Many commercial tenants that fail to pay rent because the premises are not “up to snuff” operate under the mistaken impression that they can continue to operate the business and defend their failure to pay rent by simply alleging that the landlord deprived them of the use of the premises. As the lady in the commercial says, “that’s not how any of this works!”
The essence of such a defense by a tenant relates to the condition of the premises, or its habitability.» Read More
If you are a commercial landlord, then chances are you have a relatively good relationship with your tenants. However, there are instances where a landlord and one of the tenants fall into a toxic relationship, or the tenant simply runs into financial difficulties resulting in nonpayment of rent, forcing the landlord to file an eviction action.
What can a landlord expect to have happen at the trial?» Read More
A Letter of Credit (“LOC”) is simply an agreement from a bank guaranteeing that Party A’s payment to Party B will be received on time and for the correct amount. LOC’s are used primarily in sizeable international trade transactions, i.e., a supplier in one country and a customer in another. LOC’s, however, can also be useful, and are regularly employed, in long-term commercial lease situations. » Read More
I previously wrote in this blog about the distraint process available to commercial landlords in New Jersey – a sometimes cumbersome process the purpose of which is to put into the landlord’s pocket at least some of the back rent due from a defaulting tenant (see The Distress of Distraint). In addition to the distraint statutes, there are other means available by way of statutes and contract provisions to protect a commercial landlord’s entitlement to unpaid back rent. » Read More
On Wednesday of last week, St. Patrick’s Day, the luck of the Irish was with a commercial tenant who happened to be a defendant in a condemnation action in which the owner’s interest in the property was not being condemned. In Town of Kearny v. Discount City, the New Jersey Supreme Court dismissed a condemnation action filed by the Town of Kearny, because its designated developer, who was also the landlord, failed to engage in bona fide negotiations with the only remaining holdout tenant, even though the lease between the landlord and tenant contained a standard condemnation clause in which it bargained away its right to receive compensation in a taking.» Read More