The Leasing Hotline

Implied Covenant of Good Faith

Failure to open a store was not a breach of the lease. Jefferson City Commons LLC v. Moran Foods Inc., 08 Civ. 4866, S.D.N.Y., May 21, 2009.

A Texas shopping center's operator sued a grocery store chain for breach of lease by failing to open a supermarket. Its amended complaint seeking base rent, additional rent, and attorneys' fees was expanded to include a claim for damages for rent and expenses lost from other tenants and diminution of the shopping center's value. Discussing lease ' 6.2, the court held that if liability is established, the plaintiff operator could recover only base rent, additional rent, and attorneys' fees. Contrary to the plaintiff's argument, ' 6.2 ' providing that the defendant had no obligation to open any business at the leased premises ' was not applicable solely in a situation in which a tenant later finds its business location unprofitable. In finding that the defendant's failure to open a grocery store did not breach the implied covenant of good faith and fair dealing, the court noted that the implied covenant is not breached where a party merely exercises rights afforded it under the lease agreement.

Premises Liability

A woman was awarded $4.4M in a fall that caused brain injury, Lopez v. Minyard Food Stores Inc., No. DC-07-0142, Dallas County District Court, 95th, TX, 06-26-2009.

In 2005, Liria Lopez, then 49, slipped on water that had accumulated near the entrance of a Minyard Food Store in Dallas, fracturing her right knee. In the following months, Lopez developed a movement disorder, experienced memory lapses and had troubles with concentration and speech. Almost two years later, she was diagnosed with a closed head injury, which her doctors claimed was caused by the incident. Due to the brain injury, Lopez is unable to work and had to move in with a relative because she needs constant care and supervision. Lopez alleged that she fell because the store failed to lay out mats or warn patrons of the water on the floor. A jury awarded her $4.4 million.

Implied Covenant of Good Faith

Failure to open a store was not a breach of the lease. Jefferson City Commons LLC v. Moran Foods Inc., 08 Civ. 4866, S.D.N.Y., May 21, 2009.

A Texas shopping center's operator sued a grocery store chain for breach of lease by failing to open a supermarket. Its amended complaint seeking base rent, additional rent, and attorneys' fees was expanded to include a claim for damages for rent and expenses lost from other tenants and diminution of the shopping center's value. Discussing lease ' 6.2, the court held that if liability is established, the plaintiff operator could recover only base rent, additional rent, and attorneys' fees. Contrary to the plaintiff's argument, ' 6.2 ' providing that the defendant had no obligation to open any business at the leased premises ' was not applicable solely in a situation in which a tenant later finds its business location unprofitable. In finding that the defendant's failure to open a grocery store did not breach the implied covenant of good faith and fair dealing, the court noted that the implied covenant is not breached where a party merely exercises rights afforded it under the lease agreement.

Premises Liability

A woman was awarded $4.4M in a fall that caused brain injury, Lopez v. Minyard Food Stores Inc., No. DC-07-0142, Dallas County District Court, 95th, TX, 06-26-2009.

In 2005, Liria Lopez, then 49, slipped on water that had accumulated near the entrance of a Minyard Food Store in Dallas, fracturing her right knee. In the following months, Lopez developed a movement disorder, experienced memory lapses and had troubles with concentration and speech. Almost two years later, she was diagnosed with a closed head injury, which her doctors claimed was caused by the incident. Due to the brain injury, Lopez is unable to work and had to move in with a relative because she needs constant care and supervision. Lopez alleged that she fell because the store failed to lay out mats or warn patrons of the water on the floor. A jury awarded her $4.4 million.