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The Leasing Hotline

By ALM Staff | Law Journal Newsletters |
November 29, 2004

TENANT RESPONSIBLE FOR HVAC REPAIRS

A tenant may be responsible for HVAC repairs if the lease places such responsibility with the tenant, even if a portion of the repairs occurs outside of the leased premises. Chelsea GCA Realty Partnership, L.P. v. Pilgrim Silk Flowers, Inc., Case No. 2003-P-0013, Court of Appeals of Ohio, Eleventh Appellate District, Portage County, Sept. 30, 2004.

The landlord and tenant entered into a lease for a commercial unit. Under the lease, the tenant was responsible for all repairs and replacements on the leased premises. While occupying the premises, the tenant discovered that the HVAC system needed repair, but the tenant did not repair it. The landlord filed a petition in forcible entry and detainer, claiming that the tenant was in default of its obligation to pay rent and seeking eviction, restitution and damages. The tenant counterclaimed, arguing that the landlord had breached its obligations under the lease by failing to reimburse the tenant for improvements made to the commercial property. The tenant argued that because a portion of the HVAC system was located in the ceiling outside the leased premises and not within the leased premises, the landlord was responsible for payment for the repairs.

After a trial, judgment was entered in favor of the landlord for unpaid rent in the sum of $93,000, and the tenant's counterclaims were dismissed. The tenant appealed, and the appellate court affirmed. It first noted that the tenant had made a procedural error in its appeal by failing to include a trial transcript or a suitable substitute. Consequently, the appellate court was unable to consider evidence that may have affected its decision; it could only make its decision based upon the information before it that was contained in the trial court's decision. The appellate court concluded that its review of the trial court's decision found no error of law and that the plain language of the lease established the tenant's responsibility to repair the system. It did not find compelling the tenant's argument that the HVAC system was part of the landlord's common areas because a portion of the system was within the ceiling outside the defined leased premises.

TENANT RESPONSIBLE FOR HVAC REPAIRS

A tenant may be responsible for HVAC repairs if the lease places such responsibility with the tenant, even if a portion of the repairs occurs outside of the leased premises. Chelsea GCA Realty Partnership, L.P. v. Pilgrim Silk Flowers, Inc., Case No. 2003-P-0013, Court of Appeals of Ohio, Eleventh Appellate District, Portage County, Sept. 30, 2004.

The landlord and tenant entered into a lease for a commercial unit. Under the lease, the tenant was responsible for all repairs and replacements on the leased premises. While occupying the premises, the tenant discovered that the HVAC system needed repair, but the tenant did not repair it. The landlord filed a petition in forcible entry and detainer, claiming that the tenant was in default of its obligation to pay rent and seeking eviction, restitution and damages. The tenant counterclaimed, arguing that the landlord had breached its obligations under the lease by failing to reimburse the tenant for improvements made to the commercial property. The tenant argued that because a portion of the HVAC system was located in the ceiling outside the leased premises and not within the leased premises, the landlord was responsible for payment for the repairs.

After a trial, judgment was entered in favor of the landlord for unpaid rent in the sum of $93,000, and the tenant's counterclaims were dismissed. The tenant appealed, and the appellate court affirmed. It first noted that the tenant had made a procedural error in its appeal by failing to include a trial transcript or a suitable substitute. Consequently, the appellate court was unable to consider evidence that may have affected its decision; it could only make its decision based upon the information before it that was contained in the trial court's decision. The appellate court concluded that its review of the trial court's decision found no error of law and that the plain language of the lease established the tenant's responsibility to repair the system. It did not find compelling the tenant's argument that the HVAC system was part of the landlord's common areas because a portion of the system was within the ceiling outside the defined leased premises.

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