Owner Loses

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What Happened: A national retail chain insisted that its shopping center lease include a clause requiring the landlord to indemnify it against losses arising out of things that happened in the common areas. The exact language:

What Happened: A shopping center lease required the landlord to notify a clothing retail tenant and abate its rent if the anchor tenant, TJ Maxx, ceased to be “Open for Business” for three consecutive months. TJ Maxx moved out, and it took six months for the landlord to find a new tenant, Ollies Bargain Outlet, for the space. The landlord didn’t provide the required notice after TJ Maxx vacated, but the tenant kept its mouth shut and continued paying full rent.

What Happened: With the HVAC system on the fritz, the heat inside the office building became so intense that a tenant’s employee passed out and had to be sent to a hospital, resulting in an OSHA heat stress complaint. At least that’s what the tenant argued. The landlord contended that it was working on the HVAC and that the tenant was exaggerating how stifling the heat was as an excuse for not paying rent.

Ruling: The New Hampshire federal court denied the landlord’s motion for summary judgment.

What Happened: An insurance company tenant that had leased office space in the same building for nearly 15 years wanted out when a new owner acquired the property. In May 2019, the parties agreed to modify the lease duration to end on June 30, 2020, one year before the lease’s written termination date. Or so the tenant claimed. Although the new owner put the space on the market in January 2020, the oral agreement, if there was one, was never put in writing. Things came to a head when the tenant failed to pay rent in July and August 2020.

What Happened: A strip mall tenant made extensive improvements to convert what had been a used clothing store into a grocery store. Over time, relations with the landlord soured. Convinced that he was paying too much for rent and CAM, the tenant decided to vacate and move to a new location when the lease expired. The landlord then moved in to remove the ventilation hood, display cases, checkout counters, interior freezer cases, and other improvements. The tenant cried foul, claiming that these things were its property.

What Happened: With the shopping center almost entirely vacant, the landlord didn’t care all that much that a bridge club tenant was letting its customers park in the front and rear lots. But as new tenants began moving in, demand for parking space increased and the landlord had to tighten the rules, relying on its lease right to establish: “reasonable rules. . .

What Happened: An office lease required a home health agency tenant to obtain fire insurance on the “Premises.” The tenant got insurance for its property but not the building. The building burned down, and the landlord sued the tenant for damages. The court tossed the case, finding that the fire insurance clause was unenforceable because the lease didn’t define the term “Premises” that the tenant was required to insure.

What Happened: A diesel-fuel vehicle repair business leased a building for use solely as an “equipment service and prep facility for fire trucks and other vehicles.” The problems began when the landlord’s manager discovered significant cracks in the building’s concrete. In addition to the broken concrete, the landlord found oil spills, unauthorized structural changes to the office, and other damages when the five-year lease ended.

What Happened: Winter Storm Uri devastated a commercial building six weeks before the lease was due to expire. The lease required the tenant to carry commercial general liability insurance on the property, name the landlord as an additional insured, and remit the insurance proceeds to the landlord. The tenant submitted a claim for the damages and paid rent through the end of the lease term before vacating the building. But because it hadn’t yet remitted any insurance proceeds, the landlord treated the tenant as a holdover.

What Happened: After the lease ended, a shopping center tenant hired a self-employed independent contractor to remove an exterior sign from the space. While performing the work, the contractor fell through a roof opening and suffered serious injuries. He sued the landlord, rather than the tenant, for damages, but the trial court dismissed the case, citing a California rule called the Privette doctrine holding that a person who hires an independent contractor isn’t liable for the injuries the contractor suffers doing the work.