Owner Loses

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Facts: A dry cleaning business in a shopping center incorrectly installed commercial dryers in its space without using a professionally trained installer. It vented the dryers into the attic instead of to the building’s exterior. The shoddy installation later caused a fire. The center’s owner sued the tenant for negligence and breaching its lease by taking actions that damaged the center. The tenant asked a district court for a judgment in its favor without a trial. The district court ruled in favor of the tenant. The owner appealed.

Facts: An office tenant’s lease contained two conflicting provisions regarding the time frame in which the owner was required to fix damage to the tenant’s space. After a roof collapse led to flooding and damage that forced the tenant out of its space temporarily, the tenant—under one lease provision—demanded that the owner fix the damage within 30 days or allow the tenant to terminate its lease. The owner argued that a second lease provision gave it 90 days to fix the damage. The tenant moved out. The owner sued the tenant for breaching its lease.

Facts: A shopper tripped and fell on a two-tiered sidewalk in front of two retail stores. The sidewalk was marked with red paint to warn pedestrians about the drop-off from the upper to the lower level. Still, various employees of the tenants noted that they had witnessed pedestrians trip on the sidewalk “at least once a day.”

Facts: A mall owner sued a tenant for allegedly breaching its lease, asking for more than $190,000 in accelerated rent and other fees. After the tenant didn’t respond to the litigation, a trial court entered a default judgment against it. The tenant later asked the court to set aside the default judgment.

Decision: A Pennsylvania district court ruled in favor of the tenant.

Facts: A tenant that operated a printing business signed a 15-year lease for space. The owner of the building later demanded that the tenant replace the aging heating and air conditioning (HVAC) system and parking lot. The tenant claimed that was the owner’s responsibility. The owner sued the tenant. A district court ordered the tenant to replace the HVAC system and parking lot. The tenant appealed.

Decision: An Iowa appeals court reversed the lower court’s decision.

Facts: A tenant rented space to operate its dental practice. After the building was bought by a new owner that intended to turn the building into a hotel, the tenant received a notice of cancellation. The lease gave the owner the right to cancel the lease if it intends to apply for a permit to demolish “all or substantially all” of the building, and provided that if the owner cancels the lease and thereafter fails to obtain such a permit before the effective date of the cancellation, then the cancellation is void.

Facts: After a flood damaged its store in a strip mall, a sporting goods tenant announced that it would be closing its store and moving out. The tenant informed the owner that it was no longer able to get and maintain adequate insurance as required by the lease. The tenant was also concerned that the flooding would occur again, and claimed that the previous owner of the shopping center from whom the tenant first rented its space hadn’t disclosed that the location was in a flood-prone area.

Facts: A foot care clinic rented office space and exam rooms in a strip mall. Its lease provided that the owner wouldn’t place a retail business in space “adjoining” the tenant. The owner subsequently leased space in the strip mall to a liquor store. The liquor store and tenant were separated by an unusable 500 square foot hallway. The tenant claimed that the liquor store adjoined its space, and, therefore, the owner had breached the lease. The owner said that because the two spaces were physically separated by the hallway, they weren’t adjoined.

Facts: A shopping center owner and a women’s clothing store signed a lease for space next to a large national bookstore. The lease’s cotenancy provision allowed the tenant to abate its minimum monthly rent if the bookstore stopped operating. After several years, the bookstore moved out of its space; the owner replaced it with a bargain bookseller and then a university bookstore.

Facts: A shopper was hit by a motorist on the sidewalk outside of a shopping center tenant’s store. The shopper sued the center’s owner and the tenant. The owner and the tenant each asked a trial court for a judgment in its favor without a trial. Each said that the other had a duty of care to the shopper and was liable for damages arising from the accident. The court ruled in favor of the tenant, and the owner appealed.

Decision: An Illinois appeals court upheld the decision of the trial court.