FPA Crescent Associates, LLC (FPA) owns the Crescent Building in Spokane, Washington. It leased a portion of the building to Pendleton Enterprises LLC (Pendleton). The lease defined the “lease term” as beginning on the commencement date and ending on the expiration date, unless terminated sooner pursuant to the express terms and conditions of the lease. The lease authorized FPA to terminate the lease on any event of default. The lease terms provided that if the tenant defaulted on any of its terms, the landlord then had “the option to terminate this Lease, in which event Tenant shall immediately […]
commercial lease
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A landlord and tenant entered into a commercial lease. The landlord required an additional signer as security. The lease expired. The tenants were current on the rent at the time the lease expired. The tenants stayed in possession and began a month-to-month tenancy. The tenants soon fell behind on rent, a moved out after several months, owing $8,709.12 in unpaid rent. The landlord assigned its right to the delinquent rent to a collections agent, who in turn sued the co-signer. In a bench trial, the trial court ruled in favor of the co-signer. The collections agent appealed. The Washington State […]
Niko’s Gourmet Inc. rented commercial space from Pacific Security Financial Inc. The owners of Niko’s Gourmet Inc. personally guaranteed the lease obligations. Pacific Security Financial Inc. sold the building to Peyton Building, LLC. Pacific Security Financial Inc. and Peyton Building, LLC. did not, however, execute an assignment of the lease.
Old City Hall LLC bought a commercial building in Tacoma with the intent to convert it into luxury condos. Old City Hall needed tenants in the building to vacate to speed up the process. Old City Hall offered to “buy out” existing commercial leases – offering the commercial tenants financial incentives to agree to terminate leases early and vacate. Most of the tenants accepted, but two tenants declined. Soon the building began to deteriorate. Janitorial services the landlord was contractually obligated to provide declined. Trash began to pile up. Human feces from unauthorized occupants littered the building.
A landlord leased commercial space to a tenant to operate a nightclub. The commercial tenant fell behind in rent. The landlord served a notice to pay rent or vacate, giving the statutory three-day period. The lease provided for twenty days to cure non-payment of rent. The tenant argued on appeal that the notice was defective. Although the notice only gave three days to cure non-payment of rent, the landlord waited more than twenty days before filing the summons and complaint. The Court of Appeals ruled that waiting the additional period before taking further action was sufficient, even though the notice […]
Implied in every lease agreement in Washington is a covenant, or duty of the landlord, to deliver exclusive possession to the tenant.[1] Preventing a tenant from gaining exclusive possession to land to which he or she is entitled under an agreement breaches this covenant and excuses any obligation to pay rent.[2] A tenant waives the right to rescind the lease but may still sue for damages when prevented from gaining possession of the demised premises at the beginning of the term, but waiting and occupying the premises as soon as they are available.[3] A lessee who is wrongfully refused possession of […]
Courts in some jurisdictions have extended the implied warranty of habitability to commercial leases to find an implied warranty of fitness for intended purpose.[1] Some commentators find the implied warranty of fitness analogous to the implied warranty of merchantability in the Uniform Commercial Code.[2] No Washington decision to date has found an implied warranty in commercial leases, but dicta in one opinion leaves the door open.[3]