Owner Loses

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Facts: After signing a lease and moving into its new space, a tenant was notified via inspection that its sprinkler system violated several fire code provisions and that it was storing merchandise too close to the sprinkler riser. The tenant asked the owner to correct the sprinkler system deficiencies. The owner responded by giving the tenant a notice stating that it would terminate the lease if the tenant did not move the items away from the sprinkler.

Facts: The owner of a shopping center sued a former tenant, a fast-food chain company, after the company's franchisee assumed the company's original lease but then breached by terminating early. Because the company remained the guarantor under the original lease, it made the franchisee's rent payments to the owner after the breach. The company and the owner later entered negotiations for a new lease, which broke down after the company objected to the unreasonable 60-day-out provision that the owner proposed. It subsequently stopped making rent payments.

Facts: A real estate company and an insurance company that were joint owners of a shopping center signed a declaration creating restrictive covenants that were to run with the land on which the center was built. Under the declaration, a tenant that sold food and drugs had an exclusive right to operate a “grocery store” in the shopping center. The grocery store leased its space from the real estate company, which had purchased its share of the shopping center mainly because of this exclusive right for its tenant.

Facts: Between 1998 and 2005, a tenant signed lease agreements for 15 of its electronics stores in various shopping centers managed by a real estate investment trust. The lease agreements required the manager to obtain property and liability insurance for the common areas of the centers. Each tenant in the centers was responsible for reimbursing the manager for its pro rata share of the cost.

Facts: Danada Square, LLC, the operator of a shopping center, sued KFC National Management Company, a former tenant, after a KFC franchisee assumed KFC's original lease but terminated the lease with Danada early. Because KFC remained the guarantor under the original lease, it made the franchisee's rent payments to Danada after the breach. KFC and Danada entered negotiations for a new lease, which broke down after KFC objected to an unreasonable 60-day-out provision. KFC stopped making rent payments.

Facts: Shortly after a tenant leased retail space in a shopping center to operate her clothing store, water began seeping through leaks in the roof. By June 2006 the entire store was flooded, damaging much of the inventory. After a brief re-opening, the tenant's store was closed permanently in November 2006. The tenant sued the owner for breach of its lease obligation to provide a serviceable roof.

Facts: A tenant alleged that after he entered into possession of two units in a commercial building under a rental agreement, he found that the door lock had been changed and a “for rent” sign had been put up. He was told that he had been “locked out” because he failed to pay rent.

He regained access to the premises two days later after the owner changed the lock back as advised by the police. The tenant sued the owner for money damages, including double damages, as well as attorney's fees.

Facts: In December 2005, Quincy Mall sued Kerasotes Showplace Theatres to recover alleged unpaid rent due under the commercial lease. In May 2008, the trial court ruled in favor of the theatres.

The owner argued that it was not its responsibility to replace the tenant's roof and that the tenant should not be allowed to offset the cost of the roof replacement against its rent.

Decision: The appeals court upheld the trial court's ruling in favor of the tenant.

Facts: A large retail bank approached an owner about leasing space so that it could open a branch. After several discussions and an assessment of the premises, the bank determined that the premises would not be suitable for its design. As a result, the bank sought and found suitable space to the west of the premises.

After securing the suitable space, the bank went back to the owner of the premises and signed a nonbinding letter of intent (LOI), meaning that it would not be bound by the terms agreed to during negotiations until there was a signed lease.

Facts: A tenant and an owner entered into a five-year lease, and the tenant made a $10,000 security deposit. Three years into the lease, the tenant approached the owner, wanting to transfer its lease to another business owner. The owner refused, and the tenant and the new business owner signed a new lease with the owner. The new lease allowed the new business owner to take over the space, but the tenant remained partly responsible for the space.