Owner Wins

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Facts: A tenant leased 4,375 square feet in a building and hired a contractor to do the buildout of the space. The contractor hired a subcontractor to do the work. Upon completion of the work, the tenant paid the contractor, but the contractor failed to pay the subcontractor.

Facts: A guarantor personally guaranteed the obligations of a tenant under its lease for 18 months. The obligation included rent, taxes, and insurance. When the tenant vacated the premises without notice, the owner tried to enforce the guaranty. The guarantor admitted signing the guaranty, but denied that it owed money to the owner. It claimed that the lease was induced by fraud and misrepresentation, because prior to signing the lease, the owner allegedly had promised to provide the tenant and guarantor with a list of business referrals, but never did.

Facts: After a tenant negotiated the sale of its lease and business to a third party, it asked the owner for consent to assign the lease. The owner refused, and the tenant sued, alleging that the owner unreasonably withheld consent. The trial court ruled in favor of the tenant, and the owner appealed.

Decision: A California appeals court reversed the trial court's decision and ruled in favor of the owner.

Facts: A tenant signed a lease for space that had a history of flooding problems. During the owner's tenure, it repaired any and all damage that resulted from flooding. Approximately five years into the lease, the owner sold the property, but signed an agreement with the new owner that made it responsible for flood damage repairs.

Facts: A tenant and an owner entered into a one-year lease. The tenant paid rent for three months and then abandoned the property, arguing that, according to the statute of frauds, the lease was invalid because it lacked a property description. The owner successfully sued in small claims court for the unpaid rent, and the tenant appealed. The trial court ruled in favor of the owner, and the tenant appealed.

Decision: A Georgia appeals court ruled in favor of the owner.

Facts: A tenant's dog attacked and severely injured a young child on the premises. The child's parent sued the dog's owner and won a substantial award, and later attempted to sue the building's owner for allegedly not evicting the tenant or forcing him to get rid of his dog. The court ruled in favor of the owner, and the young child's parent appealed.

Decision: A District of Columbia appeals court upheld the lower court's decision and ruled in favor of the building owner.

Facts: After a tenant filed for bankruptcy, a limited liability company (LLC) agreed, in a bankruptcy court order, to take over the tenant's lease and settle the tenant's outstanding debt, as determined by bankruptcy rules. The bankruptcy court's order also required the tenant to settle all existing defaults, including the overdue 2005 real estate taxes assessed on the property.

Facts: A tenant and owner entered into a 10-year lease. Approximately three years into the lease, the tenant sued the owner for violating the terms of the lease. The parties were able to reach a settlement orally, but asked the court to step in because they could not agree on the written version. The judge reviewed the settlement terms and ruled that the owner had waived its right to collect overdue charges because the issue had not been addressed in the oral settlement agreement. The owner appealed.

Facts: The tenant and owner entered into a lease agreement containing a provision that relieved the tenant from paying the rent and other charges during the lease term if the premises were unfit for occupancy.

Several months into the lease, the owner was informed that the premises had a leaky roof, and hired a contractor to fix the leak. After the work was completed, the city's health department inspected the building, found numerous code violations, and closed the tenant's space.

Facts: A shoe store tenant and an owner entered into a sublease, and also into a prospective six-year lease for the same space that was to begin when the sublease ended. The six-year lease gave the tenant a termination option.

After unsuccessfully negotiating a base rent reduction, the tenant's agent orally notified the owner that the tenant would be exercising its right to terminate, but sent the written notice and a check for the termination fee late by the terms of termination clause.