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Landlord vs. Tenant – in the Commercial Arena

December 07, 2015
by Tim O'Connor
business, litigation, real estate, settlement
0 Comment

city-restaurant-table-pavementLandlord owns the building. Tenant runs a restaurant. The lease has more than 10 years left.

Property values in this part of town are starting to skyrocket. Landlord wants to get rid of the Tenant so that Landlord can sell the building to a high-rise condo developer. Tenant wants to stay, as the rising real estate prices are bringing a wealthier set of customers to the restaurant. These competing interests are about to collide, and the courthouse is about to be center stage.

An earthquake destroys the restaurant, but fortunately it’s insured. Landlord receives the insurance check for the repairs, but then drags his feet in having a contractor do the repairs, hoping that the delay will ruin the restaurant and perhaps cause the Tenant to miss his monthly payments and therefore breach the lease.

The delay in construction does, in fact, cause the Tenant to fall behind in the monthly lease payments. Landlord sues Tenant for falling behind with the rent – the Landlord’s scheme is working and soon this restaurant Tenant will be gone and the building can be sold to the high-rise condo developer. But this Tenant is not to be toyed with. Tenant decides to retain an attorney.

After a protracted legal battle, Landlord pays well over a half million dollars to “resolve matters” with Tenant.

About the Author
Tim O'Connor is a Sacramento-area attorney who's been practicing law since 1990. He specializes in fighting the good fight and achieving results in and out of the courtroom for his clients. You can call him at (916) 467-8000 or email him at Tim@TimOConnorAttorney.com.
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About The O’Connor Law Firm

Since 1990 The O’Connor Law Firm has achieved results for clients in and out of the courtroom. We have offices in the Sacramento region, and we represent numerous clients in beautiful South Lake Tahoe. Call us at (916) 467-8000 or send us a message to find out how we can help you.

101 Parkshore Drive, Suite 100
Folsom, CA 95630
Office: (916) 932-2312
Tim@TimOConnorAttorney.com
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Elk Grove, CA 95758
Office: (916) 506-7096
Tim@TimOConnorAttorney.com

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