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Home » Topics » Commercial Lease Law Insider » Owner Loses

Owner Loses
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Court Temporarily Bars Landlord from Terminating Restaurant Lease

Dec 27, 2023

What Happened: An Italian restaurant tried to assign its lease to a steakhouse, but the landlord refused and served notice of termination. The tenant denied committing any lease violation and asked the court to issue a temporary injunction barring the landlord from terminating the lease until the merits of the case were decided.

Ruling: The New York court granted the temporary injunction.


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Licensor Can't Bring Unlawful Detainer Lawsuit Against Licensee in Breach

Nov 28, 2023

What Happened: A studio owner entered into a “License Agreement” giving a production company “the exclusive,” but “non-possessory” right to use the property. The production company defaulted on its rent payment and the owner brought an “unlawful detainer”—that is, eviction—action seeking possession of the property.

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Defaulting Tenant Not Liable for Unpaid Rent Beyond Lease Term

Sep 27, 2023

What Happened: A construction materials tenant that admitted to not paying rent and abandoning the premises had no problem with the default judgment entered in the landlord’s favor but claimed that the sought-after award of 47 months’ rent was excessive, noting that the lease clearly defined its “Term” as: “Commencing on the ‘Commencement Date,’. .

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Lease Clause Doesn't Eliminate Landlord’s Duty to Mitigate Damages

Sep 27, 2023

What Happened: A restaurant subtenant admitted to defaulting on its obligation to pay rent and vacating the premises. But it objected to the $689,554.94 that the trial court awarded because the landlord didn’t mitigate its damages by seeking to relet the space to another tenant. We have no duty to mitigate, the landlord countered, citing the following lease provision:


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Absentee Landlord Liable for Hazards on Adjacent Property

Aug 29, 2023

What Happened: A call center employee who stopped by the office to pick up her paycheck after sunset got run over by a city bus and died. Her estate sued the call center and landlord for negligence. The defendants denied owing the victim a duty of care because the accident occurred on city property adjacent to the call center. You can’t reasonably expect us to install safety measures on a public roadway we don’t control, they argued.

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Landlord Must Indemnify Tenant for Costs of Defending Common Area Negligence Lawsuit

Jul 27, 2023

What Happened: A national retail chain insisted that its shopping center lease include a clause requiring the landlord to indemnify it against losses arising out of things that happened in the common areas. The exact language:


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Lease Renewal Doesn't Waive Tenant's Right to Rent Abatement for Anchor's Departure

Jul 27, 2023

What Happened: A shopping center lease required the landlord to notify a clothing retail tenant and abate its rent if the anchor tenant, TJ Maxx, ceased to be “Open for Business” for three consecutive months. TJ Maxx moved out, and it took six months for the landlord to find a new tenant, Ollies Bargain Outlet, for the space. The landlord didn’t provide the required notice after TJ Maxx vacated, but the tenant kept its mouth shut and c...

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Trial Needed to Resolve Tenant’s Broken HVAC Constructive Eviction Claim

Jun 26, 2023

What Happened: With the HVAC system on the fritz, the heat inside the office building became so intense that a tenant’s employee passed out and had to be sent to a hospital, resulting in an OSHA heat stress complaint. At least that’s what the tenant argued. The landlord contended that it was working on the HVAC and that the tenant was exaggerating how stifling the heat was as an excuse for not paying rent.

Ruling: The ...

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Does Oral Agreement Modify the Terms of a Written Lease? (Spoiler Alert: It Might)

May 25, 2023

What Happened: An insurance company tenant that had leased office space in the same building for nearly 15 years wanted out when a new owner acquired the property. In May 2019, the parties agreed to modify the lease duration to end on June 30, 2020, one year before the lease’s written termination date. Or so the tenant claimed. Although the new owner put the space on the market in January 2020, the oral agreement, if there was one, was never put i...

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Store Shelves, Coolers & Displays Are Trade Fixtures, Not Landlord’s Personal Property

Apr 26, 2023

What Happened: A strip mall tenant made extensive improvements to convert what had been a used clothing store into a grocery store. Over time, relations with the landlord soured. Convinced that he was paying too much for rent and CAM, the tenant decided to vacate and move to a new location when the lease expired. The landlord then moved in to remove the ventilation hood, display cases, checkout counters, interior freezer cases, and other improvements. T...

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