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December 05, 2025
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Home » Topics » Commercial Lease Law Insider » Owner Loses

Owner Loses
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Mutual Mistake Is Grounds for Rescinding Auto Repair Shop Lease

May 28, 2024

What Happened: A landlord and tenant sign a three-year lease on a parcel of real estate containing three garage bays for use as an auto repair shop. Soon after the tenant opens for business, citizens complain about the lack of parking near one of the bays. The city investigates and discovers a 30-year-old ordnance unique to the property ordering the owner to seal one of the bays. The tenant closes and seals the third service bay just to be cautious. The...

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Tenant Doesn't Have to Pay Tax Increase on Improvements that Benefit Only Landlord

Apr 29, 2024

What Happened: A lease required the tenant that would occupy 45 percent of the space in a four-story building to pay 42.98 percent of the taxes on the property. The agreement contained a tax escalation clause requiring the tenant to pay the proportionate share of tax increases on the building. The landlord later added seven floors of new residential space, turning the premises into an 11-story mixed-use building carrying a much higher tax.

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Assignor Not Bound by Lease Amendments Made After the Assignment

Mar 29, 2024

What Happened: A tenant assigned its lease for commercial office space in Texas to its corporate sibling. The landlord and new tenant then amended the terms of the original lease. After evicting the new tenant for nonpayment of rent, the landlord sued the old tenant for the new tenant’s violation of the lease amendments. The old tenant denied responsibility for the breaches since the amendments were made after it assigned the lease and without its...

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Did Sewer Backups Give Tenant Right to Terminate for “Untenantability”?

Feb 27, 2024

What Happened: Blockages in sewer pipelines located outside the property caused a constant stream of sewer backups inside a tenant’s store. Eventually, the tenant decided that enough was enough and vacated the premises. When the landlord sued for unpaid rent, the tenant claimed that the sewer problems rendered the property untenantable and gave it the right to terminate the lease. The landlord denied responsibility for the sewer situation and move...

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Tenant Not Liable for Accident in Parking Lot Under Landlord’s Control

Jan 30, 2024

What Happened: An exterminator working for Best Buy suffered serious injury after slipping and falling in the store’s icy parking lot. He sued Best Buy and the landlord that owned the property for negligence. Best Buy denied responsibility for maintaining the parking lot in safe condition because the property was under the landlord’s control. So, it moved for summary judgment.  

Ruling: The Connecticut court ...

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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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