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What Happened: Ultimately, the tenant who leased property to open a marijuana retail store was found to have no excuse for moving out and not paying rent. But there was another question the court had to decide: Did the tenant have the right to take the bolted-down glass display cabinets, television monitors that were affixed to the walls, and outdoor air conditioning unit? The trial court said no, ruling that the items were fixtures that formed part of the property.
What Happened: The following clause, which refers to California Title 24 requiring buildings to meet specific energy efficiency standards, was at the center of a dispute between a landlord and its optical components manufacturing tenant:
Landlord shall be responsible to perform all work to the Premises and/or Building necessary to comply with Title 24 which may be required as a result of the Landlord's Work or Tenant's Work.
What Happened: Two unknown assailants attacked a GameStop customer in the parking lot of the property it leased. The customer sued GameStop for negligence. GameStop argued that it's not liable for what happened in the parking lot, because it doesn’t control that property; the landlord does.
Decision: The federal court in New Mexico agreed and tossed the case without a trial.
What Happened: A landlord discovered that a tenant had removed landscaping, added a sidewalk, and made other major structural alterations without notifying or getting the landlord’s consent as the lease required. The failure of the unauthorized alterations to meet building code, ADA, and other regulatory standards did little to relieve the landlord’s ire. But rather than evict, the landlord sued the tenant for committing waste, claiming that the alterations reduced the value of the property and would require hundreds of thousands of dollars to repair.
What Happened: For five years, a tenant leased space in Houston for use as a bar. After the lease ended, the tenant asked the landlord to return its $11,400 security deposit. When the landlord didn’t respond, it filed a lawsuit. The landlord countersued, claiming that the tenant did roughly $100K worth of damage to the premises. The trial court sided with the tenant, and the landlord appealed.
Decision: The Texas appeals court upheld the lower court’s ruling.
What Happened: A pizzeria tenant transferred its interests in a five-year lease to two individuals via an agreement called an “assignment.” When the individuals stopped paying rent with 14 months left on the lease, the landlord sued the tenant for payment of the $125K rental balance. The tenant then sued the individuals, but the court ruled that because the “assignment” was actually a sublease the individuals weren’t on the hook for the remaining 14 months’ rent. The tenant appealed.
What Happened: After doing an inspection, the landlord tried to evict the U.S. Postal Service (USPS) for violating its lease obligation to keep the premises in good repair, citing among other things:
Moss, birds, and bird droppings on the roof;
Safety netting installed under the ceilings;
Erosion of epoxy coating on the floors allowing water to leak in; and
Concrete deterioration of the ramp.
USPS denied violating the lease and insisted the damage was just ordinary wear and tear.
What Happened: Flooding caused by the bursting of a frozen sprinkler pipe forced a Boston specialty supermarket tenant to temporarily evacuate. After three months of waiting for the landlord to make the needed structural repairs, the tenant lost patience and sued for damages. The jury found that the landlord had violated its lease duty to make structural repairs and awarded the tenant $800,000 in damages, including lost profits for the time it was forced to shut down.
What Happened: A landlord sued a retail tenant for, among other things, not paying CAM charges. The tenant acknowledged its failure to pay but claimed it wasn’t liable because the landlord didn’t provide the certification required by the following lease language:
What Happened: A car dealership property was vandalized after the tenant took possession but before it opened. The tenant couldn’t use the space for three-and-a-half months but continued to pay the rent. After repairs were done, the tenant asked for a rent abatement under the following lease clause: