Owner Wins

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Facts: A tenant operating a securities firm moved out of its office building space three and a half years before the end of the lease term and stopped paying rent. The owner of the office building sued the tenant.

Facts: As part of its lease for space in a shopping center, a retail tenant signed a guaranty, in which the tenant personally guaranteed payment of rent in the event that the business couldn’t pay. The tenant later encountered financial difficulties and fell behind on its rent. The owner agreed to sign a termination agreement with the tenant, ending the lease.

Facts: A restaurant tenant approached the owner of the space it rented to discuss renewing its lease. It orally requested a renewal, but didn’t put the request in writing, as required by the renewal provisions in its lease. Later, when the owner refused to renew the lease, the tenant sued. A trial court ruled in favor of the owner. The tenant appealed.

Decision: A Texas appeals court upheld the decision in favor of the owner.

Facts: An owner signed a lease with a tenant that intended to operate a private school in its space after performing extensive renovations. After the owner wasn’t able to obtain an amended certificate of occupancy that would permit the tenant to operate a school, rather than a traditional commercial business the space was zoned for, the tenant sued. It claimed that the owner expressly warranted that it would apply for the amendment immediately, but hadn’t.

Facts: Both a tenant and owner of office space were sued by the widow of a visitor to the building who slipped and fell on a wet surface in the vestibule and died from his injuries. The tenant and owner each asked a trial court for a judgment in its favor without a trial. The trial court dismissed the case. The widow appealed.

Decision: A New York appeals court upheld the decision of the lower court in favor of the owner and tenant.

Facts: A warehouse owner agreed to completely remodel the space into a daycare facility for a tenant. The owner paid for the improvements up front, but the tenant was required to pay back the amount in increments during the lease term, separate from monthly rent. After the tenant filed for Chapter 11 bankruptcy, it rejected its lease.

Facts: If at any time during the lease a shopping center owner was unable to meet a cotenancy requirement, its tenant was permitted to pay a reduced “substitute rent.” The lease also provided that all disputes arising under the lease and regarding amounts less than $50,000 were to be settled by arbitration; disputes exceeding $50,000 require mediation. However, if one of the parties refused to mediate, it could resort to litigation.

Facts: The restrictive covenant in a restaurant’s lease with a shopping center owner prohibited the owner from leasing to other “diner type” restaurants. When the owner began building out a portion of the center for a national specialty-hamburger restaurant and began negotiations with a restaurant serving soup and sandwiches, the tenant sued the owner for breaching its lease. The owner argued that the two new prospective tenants aren’t diners. Rather, they are so-called “fast casual” restaurants.

Facts: A tenant signed a lease for space for its restaurant. At the time the lease was signed, the owner was in the process of gutting and remodeling the premises, including installing an elevator. To install the elevator, the owner was required to draw up architectural plans, obtain permits, demolish portions of the building, order the elevator, and upgrade the electrical system. The elevator had to be completed before the tenant could obtain a restaurant liquor license.

Facts: A guarantor promised to fulfill the lease obligations of a restaurant tenant if the tenant breached the lease. It signed a “good guy” unconditional guaranty. The tenant stopped paying rent because it claimed its sales had declined because scaffolding built in front of its space by the owner interfered with its entrance. After a series of legal proceedings with the tenant, the owner sued the guarantor for the unpaid rent. A trial court ruled in favor of the owner. The guarantor appealed.