Owner Loses

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Facts: An office building tenant asked the owner to pay the property taxes that it claimed the owner was responsible for under its lease terms. The tenant withheld its rent while the owner refused to pay the property taxes. The owner informed the tenant that by withholding its rent payments, it was in default of the lease. But because the owner still hadn't paid the taxes, the tenant exercised its right to terminate the lease and moved out of the space.

Facts: An office building owner rented space to a bank under a five-year lease with two five-year extension options. Under the lease, if the tenant exercised its options to extend, the owner and tenant were to attempt to agree on the renewal rent. If they were unable to agree, the lease provided that the rent would be determined by appraisals conducted by two appraisers selected by the owner and tenant.

Facts: A supermarket tenant closed its store before the end of its 20-year lease for shopping center space. The center's owner sued the tenant, asking the court for: an injunction (that is, an order to a party to do or refrain from doing something) to force the tenant to continue operating; a declaration that the tenant was required to keep its store open and fully staffed; and money damages. A federal court denied the owner's requests. The tenant closed, but continued to pay the rent due under its lease.

Facts: A resident of a mixed-use retail and condominium building complained that the employees of a restaurant that rented space on the ground floor of the building played excessively loud music. The resident sued the owner of the building for “private nuisance,” claiming that the owner was responsible for the tenant's behavior. The owner asked a New York court for a judgment in its favor without a trial.

Facts: A building owner leased space to a restaurant tenant for a five-year term. During the course of renegotiating the lease at the end of the term, the tenant gave the owner a personal written guaranty. The lease provided for accelerated rent if the tenant breached the lease. The restaurant closed, and the tenant left the premises with three-and-a-half years remaining on the lease. The owner posted a sign at the building, noting that the property was available for lease.

Facts: An owner and insurance agency signed a 10-year lease for office space. The lease provided for two renewal terms of five years each if the tenant notified the owner 12 months prior to the end of the lease of its intention to renew. The lease also required the tenant to meet with the owner 14 months ahead of the lease termination to discuss fixed rent, if the tenant wanted to renew.

Facts: A jewelry store that rented space in an outdoor shopping center sued the owner of the center for fraud. At the time the tenant expressed interest in renting space in the center, the owner represented that a second center, “Phase II,” would be built next door, creating a large shopping complex and that national anchor tenants were prepared to rent space in the center and space at Phase II when it was completed, bringing foot traffic to the area around the tenant. In reliance on those representations, the tenant signed its lease.

Facts: A restaurant tenant signed a lease for space in a food court area of an office building. The tenant sued the building's owner for fraud and breach of contract, alleging that its food and supply delivery people were being refused access to the entrance of the building and the elevators, in violation of its lease, which provided that the tenant would have access to the entire building.

Facts: After a retail tenant didn't pay its rent, the owner of the space sued it for defaulting on its lease. The tenant didn't dispute the owner's claim that it had breached the lease. Instead, it argued that the owner was obligated to mitigate its damages—that is, take advantage of any reasonable opportunity to reduce or minimize the damage—before it could collect any money from the tenant.

Decision: A Connecticut housing court ruled in favor of the tenant.

Facts: A retail tenant assigned its lease to a drugstore, but asked the owner if it could remain primarily liable for the strip mall space, instead of reducing or entirely relieving itself from liability. The owner objected to the assignment and sued the tenant.

The trial court ruled in favor of the owner. It pointed out that the tenant's lease with the owner provides that the owner is entitled to terminate the lease if the tenant: (1) makes a late rent payment; or (2) is relieved from liability or reduces its liability by assigning or subletting to another business.