Legal Question in Business Law in California

Re: Lease extension denied

Ethnic discrimination might be raised as an issue here, but I think the deciding issue would be whether you have a right to a longer lease based upon a valid option. If you have a valid option (I stress "valid" because option rights can be lost by the option-holder's failure to abide by all its terms), the landlord can be compelled to honor it.

If you do not have a valid option, you can be replaced by another tenant at the end of your current lease, but you might be able to assert that the landlord discriminated against you in choosing a successor tenant. I think this is a long shot; the landlord would argue that his choice of tenant was based on ordinary business judgment factors and had nothing to do with ethnicity. Proving otherwise would be difficult.

Re: Lease extension denied

You should have an attorney review your lease to determine whether the landlord must accept your exercise of the option and when it should be done. Usually, in exchange for the right to have an option, the lessee pays a premium. Thus, your lease might already have had a built-in premium that you have paid for the option. Make sure to follow the strict requirements of the option which, typically, mandates the landlord to extend the lease.

As for discrimination, depending upon the community you're in, other types of business in the property, the landlord might make a business decision as to what would draw the most customers to the other businesses. So, that's a factor as well. There well might be discrimination if these factors are absent.

Re: Lease extension denied

The written contract defines the rights of the parties. Have it reviewed with counsel to see what you can do. Feel free to contact me if serious.