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The Leasing Hotline
Issues Surrounding Implied Warranty of Suitability Bar Summary Judgment
A tenant estoppel agreement stating that the tenant found no existing default on the lease is not, in and of itself, grounds for summary judgment in favor of the landlord where issues of fact exist surrounding the implied warranty of suitability of the lease. Lewis et al. v. Pearland Plaza Partners, No. 01-04-00419-CV, Court of Appeals of Texas, First District, Houston, Aug. 17, 2006.
Lewis and Pearland entered into a lease commencing in June 1998. Seven months after the original lease was executed, Lewis signed a Tenant Estoppel Agreement stating that at the time of execution, there were no existing defaults on the lease. Lewis and her corporation occupied the premises for three years and then abandoned the premises and failed to pay rent to Pearland through the end of the lease term. Pearland commenced an action against Lewis for breach of contract. Lewis answered by stating that Pearland's claims were barred by: 1) failure of consideration, 2) failure to mitigate any alleged damages, 3) the statute of frauds, and 4) Pearland's breach of its implied warranty of suitability for intended purposes in a commercial lease.
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