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Home » Topics » Commercial Lease Law Insider » Owner Loses

Owner Loses
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Does New Two-Hour Parking Rule Unreasonably Impair Tenant’s Business?

Mar 23, 2023

What Happened: With the shopping center almost entirely vacant, the landlord didn’t care all that much that a bridge club tenant was letting its customers park in the front and rear lots. But as new tenants began moving in, demand for parking space increased and the landlord had to tighten the rules, relying on its lease right to establish: “reasonable rules. . .

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Jury Must Decide If Tenant Breached Duty to Obtain Fire Insurance

Mar 23, 2023

What Happened: An office lease required a home health agency tenant to obtain fire insurance on the “Premises.” The tenant got insurance for its property but not the building. The building burned down, and the landlord sued the tenant for damages. The court tossed the case, finding that the fire insurance clause was unenforceable because the lease didn’t define the term “Premises” that the tenant was required to insure.

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Jury Must Decide If Tenant’s Damages Go Beyond Ordinary Wear & Tear

Feb 23, 2023

What Happened: A diesel-fuel vehicle repair business leased a building for use solely as an “equipment service and prep facility for fire trucks and other vehicles.” The problems began when the landlord’s manager discovered significant cracks in the building’s concrete. In addition to the broken concrete, the landlord found oil spills, unauthorized structural changes to the office, and other damages when the five-year lease ended.

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Delay in Remitting Insurance Money to Landlord Doesn't Make Tenancy a Holdover

Jan 27, 2023

What Happened: Winter Storm Uri devastated a commercial building six weeks before the lease was due to expire. The lease required the tenant to carry commercial general liability insurance on the property, name the landlord as an additional insured, and remit the insurance proceeds to the landlord. The tenant submitted a claim for the damages and paid rent through the end of the lease term before vacating the building. But because it hadn’t yet re...

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Landlord Potentially Liable for Injury to Tenant's Independent Contractor

Jan 27, 2023

What Happened: After the lease ended, a shopping center tenant hired a self-employed independent contractor to remove an exterior sign from the space. While performing the work, the contractor fell through a roof opening and suffered serious injuries. He sued the landlord, rather than the tenant, for damages, but the trial court dismissed the case, citing a California rule called the Privette doctrine holding that a person who hires an independ...

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Rent Acceleration Clause Is an Unenforceable Penalty

Jan 27, 2023

 


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Liquidated Damages Clause Is an Unenforceable Penalty

Dec 22, 2022

What Happened: There was no dispute that a Chicago hair lice removal salon that stopped paying its nearly $5,000 monthly rent was in default under the lease. The issue was whether the landlord could enforce the lease clause granting it 27 months of future rent as liquidated damages. The lower court ruled that the clause was enforceable, and the tenant appealed.

Ruling: The Illinois appeal court reversed, finding the liquidated dam...

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Tenant Not Liable for Post-Surrender Damages to Property

Nov 29, 2022

What Happened: In the summer of 2018, a tax firm tenant shut down its business and moved out of the building it was leasing. The surrender was documented in a written agreement that the tenant and landlord both signed. A few months later, the property was sold. During a severe cold spell in January 2019, the water pipes froze and burst, inflicting flooding damage so severe that the building had to be demolished.

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Lockout Is Illegal Because Tenant Didn't Abandon the Property

Nov 29, 2022

What Happened: The tenant was behind on its rent, and the restaurant was closed. So, the landlord assumed that the property was abandoned and exercised its lease right to reenter and change the locks. It then sued the tenant for unpaid rent and late charges. The tenant denied that it had abandoned the property and countersued the landlord for illegal lockout and wrongful possession of the personal property inside the restaurant. Finding the landlord mor...

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Lease Doesn't Make Tenant Responsible for Real Estate Tax Increases

Sep 23, 2022

What Happened: A nonprofit landlord leased property to a for-profit utility to operate a solar-powered electric-generating facility. The lease required the tenant to:


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