease and never opened the store that it had planned to operate. The owner sued the tenant for the lease violation and asked that the trial court award it more than $2.4 million in damages. The trial court ruled for the tenant because the owner could not prove it suffered damages in that amount. The owner appealed.

Decision: The U.S. Court of Appeals for the Ninth ...

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Tenant's Excuse for No-Show Prevents Eviction

May 1, 2008

Facts: An owner sued a tenant for nonpayment of rent, and asked that the court award it back-rent of nearly $13,000 and possession of the leased space. The court awarded the owner the requested relief after the tenant did not appear for the trial. The tenant subsequently asked the court to allow it to reinstate the tenancy by paying the overdue rent. The tenant claimed that its store manager falsely reported that the rent had been paid in full, and did not inform...

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Failure to Operate Parking Lot Continuously Isn't Lease Violation

Apr 1, 2008

Facts: The owner leased a parking lot to a tenant, and both agreed that the tenant would use the lot only for off-airport parking and related uses. Subsequently, the tenant opened up a second lot nearby and focused primarily on its operations. Eventually, the tenant moved all of its business to the second lot, but continued to pay the owner for the vacant premises until the lease ended.

The owner sued the tenant, arguing that the tenant violated t...

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Tenant that Waited to Vacate Premises Not 'Constructively Evicted'

Apr 1, 2008

Facts: In 2002, a tenant approached the owner about subletting two of its floors to a second tenant. Instead, the owner entered into a separate lease with the second tenant and charged less for rent. The primary tenant was required to cover the difference and be responsible for the full rent if the second tenant defaulted.


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Owner Not Covered by Tenant's Insurance

Feb 1, 2008

Facts: An employee of a shopping center tenant died as a result of a criminal assault committed in the tenant's space. Because the victim was the tenant's employee, all claims surrounding her death were handled by the tenant's workers’ compensation insurance.


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Owner Can't Collect Damages Beyond Property's Fair Market Value

Jan 1, 2008

Facts: An owner sued two tenants for defaulting on their commercial leases. The owner attempted to collect damages that would have been more than the fair market value of the properties. A Georgia trial court ruled in favor of the tenants, and the owner appealed.

Decision: A Georgia appeals court upheld the trial court's ruling.


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