Owner Wins

RSS

Facts: A shopping center tenant rented space to operate a nightclub. There was an unfinished office building across the street from the center, which the center’s owner told the tenant would be completed the following year. When the office building hadn’t been finished by then, the tenant reduced its rent payments, which were accepted by the owner, for several months in a row and sued the owner, asserting that criminal activity in the unfinished office building and parking lot caused it to lose business.

Facts: A business owner slipped on a puddle of oil on the floor of the warehouse space he rented. He sued the trust that owned the property and the trustee (the defendants) for negligent maintenance of the premises and a jury trial was held. The jury ruled in his favor. The defendants asked the court for a judgment notwithstanding the verdict (JNOV), a practice whereby a judge may overrule the decision of a jury and reverse or amend its verdict. JNOV permits the judge to exercise discretion to avoid extreme and unreasonable jury decisions.

Facts: An appliance store leased a building and parking lot “as is” from the owner under a triple net (NNN) lease—that is, a lease in which a commercial tenant is responsible for maintaining the premises and for paying all utilities, taxes, and other charges associated with the property. The owner continued to occupy some of the building’s storage areas. A deliveryman for the tenant fell in a part of the parking lot wholly used and maintained by the tenant.

Facts: An employee of a truck rental company tenant sued the property’s owner for negligence, after the employee injured his back when he stepped into a hole in the floor of a tire “shed” that was on the property the owner leased to the tenant. The owner asserted that it owed no “duty of care” to the tenant’s employee, because the lease’s requirement that the owner maintain the property didn’t apply to outbuildings, like the shed, that were on the property.

Facts: A real estate company rented a corner store and partial basement of a building for a 10-year lease term. The tenant paid $42,000 as a security deposit. Two guarantors also signed separate written guaranty agreements, guaranteeing full performance of the terms of the lease, including rent payment. Shortly after it moved into the space, the tenant breached the lease agreement by failing to pay its monthly rent as well as its additional rent. Consequently, the tenant was evicted from the premises but still owed rent and additional rent.

Facts: A women’s clothing manufacturing company rented space in an office building. The chief executive officer of the company signed the lease on behalf of the company, gave a security deposit, and executed a “good-guy” guaranty, personally guaranteeing that the company would perform all lease obligations while in actual possession of the premises. The tenant operated in the space for several years, but then asked the owner about the possibility of moving to a smaller space in the building, due to financial difficulties.

Facts: A utility company signed a lease for an office building that would be constructed according to a building plan between it and the owner. The lease would commence when the building was “substantially complete,” meaning that the building had been constructed according to the agreed-upon plan, with the exception of only minor items that needed repair on a “punch list” that the tenant was responsible for providing after it inspected the construction.

Facts: In April, an owner and tenant signed a lease for retail space in a shopping center that was still under construction. The lease provided that the owner would deliver the property to the tenant in an improved condition specified in the lease by the time the lease was to start, in June. The lease also included a rent abatement provision, stating that the tenant could exercise it if the building was not in the promised improved condition when the lease started.

Facts: A clause in a lease between a retail tenant and shopping center owner generally exempted the owner from liability and stated that an insurance claim was the tenant's sole recourse for the owner's negligence. Another paragraph specifically precluded the tenant from suing the owner for damages arising out of any remodeling that might take place at the center, but provided for abatement of a portion of the rent under that circumstance.

Facts: A representative of a technology services firm toured a vacant building with two prospective owners who were considering buying the property, but only if they could find an appropriate tenant for it. The representative expressed interest in renting the space, but didn't sign a lease or other documents that would obligate the firm to rent the space if the owners went through with the sale.