Justia Landlord - Tenant Opinion Summaries

Through an Asset Purchase Agreement, seller Huntcole, LLC (Huntcole), transferred to buyer 4-Way Electric Services, LLC (4-Way), all property necessary to conduct the refurbishment business. The Asset Purchase Agreement did not include the building where the refurbishment business was located. Instead, Huntcole leased that building to 4-Way through a separate Lease. Three years after buying the business, 4-Way announced it was moving to a new building in a different city. It began removing large pieces of commercial equipment it believed it had purchased from Huntcole to conduct the refurbishment business. Huntcole protested and argued that because the equipment was affixed to the building, it was not transferred to 4-Way through the Asset Purchase Agreement. The trial court ruled in favor of Huntcole, finding the affixed equipment had been excluded from the Asset Purchase Agreement. After its review, the Mississippi Supreme Court affirmed in part and reversed in part the trial court's judgment. The Supreme Court found that based on the plain language of the Asset Purchase Agreement, 4-Way, by purchasing all assets necessary to conduct the refurbishment business, did in fact purchase the very equipment needed to conduct the business. The Asset Purchase Agreement also clearly designated the equipment as personal property and not as building improvements or fixtures. The Supreme Court concurred with the trial court that 4-Way did not have the right to cause damage to the building in a way that breached the Lease. The case was remanded to the trial court to determine the appropriate amount of damages to repair the building in accordance with the Lease, and to recalculate Huntcole's attorney fees' awards. View "4-Way Electric Services, LLC v. Huntcole, LLC, et al." on Justia Law

The Supreme Judicial Court reversed the decision of the district court granting a partial summary judgment construing a long-term written lease between Owner and Tenant and, after a trial, entering a judgment regarding the parties dispute over minimum rent, holding that a factual issue existed precluding summary judgment.Owner sued Tenant for breach of contract after the parties could not agree when renegotiating minimum rent, alleging express breach of contract, declaratory judgment, and breach of the implied duty of good faith and fair dealing. The district court entered partial summary judgment in favor of Owner construing the lease but held that there were material facts in dispute as to whether Owner violated the implied duty of good faith and fair dealing when renegotiating. After a trial, the court entered judgment for Owner. The Supreme Court reversed, holding that the provision in the lease regarding minimum rent is ambiguous, and therefore, the court's entry of partial summary judgment on the issue must be reversed. The Court remanded the case for further proceedings. View "Brush & Co. v. W. O. Zangger & Son, Inc." on Justia Law

Defendant is a landlord, who allegedly terminated a lease based on Tenants' family status. The United States brought a claim against Defendant under the Fair Housing Act (FHA). A jury awarded Tenants $14,400 in compensatory damages and $60,000 in punitive damages. Defendant landlord filed post-trial motions, which were denied.Defendant appealed, and the Eighth Circuit affirmed, finding that there was sufficient evidence that Defendant landlord acted with at least reckless indifference and the district court did not err in submitting the punitive damages issue to the jury. The Eighth Circuit also held that the award was not unconstitutionally excessive View "United States v. Louis Rupp, II" on Justia Law

Samsara rented San Francisco office space from Rreef for a ten-year term, to be in “delivery condition” by November 1, 2019. Samsara provided an $11,384,368.00 letter of credit as “collateral for the full performance.” In 2021, Samsara sued, asserting that in July 2019, after Rreef had certified “delivery condition,” Samsara discovered that the premises were contaminated with lead and asbestos and that after Samsara conducted testing, Rreef cut off its access to the premises. The next day, Rreef served Samsara a 5-day notice to pay rent or quit based on Samsara’s alleged failure to pay rent for August-September 2021 ($1,826,697.95). Rreef subsequently filed an unlawful detainer complaint, alleging that Samsara stopped paying rent and had created a pretext to avoid its lease obligations. In October 2021, Rreef sought a writ of attachment in the unlawful detainer action, seeking $3,796,175.51: the amount demanded in the 5-day notice and $1,784,477.53 for October-November.The court granted Rreef’s application. The court of appeal reversed and remanded. The court rejected Samsara’s arguments that the amount that Rreef sought to attach must be reduced under Code of Civil Procedure 483.015(b)(4) by the amount remaining on the letter of credit and that the trial court erroneously refused to consider Samsara’s affirmative defenses of waiver and estoppel. However, the trial court declined to consider Samsara’s retaliatory eviction defense and whether Rreef sought attachment for an improper purpose. View "Rreef America Reit II Corp, YYYY v. Samsara, Inc." on Justia Law

The Supreme Court affirmed the summary judgment of the district court concluding that a condominium owner-landlord owed no duty of care with respect to a downspout that discharged water directly onto a shared driveway, holding that the owner-landlord had no common law, contractual, or statutory duty to keep the driveway clear.The condominiums at issue in this case were subject to a horizontal property regime pursuant to Iowa Code ch. 449B, which, in turn, was governed by a document referred to as the declaration. Shelly and Cameron Barnes leased a condominium unit from CDM Rentals, LLC. After Shelly fell on ice on the shared driveway the Barneses brought this negligence lawsuit. The district court granted summary judgment for CDM on the ground that CDM lacked control over the common areas. The Supreme Court affirmed, holding (1) regarding premises liability, CDM lacked control of the driveway and downspout under the declaration; and (2) the district court correctly concluded that the Uniform Residential Landlord and Tenant Act, Iowa Code ch. 562A, requires landlords to maintain common areas but only to the extent the landlord has control over those areas. View "Barnes v. CDM Rentals, LLC" on Justia Law

Moses attended a gathering at a condominium Roger-McKeever rented. Two years later, Moses filed suit for injuries. Moses alleged that, upon her arrival, she mentioned to Roger-McKeever that the entryway was dark. Roger-McKeever “was apologetic indicating that there was an electrical problem” and explained that her landlord had not been responsive in repairing the light. A photograph depicted three steps leading up from a street sidewalk, to a short walkway that ended at a door to Roger-McKeever’s condominium. Moses stated that when she was leaving, she could not see the second step and fell. She provided a declaration from a mechanical engineer that the steps were non-compliant with the building code and that the absence of a handrail and the riser heights were probable causes of the accident. Roger-McKeever submitted a declaration and the depositions of two individuals who attended the meeting, indicating that the walkway was not noticeably dark that night.The court granted Roger-McKeever summary judgment, finding that Roger-McKeever was a tenant who did not have control over the steps or the outside lighting and had no duty to maintain or repair that area. Roger-McKeever did not have a duty to warn Moses because she did not have prior notice that the steps were a “non-obvious” dangerous condition. The court of appeal affirmed. Moses did not raise a triable issue of material fact as to whether Roger-McKeever owed her a duty of care to protect her against the allegedly dangerous condition of the walkway. View "Moses v. Roger-McKeever" on Justia Law

The landlord is a four-member LLC with a single asset--a building in downtown Napa. The tenant, Stone Brewing, a large beer brewing and retail corporation, operates a brewpub in the building. Stone Brewing did not pay rent for several months during the pandemic. The landlord sued for unlawful detainer. Stone argued it was excused from paying rent because COVID-19 regulations and business interruptions triggered a force majeure provision in its lease.The trial court granted the landlord summary judgment, finding that the force majeure provision only excused performance if the claiming party was unable to meet its obligations due to factors outside its control; the tenant admitted during discovery it had the financial resources to pay rent during the period of the COVID-19 regulations but simply refused to do so. The court of appeal affirmed. The force majeure provision does not apply where the tenant had the ability to meet its contractual obligations but chooses not to perform due to financial constraints. The plain meaning of the force majeure provision does not support an interpretation that ties a party’s obligation to pay rent to its profitability or revenue stream instead of a delay or interruption caused by the force majeure event itself. View "West Pueblo Partners, LLC v. Stone Brewing Co., LLC" on Justia Law

Plaintiffs Clearview Realty Ventures, LLC, JHM HIX Keene, LLC, VIDHI Hospitality, LLC, NAKSH Hospitality, LLC, 298 Queen City Hotel, LLC, ANSHI Hospitality, LLC, 700 Elm, LLC, Bedford-Carnevale, LLC, and Carnevale Holdings, LLC, owned commercial real estate on which they operated hotels, some of which offered restaurant services along with banquet or function facilities. They contended that the COVID-19 pandemic was a “natural disaster” and that their buildings were “damaged” within the meaning of RSA 76:21, I. Plaintiffs sought relief from the New Hampshire municipalities involved: the Cities of Laconia, Keene, and Manchester, and the Town of Bedford. After denial of their applications, they appealed to the superior court in the applicable county. Observing that there were thirteen separate lawsuits pending in six counties, they then filed an assented-to motion for interlocutory transfer without ruling and motion to consolidate to allow the coordinated transfer of the common questions of law to the New Hampshire Supreme Court. In this interlocutory transfer without ruling, the Supreme Court was asked to determine: (1) whether, for purposes of RSA 76:21, the COVID-19 pandemic constituted a “natural disaster”; and (2) if so, whether the buildings owned by the plaintiffs were “damaged” by COVID-19 such that they were “not able to be used for [their] intended use” within the meaning of RSA 76:21, I. The Court answered the second question in the negative. View "Clearview Realty Ventures, LLC v. City of Laconia; et al." on Justia Law

Landlords purchased two derelict Berkeley single-family homes and converted them into triplexes. One house had been operated as an unpermitted rooming house and the other had been registered as a rooming house since 2000. After the units were rented, a dispute arose as to whether the properties were subject to Berkeley’s Rent Stabilization and Eviction Ordinance. Landlords contended the new units were exempt from local rent control under the Costa-Hawkins Rental Housing Act, Civil Code 1954.50, which provides an exemption for residential units that have a certificate of occupancy issued after February 1, 1995. Berkeley’s Rent Stabilization Board disagreed as to four of the six units. The Board concluded two units in each building were carved from space that had been rented for residential use before the current certificates of occupancy were issued; those units reflect a mere conversion from one form of residential use to another, rather than an expansion of the housing stock. Only an attic unit in one building and a basement unit in the other are exempt from local rent control as new constructionThe court of appeal agreed. Because the four units in dispute were converted from space long dedicated to residential use, precedent indicates that Costa-Hawkins does not exempt them from local rent control as new construction. View "NCR Properties, LLC v. City of Berkeley" on Justia Law

Transform Operating Stores, LLC d/b/a Transformco Operating Stores LLC; Transform SR Brands LLC d/b/a Transformco d/b/a Kmart; and Transform KM LLC (collectively, “Transform”) appealed after a North Dakota district court entered an order awarding damages to Ted J. Boutrous, L.L.C. and The Boutrous Group, LLP and entered a [second] amended judgment of eviction. The North Dakota Supreme Court concluded the district court did not err finding a material breach of the lease and in exercising jurisdiction as a summary eviction. "While the court abused its discretion in bifurcating the eviction action, that error was harmless." The Court further concluded Transform failed to timely appeal the court’s contempt order for the untimely turnover of the property. View "Boutrous, et al. v. Transform Operating Stores, et al." on Justia Law