Commercial Landlord Refuses to Allow Sublease or Assignment
What is a Sublease or Assignment?
A sublease, or sublet, is a contract between a pre-existing tenant and a new tenant. For example, tenant A may have a lease with landlord X, but A subleases the rented property to tenant B through a contract. Generally, the new tenant takes on all the rights and obligations of a normal tenant, but for a limited amount of time. The original tenant is still liable for all the obligations of the original lease until it runs out.
An assignment is very similar to a sublease, except the new tenant takes on the rights and obligations of the entire lease, not just for a limited amount of time. In the case of an assignment, there is usually a contract between the new tenant and the original landlord, where one was lacking in a sublease. The original tenant is usually still liable for all the obligations of the original lease until it runs out.
Can I Sue if my Commercial Landlord Refuses to Allow a Sublease or Assignment?
In some instances, you can sue a commercial landlord if they refuse to allow a sublease or assignment to a commercial lease. In order to be successful, you will have to prove:
- A lease between you and a commercial landlord existed,
- The lease required the landlord not to unreasonably refuse a sublease or assignment,
- The landlord's prior consent to a sublease or assignment is needed, and
- The landlord unreasonably refused to allow a sublease or assignment.
What Remedies Exist if I am Successful?
If you are successful in a lawsuit against a commercial landlord for refusing to allow a sublease or assignment, your remedy could include:
- Compensation for any economic losses,
- Specific performance, which is a court order allowing the sublease or assignment, or
- A declaratory judgment, which is a court order outlining the rights of the commerical landlord and tenant.
Are There Any Defenses?
A lawsuit against a commercial landlord for their refusal to allow a sublease or assignment can be defended in many ways. A few common examples include:
- The lease agreement did not require the landlord to be reasonable when refusing to allow a sublease or assignment,
- The refusal by the commercial landlord to allow a sublease or assignment was reasonable, or
- The commercial landlord had insufficient information from the proposed new tenant about their ability to satisfy any lease obligations.
Do I Need an Attorney to Handle my Case if a Commercial Landlord Refuses to Allow a Sublease or Assignment?
If you are trying to get another tenant into your space through a sublease or assignment, or you are trying to take over another person's lease obligations through a sublease or assignment and a commercial landlord refuses to allow it, it is highly recommended that you contact a real estate or property attorney with specialization in commercial real estate law. Only they will be able to explain the issues and help defend your rights.
Consult a Lawyer - Present Your Case Now!
Last Modified: 06-25-2009 09:48 AM PDT
