The Summary: In today’s financial climate, it is hard to keep up with the changes happening in shopping centers across the country. Retail space in shopping centers is staying vacant for several months or longer. Landlords are converting retail space to non-retail use or closing entire wings or floors of shopping centers. Landlords are even
Real Estate
Retail Lease Tying Rental Rate To Rent Of Competing Tenant Or Its Successor Held Inapplicable Where Competing Tenant Is Defunct
Case: California National Bank v. Woodbridge Plaza LLC, Case No. 05CC03999 (Cal. Ct. App. 6/20/08)
The One Sentence Summary: California Court of Appeal held that a bank’s retail lease providing for an extended lease term at the lesser of the then prevailing rental rate or the latest square foot rental rate of a competing bank…
Taxes Under a Lease: Not Just a Simple Pass-Through
The One Sentence Summary: While some view a tenant’s obligation to pay taxes as a pass-through from the landlord, this characterization is often inaccurate. Landlords frequently collect more in taxes than they in fact pay, and sometimes they collect less. Courts and juries in deciding what amount of taxes the landlord is entitled to charge…
California Court Imposes Duty on Landlord to Inspect Tenant’s Premises upon Entry of Unlawful Detainer Judgment of Possession
Case: Stone v. Center Trust Retail Properties, Inc., Case No. B181180 (Cal. Ct. App. 5/30/08)
The One Sentence Summary: The California Court of Appeal held that a shopping center landlord has a duty to inspect a tenant’s premises upon the entry of a judgment of possession in an unlawful detainer action, creating potential liability…
Landlord Must Provide Tenant with Supporting Documentation of Actual Common Area Expenses Incurred
Case: McClain v. Octagon Plaza, LLC, Case No. B194037 (Cal. Ct. App. 1/31/08)
The One Sentence Summary: Where retail lease requires tenant to pay its share of common area expenses based on landlord’s statement of the expenses, tenant is entitled to review landlord’s supporting documentation to verify that the stated expenses were incurred and…
Under California Constitution, Shopping Center May Not Prohibit Persons from Urging Customers to Boycott a Mall Store
Case: Fashion Valley Mall, LLC v. National Labor Relations Board, Case No. S144753 (Cal. Sup. Ct. 12/24/07)
The One Sentence Summary: Although shopping centers may enforce reasonable time, place, and manner rules to ensure that free speech activities do not interfere with normal business operations, they may not enforce content-based restrictions such as prohibiting speech…
Entrance Area of Retailer’s Store in Shopping Center Is Not Public Forum for Free Speech Activity Under California Constitution
Case: Van v. Home Depot, U.S.A., Inc., Case No. B190831 (Cal. Ct. App. 10/5/07)
The One Sentence Summary: The California Constitution does not protect expressive activity in the area immediately surrounding the entrance of an individual retail store that does not itself possess the characteristics of a public form, even when the store is…
What Makes For A Successful Tenant Overcharge Claim Against A Shopping Center Owner Or Operator
The One Sentence Summary: In successful claim after successful claim, it is the lease language that is most important.
Full Posting:
Every year there are thousands of disputes in which retail tenants claim they are overcharged by owners and operators of shopping centers for CAM expenses, utilities, taxes, marketing fund payments and other charges. The…
California Supreme Court Upholds City’s Zoning Ordinance Restricting Retail Sales in Designated Districts
Case: Hernandez v. City of Hanford, No. S143287 (Cal. Sup. Ct. 6/7/07)
The One Sentence Summary: California Supreme Court held that City of Hanford’s zoning ordinance restricting the sale of furniture in shopping mall district in order to protect retail furniture stores deemed vital to economic viability of city’s downtown commercial district was not…
Trial Court Rejects Property Owners’ Challenge to Condemnation of Land for Brooklyn’s Atlantic Yards Arena and Development Project
Case: Goldstein v. Pataki, 488 F. Supp. 2d 254 (E.D.N.Y. 6/6/07)
The One Sentence Summary: District court in Brooklyn rejected property owners’ claim that condemnation of property for mixed-use development project consisting of sports arena for New Jersey Nets basketball franchise, housing units, offices, retail space, and a hotel violated public use requirement of…